ORDER
BUILD
TEST
SHIP
OK?
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  − −=
Section Topic 1.0 Introduct ion and Purpose
2.0 Improvement Systems 2.1 Quality Management Systems 2.2 Improving Existing Products and Services 2.3 Managing Processes 2.4 Designing New Products and Services 2.5 Business Strategy Planning Process 2.6 Six Sigma “Belts”
3.0 Team Facil itation and Management 3.1 Working With Teams 3.2 Idea Generation & Decision Making 3.3 Exercises
4.0 Obtaining the Voice of the Customer 4.1 Core Customer Research Methods 4.2 Exercises
5.0 Process Management & Analys is 5.1 Process Thinking 5.2 Pictures of the Process 5.3 Process Management Methods 5.4 Process Analysis Methods 5.5 Lean Manufacturing 5.6 Exercises
6.0 Measuring Performance & Variabi lity 6.1 Developing Performance Indicators 6.2 Data Collection 6.3 Core Data Displays 6.4 Introduction to Control Charts 6.5 Measurement Control Charts
Section Topic 6.6 Attribute Control Charts 6.7 Measurement System Analysis 6.8 Process Capability Analysis 6.9 Additional Control Chart Topics
6.10 Exercises
7.0 Stratification & Prioritization 7.1 Pie, Bar & Radar Charts 7.2 Pareto Analysis 7.3 Exercises
8.0 Cause & Effect 8.1 Cause and Effect Analysis 8.2 Exercises 
9.0 Detecting Differences 9.1 Foundations of Probability and Statistics 9.2 Hypothesis Testing 9.3 Sampling Theory 9.4 Exercises
10.0 Relationships Between Variables 10.1 Scatter Diagrams and Correlation
 Analysis 10.2 Regression Analysis 10.3 Analysis of Variance (ANOVA) 10.4 Exercises
11.0 Experimentation 11.1 Designing and Running Experiments 11.2 Exercises
 
Countermeasures 12.2 Financial Analysis of Changes 12.3 Exercises
13.0 Changing 13.1  Change Management 13.2  Exercises
14.0 Design Management 14.1 Defining Product/Service Requirements 14.2 Conceptual Design 14.3 Benchmarking 14.4 Taguchi Design Approach 14.5 Multi-Generational Product Planning 14.6 Exercises
15.0 Reliabil ity Management 15.1 Reliability Concepts and Management 15.2 Failure/Error Modes & Effects Analysis 15.3 Fault Tree Analysis 15.4 Quantifying Reliability 15.5 Root Cause Analysis 15.6 Exercises
16.0 Planning & Review Tools 16.1 Seven Planning Tools 16.2 Operating Reviews 16.3 Exercises
Section Topic
 Appendices A. Probab il ity Distribut ions B. Sigma Conversion Table C. Forms and Templates D. Answers to Selected Exercises
Glossary of Statistical Terms Bibliography Index
 
1- 3
Respect for People – Finally, we recognize the people “dimension” of quality. There are several aspects to address here. First, at the core, modern quality management adopts the assumption that people are “good.” They don’t come to work intending to produce failures or defects. Second, to improve, we will ask our staff to change, which is not always comfortable. Third, you will be involved with teams of people who will help you solve problems and improve your business processes. You will need skills to effectively lead and facilitate improvement efforts. Sections 3, 12, 13 & 16 provide you with methods to support this principle.
Good luck with your Black Belt training, qualification and projects. We are sure you will find this time of your career exciting, challenging and rewarding – both for you personally and for your company.
John O’Neill
Six Sigma Alliance
Recognition  – There are too many people to thank for their contribution and input to this manual. A few, though, that we cannot fail to mention include :
Our Counselors at Florida Power & Light : the late Dr. Teiichi Ando, Prof. Hideo Iwasaki, Dr. Kazuyuki Suzuki, Dr. Hajime Makabe, Dr. Noriaki Kano, Dr. Yoshio Kondo, Professor Asaka,
FPL Thought and Application Leaders : Bob Young, Bill Hensler, Bob Fritz, Cathy Lindbergh, Bruce Sharp, Marie DaVerio, Tom Gilmore, Bob Wernly, Brendan Collins, Rick Dobbins, Don Paxson, Kent Sterett
 
2.2 Improving Existing Products and Services 2.2 – 1
2.3 Managing Processes 2.3 – 1
2.4 Designing New Products and Services 2.4 – 1
2.5 Strategic Planning Process 2.5 – 1
2.6 Black Belts and Master Black Belts 2.6 - 1
 
•  To understand the purpose, principles and practice of quality management
Unit Contents
2.1 - 3
Plan-Do-Check-Act (PDCA)  – This is the simplest of the principles, but the most difficult to practice. Companies often employ a linear, “market-out” process to product/service production:
In the 1920’s, Walter Shewhart turned this linear process into a feedback loop, adding a “Check” step:
When Dr. Deming introduced the Shewhart cycle to the Japanese in the 1950’s, they translated the cycle into the PDCA loop and renamed it the Deming Cycle. They also generalized the cycle to incorporate any kind of work, not just product production:
 
Specify Product Produce & Sell Product
Evaluate Product
2.1 - 4
company must balance the rewards of its endeavors among management, staff and shareholders. Finally, the company owes its employees a safe working environment, as free as possible from injury potential.
One Company that has managed to blend all these into an operating philosophy is Johnson & Johnson. Their Credo is known (and applied!) by all employees. The Corporation has drawn heavily on the strength of the Credo for guidance through the years, and at no time was this more evident than during the TYLENOL ® crises of 1982 and 1986, when the company's product was adulterated with cyanide and used as a murder weapon. With Johnson & Johnson's good name and reputation at stake, company managers and employees made countless decisions that were inspired by the philosophy embodied in the Credo. The company's reputation was preserved and the TYLENOL ® acetaminophen business was regained.
 
JOHNSON & JOHNSON COMPANY CREDO
We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.
We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fail and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical.
We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens – support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.
 
2.1.2 Quality Management Approaches
The problem of quality management has been with us as long as humans have engaged in economic activity. Here we will provide a brief overview of different approaches. For those interested in the history of quality management, Dr. Joseph Juran has written The History of Quality – a fascinating documentary of this topic.
“ Old-Fashioned” Approach
Prior to the development of mass-production methods, a large fraction of human economy occurred on a one-to-one basis. A customer would meet with a craftsman and describe what they wanted (e.g. a silversmith or goldsmith for jewelry or a blacksmith for a plough or other tool). The craftsman embodied all corporate “functions” in one person – sales, planning, design, production, and service. This approach helped ensure that the customer’s needs were incorporated into the product or service. Since the products were generally produced one at a time, variation between parts was not a problem. The craftsman also acted as the “quality control” function, inspecting the product for flaws or defects.
Inspection Based
With the advent of mass-production and the modern, functionally divided organization, the close connection between the producer and consumer became fragmented. A worker assembling engines in an automobile factory would never see the ultimate customer of the car. To communicate requirements, specifications were developed. To account for inevitable variation in parts, tolerance limits were incorporated into the specifications. Inspection and sorting of parts based on a “go, no-go” conformance to specifications was employed to prevent defects in the product.
Standard Based
 
2.1 - 7
Statistical Approach
In the 1920’s, Walter Shewhart, of Bell Laboratories, developed the control chart or statistical  approach to control of quality. His approach incorporates the idea that variation exists in all production processes and that a state of control can be achieved through systematic elimination of assignable causes of variation – that due to materials, methods, people, or machines. The incorporation of statistical quality control into the US’ wartime “Z” standards is credited as one of the major factors leading to the allied victory (interestingly, Japanese quality texts almost always cite this effect). Through statistical quality control, a rifle produced in one factory could fire bullets produced in another plant.
Deming’s Approach
 Although W. Edwards Deming’s roots are found in the application of statistical quality control on the shop floor, he recognized that quality was the main responsibility of senior management. Without their commitment to continuous improvement, efforts at lower levels in the organization would be fragmented and ineffective. Rather than focus on the “mechanics” of quality management, Deming evolved a set of principles that he stated could be applied by any organization, regardless of what they “produced:”
Deming’s 14 Points 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and
to stay in business, and to provide jobs. 2. Adopt the new philosophy. Western management must awaken to the challenge, must learn their responsibilities,
and take on leadership for a change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building
quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single
supplier for any one of item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity and thus
constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job.
 
2.1 - 8
9. Break down barriers between departments. People in research, design, sales and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.
10. Eliminate slogans, exhortations and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
11. Eliminate work standards (quotas) on the factory floor. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
12. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective.
13. Institute a vigorous program of education and self-improvement. 14. Put everybody to work in the company to work to accomplish the transformation. The transformation is
everybody’s job.
Deming’s principles also include the following “deadly diseases” and obstacles to improvement:
Deadly Diseases 1. Lack of constancy of purpose to plan product and service that will have a market and keep the company in
business, and provide jobs. 2. Emphasis on short-term profits: short-term thinking (just the opposite from constancy of purpose to stay in
business), fed by fear of unfriendly takeover and by push from bankers and owners for dividends. 3. Evaluation of performance, merit rating, or annual review. 4. Mobility of management; job-hopping. 5. Management by use only of visible figures, with little or no consideration of figures that are unknown or
unknowable. 6. Excessive medical costs (unique to the US). 7. Excessive costs of liability, swelled by lawyers that work on contingency fees.
 
2.1 - 9
4. “Our problems are different.” 5. Obsolescence in schools. 6. Poor teaching of statistical methods in industry. 7. Use of tables and methods for acceptance sampling of incoming or outgoing product. 8. “Our quality control department takes care of all our problems of quality.” 9. “Our troubles lie entirely in the work force.” 10. False starts. 11. “We installed quality control.” 12. The unmanned computer. 13. The supposition that it is only necessary to meet specifications. 14. The fallacy of zero defects. 15. Inadequate testing of prototypes. 16. “Anyone who comes to try to help us must understand all about our business.”
One of Dr. Deming’s last books, Out of the Crisis, should be read by all people interested in managing for quality.
Feigenbaum, Juran, Quality Systems and the Japanese Approach
 Armand Feigenbaum and Joe Juran also recognized that quality management required the cooperation and engagement of the entire organization. Contrasting to Deming’s development of fundamental principles, Feigenbaum and Juran took a more application-oriented approach. Feigenbaum coined the term “Total Quality Management” to describe a holistic approach to achieving quality and financial performance. In his book of the same name, Feigenbaum outlines the responsibilities, quality systems, tasks and activities of quality management. Dr. Juran has long been noted for the Juran Quality Handbook, the “Bible” of quality management. The quality practitioner can find just about every quality tool in existence described there.  
 
2.1 - 10
holistic, organization-wide approach to quality. During the 1980’s and 1990’s, although the term TQM was used in the US, for the most part, organizations only focused on “local” problem-solving/process improvement, only one component of TQM.
Six Sigma
In the 1980’s, a new angle on quality management appeared under the banner of Six Sigma. Although Six Sigma’s core includes the traditional statistical and quality techniques, the original approach developed by Motorola added a few wrinkles worthy of note. The term Six Sigma simply refers to a process that operates at a short-term process capability of 2.0 – that is the process’ standard deviation is 1/6 th  the distance from the target to the specification limit. Over the long- term, such a process can be expected to produce less than 3.4 defects per million opportunities. There is nothing “magic” about this defect rate – it is simply a benchmark that Motorola observed was being achieved by best-in-class companies (typically Japanese!). The Six Sigma term does seem to have a certain appeal to executives as a worthy goal. The fact that Jack Welch of GE has successfully promoted the pursuit of Six Sigma has also enhanced its marketability and (currently) Wall Street looks favorably on companies that announce their pursuit of Six Sigma.
 Another element of the Six Sigma approach is the use of a dedicated resource applied to significant corporate problems and opportunities – the Black Belt (see Section 2.6 for more details). The Black Belt model supports two aims. First, the dedicated resource embodied in the Black Belt helps achieve an improvement “velocity” in the organization that is does not occur via other models (e.g. training lots of staff and then engaging them in part time projects). Second, the rotation of the Black Belt back into the line organization after a “tour of duty” can help embed the quality culture in the organization.
 
2.1.3 One Approach – A Baldrige-Based Quality System 
 
Utilizing Information and Data to Develop Plans and Actions to
Support Our Strategic Direction and Deliver Business Results  
Defining Strategy &  Actions Based on Customer Needs &
Communicating Direction
Focused
Delivering Total Shareholder Return
Employees Through Focused Involvement
Driving Improvement In Our Processes To Exceed Our Customer and Internal
Requirements & Expectations
Into Products/Services Which Delight Them
 
 A Brief Organizational Assessment:
 
Category Items
Leadership Leadership System – describe the company’s leadership system and how senior leaders guide the company in setting directions and in developing and sustaining effective leadership throughout the organization.
Company Responsibility & Citizenship – describe how the company addresses its responsibilities to the public and how the company practices good citizenship.
Strategic Planning
Strategy Development Process – describe how the company sets strategic directions to strengthen its business performance and competitive position.
Company Strategy – summarize the company’s strategy and action plans, how they are deployed and how performance is tracked.
Customer & Market Focus
Customer and Market Knowledge – describe how the company determines longer-term requirements, expectations and preferences of target and/or potential customers and markets. Describe this information is used to understand and anticipate needs and to develop business opportunities.
Customer Satisfaction & Relationship Enhancement – describe how the company determines and enhances the satisfaction of its customers to build relationships, to improve current offerings, and to support customer- and market-related planning.
Information &  Analysis
Selection & Use of Information & Data – describe how the company determines and enhances the satisfaction of its customers to build relationships, to improve current offerings and to support customer- and market-related planning.
 
improve company performance.
 Analysis & Review of Company Performance – describe how the company analyzes and reviews overall performance to assess progress relative to plans and goals and to identify key areas for improvement.
Human Resource Focus
Work Systems – describe how all employees contribute to achieving the company’s performance and learning objectives, through work design, compensation and recognition approaches.
Employee Education, Training & Development – describe how the company’s education and training support the accomplishment of key company action plans and address company needs, including building knowledge, skills and capabilities, and contribute to improved employee performance and development.
Employee Well-Being & Satisfaction – describe how the company maintains a work environment and climate that support the well-being, satisfaction and motivation of employees.
Process Management
Management of Product & Service Processes – describe how products and services are designed, implemented and improved. Describe how production/delivery processes are designed, implemented, managed and improved.
Management of Support Processes – describe how the company’s key support processes are designed, implemented, managed and improved.
Management of Supplier and Partnering Processes – describe how the company’s supplier and partnering processes and relationships are designed, implemented, managed and improved. Describe how supplier and partner performance is managed and improved.
Business Results
Customer Satisfaction Results – summarize the company’s customer satisfaction and dissatisfaction results.
 
Category Items
Human Resource Results – summarize the company’s human resource results, including employee well being, satisfaction, development and work system performance.
Supplier & Partner Results – summarize the company’s supplier and partner performance results.
Company-Specific Results – summarize company operational performance results that contribute to the achievement of key company performance goals – customer satisfaction, product and service quality, operational effectiveness and financial/ marketplace performance.
 
2.2 - 1
Learning Objectives
Unit Contents
2.2 - 2
Continuous improvement is the goal. As Jack Welch, CEO of General Electric notes, “If the rate of change on the outside is greater than the rate of change on the inside, then the end is near.”   The word continuous means ongoing, endless, unbroken, and is figuratively associated with the circle, which embodies these characteristics.
We use the Plan-Do-Check-Act (PDCA) cycle as the core “theory” of our improvement method. In our years working with companies, we’ve noted that PDCA is easy to understand, but hard to practice.
Plan-Do-Check-Act
process. 
based on customer needs,
them.
Plan
what is working and what is not.
Check Implement what you
2.2 - 3
The DMAIEC Improvement Process
We’ve translated the PDCA cycle into a practical 6-step approach for teams and individuals to employ during problem solving/process improvement efforts. The method is described on the next few pages. The PDCA wheel is “rotated” more than once in this six-step approach.
•Launch The Project
•Identify Breakthroughs
•Identify Replication Opportunities
•Develop Future Plans
 
2.2 - 4
 
PURPOSE:  There are many problems could be addressed. You must build the case for why this problem is important to address now. Does the problem relate to the most important product/service of your department or is it strategically important to your organization? What is the “gap,” what’s the “pain?” If the problem is not seen as important, there won’t be much enthusiasm to work on it. Also, in this step, the project is planned, team members identified, resources approved.
METHODS: • Launch The Project  - Brainstorm a list of problems. Select the most important one to address. Collect customer feedback to identify problems with your products and services. Select the most important one to address. Collect performance data on your products and services (quality, cost, delivery, safety). Pick a product/service with the largest performance “gap.” Obtain a copy of your organization’s strategic plan. Where and how can your department contribute to the overall plan? Which of your products/services must be improved? As the output of this step, develop a “theme” or “mission” statement for the effort.
• Define Outcomes  – How will the success of the project be measured? What aspect of the product or service needs improvement - quality, cost, delivery or safety?  
• Identify Stakeholders  – Who are the key people who will be impacted by (or who can influence) the project’s direction and success? Where do they stand relative to changes that may occur as a result of this project? 
• Select Team – Who should be represented? Full-time? Part-time?  
• Determine Project Approach  – DMAIIC provides a general project approach; what specific modifications or additions are needed?  
• Create Project Plan  – Develop a work breakdown structure, PERT and/or Gantt chart.
TOOLS:  • Customer Feedback/Complaint Data
• Organization Strategic Plan
• Project Planning Worksheet
 
2.2 - 6
 
PURPOSE:  This is the “why” or diagnostic step. Where the Current Situation step helped us understand the 5W1H of the process, here we will develop hypotheses regarding the variables that are causing the problem or “gap.” These hypotheses must then be confirmed or refuted and the “true causes” of the problem identified.
METHODS: • Develop Cause & Effect Hypotheses  - Develop hypotheses about why the problem occurs. These may include Material, Machine/Equipment, Method, People, Measurement and Environment factors. Cause and Effect analysis is the most basic (but powerful!) approach to developing these hypotheses.  
• Gather Causal Data – Plan how you will gather evidence to support your hypotheses. Gather evidence to establish the “guilt” or “innocence” of the different factors. This may be done through analysis of product or service outputs and “production” process factors, or through experiments performed that deliberately change the value of factors in the “production” process.
• Determine & Validate Root Causes (X’s)  – Study the results of your cause and effect analysis. Which of the potential root causes contribute most to the problem you are attempting to solve. If you eliminate the root cause, how much will the problem be reduced?
TOOLS:  • Cause and Effect Analysis
• Pareto Analysis of Causes
• Design of Experiments
 
2.2 - 7
 
PURPOSE:  Here, changes will be identified that impact the important variables discovered during  Analysis and that we think will improve performance. The changes should be evaluated for their benefits, costs and possible side effects. The changes must be “sold,” planned and then implemented.
METHODS: • Identify Breakthroughs - Identify possible countermeasures to address the process variables affecting performance. Select one or more that have the highest likelihood (and lowest cost) of impacting the variables. Benchmark “best” practices and select the aspects of these that address your situation. Once the countermeasures have been selected, they must be “sold” to the stakeholders (customers, staff, management, etc.). Then, detailed planning and implementation follow. A pilot or demonstration effort may occur prior to “full-scale” implementation.
• Select Practical Approaches  – Translate the countermeasure to a set of changes that can be implemented. Experiments may be performed to determine the best “level” for the key causal factors.
• Design Future State - Design a new product/service or associated production process .  In some cases, either the existing product or service is inadequate, or the “production” process is not capable of producing at the required quality and cost levels. A “clean sheet” design effort may be necessary (see Section 2.4 – Designing New Products & Services). 
• Predict New “ Sigma”  – Given what you know about the countermeasures, what improvement do you expect to see? Will the problem be reduced by 40%, 90%? What will the new “Sigma” of the process be? 
• Perform C/B & Risk Analysis  – Are the changes you are suggesting justified by the economics? What risks (business, technical, legal, etc.) are created by the changes? How will the important risks be prevented or mitigated? 
TOOLS:  • Root Cause/Countermeasure Matrix
• Project Planning Worksheet
 
2.2 - 8
 
PURPOSE:   After the changes are made, what effect have they had on performance - has the “gap” closed, or has the problem been eliminated? Do we understand that the changes we made caused the change in performance?
METHODS: • Develop Control Methods  – Create or revise the necessary procedures, protocols, drawings, instructions, specifications or other methods employed to control the process.
• Develop Dashboards and Scorecards  – Determine how you will measure the results. The CTQs you have focused on should be measured. Process variables and supplier metrics may also be required.
• Train – Train workers on the changes to the process.
• Execute – Implement the changes. You may first make the changes on a pilot scale, prior to full-scale implementation.
• Measure Results - Collect and Analyze Performance Data  to determine if the change has had a measurable impact. Collect data on both the output - that aspect of the product or service that you were trying to improve (quality, cost, etc.) and on the variables that you changed through the countermeasures. Conduct Customer Interviews/Collect Customer Feedback to determine if the problem addressed has “gone away” or has been reduced in frequency. Determine if the results  (observed changes in performance) are due to the effects of the changes you made to the process (sometimes other variables may be acting on the process that are outside your control). Three outcomes are possible here: 1. The results are due to our changes and performance is as expected. Here, move to the Control 
step. 2. The results are much less than expected. Here, go back to  Analyze and understand why. 3. The results are much better than expected. Here, too, go back to  Analyze and understand why.  
• Manage Change – Make sure that the necessary changes are being implemented. Address sources of resistance; try to ensure a “win-win” for process stakeholders.  
TOOLS:  • Line Graphs, Run Charts, Control Charts
• Pareto Analysis
• Procedures, Instructions
 
2.2 - 9
 
PURPOSE:  The changes may have been done on a pilot basis, or under temporary procedures. If the changes actually improved the process, then we must ensure that they are repeated each time the product or service is “produced.” They must be built into the PLAN, training & education performed and responsibilities clarified. Monitoring tools should be put in place.
METHODS: • Report Dashboard and Scorecard Data  – Continue to measure and report on process performance. On-going measurement may occur less frequently and with fewer measurement points than during the pilot phase of the improvement. Monitor  performance to ensure that the changes aren’t Teflon-coated,  i.e. that they don’t “stick.”  
• Create Feedback Loop &   Adjust Process  - Ensure that the performance metrics are acted upon if they go awry. Help staff understand the difference between actions to address process instability (e.g. special causes) and process incapability (e.g. process not centered or excessive variation relative to specifications).  
• Identify Replication Opportunities  – Given that the process improvement has worked well, are there other products/services/processes that could benefit from the changes?
• Develop Future Plans  – What portion of the original problem remains? Is there benefit to be gained by tackling the next “bar on the Pareto?” At the end of the project, don’t forget to reward the team and celebrate! 
TOOLS:  • Procedures, Protocols, Standards
• Quality Improvement Story Review Form
• Project Planning Worksheet
 
2.2 - 10
•  Understand the Purpose of a Process Management System
•  Be able to “Build,” Implement and “Run” a Process Management System
•  Link Process Management to Process Improvement and Design
Unit Contents
•  Process Management System Example
2.3.1 Process Management Purpose
 
Supplier 
Process
Supplier 
Customer 
Supplier 
Process
Supplier 
Customer 
 
In many organizations, basic work processes are not well defined; the “how-to” do a process is passed from worker to worker, how well a particular process is performing is not understood and, when things go wrong, reactions often focus on individual employees rather than the factors in the process actually responsible. Often, process improvement is difficult because each worker performs the job differently.
Process Management, then, has several quality-related purposes:
 
2.3 - 3
Locally – to ensure that work processes are planned and conducted to meet the objectives of the process – at the basic level, to satisfy the requirements of the customers of the process, and
Organizationally  – to ensure that the ultimate, external customer of the company is receiving the value they seek from the products and services offered by the company.
Process Management helps the organization’s constitution, by clarifying responsibilities and accountabilities for company activities. For example, who in your company is responsible for reliability  of the products? Is it Engineering, Manufacturing, Service?
 
2.3.2 Build ing, Implementing and Running a Process Management System
Section Five describes the methods of Process Management. The Plan-Do-Check-Act cycle shows how the concept of continual improvement is embedded in Process Management.
 Identify/Prior itize Business Processes
 Define Process Metrics
 “ As-Build” Business Processes
 Prepare Implementation Plan
 Implement Process Control
 Train & Educate Staff
 Perform the Work
 Identify Performance Gaps
 Redesign Processes (DMEDVI)
 
The basic elements of a Process Management System include:
Process Owners  – Managers, Supervisors or Individuals responsible for the outcome of a company process. In some cases, especially for broad corporate processes (e.g. Order to Receipt), a team of managers will be assigned as Process Owners.
Process Purpose, Definition, Measurement and Action Plan   – The company should define (and record) why the process exists – who are the customers of the process, what are their needs & requirements, what key characteristics of the process must be assured to meet the customers’ needs? Process Definition usually includes some graphic picture such as a flowchart defining how the process operates (and, often, who is accountable for the various process steps). Measurement of both output-type variables (e.g. quantifying the quality, cost, delivery and safety key characteristics) and important input-type variables (key factors influencing the output variables) is put in place. Performance dashboards are often used to summarize the overall performance of the process. Action plans are developed to describe immediate remedies when the process variables do not exhibit a state of statistical control or when they produce output beyond the process’ specification limits as well as plans to prevent the reoccurrence of chronic process performance gaps. In this latter we find the link to process improvement. Problem-solving teams can be assigned to analyze the root causes of these performance gaps and develop/implement actions to address the root causes.
 
2.3.3 Process Management System Example 
 
TITLE: PROCESS CUSTOMER: CUSTOMER VALID REQUIREMENTS: PROCESS OUTCOME MEASURE[S]:
PROCESS FLOW CHART
ENGINEERING CHANGE MANAGEMENT SYSTEM
 
END
TITLE: PROCESS CUSTOMER: CUSTOMER VALID REQUIREMENTS: PROCESS OUTCOME MEASURE[S]:
PROCESS FLOW CHART
ENGINEERING CHANGE MANAGEMENT SYSTEM PRODUCT CUSTOMERS
RAPID IDENTIFICATION AND INCORPORATION OF DESIGN CHANGES
 
DISPOSITION
 APPROVED
REJECTED
TITLE: PROCESS CUSTOMER: CUSTOMER VALID REQUIREMENTS: PROCESS OUTCOME MEASURE[S]:
PROCESS FLOW CHART
ENGINEERING CHANGE MANAGEMENT SYSTEM PRODUCT CUSTOMERS RAPID IDENTIFICATION AND
INCORPORATION OF DESIGN CHANGES
MAPICS PRELIM
TITLE: PROCESS CUSTOMER: CUSTOMER VALID REQUIREMENTS: PROCESS OUTCOME MEASURE[S]:
PROCESS FLOW CHART
ENGINEERING CHANGE MANAGEMENT SYSTEM PRODUCT CUSTOMERS RAPID IDENTIFICATION AND
INCORPORATION OF DESIGN CHANGES
2.4 - 1
Learning Objectives
•  Be able to apply the design process to develop new products and services.
Unit Contents
2.4 - 3
This feedback loop is best known today as the "PLAN-DO-CHECK-ACT" or PDCA cycle.
From: 
Specification
ProductionInspection
2.4 - 5
•Develop & Implement Customer Research Plan
•Translate Customer Needs to Product/Service CTQ’s
•Specify Targets, Tolerance Limits & Sigma Targets
•Develop Product/ Service Necessary Functions
•Develop Conceptual Product/ Service Designs
•Develop High- Level Production Processes
•Predict Capability & Evaluate Gaps
•Develop Detailed Production Processes
•Develop Process Control & Validation Plans
•Build Pilot Processes
•Validate Pilot Readiness
•Perform Pilot Testing
•Evaluate Scale- up Potential
•Develop Implementation & Transition Plans
•Perform Start-up Testing
•Transition to Process Owners
•Evaluate & Close Design Project
2.4 - 6
 
PURPOSE:  The Define Step of DMEDVI is similar to that of DMAIEC. A clear link to the company’s product development priorities (perhaps articulated in the Business Plan) is established. By the end of this phase, the product or service to be designed is clarified, the overall scope of the project defined, the project team is in place and necessary plans and design controls developed.
INPUTS: •  Business Plans
STEPS: •  Launch The Project  – Decide that this product or service should be designed/redesigned (based on market research, company strategy, customer input). Assign overall responsibility for the project.  
•  Define Outcomes  – Determine how the success of the project will be measured (typically from a business standpoint). Will the design/redesign reduce cost, increase revenue or market share?  
•  Scope Project  – Determine the boundaries of the project. Determine the project deliverables, what is in and out of scope for the project. Product/Service designs may be divided into “generations.”  
•  Identify Stakeholders  – Who will be impacted by the new design, who can impact the success of the design project? 
•  Select Team – Determine full and part-time members of the team. Which disciplines or departments should be involved?  
•  Determine Project Approach  – DMEDVI provides a generic framework; determine how DMEDVI will be tailored to the specific project.  
•  Create Project Plan  – Develop a work breakdown structure, PERT and/or Gantt chart.  
•  Define Project Controls  – Develop communication plans, change control (for the design), change management (for stakeholders, staff), review plans (design and tollgate), risk management processes.
OUTPUTS: •  Project Charter
•  New Product/Service Introduction Process
 
2.4 - 7
 
PURPOSE:  In the Measure step, you will obtain the “voices” of the various customers of the product or service. These will include those customers external to the business, perhaps internal customers and the stakeholders who will be impacted or may impact the success of the project (e.g. management, regulatory bodies, others). The goal of this step, though, is to develop a set of requirements (some of which will be critical-to- quality, i.e. CTQs) that the design team can use as inputs to their design processes. A clear linkage between the “voices” and the requirements must be established in this step.
INPUTS: •  Project Charter
•  Define State of Current Customer Knowledge  – Review existing customer information, including complaints, complements, and market research studies.  
•  Develop & Implement Customer Research Plan  – Determine what information must be collected, determine appropriate Voice of Customer methods (interviews, focus groups, surveys).  
•  Translate Customer Needs to Product/Service CTQ’s  – The Voice of the Customer is generally obtained in their “language.” A filtering and translation process takes the customers’ voices as input and develops a set of requirements stated in the technical language of the product/service.  
•  Specify Targets, Tolerance Limits & Sigma Targets  – Numerical goals are set for the product/service requirements. Allowable variation and defect rates (i.e. sigma targets) are established to help the design team objectively judge their design.
OUTPUTS: •  Product/Service Requirements (a subset of which are the Critical-to-Quality Requirements (CTQs) ).
•  Design Scorecard – CTQ level
•  Quality Function Deployment
2.4 - 9
•  Benchmark Analysis (functional)
•  Reliability Methods
•  Design Reviews
 
2.4 - 10
 
PURPOSE:  Here, the “rest” of the design is developed. The production version of the product is finalized, as well as that of the production processes. Verification activities are refined and completed; the product has been determined to meet its requirements, tradeoffs are made where necessary. In preparation for validation of the design, process controls and validation plans are developed.
INPUTS: Detailed:
•  Conceptual Designs,
•  Bills of Material,
•  Supporting Analyses/Test Results:
•  Regulatory Impact/Environmental Impact  Analyses,
•  Value Analysis, Value Engineering Studies,
•  Cost Estimates to produce product/service.
STEPS: •  Develop Detailed Product & Service Designs  – The work done in the Explore step is continued at the detailed level. By this step’s completion, the design will be developed to the point where it can be produced using production equipment and processes.
•  Develop Detailed Production Processes  – Likewise, the production process design is complete.  
•  Refine Capability & Gap Evaluation, Perform Tradeoffs  – Final testing and product verification activities are completed.  
•  Develop Process Control & Validation Plans  – In preparation for pilot testing and validation efforts, the necessary process controls – procedures, protocols, bills of material, device master record, etc. are developed.
OUTPUTS: Detailed:
•  Conceptual Designs,
•  Bills of Material,
•  Supporting Analyses/Test Results:
•  Regulatory Impact/Environmental Impact  Analyses,
2.4 - 11
•  Test Plans/Results,
 
•  Benchmark Analysis (functional)
•  Reliability Methods
2.4 - 12
 
PURPOSE:  Whereas verification confirms the product meets its requirements, validation confirms the product (and processes) meet the needs of the customers. Pilot testing is a key part of the product/service’s validation. Based on the results of these activities, the decision to scale-up to full production is made; implementation and transition plans to support scale-up are developed.
INPUTS: •  Design Outputs from Previous Steps
•  Process Control Plans
•  Product/Process Validation Plans  
STEPS: •  Build Pilot Processes  – Production facilities, equipment, information systems, etc. are procured and constructed in preparation for pilot tests.  
•  Validate Pilot Readiness  – Startup testing of the production processes is completed. The processes are tested to determine if they are capable of producing the product/service.  
•  Perform Pilot Testing  – Production version product (or service) is produced. The product or service is offered to customers; validation that the product/service meets the needs of the users is performed.  
•  Analyze Gaps, Determine Root Causes  – Problems experienced by the customer are identified, root causes determined and the product/service/process revised to eliminate the gaps.  
•  Evaluate Scale-up Potential  – A business decision is made to scale-up the product/service to “full- scale.” 
•  Develop Implementation & Transition Plans  – Plans to fully implement the product/service are developed.
OUTPUTS: •  Validated production processes
 
2.4 - 13
 
PURPOSE:  Here the product or service is launched. The design is transitioned to the operating forces, e.g. for products, the Device Master Record is completed and transferred to production. Although further commercialization of the product or service may occur, and the design of the next product/service generation begun, the close of this design project is at hand. Lessons learned are documented, as well as the history of the design. As appropriate, the design team is rewarded & recognized.
INPUTS: •  Validated production processes
•  Validated product/service
•  Implementation/transition plans  
STEPS: •  Build Full-Scale Processes, Train Staff  – For many products/service, existing facilities are adapted to support the new processes. In some cases, though, new production facilities/processes will be required. 
•  Perform Start-up Testing  – Necessary testing of the new production processes is performed. Production is ramped up to full-scale.  
•  Analyze Gaps, Determine Root Causes  – Problems noted with early production units/processes are identified, root causes determined and appropriate countermeasures implemented.  
•  Transition to Process Owners  – As the new product/service enters production, the design team performs a turnover to operating forces. Bills of material, device master records, process procedures, and control plans are completed. Design history files are updated.  
Evaluate & Close Design Project  – Before the design team disbands and begins to work on the next products/services, lessons learned are generated, good practices recognized, improvement opportunities identified. Both of these should be fed back to the “owners” of the design process to improve the overall design processes.
OUTPUTS: •  Commercialized Product/Service
•  Design History Files
2.4 - 14
Design Reviews
Purpose – Design reviews are an effective means of reviewing the developing design at key stages to determine: •  Which conceptual design to pursue, • Conformance of the design to goals/needs & expectations, •  Ability to fabricate/assemble or manufacture the design, •  Results of product/service "prototype" testing, •  Decision to proceed to implementing the design.
Design review is used to communicate the progress of the design team to management and operating forces to solicit comments and suggestions and obtain "buy-in" from the people who will produce and use the new product or service.
Types of Design Review  include:
Conceptual Design Review - the main purpose of this review is to decide which conceptual design to pursue into detailed design.
High-Level Design Review  – here, the product/service design is reviewed against the high-level production processes – will the design be “produceable” – fabrication, assembly, process capability are addressed.
Detailed Design Review - the main purpose of this review is to assure that the design meets the goals of the project and the product/service requirements.
Interface Design Review - many products/services are "shoehorned" into an existing system. The objective of this review is to communicate how the new product/service will interface with other products/services, upstream, downstream and supporting the new design.
Final Design Review  - this review's purpose is to gain management acceptance (and budgetary approval) of the new design to proceed to the next phase, Designing Processes to Produce Product/Service.
Outputs - As a result of these reviews:
•  The new Product/Service is "accepted" by both management and the operating forces,
•  Interfaces between the new product/service and existing products/services are identified.
 
2.4 - 15
Produce Product/Service - Check Performance
By the end of the DMEDVI methodology, the newly designed/redesigned process has been turned over to the operating forces. "Production" process management (i.e. quality control) controls the quality of the new product or service.
The "Check-Act" cycle must be implemented to obtain knowledge of customer reactions and their judgment of the new product/service's quality. Continual improvement (i.e. through the “usual” improvement methods) now addresses continued process improvement of the new design.
 Although not something we wish to contemplate, there is the possibility that the new or redesigned product or service does not achieve its quality goals (remember the Edsel, "New" Coca-Cola, the movie Waterworld?) or dramatically exceeds its goals.
In these cases, an analysis of why the goals were not met (or were exceeded) should be performed. This analysis should focus on why the design process did not perform as expected. The investigation should result in improvements to this design process.
 
2.4 - 16
•  Understand the purpose and process associated with setting corporate priorities
Unit Contents
•  Business Planning Process Elements & Steps
•  Business Planning Calendar
2.5.1 The Need for a Business Planning Process
Dr. Deming’s often focused on the problem of companies and organizations sub-optimizing  their efforts. He noted that improvements made to “optimize” one department’s performance often hurt the performance of supplier or customer departments. Shigeo Shingo, one of the key developers of the Toyota Production System, states that the overall system must be analyzed and improved first, then improvements at local operations can occur. If I decrease the cycle time required to produce a part or assembly at my station, but the result is inventory stacking up in front of your machine, then the system has not improved.
The business planning process is thus intended to focus the organization’s energies on the vital improvements that will benefit the customer and therefore translate to bottom-line results for the company. Read the following quote from a noted CEO to see the importance he places on this key process:
The business planning process is the best tool we have for communicating our strategies and objectives throughout the organization, aligning all activities with these strategies and objectives, and making sure we are on track to achieve them. . . Business planning is our primary vehicle for continuous improvement of those processes that will make us one of the world’s premier companies. Our success in this year and beyond depends on our ability to move as one toward our vision. The business planning process gives us that ability.  
 
2.5 - 4
internal capabilities, supplier and partner capabilities, and performance to the current plan. This information is analyzed to set strategic directions that strengthen our performance and competitive position.
2.  Annual Operating Plan.  The Leadership Team develops an Annual Operating Plan that includes key business drivers, strategies, focus areas, and key performance indicators.
3. Implementation. Each business unit cascades the Annual Operating Plan throughout its organization. This includes identifying Business Unit objectives, strategies, action plans, key performance indicators, and benchmarks. It also includes communicating the plan throughout the organization, aligning all activities with the plan, and implementing the actions.
 
• State Key Business Drivers
• Develop Budget/Resource  Al location
Each Business Unit:
• Develop Process for Cascading BU Plan
• Review Plans wi th Leadership Team
• Communicate Plans Internally
• Verify Alignment of Divisions, Departments, Work Teams with BU Plan
• Review Performance on Key Indicators
• Review Performance to Plan
Develop Annual Operating
2.5 - 6
By the time the current year’s AOP is developed, the company should have aligned and linked their strategy to specific projects. Black Belts should find that they are leading or facilitating improvement (DMAIEC), design (DMEDVI) or process control (PDCA) projects. The charters for these projects should clearly link the project to the strategy and quantify the contribution of the project to accomplishing some “piece” of the strategy.
Strategy Formulation
Business Deployment
Projects & Process
Tools & Methods
 
 
Letter of Direction from CEO
Provide input and support
Provide input and support
Distribute Business Planning Handbook
Step 2: Annual Operating Plan
 Announce preliminary strategies and 1999 focus areas
Develop 1999 AOP
Publish AOP assumptions
Provide economic forecast
Complete preliminary business plan (without budget)
 
Refine business plans; analyze cost/benefit of capital projects; develop budget; resolve cross- functional issues
Review complete business plans and make adjustments
Complete final business plan (with budget)
Prepare final AOP and submit to Board of Directors for approval
Communicate AOP to Business Units
Step 3: Implementation
Cascade plan throughout unit
Step 4: Plan Reviews
Communicate to Leadership Team
Learning Objectives
•  To understand the role of the Green Belt, Black Belt and Master Black Belt •  To understand the skills required of a Green, Black and Master Black Belt •  To understand how Green, Black and Master Black Belts are certified •  To provide a report-out on your specific Black Belt project
Unit Contents
 
2.6 - 2
2.6.1 Introduction
 
2.6 - 4
benchmark return on investment of 2 – 1 (their research indicated 2-1 to 4-1 ROIs – they set the “bar” low for their first year of Six Sigma implementation), they set an average project benefit goal of $150,000 per project. Although the initial project assigned to a Black Belt during training may not be a “home run,” subsequent projects must be high impact.
. . alone or with teams . . The Black Belt will be skilled in leading teams through improvement and design efforts. The BB will manage project schedules and budgets, will facilitate teams in the application of quality tools and methods, and will be effective at implementing changes in the organization. The Black Belt will coach management and individuals to learn and apply quality systems, tools and methods, management systems, tools & methods and is able to apply these individually and within a team structure to effect improvement within the company’s culture and organization.
 A typical Black Belt job description follows:
 
2.6 - 5
Job Title:  Black Belt 8  Location: Assigned Company location 8  Reporting to: Functional VP/Director in current Division/Staff Function; dotted-line reporting to VP Six Sigma 8  Grade/Job Level: Determined by Division; with concurrence from VP Six Sigma 8  Job Duration: Minimum of 18 months - 2 years, full time
Job Description
Job Profile:
8  Lead multiple Six Sigma projects per year, each delivering an significant bottom-line improvement 8  Lead, train and mentor Green Belts and network with peers in the use of Six Sigma tools and techniques 8  Facilitate in the selection of Green Belt projects 8  Support Six Sigma training activities, as required 8  Carry out other duties and tasks, as requested, by the Functional VP/Director or VP Six Sigma.
Personal Characteristics:
8  Complete Black Belt training 8  Achieve Black Belt certification as determined by Six Sigma project office – Black Belt certification requires the
successful completion of two projects 8  Self-starter who can work on own initiative with minimum supervision 8  Effective communicator, at all levels 8  Able to influence and lead teams; effectively able to work at multiple levels within the organization 8  Able to use the full range of Six Sigma tools – e.g., simple brainstorming, detailed statistical analysis of data, use of
 
2.6.3 Green Belt Roles and Responsibili ties
Green Belts primarily differ from Black Belts in their being “part-time” dedication to Six Sigma projects, in the amount of training they receive and, in the value of the project they may be assigned.
Some typical figures follow:
Dedication – Green Belts will typically spend about 20% of their time (1 day a week equivalent) working on Six Sigma projects. One company scopes the Green Belt projects so that they can be accomplished with minimal help from others.
 Another company encourages Green Belts to lead project teams.
Training  – A typical Black Belt curriculum occupies about 4 weeks. Green Belt curricula are usually about 2 weeks. Johnson & Johnson has adopted the “bridge” concept. Their Green Belt curriculum is two weeks – DMAIEC and basic improvement tools are covered. After successful completion of a project, the Green Belt may choose to “bridge” to Black Belt. Additional training covering Black Belt topics is then received.
Project Value – As noted above, Green Belt projects have smaller scopes than Black Belt. We had a conversation with a Green Belt around the scope of their project once. The Green Belt was convinced they could accomplish a much larger scope of effort (the GB’s manager was also of the opinion that the scope was too large). After some discussion, we finally asked the manager when they wanted the project complete – the answer was about 4 – 6 months. The next question – how much of “Andrea’s” time could be spend on the project – about 1 day per week. Some simple multiplication yielded the range of 16 – 24 person-days to complete the effort. The Green Belt finally saw that they were trying to bite off much too much. A typical savings goal for Green Belt projects - $50,000. The Green Belt can then work about 2 – 3 projects per year for a total average benefit of $100 – 150k per year.
 
2.6 - 7
Role:  Green Belt 8  Location: Assigned Company location 8  Reporting to: Functional Manager/Director 8  Grade/Job Level: Determined by Division 8  Role Duration: N/A – expected to support and/or lead improvement projects as part of normal job duties
Role Description
Role Profile:
8  Lead or participate in one or more Six Sigma projects per year, each delivering an significant bottom-line improvement 8  Apply Green Belt skills as part of normal job duties 8  Promote the application of Six Sigma within their functional department
Personal Characteristics:
8  Complete Green Belt training 8  Achieve Green Belt certification as determined by Six Sigma project office – Green Belt certification requires the
successful completion of one project 8  Self-starter who can work on own initiative with minimum supervision 8  Effective communicator 8  Able to influence and lead teams; effectively able to work at multiple levels within the organization 8  Able to use a defined range of Six Sigma tools – e.g., project management, change management, basic process
 
2.6 - 9
Job Title: Master Black Belt 8  Location: Per assigned Division 8  Reporting to: VP Six Sigma and/or VP/GM or Staff VP 8  Grade/Job Level: Determined by Division 8  Job Duration: Minimum of 2 years, full time
Job Profile:
8  Support improvement activities at locations, and at suppliers & customers, as required; overseas for short periods 8  Provide mentoring and support, as required, to Black Belts, Green Belts – coach local teams to use the improvement
tools appropriate to the problem 8  Master Six Sigma theory and application; able to train/coach company staff and with customers/suppliers, as required 8  Liaison, as required, with external agencies in the delivery of Six Sigma training 8  Promote and support improvement activities in all business areas – manufacturing, engineering, services, finance, HR 8  Network with other Master Black Belts 8  Execute other duties and tasks, as defined by the VP Six Sigma
Personal characteristics:
8  Certified Six Sigma Black Belt, and Complete Master Black Belt training, or demonstrate completion of a similarly structured program
 
2.6.5 Supporting Roles
 
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Roles and Responsibili ties
What business unit do you represent?
What is your experience and education?
What is your present position?
What are your personal reasons for being a Black Belt?
Your Current Understanding:
2.6.6 Qualification/Certi fication Path
The following table depicts the relationship between organizational functions and associated quality management responsibilities. Note that the first three responsibilities are core to all functions. Black Belts will therefore all be qualified in these quality areas. Three Master Black Belts “tracks” are also identified, to provide specialized and advanced skills for individual business functions. Most companies select their Black Belts with an eye toward future promotion. Companies such as General Electric rotate their Black Belts and Master Black Belts back into the business both as part of their professional development and to provide a means of instilling the quality culture into the business.
Quality Responsibility  
   I  m   p   r   o   v   e   m   e   n
   t    &
   M   a   n   a   g   e   m   e   n
   t
   i  n   g
   t
   R   e   s   e   a   r  c
   h
   i  n   g
   A    d   v   a   n   c   e
   d
   S    t  a    t   i  s    t   i  c   s
Marketing 
Design 
Manufacturing 
with Specialized Knowledge to
2.6 - 14
 
Master Black Belt Manufacturing Track
Master Black Belt Design Track
Management or Senior
2.6 - 15
Training/Qualification - General
 A typical training and qualification path for a Black Belt appears below.
Training Sessions
•  5 - Five Day Sessions •  Training “progresses” through improvement method •  Training will include project reviews and coaching •  Benchmarking visits to other companies will occur, when practical •  Tools practice using “hand” calculations first, then computer application •  Training will include Evening Homework •  Continuing Education will be a part of the process
Black Belts
•  Black Belt – Waves 1 – 5 concurrent with project •  Candidate Black Belts come to training with an improvement project •  Company will certify candidates as Black Belts at completion of project (see later in this unit for specific criteria)
Master Black Belts
•  Master Black Belt – Black Belt plus Waves 6 – 8 concurrent with project •  Master Black Belts will have three flavors – Sales & Service, Design, Manufacturing •  Company will certify candidates as Master Black Belts at completion of project (TBD)
 
 
MS-Office (Pre-Wave One) MS Project (Pre-Wave One) Visio (Pre-Wave One) Black Belt Roles and Responsibilities X Qualification/Certification Plan X Improving Existing Products and Services
X X
Voice of Customer Feedback X Developing Indicators X Basic Data Collection X Measurement System Analysis X X Line Graphs X Run Charts X Sampling X Histograms X Process Capability (including Six Sigma) X X Process Flow Charts X Process Analysis Methods X Bar Charts X Pareto Analysis X Pie Charts X Radar Charts X Cause and Effect Analysis X X X X Project Chartering X Project Reporting and Reviews X
Focus on Getting Your Project
Started; Performance
Measurement, Stratification
 
Mini-Tab Statistical Software X Improving Existing Products and Services
X X
Cause & Effect Analysis X X X X Contingency Analysis X Scatter Diagrams X Correlation Analysis X Regression Analysis – Simple, Linear X Probability Distributions X Hypothesis Testing X Parameter Estimation & Confidence Intervals
X
Sampling X Single Factor Experiments X Reliability Terms and Definitions X Reliability Management X Failure Modes & Effects Analysis X Fault Tree Analysis  X Weibull Analysis X
Focus on Understanding Cause & Effect, Verifying Root
Causes
 
Selecting and Implementing Process Changes
X
X
Controlling Processes X Process Management Charts X Control Charts X Process Capability (including Six Sigma) X X Measurement System Analysis X X
Focus on Process Control to Ensure Consistent Quality
Outcomes
 
Topic 1 2 3 4 5
Designing New Products and Services X Obtaining Voice of the Customer X Developing Product/Service Requirements – QFD
X
Creativity Methods X Performance & Process Benchmarking X Pugh Concept Design Selection X Tolerance Development & Analysis X
 Analysis of Variation (ANOVA) X Design of Experiments X Taguchi Approach to Design X Reliability Testing/Accelerated Testing X
Focus on Design of New Products &
Services; Advanced Improvement
 
Business Planning Process (SRP-AOP- LRP)
X
Company-Wide Process Management X Operating Reviews X Flag Systems X Indicator Families X Seven Planning Tools X Team Types X Team & Meeting Management X Team Roles & Responsibilities X Idea Generation Methods X Decision Making Methods X Conflict Management & Interventions X Change Management Approach X Change Management Tools and Methods
X
Facilitating Improvement X
Focus on Business Planning; Link to Quality Projects and Processes, Working With
Teams
Black Belt Certification
Objective: To certify Black Belts by assuring their capability to use the methods and tools taught in the Black Belt curriculum. Certification as a Black Belt at requires the following:
•   Attendance at all 5 waves of the Black Belt training.
•  Completion of all in class work and homework assigned during the classes.
•  The completion of an improvement project, assigned by a sponsor, that results in significant, proven, improvement. The results must be reported in financial terms.
•  The completion of a process control system that is implemented and used to manage a process.
•   Application of the methods and tools in actual projects and using actual data gathered from the projects. (See methods and tools certification requirements checklist)
•  Sign-off by the mentor for each of the requirements
• Presentation of the improvement project and process control system to the sponsor and a panel of mentors.
 
Certif ication Criteria
 
Improvement Process (DMAIIC)
Candidates are required to utilize the improvement process to complete a project. The project must result in a significant improvement, reported in financial terms and meet the improvement story checkpoints.
Process control system Candidates are required to develop a process control system that is implemented and used to control and monitor a process.
Design Method (Optional) Candidates may complete a design project to obtain a special certification for design. Customer Survey or interview
Candidates are required to determine customer needs through the use of an interview or survey.
Pareto Chart Candidates are required to use Pareto charts to focus improvement efforts on significant problems.
Histogram Candidates are required to plot a histogram of actual data they obtained in their job function. Process capability calculation
Candidates are required to calculate process capability for a process in their job function.
Cause & Effect Diagram Candidates are required to develop a cause and effect diagram to determine potential root causes in their project.
Control charts Candidates are required to use an appropriate control chart to evaluate process performance and interpret stability.
Hypothesis test •  Test of means •  Test of proportions •  Test of variability
Candidates are required to use hypothesis tests to determine significant differences between data sets within their project for means, proportions or variability.
Gantt chart Candidates are required to develop a Gantt chart for their project. Cost Benefit analysis Candidates are required to calculate the cost benefit of countermeasures in their project and
 
Method or Tool Certif ication Requirement
collection. include the confidence level of their sample and the sampling technique used to limit bias. Quality Function Deployment
Candidates may use QFD to determine specific requirements for a special design certification.
Deployment Flowchart Candidates are required to develop a deployment flowchart for an actual process. Scatter Plots Candidates are required to graph a scatter plot to identify possible correlation between two
factors. Correlation coefficient Candidates are required to calculate the correlation coefficient for two factors that appear
correlated. Regression analysis Candidates are required to calculate the regression equation for correlated variables. Failure modes and effects analysis. (FMEA)
Candidates are required to develop a FMEA for a product or service.
Design of Experiments Candidates may perform a DOE on data from their job function for a special certification. Weibull Analysis Candidates may perform a Weibull analysis on data from their job function for a special
certification. Functional Analysis Candidates may perform a functional analysis to obtain a special design certification. Fault Tree Analysis Candidates are required to perform a fault tree analysis on failure that has occurred in their
 job function.  Affinity Diagram Candidates are required to construct an affinity diagram to group unstructured inputs. Relations diagram Candidates are required to draw a relations diagram to determine leverage points of a group
of actions on an objective. Matrices Candidates are required to use matrices to show relationship of projects to priorities.
 
2.6 - 24
 Additional Self-Study:
 
• War as I Knew It – Patton
• Success is a Choice – Pitino
• Hope is Not a Method – Sullivan
• Jack Welch Speaks - Lowe
• Rocket Boys - Hickam
• Managing Transitions - Bridges
• Out-of-the-Crisis – Deming
• Tolerance Design - Crevelling
• Corporate Financial Analysis - Harrington
• Design for Manufacturing and Assembly – Boothroyd, Dewhurst, Knight
• Design for Six Sigma - Crevelling
• Design and Management of Service Processes –  Ramaswamy
 
 A High Bar for You!  
Cecila Shallenberger is a Black Belt at TRW Systems, a defense and government contractor. We received this email from her:
“I trust all is well with you. All is well here.
I realize Six Sigma is all about teamwork, but just this once I thought I'd brag just a little. I certainly do realize that the following could not have been accomplished without the help of many, many people.
I closed 10 charters last year, total benefit $11.84M (although the books show a conservative $10.6M). 62 GBs were trained, and 44 of those were certified. So far this year, I've got 5 charters in process, and 5 being drafted as we speak. 3 of those include the customer as GBs on the teams.
I have about 32 people left on the TCS contract to get onto charters and through training. GBs are kicking down my door wanting to lead charters.
This year, my focus is on creating a lead GB community with 3 BBs being mentored - they will lead the charters, I will lead them. As you can see, we're doing well. I'm now going after my BB certification through ASQ to compliment the TRW cert.
My thanks go to you for your inspiration. You've created a monster!!!
PS We won 100% of our award fee, . . . ”
 
Describe Your Project to the Class:
• What is the Product or Process?
• What is the Problem? Why is it a Problem? How Long Has It Been a Problem?
• What Data Do You Have to Support the Problem? •Quality, Cost, Warranty, Delays, etc.
• Who “Owns” the Product/Process?
• Who Will Help You With Your Project?
• When Should The Project Be Complete?
 
3.0 - 1
Unit Descr iption Page
3.2 Idea Generation & Decision Making 3.2 - 1
3.3 Exercises 3.3 - 1
3.0 - 2
Learning Objectives
•  Understand the types of Teams that may be employed for improvement •  Be able to organize a team •  Be able to develop a project charter •  Be able to develop a project plan •  Be able to plan and conduct team meetings •  Be able to plan and conduct team reviews •  Be able to recognize and address team conflict •  Be able to close a team
Unit Contents
3.1 - 2
3.1.1 Teams
The columnist George Will, once commented, “ Football combines the two worst features of American life. It is violence punctuated by committee meetings.” 
You’ve probably been on at least one committee that just doesn’t seem to be much more than a forum for gossip, whining, psychoanalyzing each other, or reading the minutes from the last committee meeting.
Worse, yet, are those committees “chartered” to make some decision when it turns out that the decision has already been made by the “higher-ups.”
Even though we’ve seen the “worst” of teams, we’ve also been on some pretty darn good teams. We’ve been fortunate to have been part of teams that have been given a mission,  the responsibility, authority and resources to get it done, and have “crossed the goal line,” successfully completing the mission.
 
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Team Philosophy
Let’s establish one thing right away. A quality improvement team is a method of getting something accomplished. Teams don’t exist just for fun.
In fact, there really is no such thing  as a team. There is, however, a group of people that have come together for a purpose, hopefully a common one. We always try to remember that it’s the people who are going to accomplish the goal. How can we balance their needs with the needs of the improvement effort?
Teams also consume resources.  Meeting time, data collection and analysis work all take time. Therefore, without sounding too much like a bean counter, we should expect some return on this time investment. 
You should consider the efficiency of your teams, just as you would any other production process.  If your teams are taking a year or more to solve simple problems, then something is rotten in Denmark! What’s going on? Teams and the improvement process can and should be improved, just like any other.
Having made the preceding nasty, business-like statements, we’ll back off a bit. If you are just starting to use teams for quality improvement in your organization, we’ll “allow” for a growth curve. It takes people a while to get used to working together, to practicing the steps of quality improvement, to using the statistical tools and improvement methods.
Florida Power and Light started the teams’ program in the early 1980’s. It took us about six or seven years to get to where our teams were “efficiently” producing quality improvements. Along the way, much improvement occurred, and when we compared the early QI Stories to those of the late 1980’s, it was like Stone Age to Space Age.
 
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to work with their heads engaged, instead of just “their hands and feet.” One of our greatest pleasures is to see someone stretch and develop beyond their current capabilities.  
On the other hand, here are some reasons to not form a team: 
Have a solution that you want proved  - On our very first team, the manager handed us a solution, and then told us to prove that this was the solution. We didn’t even know what the problem was!
Want a team to “ rubber-stamp” a decision  - In organizations where teams are popular, some managers may think that having a team reach their conclusion will lend credence to the decision or action.
When you don’t intend to take action on the problem  - We worked at a nuclear plant that had developed a wonderful, but short-term solution to plant safety issues. Whenever the regulator (the NRC) would come around, management could always point to a team that was working on a particular problem. After a while, though, the regulator began to wonder where the products of all this team activity were. Management had used the teams as a delaying tactic, but it only worked for a while. 
Like to have consensus on all decisions, think a team will achieve this   - We worked for a manager once who seemed to think that consensus  was necessary on all things. Teams weren’t formed to analyze a problem, but as the manager’s way of forcing consensus on his decision. He’d just keep talking about the issue until we gave up and “agreed with” his conclusion. 
Can’t make a decision yourself  - If you have a hard time making critical management decisions, don’t think that a team will help. 
Like to get a team started, then confused, then “ save them.”  - Some managers like to play the role of the “cavalry.” They will start a team, give them poor direction or a fuzzy objective to begin with, watch the team flounder around 1 for a while, and then come in and “save” the team. We suppose their ego gets a boost, but . . .  
Organization says you must have a certain number of teams  - Early in many organizations’ quality journeys, they will measure the number of teams doing something in the organization. Of course, this puts pressure on managers to have teams, regardless of whether they need them or not.
 
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It’s the little things that get you. Often, teams are crammed into a long, thin conference room. It’s hard to have a sense of meeting cohesiveness when people are stretched out on both sides of a long table. 3  Try to get a room where a round table or at least a square arrangement of tables can be achieved. Everybody’s facing each other and side conversations tend to be limited under these conditions.  
How much time is required?  - Make sure everybody recognizes and accepts their commitment. Even more important, make sure their management is aware of the commitment. If somebody can’t support the time commitment, they may still be able to contribute as a “guest” (see Team Organization). 
What support will the team need?   - Many organizations provide some sort of support structure for their improvement teams. The facilitator  (see Team Organization) is a popular method of providing the team with guidance through their first improvement project. The facilitator may offer advice on tools, methods, or team “dynamics” issues.  
 Additional support may include information from the data processing department, laboratory support, vendor support and others. Despite what Phil Crosby preaches, quality is not free!
Planning the project  - One VP of Quality was in a position to see the difference in productivity between teams who did not plan their projects and those who did (see Project Planning). His insightful comment: “The teams that did a project plan got results, those that did not floundered.”
“ Outside” Issues  
Those “left out”   - What about those people in the department who are not on the team? Dr. Kaoru Ishikawa used to comment, “The whole department is on the team; there are just some who go to the meetings.”   There are several strategies to address this.
The Storyboard posted in a public area can serve as a two-way communication vehicle. From the team to the rest of the department, it communicates progress made on the problem. From the department to the team, “sticky notes” can be left on the storyboard with suggestions or ideas.
During periodic department meetings, the team can spend a few minutes (again, the Storyboard is helpful, here) presenting the progress they’re making, and “alligators” they’re wrestling with.
 
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Team Types
 
Picked by Team  A C
 Assigned to Team B D
 A - Departmental Team, Picks own Project - One of our good friends is a laboratory director at a hospital in Georgia. He maintains a “Wish Board” in the lab’s break area. On this board, people pin small slips of paper that start with “ I wish we could . . .“ Most of these are minor process problems that get in the way of the staff doing their best work. He encourages his laboratory staff to organize small (two or three people) teams, pick any one of the “I wish” statements and work them through to completion. There are always four or five small teams at work on the “ I wish” projects.
What our friend has created is a very simple, yet effective quality circle program in his lab. The people on these teams are all from one department  or function,  and they pick their own projects.  Now George has several purposes to this program. First, his people learn how to work together. Second, they learn how to practice process improvement. Third, they solve local departmental problems.
The order of these purposes is important. For quality circle teams, the first two are most important. Education  and practice are the key words here. In some organizations, these are “standing” teams, continuing from project to project. For each project, a different leader may be picked, again, to develop leadership skills in the group. People in the department may rotate on and off the team, depending on the problem being tackled.
B  - Departmental Team, Assigned a Project   - Because the improvement is important to the departm