Lean Six Sigma

An Introductionby

Tracy Owens

Exercise 1

You are in the basement and there are three light switches on the wall numbered 1, 2, 3.

Each switch is connected to one light bulb upstairs, where I am. They are labeled A, B, C.

You stay in the basement for five minutes and then come upstairs and tell me exactly which switch corresponds to each light bulb.

If you are wrong, you owe me $80,000.

If you are right, I’ll give you a Pez candy dispenser.

How do you decide?

Agenda

• Six Sigma

• Six Sigma Project Leadership

• Lean

• Kaizen Events

• Prevention

• Innovation

Six Sigma

How do We Measure Performance?

Sigma…What is Sigma?

Sigma is a Greek letter that is a

statistical unit of measurement - it

measures the variability of the data

as represented by standard

deviation. Sigma is used to indicate

how much of the products or

services falls within the

customers’ requirements.

Reducing variation is the key to Six Sigma

Goal Posts

2 sigma:

69.146% of products and/or services meet customer

requirements with 308,538 defects per million opportunities

How Consistently Are You Meeting

Your Customer’s Needs?

4 sigma:

99.379% of products and/or services meet customer

requirements ...

but there are still 6,210 defects per million opportunities

6 sigma:

99.99966% – As close to flaw-free as a business can get,

with just 3.4 defects per million opportunities in your product

or service

Common Process Maps

• High-Level Map

• Flowchart

• SIPOC(Suppliers, Inputs, Processes, Outputs, Customers)

Sales BillingRepairService

step

1

step

2

step

3

step

4

Sub- process

9

Step

10

Step

11

step

5Choice

Step

8

step

6

step

7

Department

1

Department

2

Department

3

Department

4

S I P O C

Suppliers

Inputs

Process

Outputs

Customers

A useful tool for:

• Scoping your project

• Listing process

variables

• Identifying team

members

• Building other Six

Sigma project tools

Order Entry Process SIPOC

Backup service reps in

case entry is delayed

Order data ready for

entry into system

Order entry staff

(customer service)

Legible text and usable

format

Marketing Dept needs

promotion data

Pricing revisions; codes

for special / promotion

Order entry staff

(customer service)

Product availability

dates

End customerInitial Invoice sent

End customerShipment notification

sent

End customerReserve Note

document sent

Order entry staff and

end customer

Estimated ship date for

this order

Outputs Customers

Table of production

schedules by category

Our Supply Chain

function

Initial Invoice template

and required data

Our Accounts

Receivable team

Shipment confirmation

template and data

Order entry staff

Reserve Note template

and required data

Order entry staff

Estimated production

or availability

Our production

operations

Current catalog or

promotion / special

Our Account

Manager

Product codes,

quantity and prices

Customer’s

purchasing agent

Purchase order sent

via fax, e-mail, or EDI

Customer’s

purchasing agent

Suppliers Inputs Process Steps

Order is sent

Confirm order

details

Check product

availability

Prepare

Reserve Note

Confirm

shipment date

Prepare

Initial Invoice

Qtyavailable?

Infoaccurate?

NO

NO

YES

YES

Reporting

Process

Pre Close

Activities

(1)

External

P&Ls

(5)

Consol

P&Ls

(6)

Review &

Sign Off

(7)

Start: Finish:

P

S I P

Supplier(s): Input(s):

O

Output(s):

C

Customer(s):

• Accountants

• Acct. Systems Unit

• Cost Center Managers

• Management

• External Companies

• HQ

• Sub-system feeds

• System J/Es

• Excel Uploads: Manual

J/Es

• Database(s

• Edit/Error Reports

• Responsibility Reports

• Detailed Trial Balances

• Preliminary P&Ls

• Finalized P&Ls

• Consolidated P&L

• CFO and Senior Mgt.

• Accounting

• Treasury

• Budget

• Corporate HQ

• Management

• Cost Center Managers

Soft

Close

(3)

Hard

Close

(4)

Consolidated

P&L To HQ

(8)

Prelim

Close

(2)

Closing Process Example

A New SIPOC

The Trigger answers:

WHY do we start

taking this action?

The Objective answers:

WHY is this action

important?

Suppliers

Inputs

Triggers

Process Steps

Objectives

Outputs

Customers

Note: This is NOT just a license to resist!

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMER

Sales database and

CRM

Sales and customer

stats

Research Region

2-3 weeks

Current performance

evalAudit Team

and previous reportsRaw data and data

from other Regions

Prepare for Visit

3-5 days

Detailed list of audit

objectives

Leadership team and

Audit teamCalendar planning

Travel to Site

1 day

On-site for impact of

the audit

Leadership team and

Audit team

Kickoff Meeting

1 full day

Set for objectives and

cooperationRegion Office

Individual leadership

team

HQ Interviews

1 week

Verified list of

improvement opps

Individual field

leaders

Field Interviews

2 weeks

Verified details with

field staff

Executive summary /

notes

Close Meeting

half day

Highlights shared

with HQ team

Full interview resultsCompile Results

3-4 days

General & Specific

Regional Results

Format of previous

reports

Write Report

2-3 weeks

Report observations

and advice

Region Office and

Sales VP

INPUTS TRIGGER PROCESS OBJECTIVE OUTPUTS

Sales and customer

stats

Bi-Annual Review

Frequent enough??

Research Region

2-3 weeksAccuracy

Current performance

eval

Raw data and data

from other Regions

No trigger, routinely

scheduled

Prepare for Visit

3-5 days

Prepare site visit

issues

Detailed list of audit

objectives

Calendar planningFaceToFace- how

we've always done it

Travel to Site

1 day

Irony - the visit is a

burden

On-site for impact of

the audit

Leadership team and

Audit team

Official kickoff for

Region team

Kickoff Meeting

1 full day

It's been 2 years;

Limited Value

Set for objectives and

cooperation

Individual leadership

team

Need to verify local

performance

HQ Interviews

1 week

Don't they know their

performance?!

Verified list of

improvement opps

Individual field

leaders

Need to calibrate field

processes

Field Interviews

2 weeks

Best behavior during

audit

Verified details with

field staff

Executive summary /

notes

Presentation of

findings

Conduct Close

Meeting

Present findings

(any new findings?)

Highlights shared

with HQ team

Full interview resultsReport is due within

one month

Compile Results

3-4 days

Prepare the most

complete report

General & Specific

Regional Results

Format of previous

reports

Report so Region can

take action

Write Report

2-3 weeksRead every page!

Report observations

and advice

Revised Approach

• Output (Y)

• Effect

• Symptom

• Monitor

• Inputs (X’s)

• Cause

• Problem

• Control

Six Sigma focuses on the causes

Y = f(x1+X2+ x3)

The Focus of Six Sigma

Pareto Chart

Categorized issues ranked in order

from the most impact to the least

The bigger the bar, the bigger the

problem

Yes, the biggest problems demand

your attention

But there are successes to be

found in the lower bars as well.

Exercise 2

Count the number of times you see the letter f in the

paragraph below -- you have 30 seconds:

The necessity of training farm hands for first-class

farms in the fatherly handling of farm livestock is

foremost in the minds of farm owners. Since the

forefathers of the farm owners trained the farm hands

for first-class farms in the fatherly handling of farm

livestock, the farm owners feel they should carry on

with the family tradition of training farm hands of first-

class farms in the fatherly handling of farm livestock

because they believe it is the basis of good

fundamental farm management.

Six Sigma Projects

Business

Problem

Statistical

Problem

Business

Solution

Statistical

Solution

Potential

Root

Causes

Identified

Root

Causes

Verified

Translating Processes

Process Analysis Paths

Articulate the Problem

Statement

Identify and Study

the Variables

Map the Process and

Analyze for Value

Develop and Test

Solutions

Select and Implement

the Best Solutions

Two Paths

Process Analysis

Map the Process and

conduct Value Add

analysis

Generate a Fishbone

chart and ask 5 Whys

Data Analysis

Identify the variables

that impact the output

of the process

Validate root causes in

order to reduce

variation and defects

Elements of the Methodology Expectations

Focuses on “real problems” directly

related to the customer and the

bottom-line

Realized project results in 4-6 months

Utilizes multiple tools and techniques

including statistics

Sustains improvement over the long-term

Disseminates improvement throughout

the organization

Is an instigator of continuous change

• Define

• Measure

• Analyze

• Improve

• Control

CO

MM

UN

ICA

TIO

NS

Improvement Methodology

6s Involvement

How can 6s help?

• Define - Gather facts regarding the exact question to

be answered

• Measure - Establish our baseline performance and

collect meaningful data relevant to the problem

• Analyze - All about finding the real root cause(s) and

the key to solving our problem

• Improve - Evaluate possible solutions based on their

impact on performance

• Control - Quantify the change in performance and

make sure the improvement is sustained

The Methodology

• Identify the problem

• Scope the project

• Set goals (measurable)

• Establish team

• Map the process

• Gather data

• Measure performance

• Determine baseline performance

• Data stratification & analysis

• Determine root cause

• Collect additional data (as needed) to validate root cause

• Generate solutions

• Evaluate & select solutions

• Implement solutions

• Monitor the results

• Document procedures

• Institutionalize changes

• Transition to process owners

Define Measure DefineImprove ControlAnalyze

Steps To Achieve & Sustain Change

6s Involvement

How can 6s help?

• Define

• Measure

• Analyze

• Improve

• Control

How can 6s help?

• Define - “I know what the problem is!”

• Measure

• Analyze

• Improve - “Fix it like this, and move on!”

• ControlHow do you know that was really the whole problem?

How do you know the full magnitude of the problem?

How do you know what was really causing the problem?

How do you know that the improvement will continue?

How do you know if you even fixed it at all??

Key 6s TermsKey project stakeholder

Reviews projects / removes obstacles

Full time Process Improvement

Works with project teams & champions to ensure

project execution

Full time Process Improvement

Executes projects & coaches GBs

Part-time process improvement project manager

Typically executes process specific projects

Critical process measures as identified by our

customers

Formal sponsor reviews held with the project team,

sponsor, and MBB to determine the project status

and “pass” through to the next stage

Critical Customer

Requirement

Tollgates

Master Black Belt

(MBB)

Champion/

Sponsor

Black Belt (BB)

Green Belt (GB)

Purpose

Success

Criteria

Activities

Business

Impact

Boundaries

Who &

What

B usiness C ase

W hy should w e do th is?

O pportunity Statem ent

W hat ‘pain’ are w e

experiencing?

W hat is w rong?

G oal Statem ent

W hat are our im provem ent

objectives and targets?

Project Scope

W hat authority do w e have?

W hat processes are w e

addressing?

W hat is not w ithin scope?

Project P lan

H ow are w e going to get

this done?

W hen are w e going to

com plete the w ork?

T eam Selection

W ho are the team m em bers?

W hat responsibilities w ill

they have?

Team Charter

A Team Charter is a fundamental and critical

component to a Six Sigma Team.

What is the Best Way to Make Sure a

Project Fails??

Lean

Exercise 3

Team 1 – write your name on 1 and pass

Team 2 – write your name on 3 and pass

Team 3 – write your name on all 6 and pass

What is Lean ?

The objective is to align the entire performance of the

Value Stream with the customer

A set of tools , which takes human, material and customer

requirements into account to deliver on time to the customers

requirement at the lowest cost

Decision making based on facts, decision making carried out at the

desk level often employing visual management as an integral part

of the management system

A structured methodology for continuous improvement which is

hinged on 5 basic principles

A business philosophy and strategy, developed by recognised

leaders in world class quality

A methodology which employs basic problem solving techniques

Our opportunities are massive, as most of what we do doesn’t add value!

• What is the customer willing to pay for?

• Value Added (VA)

• Who are your customers ?

• What’s their definition of value ?

• Typically <1% of our effort adds value!

• Everything else is non-value added!

(whether it’s needed or not !)

• Non-Value Added (NVA)

• Waste (‘Muda’)

• Typically >99% of everything we do is

‘waste’!

Value is Defined by Customers

Lean Techniques

Focus on 7 wastes (muda: non-value-adding work)

Intelligent automation and just-in-time production

5S: Sort, Set, Shine, Standardize, Sustain

• Define Value in the eyes of the Customer

• Map the Value Stream

• Align the Value Stream to Flow

• Pull goods and services through the Value Stream

• Strive for Perfection at every step

5S - Five Japanese Words

Translated for use in the western world

1. Seiri – (Sort, in English)

2. Seiton – (Set, Set in Order)

3. Seiso – (Shine)

4. Seiketsu – (Standardize)

5. Shitsuke – (Sustain)

1 2 3 4 5 6 7

9 10 11 12 13 14

15 16 17 18 19 20 21

22 24 25 26 27 28

29 30

5S: A simple Test

Which numbers are missing between 1-30?

26 2 15 22 29 28 14

17 11 9 7 13 19 27

30 20 6 24 3 1 12

5 25 10 21 18 4 16

VALUE STREAM TO THE

CUSTOMER

Processes which provide product value in the customer’s eyes

Features or characteristics the customer will pay for

WASTE THE CUSTOMER PAYS FOR

• Excess travel distances

• Test and inspection

Waste scattered throughout the value stream

• Excess inventory• Scrap and Rework• Wait time• Excess handling

Unlocking the Hidden Factory

Lean Six Sigma

SPEED &EFFICIENCY

QUALITY & EFFECTIVENESS

+

Lean and Six Sigma Complement Each other Exceptionally Well

While Lean and Six Sigma Share a basic quality improvement toolset

•Lean is well equipped to address WASTE and optimize the Value Stream

in ways which Six Sigma is not

•Six Sigma is better placed to deal with complex quality issues and reduce

process variation; it employs a very capable toolset to achieve this

Why Blend Lean and Six Sigma ?

Lean and Six Sigma Together

Many

improvements

can be made

using Lean every

day

Lean techniques are

useful when making

improvements in a Six

Sigma project

Some problems will be more

difficult to solve, so you will

start a Six Sigma DMAIC

ProjectDefine

Measure

AnalyzeImprove

Control

Lean

Lean

Then you start again

with Lean and look for

more opportunities to

eliminate waste

Lean Focus

–Which process steps add value?

Prepare to do Step 1

Do the job

Step 1

Re-work what we didn’t get right in step 1

Move to step 2

Prepare to do Step 2

Do the job

Step 2

Re-work what we didn’t get right in step 2

Move to step 3

You need to see the waste before you can even think about how to get rid of it!

• Which process steps don’t add value?

Example: Car Repairs

–Which process steps add value?

Wait for a technician

Evaluate car and diagnose the problem

Wait for a repair work

station to open

Move to repair work station

Order parts needed for

repair

Complete the repair

Test and rework the

repair

Prepare paperwork for

file

• Which process steps don’t add value?

Overproduction

Waiting TransportationInappropriate

processingDefects

Inventory Unnecessary motions

The ‘7 Wastes’

Definitions of 7 Wastes•Waiting – any time spent waiting is not productive and waiting needs to be

minimized. Waiting means the operator waiting for work to do and also the product

waiting to be worked on.

•Transportation – movement of the product while in production including delivery from

one work station to the next and movement into a warehouse. It is important to

emphasize that this is movement of materials, not movement of the operator, which is

Unnecessary Motions, listed below.

•Inappropriate Processing – doing more work than the customer needs.

•Defects – any error or mistake that needs to be corrected causes a loss of value

and, be definition, waste.

•Overproduction – while an economic batch quantity is often prescribed, the resulting

finished goods inventory is not valuable to the company until a customer orders or

buys it.

•Inventory – while an economic batch quantity is often prescribed, the raw materials

and work-in-process inventory cost money and do not generate value for the

company until a customer places an order.

•Unnecessary Motions – movement of the operator to do the job. Walking across the

shop floor to get a tool from the tool room takes time that could be spent producing

valuable finished goods.

7 Wastes Analysis worksheet7 Waste

category

Process

StepDescription

Time

LostHow to Impact

(example)

Unnecessary

Motions

Test for

air leaks

Operator must step off

the assembly line to get

the leak tester

11 to 16

minutes

per shift

Attach leak tester to a

tether above the work

station

Eighth Waste

• Often listed as the 8th Waste of Lean:

• Underutilization of Human Talents

• Using your people for less than their potential value

• Assigning basic work to an advanced employee

• Not inviting employees to contribute new ideas or not

taking their ideas seriously

• The Seven Wastes of Lean are all observable, tangible

value stream wastes that can be actively controlled and

minimized

• The 8th waste is difficult to quantify and, further, it is

difficult to say if an employee will agree that s/he is being

used in the most valuable manner

Kaizen Events

... and you have got 12 halls, many

employees and you are very

successful

You go on a world tour for 3 months...

You get an update every Monday with the

latest status of the key figures…

What does the report say?

Weekly report:

Number of sold tickets

by film

by daytime

by seat category

by adults, children, reduced

tickets

Employees

Overtime

by workplace

Revenue

by screening

by week day

Example: Imagine yourself as a

cinema owner.....

Number of sold tickets

by film

by daytime

by seat category

by adults, children, reduced

tickets

Employees

Overtime

by workplace

revenue

by screening

by week day

Popcorn (fresh & warm)

enough parking spaces

close by

huge screens and a high

sound quality

clean toilets

good view from all seats

price

Mismatch?

Tools for Process Analysis

Two primary tools you can use in Process Analysis

Brown Paper Study

Fishbone Chart – or Ishikawa Diagram

Machine Personnel

MaterialEnvironmentMethods

Measure

RESPONSE/

PROBLEM

Brown Paper Study

–Named for the heavy paper affixed to the wall

for use in the exercise

–The process being studied is drawn on the

paper or illustrated using sticky notes

Conducting the Brown Paper Study

First time through: Map the process in detail

• Use flowchart symbols and swim lanes to depict the various

departments and people involved

Second time through: Record the time needed to complete

each process step, and the time between steps

Third time through: Evaluate each process step as Value

Added or Non-Value Added

Fourth time through: Identify “Quick Win” opportunities

Take action on the items that can be addressed now

Value Added • Customer is

willing to pay for it

• Changes the product or delivers the service

• Done right the first time

• A Quick Win can be defined as

– FAST - a change in a process that takes less than a 2 weeks to fix

– CHEAP - should not cost anything

– EASY - can be fixed by one person and when completed does not

require extensive training to explain the change

• Quick wins may come out of process mapping

Quick Wins

Brown Paper VA/NVA ExerciseConducted in Groups of 5-7 People

–On a flip chart post the process map for a

repeating, common process at your site(note: flip chart paper can be spread on a

table top if sufficient wall space is not available)

–Go through the process map 3 more times:Evaluate the time required for each step

Assess each step as Value Added or Non-Value Added

Look for Quick Wins that can be made immediately

–De-brief on the Brown Paper process

as a full group

5 Mins

15 Mins

5 Mins

Lean Process ImprovementValue-Added and Non-Value-Added Analysis

Fishbone DiagramThe Fishbone Diagram is also known as “Cause & Effect

Diagram” or “Ishikawa Diagram”

CAUSES

(Sources of Variation or Variables)

Machine Personnel

MaterialEnvironmentMethods

Measure

RESPONSE/

PROBLEM

The “5 Whys” techniques can also be used and shown on

this diagram

Create FishboneIn Groups of 4-5

Use a Flipchart page to draw the Fishbone Diagram

Write the effect in the head of the fish:

Why are deliveries not timely?

Label the bones:

Methods, Materials, Machines, Measures, Environment, Personnel

Brainstorm and list possible causes for late deliveries in the

appropriate channel (bone)

Items that you suspect as principle root causes of the

problem should be circled for further investigation

15 Mins

Fishbone - Next Steps

Creating the Fishbone is not the end of analysis

Next step is to identify the possible root causes

that are most likely to be real root causes:

Reflected in the voice of the customer

Revealed through data collection

Repeating or chronic problems

Then analyze them further to determine real root

causes of defects, variation, and waste in the

process

55

The 5 Whys

After listing possible causes of defects and

variation on the Fishbone chart, take the next step

to uncover the real root causes through process

analysis

Ask “Why does this occur?” for every item you

need to study further

For each answer provided, continue to ask “Why

does that happen?” or “Why do we do it that way?”

It is not uncommon to have to ask “Why?” five or

more times to find something actionable

56

Develop the Future State

Pre-event Event Post-event

• Identify issues

• Communicate

Expectations

• Identify

Participants

• Prepare Business

Leaders

• Business Leadership

sets challenge

• Define expectations

• Team Building

• Skill Building

• Issue Priority

• Facilitated Problem

Solving Teams

• Develop

Recommendations

• Make Presentation

• Individual, Team &

Leader commitments

• Implement follow-

up mechanisms

• Provide necessary

support

• Communication:

• Headlines

• Newspapers

• Videos!!

The Kaizen Event Format

Prevention

1. Process Map

Start

Step 1

Step 2

Step 3

Re-work 1

Final Step

Re-work 2

Check

End

Input for

each step

X1, X2

X3

X4

X5

X6, X7

Output from

each step

Y1

Y2

Y3

Y4

Final Y

2. Cause and Effects Diagram

Why does the

Final Y have

defects?

Category 1 Category 3Category 2

Category 4 Category 5 Category 6

R1 R2 R25R3

R4=X6 R16 R13 R21=X3R18 R11

R9 R17

R10 R18 R24R14 R5 R8

R23 R7 R20R19=X1

R22 R6=X4 R16R15 R12

Reasons = R__

Some reasons will tie

directly to inputs from

the process map

3. Failure Modes and Effects Analysis

Step

from

Process

Map

Failure

Mode

defect in Y__

Cause

from

Fishbone

Frequency

1 sometimes

3 often

9 always

Severity

1 minor

3 major

9 critical

Detectability

1 easy to detect

3 difficult

9 rare detection

RPN

multiply

across the

3 factors

Action

Step 1 Defect 1 R1

R19

1

3

3

3

1

9

3

81

Step 2 Defect 2 R21

R25

R18

3

9

1

9

9

1

9

9

9

243

729

9

Step 3 Defect 3 R6 3 3 1 9

Check

Step

Defect 4

Defect 5

R12

R20

9

3

1

3

1

3

9

27

Re-

work

Defect 6

Defect 7

R16

R23

R2

9

3

1

9

1

1

3

3

1

243

9

1

Final

Step

Defect 8 R4 1 9 9 81

RPN: Risk Prioritization Number

Tying them together

1.Map the process

2.Identify defects in each process step

3.List the possible causes for defects using the

Fishbone chart

4.Validate which reasons are real root causes

5.Prepare FMEA and calculate RPNs

6.Develop action plans to improve frequency,

severity, and detectability

7.Start again by mapping the improved process

Example – Painting Truck Doors

Blow dry

the door

Door is

built

Spray 2nd

coat

Air dry 10

minutes

Spray first

coat

Defects?

Queue for

assembly

Queue for

2nd coat

Detail

errors

Input for

each step

Door, Dryer

Paint, Nozzle

Clean Air

Paint, Nozzle

Tester

Output from

each step

Clean, Dry Door

First Coat

Defect-Free First Coat

Second Coat

Defect-Free 2nd Coat

Door Ready for Installation

Example – Painting Truck Doors

Why does the

Painted door

have defects?

Pace of WorkStaffing

Environment Application Method Paint Quality

Clean Air Side to side Paint brandSmoking vs. up/down

Lint cloths Clean ColorTemperature nozzles

Dryer 2nd coat clarity

One person 2nd shiftvs two Line

stoppageSupervisor

Movement present

Some reasons will tie

directly to inputs from

the process map

Example – Painting Truck Doors

Step

from

Process

Map

Failure

Mode

defect in Y__

Cause

from

Fishbone

Frequency

1 sometimes

3 often

9 always

Severity

1 minor

3 major

9 critical

Detectability

1 easy to detect

3 difficult

9 rare detection

RPN

multiply

across the

3 factors

Action

Blow

Dry

Damp

Door

Dryer

problem

1 9 9 81 Scheduled

maintenance

First

Coat

Run,

Drip

Side to

side

3 9 3 81 Reinforce

performance

Air Dry Damp

Door

Clean

air

1 1 9 9 Air filter

frequency

2nd

Coat

Run,

Drip

Org Peel

2nd coat

clarity

Nozzles

9

3

3

9

3

9

81

243

Use UV lights

.

Sched maint

Re-

work

Primer

show thru

Damage

Stop

Staff

Move

3

3

1

9

1

1

9

3

1

243

9

1

Inspect sooner

Backup pers

Door pads

Queue Damage

Scratch

Move-

ment

1 9 9 81 Door pads

every time

RPN: Risk Prioritization Number

Example – New Process Map

Blow dry

the door

Door is

built

Spray 2nd

coat

Air dry 10

minutes

Spray first

coat

Defects?

Queue for

assembly

Queue for

2nd coat

Detail

errors

Instructions for

each step

Check maintenance

record

“Paint side to side

from top to bottom”

Check air filter

change record

Use UV lights

Check nozzle

maintenance record

Test immediately Always use door pads!

Always use door pads!

Root Cause Analysis and

Prevention1. Process Map

Start

Step 1

Step 2

Step 3

Re-work 1

Final Step

Re-work 2

Check

End

Input for

each step

X1, X2

X3

X4

X5

X6, X7

Output from

each step

Y1

Y2

Y3

Y4

Final Y

2. Cause and Effects Diagram

Why does the

Final Y have

defects?

Category 1 Category 3Category 2

Category 4 Category 5 Category 6

R1 R2 R25R3

R4=X6 R16 R13 R21=X3R18 R11

R9 R17

R10 R18 R24R14 R5 R8

R23 R7 R20R19=X1

R22 R6=X4 R16R15 R12

Reasons = R__

Some reasons will tie

directly to inputs from

the process map

3. Failure Modes and Effects Analysis

243

729

9

9

9

9

9

9

1

3

9

1

R21

R25

R18

Defect 2Step 2

3

81

1

9

3

3

1

3

R1

R19

Defect 1Step 1

9

27

1

3

1

3

9

3

R12

R20

Defect 4

Defect 5

Check

Step

9

9

1

1

3

Severity

1 minor

3 major

9 critical

9

3

3

1

1

Detectability

1 easy to detect

3 difficult

9 rare detection

81

243

9

1

9

RPN

multiply

across the

3 factors

1R4Defect 8Final

Step

9

3

1

R16

R23

R2

Defect 6

Defect 7

Re-

work

3R6Defect 3Step 3

ActionFrequency

1 sometimes

3 often

9 always

Cause

from

Fishbone

Failure

Mode

defect in Y__

Step

from

Process

Map

243

729

9

9

9

9

9

9

1

3

9

1

R21

R25

R18

Defect 2Step 2

3

81

1

9

3

3

1

3

R1

R19

Defect 1Step 1

9

27

1

3

1

3

9

3

R12

R20

Defect 4

Defect 5

Check

Step

9

9

1

1

3

Severity

1 minor

3 major

9 critical

9

3

3

1

1

Detectability

1 easy to detect

3 difficult

9 rare detection

81

243

9

1

9

RPN

multiply

across the

3 factors

1R4Defect 8Final

Step

9

3

1

R16

R23

R2

Defect 6

Defect 7

Re-

work

3R6Defect 3Step 3

ActionFrequency

1 sometimes

3 often

9 always

Cause

from

Fishbone

Failure

Mode

defect in Y__

Step

from

Process

Map

RPN: Risk Prioritization Number

4. Control Charts

Innovation

What Is a Definition of Innovation?

Innovation is:

The successful conversion of

new concepts and knowledge into

new products and processes that

deliver new customer value

in the marketplace

So, why is this important? >>>

Quality Management Division Innovation and Value Creation Technical CommitteeInnovation is Quality for Tomorrow

It is not the strongest of the species that survive,

nor the most intelligent, but ….

the one most responsive to change.- Charles Darwin

• The World is Changing – for example

– In the Market Place, Asia is growing

– Our population is Aging

– Technology is becoming Digital

– The environment is warming

We Need Innovation Because…

It’s Not Just Creativity

Creativity does not guarantee actual innovation.

– Peter Drucker

The trouble with many good ideas is that people

have the notion that their work is done, that it is

up to somebody else to make it happen. – Ted

Levitt, Harvard Business School

Almost anyone can have a good idea.

What is needed for actual innovation are

people who can assemble, coordinate,

and execute the necessary elements.

• 1) Find the Opportunity and then

• 2) Connect to Conceptual Solutions

Select the preferred Solution and then

• 3) Make the solution User Friendly

• 4) and then get it Get to Market

Showing this as a model >>>

The Innovation Process Flow Is:

Innovation Management

A team approach is needed to deliver innovations

NABC Value Proposition

The Value Proposition – NABC method*

• Need: What is the customer’s unmet need?

• Approach: What is your idea?

• Benefits: How will it help the customers?

• Competition: What’s the risk of not doing it?

Write it quickly – 3 minutes

Recite it quickly – 30 seconds

Example

Cell phone use while driving creates dangerous conditions. A hands-free device still requires the driver to dial the number. We propose voice-activated dialing for all numbers stored and also for numbers dictated while driving. With one touch, the voice-dialing app is opened. Over 98% of all speech patterns are accommodated by the software. We would charge $10 per year, and our cost is $1.98 per person based on 10,000 subscribers. Competitors are pushing speakerphones built into the car, and they are marketing in states with hand-free laws.

Additional Questions