Preface xiii
Introduction xvi
Part I Six Sigma Implementation and Management 1
Chapter 1 Building the Six Sigma Infrastructure 3
What is Six Sigma? 3
Why Six Sigma? 4
The Six Sigma philosophy 6
The change imperative 11
Change agents and their effects on organizations 13
Implementing Six Sigma 20
Timetable 22
Infrastructure 25
Six Sigma deployment and management 31
Six Sigma communication plan 31
Six Sigma organizational roles and responsibilities 35
Selecting the "Belts" 38
Integrating Six Sigma and related initiatives 49
Deployment to the supply chain 51
Change agent compensation and retention 54
Chapter 2 Six Sigma Goals and Metrics 56
Attributes of good metrics 56
Six Sigma versus traditional three sigma performance 58
The balanced scorecard 61
Measuring causes and effects 62
Information systems 64
Customer perspective 65
Internal process perspective 67
Innovation and learning perspective 69
Financial perspective 70
Strategy deployment plan 71
Information systems requirements 74
Integrating Six Sigma with other information systems technologies 74
OLAP, data mining, and Six Sigma 79
Dashboard design 79
Dashboards for scale data 81
Dashboards for ordinal data 84
Dashboards for nominal data 87
Setting organizational key requirements 89
Benchmarking 91
Chapter 3 Creating Customer-Driven Organizations 97
Elements of customer-driven organizations 97
Becoming a customer-and market-driven enterprise 98
Elements of the transformed organization 98
Surveys and focus groups 102
Strategies for communicating with customers and employees 102
Surveys 103
Focus groups 113
Other customer information systems 114
Calculating the value of retention of customers 116
Complaint handling 118
Kano model of customer expectations 119
Customer expectations, priorities, needs, and "voice" 119
Garden variety Six Sigma only addresses half of the Kano customer satisfaction model 120
Quality function deployment (QFD) 121
Data collection and review of customer expectations, needs, requirements,and specifications 123
The Six Sigma process enterprise 125
Examples of processes 126
Thesourceofconflict 128
A resolution to the conflict 129
Process excellence 130
Using QFD to link Six Sigma projects to strategies 132
The strategy deployment matrix 133
Deploying differentiators to operations 136
Deploying operations plans to projects 138
Linking customer demands to budgets 140
Structured decision-making 140
Category importance weights 145
Subcategory importance weights 146
Global importance weights 147
Chapter 4 Training for Six Sigma 150
Training needs analysis 150
The strategic training plan 152
Training needs of various groups 153
Post-training evaluation and reinforcement 162
Chapter 5 Six Sigma Teams 167
Six Sigma teams 167
Process improvement teams 168
Work groups 169
Quality circles 169
Other self-managed teams 170
Team dynamics management, including confict resolution 171
Stages in group development 172
Common problems 173
Member roles and responsibilities 173
Facilitation techniques 178
When to use an outside facilitator 178
Selecting a facilitator 178
Principles of team leadership and facilitation 179
Facilitating the group task process 181
Facilitating the group maintenance process 182
Team performance evaluation 182
Team recognition and reward 184
Chapter 6 Selecting and Tracking Six Sigma Projects 187
Choosing the right projects 188
Customer value projects 188
Shareholder value projects 189
Other Six Sigma projects 189
Analyzing project candidates 189
Benefit-cost analysis 189
A system for assessing Six Sigma projects 190
Other methods of identifying promising projects 198
Throughput-based project selection 201
Multi-tasking and project scheduling 205
Summary and preliminary project selection 208
Tracking Six Sigma project results 208
Financial results validation 211
Financial analysis 212
Lessons learned capture and replication 233
Part II Six Sigma Tools and Techniques 235
Chapter 7 Introduction to DMAIC and Other Improvement Models 237
DMAIC, DMADV and learning models 237
Design for Six Sigma project framework 239
Learning models 241
PDCA 243
Dynamic models of learning and adaptation 245
The Define Phase
Chapter 8 Problem Solving Tools 252
Process mapping 252
Cycle time reduction through cross-functional process mapping 253
Flow charts 254
Check sheets 255
Process check sheets 256
Defect check sheets 257
Stratified defect check sheets 257
Defect location check sheets 258
Cause and effect diagram check sheets 259
Pareto analysis 259
How to perform a Pareto analysis 259
Example of Pareto analysis 260
Cause and effect diagrams 261
7M tools 264
Affinity diagrams 264
Tree diagrams 265
Process decision program charts 265
Matrix diagrams 268
Interrelationship digraphs 268
Prioritization matrices 269
Activity network diagram 273
Other continuous improvement tools 273
The Measure Phase
Chapter 9 Basic Principles of Measurement 277
Scales of measurement 277
Reliability and validity of data 280
Definitions 280
Overview of statistical methods 283
Enumerative versus analytic statistical methods 283
Enumerative statistical methods 287
Assumptions and robustness of tests 290
Distributions 291
Probability distributions for Six Sigma 293
Statistical inference 310
Hypothesis testing/Type I and Type II errors 315
Principles of statistical process control 318
Terms and concepts 318
Objectives and benefits 319
Common and special causes of variation 321
Chapter 10 Measurement Systems Analysis 325
R&R studies for continuous data 325
Discrimination, stability, bias, repeatability, reproducibility,and linearity 325
Gage R&R analysis using Minitab 337
Output 338
Linearity 341
Attribute measurement error analysis 346
Operational definitions 348
Example of attribute inspection error analysis 350
Respectability and pairwise reproducibility 352
Minitab attribute gage R&R example 356
The Analyze Phase
Chapter 11 Knowledge Discovery 361
Knowledge discovery tools 361
Run charts 361
Descriptive statistics 368
Histograms 371
Exploratory data analysis 381
Establishing the process baseline 385
Describing the process baseline 387
SIPOC 383
Process for creating a SIPOC diagram 389
SIPOC example 390
Chapter 12 Statistical Process Control Techniques 393
Statistical process control (SPC) 393
Types of control charts 393
average and range, average and sigma, control charts for individual measurements, control charts for proportion defective, control chart for count of defectives, control charts for average occurrences-per-unit, control charts for counts of occurrences-per unit
Short-run SPC 000
control chart selection, rational subgroup sampling, control charts interpretation
EWMA 453
EWMA charts 453
SPC and automatic process control 465
Minitab example of EWMA
Chapter 13 Process Capability Analysis 467
Process capability analysis (PCA) 467
How to perform a process capability study 467
Statistical analysis of process capability data 471
Process capability indexes 472
Interpreting capability indexes 473
Example of capability analysis using normally distributed variables data 475
Estimating process yield 484
Rolled throughput yield and sigma level 484
Normalized yield and sigma level 487
Chapter 14 Statistical Analysis of Cause and Effect 490
Testing common assumptions 490
Continuous versus discrete data 490
Independence assumption 492
Normality assumption 493
Equal variance assumption 496
Regression and correlation analysis 496
Scatter plots 496
Correlation and regression 502
Analysis of categorical data 514
Chi-square,tables 514
Logistic regression 516
binary logistic regression, ordinal logistic regression, and nominal logistic regression
Non-parametric methods 528
Guidelines on when to use non-parametric tests 533
Minitab ’s nonparametric tests
The Improve Phase
Chapter 15 Managing Six Sigma Projects 534
Useful project management tools and techniques 535
Project planning 536
Project charter 538
Work breakdown structures 541
Feedback loops 543
Performance measures 544
Gantt charts 544
Typical DMAIC project tasks and responsibilities 545
PERT-CPM-type project management systems 545
Resources 552
Resource conflicts 552
Cost considerations in project scheduling 552
Relevant stakeholders 556
Budgeting 558
Project management implementation 560
Management support and organizational roadblocks 560
Short-term (tactical)plans 565
Cross-functional collaboration 566
Continuous review and enhancement of quality process 567
Documentation and procedures 568
Chapter 16 Risk Assessment 571
Reliability and safety analysis 571
Reliability analysis 571
Risk assessment tools 590
Fault free analysis 591
Safety analysis 591
Failure mode and effect analysis (FMEA) 596
FMEA process 597
Statistical tolerancing 600
Assumptions of formula 605
Tolerance intervals 606
Chapter 17 Design of Experiments (DOE) 607
Terminology 608
Definitions 608
Power and sample size 610
Example 610
Design characteristics 610
Types of design 611
One-factor 614
Examples of applying common DOE methods using software 616
Two-way ANOVA with no replicates 617
Two-way ANOVA with replicates 618
Full and fractional factorial 621
Empirical model building and sequential learning 624
Phase 0:Getting your bearings 626
Phase I:The screening experiment 627
Phase II:Steepest ascent (descent)631
Phase III:The factorial experiment 633
Phase IV:The composite design 636
Phase V:Robust product and process design 640
Data mining, artificial neural networks and virtual process mapping 644
Example 646
The Control Phase
Chapter 18 Maintaining Control After the Project 649
Business process control planning 649
How will we maintain the gains made? 649
Tools and techniques useful for control planning 651
Using SPC for ongoing control 652
Process control planning for short and small runs 655
Strategies for short and small runs 655
Preparing the short run process control plain (PCP) 656
Process audit 658
Selecting process control elements 658
Thesinglepartprocess 660
Other elements of the process control plan 661
PRE-Control 661
Setting up PRE-Control 662
Using PRE-Control 663
Beyond DMAIC
Chapter 19 Design for Six Sigma (DFSS) 665
Preliminary steps 665
Define 667
Identify CTQs 667
Beyond customer requirements identifying "delighters" 667
Using AHP to determine the relative importance of the CTQs 668
Measure 670
Measurement plan 671
Analyze 671
Using customer demands to make design decisions 674
Using weighted CTQs in decision-making 678
Pugh concept selection method 681
Design 682
Predicting CTQ performance 682
Process simulation 685
Virtual DOE using simulation software 699
Design phase cross-references 703
Verify 703
Pilot run 704
Transition to full-scale operations 704
Verify phase cross-references 704
Chapter 20 Lean Manufacturing and Six Sigma 705
Introduction to Lean and muda 705
What is value to the customer? 706
Example:Weld dents 706
The value definition 707
Kinds of waste 708
What is the value stream?708
Value stream mapping 710
How do we make value flow? 711
Example of Takt time calculation 712
Spaghetti charts 712
How do we make value flow at the pull of the customer? 713
Tools to help improve flow 714
5S, constraint management, level loading, pull systems, flexible process, lot size reduction 715
How can we continue towards perfection? 716
KAIZEN 717
Becoming Lean:A tactical perspective 720
Six Sigma and Lean 721
Appendix 724
Table 1 Glossary of basic statistical terms 724
Table 2 Area under the standard normal curve 730
Table 3 Critical values of the t -distribution 733
Table 4 Chi-square distribution 735
Table 5 F distribution (a = 1%) 738
Table 6 F distribution (a = 5%) 740
Table 7 Poisson probability sums 742
Table 8 Tolerance interval factors 746
Table 9 Durbin-Watson test bounds 750
Table 10 y factors for computing AOQL 754
Table 11 Control chart constants 755
Table 12 Control chart equations 757
Table 13 Table of d 2 values 759
Table 14 Power functions for ANOVA 761
Table 15 Factors for short run control charts for
individuals,X-bar,and R charts 770
Table 16 Significant number of consecutive highest or
lowest values from one stream of a multiple-stream
process 772
Table 17 Sample customer survey 773
Table 18 Process s levels and equivalent PPM quality levels 777
Table 19 Black Belt effectiveness certification 778
Table 20 Green Belt effectiveness certification 791
Table 21 AHP using Microsoft Excel TM 804
References 806
Index 814
