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DMAIC – An Overview

DMAIC – An Overview. Barry Murash MBBit Nortel 2007. 6 Sigma Evolution… Where did it come from…. A continuation of the overall TQM (Total Quality Management) concept of “continual improvement” of a process originally introduced by the “Quality Guru’s” …Deming…Juran…Crosby…Taguchi.

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DMAIC – An Overview

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  1. DMAIC – An Overview Barry Murash MBBit Nortel 2007

  2. 6 Sigma Evolution…Where did it come from… • A continuation of the overall TQM (Total Quality Management) concept of “continual improvement” of a process originally introduced by the “Quality Guru’s” …Deming…Juran…Crosby…Taguchi. • Conceptualized and formally introduced by Motorola in the mid 1980’s as a quality goal required because technology was becoming so complex that the traditional ideas about acceptable quality levels were inadequate. • In 1989 Motorola announced a five-year goal – a defect rate of not more than 3.4 parts per million – or 6 Sigma on its key processes.

  3. By the Numbers . . . Fortune 500 companies doing Lean Six Sigma 100 Dollars returned compared to dollars invested 8:1 Benefits as a percent of revenue for top companies 5

  4. Six Sigma: Measure of Process Capability 6 Process output= 3.4 Defects per Million Opportunities • Sigma (“”) is a measure… 6 5 Defective 4 3 * DPMO = Defects per million opportunities 2 Process Output(Variation) 1 Customer Expectation …that focuses on the variation of the process output

  5. Aligning the Organization Define Define Measure Measure Analyze Analyze Improve Improve Control Control DEFINE DEFINE MEASURE MEASURE ANALYZE ANALYZE IMPROVE IMPROVE CONTROL CONTROL the project the project the defects the defects why why the the performance performance the process by the process by boundaries boundaries and and where where defects defects by by monitoring monitoring they occur they occur occur and occur and implementing implementing performance performance in the in the verify verify which which solutions solutions upstream to upstream to Managing Processes Closing Performance Gaps process process reasons are reasons are that eliminate that eliminate ensure the ensure the root causes root causes root cause(s) root cause(s) problems stay problems stay fixed fixed Define Measure Analyze Design Validate DEFINE MEASURE ANALYZE DESIGN and VALIDATE the project and prioritize alternative optimize the that the opportunity customer high level detailed detailed and requirements process process flow design meets boundaries (CTQs) design supporting customer against the high level requirements CTQs design and achieves selected performance objectives A Structured Framework Tell us what’s important - Focus - Helps us fix the problem - Improve - Top-Level Indicators Problem Solving (DMAIC) Vision Tell us what’s not working - Measure - Process (Re) - Design (DMADV) Process Management Control Systems To instill process discipline & fact-based decisions

  6. DMAIC – An Iterative approach Define Measure Analyze Improve Control • Team Charter • Process Mapping • Defining CTQs • SIPOC • Measure process • Performance • Measure CTQs • Determine baseline • sigma level • Identify & Quantify • root causes • Use various • statistical and • analytical tools, • identify low hanging • fruit Select, design & Implement solution • Institutionalize • Improvements • Implement ongoing • Controls • Standardize process

  7. DEFINE at a Glance To define the customer, their CTQs, the team charter, and map the core business process Identify Business Opportunity/Gap ($) Identify Outcome Indicators Select Resources (% Time) and Charter Project • Select measures that link process performance to problem area related to CTQ • Shows need for improvement Identify Customer’s Critical To Quality (CTQ) Attributes Develop Preliminary Problem Statement Map High Level Processes and Set Boundaries Assess Financial $ Impact (COQ) Prepare Communication & Project Plans

  8. MEASURE at a Glance Customer Customer To measure the process performance Create Detailed Process Map Develop Data Collection Plan Assess Process Performance Set Process Performance / $ Improvement Goal Collect Data Stratify Data Identify Value Added & Non-Value Added Steps DevelopFinal Problem Statement Calculate Performance Plot Defect Data Over Time

  9. ANALYZE at a Glance 5 10 15 20 25 30 3 5 40 45 50 55 60 >60 5 10 15 20 25 30 3 5 40 45 50 55 60 >60 Y 5 5 10 10 15 15 20 20 25 25 30 30 3 3 5 5 40 40 45 45 50 50 55 55 60 60 >60 >60 Stratified Frequency Plots Time With Customer X (in minutes) Contingency Table Sub Cause Scatter Plots Made the Sale Made the Sale Yes No 5 5 5 5 10 10 15 15 20 20 25 25 30 30 3 3 5 5 40 40 45 45 50 50 55 55 60 60 >60 >60 Present Did Not Make the Sale Did Not Make the Sale Defect 5 5 Not Present 5 5 10 10 15 15 20 20 25 25 30 30 3 3 5 5 40 40 45 45 50 50 55 55 60 60 >60 >60 Time With Customer (in minutes) To analyze the data and the process map to determine root causes and opportunities for improvement Brainstorm and Organize Potential Causes Confirm Root Causes Cause and Effect Diagram Root Root Cause Cause Sub Sub Cause 1 1 Sub Sub Cause Sub Sub Sub Sub Sub Sub Cause Cause Sub Sub Sub Cause Sub Cause Final ProblemStatement Final ProblemStatement Cause Cause and Effect Diagram Cause Sub Sub Sub Sub Cause Cause Sub Sub Cause Cause Sub Cause Sub Cause Sub Sub Cause Sub Sub Cause Sub Sub Cause Cause Root Root Sub Sub Cause Sub Sub Cause Cause Cause 2 2 Verify Potential Causes with Data

  10. “After” Item or Potential Potential Responsibility Occurrence Occurrence Process Failure Effect (s) Potential Current Recommended and Detection Detection Severity RPN Severity RPN Step Mode of Failure Cause(s) Controls Action Target Date Action Taken Ease to Implement Effectiveness Root Causes Solutions Specific Tasks Total Score Problem Action Cost Total Risk Priority Number = “After” Risk Priority Number = : Problem Statement ________________________________________ Solution (s) / Specific Task (s) ____________________________ Cost/Benefit Analysis Task / Project Status Who Due Date 1.3 s 3.1 s 100% 100% Cost } Before After 75% 75% Good Benefit Improvement 50% 50% } Improvement 25% 25% Approval from Finance DEFINE IMPROVE changes A2 A1 A3 A4 implemented A1 A2 A3 A4 Time IMPROVE at a Glance To generate, select, and implement improvements Conduct Risk Analysis Identify and Select Solutions Update Outcome Indicators Develop Pilot Plan Gantt Chart FMEA Solution Selection Matrix Before Before After After Good 3.6s 3.2s IMPROVE changes implemented } Improvement Time Time Quantify Pilot Results Conduct Cost/Benefit Analysis Develop Action Plan For Full Implementation Updated Pareto Chart Before After

  11. StandardPractice TrainingCurriculum TrainingManual “Y” Outcome Indicators Good Cost/Benefit Analysis Approval from Finance “X” Upstream Indicators UCL UCL LCL LCL CONTROL at a Glance To institutionalize the improvement and implement ongoing monitoring Develop and Document Standard Practices Train Personnel Verify Cost/Benefit Fully Implement Solutions and PMCS Close Project and Celebrate Build the Process Management Control System Replicate Projects at Other Locations

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