Gabriele Arcidiacono, Claudio Calabrese, Kai Yang (Auth.) - Leading Processes To Lead Companies - Lean Six Sigma - Kaizen Leader & Green Belt Handbook-Springer-Verlag Mailand (2012) PDF

Leading processes to lead companies:
Lean Six Sigma
1
Gabriele Arcidiacono · Claudio Calabrese · Kai Yang
Leading
ead g processes
p ocesses to lead
ead companies:
co pa es:
Lean Six Sigma
g
Kaizen Leader & Green Belt Handbook
3
Gabriele Arcidiacono
Marconi University of Rome (Italy)
Claudio Calabrese
Lean Six Sigma Expert
Kai Yang
Wayne State University, Detroit (USA)
ISBN 978-88-470-2347-5 ISBN 978-88-470-2492-2 (eBook)

DOI 10.1007/ 978-88-470-2492-2
Library of Congress Control Number: 2011931733
Springer Milan Dordrecht Heidelberg London NewYork

© Springer-Verlag Italia 2012
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The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific
statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.
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Springer is a part of Springer Science+Business Media (springer.com)
Foreword
H
How and
d why
h should
h ld you bbecome “G
“Green B
Belt”?
lt”?
It is not easy to explain how with just a foreword, but this book -
which
hi h is
i very lean
l and
d wellll done
d - certainly
i l represents the
h ideal
id l tooll
to find the right answer to this question.
I my opinion,
In i i h
however, the
h book
b k is
i even more effective
ff i forf those
h
people who are asking themselves “why should I become Green
Belt?” I may try to give my personal contribution to this second
Belt?
question.
One possible answer may be: because my Company has decided that I
have to, in order to embark on process of in-house business im-
pprovements.
X SIGMA MIINIBOOK
LEAN SIX
V
Foreword
Apparently this is the least appropriate answer,

answer but it is not true.
true As a
matter of fact, the value you acquire by entering into the training
mechanism, by managing an improvement project following the
proposed methodology, completing it and, finally, getting the Green
Belt Certificate, makes appropriate even this answer.
However, we may provide several answers to the fatidic question and
we may consider valid each of them, but most probably, the most ap-
propriate one shall be because I believe in the Lean Six Sigma meth-
odology and in my professional growth!
When you work with three inseparable elements like Products,
Processes, People, we may surely consider the Process as the one
X SIGMA MIINIBOOK
which
hi h may positively
i i l influence
i fl the
h other
h two.
LEAN SIX
VI
Foreword
Better and suitable processes help people professional growth,

growth
complete their skills profile and support them in providing better
products and services.
Nearby, however, I have my own and personal answer which I believe
may complete the one I have already considered as the most
appropriate: I’ve become Green Belt because I have so strongly
believed in this methodology to persuade my company to join it. I’ve
found out both efficiency and effectiveness of the method, but above
all, I’ve deeply needed it. I was needing to wholly lead the processes
andd to
t speakk the
th same language
l off a team
t off people
l and,
d therefore,
th f off
a whole company which began to run at higher speed: the results
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were right there.
LEAN SIX
VII
Foreword
And so, thanks to the authors because, coming at the end of this
handbook, I am sure that the reader, the manager and the pro-
fessional will find an obvious and easy answer to a simple question:
Why have I become a Green Belt?
R
Rome, October
O b 2011
Massimo Scaccabarozzi
(Certified Green Belt, Chairman of Farmindustria,
Lean6ı
CEO of Janssen Pharmaceutical Company of Johnson & Johnson)
LEAN SIX SIGMA MINIBOOK

VIII
Preface
This Minibook is a brief guide for Green Belt during a Lean Six Sigma
project
p j management
g or for Kaizen Leader duringg a pprocess improve-
p
ment activity. Having theoretical concepts and practical examples, it is
a handbook for a quick consultancy.
The authors’ idea comes from companies’ needs to analyze useful
information and get to know different kinds of processes in depth.
The set of Six Sigma tools are explained through Minitab 16, the
latest release of the most widelyy used statistical software.
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The Authors
LEAN SIX
IX
Table of contents
Introduction page 1
• Six Sigma page 1
• Lean Methodology page 3
• Kaizen Events approach page 7
• The power of Lean Six Sigma page 10
DEFINE page 11
• SIPOC Diagram page 13
• Process Mapping page 16
– Basic Flow Diagram page 17
– Functional Flow Diagram page 18
– Value Added and Not Value Added page 19
– Activity Flow Diagram page 20
– Waste Walk page 21
– Spaghetti Diagram page 25
– Product Family Matrix page 28
– Value Stream Mapping page 30
• CTQ-Tree Diagram page 44
• Kano Diagram page 45
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• Project Charter page 46
• COPQ: Cost Of Poor Quality page 48
LEAN SIX
XI
Table of contents
MEASURE page 51
• Sampling page 53
• Basic Statistics page 58
• Confidence Interval page 66
• Graphical Summary page 69
• Boxplot page 76
• Gage R&R page 81
• Gage R&R (Continuous Data) page 83
• Gage
G R&R (A(Attribute
ib Discrete
Di Data)
D ) page 95
• Pareto Diagram page 103
• Normality Test page 107
• Capability Analysis page 111
• Calculation of DPMO page 118
• Calculation of Process Sigma page 119
• Takt Time ppage
g 120
• Overall Equipment Effectiveness (OEE) page 122
• Time Series Plot page 128
• Run Chart page 132
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LEAN SIX
XII
Table of contents
ANALYZE page 137
• Cause-Effect Diagram page 138
• Statistical Hypothesis Testing page 145
– 1-Sample t page 147
– 2S
2-Samplel t page 151
– Paired t-Test page 155
– ANOVA page 160
– Chi-Square
Chi Square page 164
– Test for Equal Variances page 168
• Scatter Diagram page 174
• Regression: Fitted Line Plot page 178
• Regression: Analytical Approach page 183
• Regression: Assumptions page 186
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LEAN SIX
XIII
Table of contents
IMPROVE page 187
• 5S Program page 189
• Standard Work page 195
• Cell Design page 208
• SMED - Single Minute Exchange of Die page 213
• Kanban page 221
• Heijunka page 228
• TPM - Total Productive Maintenance page 233
• Priority
Pi i M Matrix
i page 237
• FMEA page 242
• DOE page 247
• DOE: Assumptions page 258
CONTROL page 259
• Control Chart page 261
• Control
C t l ChChartt ffor continuous
ti variables:
i bl IIndividual
di id l page 262
• Control Chart for continuous variables : Xbar-R page 267
• Control Chart for attributes: P Chart page 273
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• Poka Yoke page 278
• Visual Management page 287
• OPL One point Lesson page 293
LEAN SIX
XIV
Table of contents
Lean Six Sigma Checklist page 299
• Define Checklist page 300
• Measure Checklist page 301
• Analyze Checklist page 302
• Improve
I Checklist
Ch kli page 303
• Control Checklist page 304
APPENDIX A: Process Sigma table page 305

APPENDIX B: Kind of variables page 307
APPENDIX C: Kaizen Leader Standard Form page 308
Index page 321
Glossary page 325
References page 333
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LEAN SIX
XV
Introduction: Six Sigma
Six Sigma (G)
is a proven business strategy (structured according to the
DMAIC phases) to measure, analyze and improve the performance in
terms of operational excellence.
Th methodology,
The h d l thanks
h k to a wided range off qualitative
l and
d quantitative
tools, aims to optimize the manufacturing and transactional processes
through reduction of their variability.
variability
The 5 stages in the DMAIC approach are:
• DEFINE
• MEASURE
• ANALYZE
• IMPROVE
• CONTROL
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(G) This symbol indicates that the word is included in the Glossary (page 325)
Arcidiacono G., Calabrese C., Yang K.: Leading processes to lead companies: Lean Six Sigma.
LEAN SIX
DOI 10-1007/978-88-470-2492-2, © Springer-Verlag Italia 2012
1
Introduction: DMAIC approach
Problem identification
Define
Optimized process Measurements and
Control Measure data collection
monitoring
6
e
ov
An
a
pr
ly
Im
ze
Generation and Data interpretation and
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iimplementation
l t ti off root causes analysis
corrective actions
LEAN SIX
2
Introduction: Lean methodology
Lean ((G))
methodology aims to relentlessly identify and eliminate waste in
order to maximize speed and flexibility of business processes in order
to deliver what is needed, when needed and in the qquantityy needed byy
the Customer.
Terms like Lean Manufacturing or Lean Production are deliberately not
used, as the Lean method can be widely used in a variety of processes
such as production processes and transactional processes, for example:
• Lean Production or Manufacturing for production processes

• Lean
L f service/support
Office for
Offi i / processes
• Lean Design inside the Research & Development process
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LEAN SIX
3
Introduction to “Waste”
What is the meaning of “w waste”(G)?
It is the use of resources (time, material, labor, etc.) for doing some-
thing that customers are not willing to pay for, and so it does not add
value to the product or service provided.
provided
Eliminating waste improves the value of products and services.
Th Lean
The L “ hil
“philosophy”
h ” highlights
hi hli ht 8 macro-categories
t i off waste:
t
• Overproduction
• D f
Defects
• Transportation
• Inventoryy
• Waiting
• Over-processing
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• M ti
Motion
• Underutilized people
LEAN SIX
4
The 8 Wastes
Waste Category Description Root Causes Goals
Overproduction
p happens
pp when a process
p produces
p • Batch Production Produce jjust the necessary,
y, in the right
g time
O
Overproduction
d ti more products/services than necessary • Production on forecast at the right quality
• Lack of standardization
Production of defective parts/services that can’t be Produce “right first time”
• Lack of training
sold to the Customer. Defects can be scraps or • Lack of error proofing system Stop the process when the defect occurs,
Defects reworks, which add tremendous costs to solve the problem in order to remove it
• Poor quality of supply
organizations • Obsolete process d fi iti l
definitively
• Batch Production
• Inefficient layout Minimize the movement by arranging
Transportation Unnecessary transport of materials
• Long set-up time processes in close proximity to each other
• Batch Production
• Long set-up time The inventory must be dimensioned based
Too many finished goods in inventory, WIP
Inventory • Bottleneck on the real actual usage and on the supplier
inventory, raw material inventory
• Lack of continuous flow delivery time
• Push organization
• Bottleneck
Maximize “value adding” time to reduce
Customer waiting, waiting for materials, waiting for • Lack of continuous flow
Waiting waiting and to arrange processes in a
employees • Lack of standardization continuous flow approach
• Unbalanced workload
• Not Value Added activityy
• Lack of investigation of Customer Optimize Value Added activities to remove
Over-processing Unnecessary processes or operations needs all the unnecessary steps
• Activity by “tradition”
• Inefficient layout and process flow Remove unnecessary motion and improve
Motion Not Value Added movement of people and machines
• Lack of standardization disposition of material in the workplace
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Not using people’s skills, people are seen as a source • Lack of involvement People are the most important resource in
Underutilized People of labor and are not involved in finding a company: let’s involve them as much as
solutions/opportunities to improve processes • Old Culture possible in company activities
LEAN SIX
5
Introduction: Lean Thinking approach
Every time a Lean expert looks at a process optimization he/she must consider the 5
Lean Thinking principles:
1㼻 LEAN PRINCIPLE Identify the value of the product/service and
Value process from Customer’s point of view
2㼻 LEAN PRINCIPLE Map the process value stream to discover and understand
Value Stream what is value for the Customer
Value added processes must be arranged in a continuous

3㼻 LEAN PRINCIPLE
flow without delays and interruptions, so Lead Time is
Flow
red ced (ideal situation
reduced sit ation “one piece
iece flow”)
flo ”)
4㼻 LEAN PRINCIPLE Produce to Customer demand (the right product, in the

Pull right time and in the right quantity)
Move from a reactive point of view to a “proactive” one,

5㼻 LEAN PRINCIPLE to establish a continuous improvement process of
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Perfection performance (looking for new Customer expectations
and new possibilities to eliminate waste)
LEAN SIX
6
Introduction: Kaizen Event approach
Objective:
• KAIZEN(G) means “to become good through change”. A Kaizen event is a focused effort
to improve activity. A multi-functional team is created and, for a period of 3-5 days,
focuses on resolving a specific problem. The main objectives of a Kaizen event are to
solve problems and/or eliminate “waste”
When to use it:

• Kaizen events are mostly used to develop activity such as:
– 5S
– Standard Work
– Changeover Reduction (SMED)
– Kanban implementation
– Flow Improvement
p
– Cell Design
– Problem solving activities
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– TPM & OEE implementation
LEAN SIX
7
Introduction: Kaizen Event approach
1. BEFORE KAIZEN EVENTS
IDENTIFY OPPORTUNITY SET THE TARGET KAIZEN TEAM
The activity should be linked to one Identify the goal of the event; for Identify the team (typically 5-8
or more company goals example: people); for example:
- Space reduction - Kaizen Leader and Co-Leader
Co Leader
- Inventory reduction - Manufacturing Engineer
- Cycle time reduction - Product Engineer
- Productivity - Material Planner
- Customer Satisfaction - Safety
- Quality Specialist
2. DURING KAIZEN EVENTS (3-5 days)
CURRENT STATE FUTURE STATE RUN THE NEW ACTION PLAN &
INITIAL TRAINING
ANALYSIS ANALYSIS PROCESS CLOSURE
The initial training aims to in- Data collection, problem de- Identify improvements, reduce Test the action implemented, Action plan of open points to be
troduce the activity for the scription, Process Mapping, or eliminate waste, describe new data collection and re- implemented (Kaizen News-
next 3-5 days and must not be Current State performance Future State, implement actions sults analysis paper), prepare presentation for
longer than 2 hours definition Kaizen Event
Event, closure activity
3. AFTER KAIZEN EVENTS

ACTION PLAN NEW PROCESS STANDARDIZATION EXTENTION OF THE
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IMPLEMENTATION CONSOLIDATION OF NEW PROCESS RESULTS IN NEW AREAS
Kaizen Newspaper implementation Standardize process measurements Control plan of process Identify opportunity to deploy
measurements the results on similar areas
LEAN SIX
8
Introduction: Kaizen Events vs LSS Project
Elements of comparison
p Lean Six Sigma
g Project
j Kaizen Events
Scope Wide Circumscribed
3 5 days
3-5
Duration 3-5 months
(depending on Kaizen Event)
Lean Six Sigma Training Kaizen specific training, on the job

T
Training
(Black Belt; Green Belt or Yellow Belt) training
Multifunctional Team
Team Multifunctional Team
(or sometimes natural teams)
Team size Depending on project 5-8 people
Depth of analysis Generally high Generally low
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Involvement Part time involvement Full time involvement
LEAN SIX
9
The power of Lean Six Sigma
LEAN PURPOSE: SIX SIGMA PURPOSE:
S d and
Speed d flexibility
fl ibili through
h h waste Variability reduction
identification and elimination
END
LEAN SIX SIGMA APPROACH
END
N value
Not l added
dd d activities
reduction/elimination
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The final process is “fast”
fast and
Variability reduction
“capable”
LEAN SIX
10
DEFINE
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LEAN SIX
DEFINE MEASURE ANALYZE IMPROVE CONTROL 11
DEFINE
Define phase is the first step of a Lean Six Sigma project and
th f
therefore it is
i necessary to
t determine:
d t i
• the snapshot of the process through mapping (identifying value added
activities and not value added activities)
• the Customer (external or internal)
• weakness and critical points of process
• the scope of the project and therefore the ring of intervention
• a measureable indicator from Customer ppoint of view, called Critical
To Quality (CTQ(G)), and customer satisfaction analysis through a
proactive approach instead of reactive
• an estimation
i i off potential
i l benefit
b fi (economic
( i and/or
d/ strategic,
i written
i
(G)
inside the summary document called Project Charter ), achievable
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p
thanks to the implementation of improvements
p pplanned duringg
project development
LEAN SIX
SIPOC Diagram
Objective:
• SIPOC(G) Diagram maps the process from a macroscopic point of view. It
should be used during the early stages of an improvement project in order to
capture
p sufficient detail to be able to manage
g the process
p
Overview:
S = Supplier
I = Input, X Variable
P = Process, Macro-level
O = Output, Y Variable
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C = Customer
LEAN SIX
SIPOC Diagram
The six steps to construct SIPOC:
1. Identify Customers (G) (external and/or internal)
2. Identify
f process Outputs
O
3. Locate Macro-process boundaries (start and end of process)
4. Determine Process Owner (G)
5. Define p
process Inputs
p and Relative Suppliers
pp
6. Repeat the procedure using a “TOP-DOWN” approach (start from the
p
macroprocess to reach more detailed analysis).
y ) Duringg the pprocess
mapping, distinguish value added phases (VA) from not value added ones
(NVA) (see page 19)
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LEAN SIX
SIPOC Diagram
Useful qquestions duringg SIPOC construction:

• Who is the Customer?
• Is the Customer inside or outside the company?
• What does the Customer need from the process?
• What are the Outputs of the process?
• Where does the examined Process start and end (project ring)?
• Does the process describe the “as-is” situation or the process desired?
• What are the Inputs? What are the specifications agreed upon in terms
of Inputs with Suppliers?
• Who are the Suppliers?
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LEAN SIX
Process Mapping
Objective:
• The process mapping will describe, at a high level, the analyzed process
to identify critical points, both value added and not value added activities
Overview:
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LEAN SIX
Process Mapping: Basic flow diagram
Objective:
• identify the main steps of a process:
starting and final points
• id
identify
if the
h decision-making
d ii ki cycles
l iin the
h
process
ICONS FOR REPRESENTATION
Question mark
Direction of logical flow
Input/Output
Process phase
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Start/Finish of process
LEAN SIX
Process Mapping: Functional flow diagram
FUNCTION 1 FUNCTION 2 FUNCTION 3 FUNCTION 4

Obj ti
Objective:
• to highlight links among depart-
ments/functions in a process flow
• clarify the roles and responsibilities
A
The horizontal line represents

the transfer of functional respon-
sibility
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LEAN SIX
Value Added and Not Value Added
• In a process it is possible to identify three main kinds of activities:
Value Added Activity (VA(G)):
• Activity that increases the value of the product/service from the customer’s point of view
• Something that the customer is willing to pay for
Not Value Added Activity (NVA(G)):
• Activity that does not add any value to the product/service
Business Value Added Activity (BVA(G)):
• Activity that does not add any value to the product/service but is necessary from a business
operations’ point of view
“To be enhanced” “To be reduced”

“To be removed”
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Example of a company process
LEAN SIX
Process Mapping: Activity flow diagram
Objective:
VALUE ADDED PHASES NOT VALUE ADDED PHASES
• to visualize process complexity
• to identify decisional cycles and bottlenecks
Yes • to determine Not Value Added phase for
product/service (waste(G))
No Value added p
phase (VA)
( )
• Customer willing to pay for it
• Step that physically transforms the product/service
No
• Phase that produces right first time product/service
Yes
Not value added phase (NVA)
• Non essential phases for output production:
– Defects,, reworks
– Testing
– Checking
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– Transporting, motion, waiting
– Overproduction, Inventory
LEAN SIX
Waste Walk
Objective:
j
• The Waste Walk aims to consider the flow of a product / service from
start to finish (Example from raw materials to finished goods) and
highlights all forms of waste along the way
END
When to use it:
• The method is very useful to highlight the macro-waste in a process and

then to start an improvement action plan with low investment and high
X SIGMA MIINIBOOK
return activities on the business processes
LEAN SIX
Waste Walk: operative procedure
How to pperform a “waste walk”:
1. Select a pproduct/service pprovided

2. Go through the end-to-end process following the product and pay
attention to detail
3. Identify the waste referring to the eight categories of Lean
methodology
4 Collect
4. C ll t on a piece
i off paper allll the
th information
i f ti related
l t d tto th
the waste
t
detected
5. If possible, try to quantify the entity of the waste (€, time, resources,
etc.)
6. Clearly describe how wastes are created in the process
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7. Generate possible ideas for waste elimination or reduction
LEAN SIX
Example
p of a format for collection of necessaryy information
during a Waste Walk analysis:
X SIGMA MIINIBOOK
LEAN SIX
Example
p of data collection:
X SIGMA MIINIBOOK
LEAN SIX
Spaghetti Diagram
Objective:
• The Spaghetti Diagram is a visual description of actual flows (usually ma-
terial and/or people flows). It is an effective tool to see the shortcomings
in a process such as excessive material movements,
movements long walking distances
and layouts that are not designed based on actual process needs
O
Overview:
i
X SIGMA MIINIBOOK
LEAN SIX
Spaghetti Diagram
How to build a Spaghetti Diagram:
1. Identify the product, file, information, person and material to follow through
2. Take a ppen and the facilityy layout,
y , drawn on ppaper
p ((or layout
y of the area in qques-
tion)
3. Follow the product, information and people flow step by step and draw the actual
movement paths on a piece of paper and measure the path distances
Example of a file managed through a service company process
5 4
1
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2
3
LEAN SIX
Spaghetti Diagram
Example of Spaghetti Diagram before and after an optimization activity on
S U process (SMED – Single
Set-Up Si l Minute
Mi E h
Exchange off Die)
Di )
PLASTIC MOLDING MACHINE PLASTIC MOLDING MACHINE
Before After
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M
Movement off two operators during
d i a set-up activity
i i
LEAN SIX
Product Family Matrix
Objective:
j
• Product Family Matrix is a tool used to group many products into the
“product family”. The product will belong to a family if the processes or
components necessary to produce it are similar to those of other
products in that family
When to use it:
• The tool is used before performing a value stream analysis. When

product variety is low, it is possible to have one Value Stream Map for
each kind of product. However, in most companies there are hundreds of
products and it is impossible to draw hundreds of Value Stream Maps. In
this case it is useful to group products into “families”
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LEAN SIX
Product Family Matrix
How to build a Product Family Matrix:
1. Place different kinds of product line by line
2. Place processes or components according to product type in columns (pay
attention to the downstream processes that generally differentiate the
product)
3. For each product, highlight the processes or components used
4. Identify
f the “Product
“ Family”” by degree off similarity in columns used
Overview:
Don’tt spend a lot of time in Pro-
Don Pro
duct Family Matrix construction; it
is not a value added activity for
Family A the customer
It is advisable to build up a Value
Stream Mapping for each family,
Family B starting from the biggest family in
X SIGMA MIINIBOOK
terms of quantity sold to the
Family C customer
LEAN SIX
Value Stream Mapping (VSM)
Objective:
j
• Value Stream Mapping (VSM(G)) is a diagram of every step involved in the
material and information flow necessary to bring the product/service
from the order to delivery phase. Value Stream Mapping is a very good
starting point to identify opportunities for improvements
Overview:
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LEAN SIX
Value Stream Mapping (VSM): Roadmap
How to perform a Value Stream analysis:
STEP 1:
Draw the “Current State” situation;
gather the information directly from the
shopfloor → Current State Map
STEP 2:
Identify potential improvements (Kaizen
events
t or projects)
j t ) to
t reachh the
th desired
d i d
situation (Future State)
STEP 3:
Draw the “Future State Map”
STEP 4:
Build an action plan to pass
X SIGMA MIINIBOOK
from the Current State to
Always use pencil and the Future State situation
paper (Value Stream Plan)
LEAN SIX
Value Stream Mapping (VSM): Current State
Guidelines to build a Value Stream Map:
1. Identify the product family to analyze (use, if necessary, the Product Family
Matrix)
2. Go to the shopfloor and begin mapping, starting from the customer, and
go back upstream through the entire flow. Describe step by step pro-
cesses and gather information such as:
• Customer information
• I t
Intermediate
di t inventories
i t i andd their
th i location
l ti
• How the information flow runs inside the company
• Production input of the single process
• Process Cycle Time, Set-Up time, Number of operators for each step, WIP
• Lead Time(G)
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• Supplier information
LEAN SIX
Value Stream Mapping (VSM): Current State
Example of a Current State Map:
A
F
H
E
B
D
C
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U
LEAN SIX
Value Stream Mapping: Standard Icons
These icons are the common language to do the Value Stream Analysis
ICON NAME DESCRIPTION PRACTICAL NOTES
Gather information such as:
XYZ Use to show Customers, •Customer/Supplier Name
Suppliers and External •Customer/Supplier location (Europe,
Prod 1 10000 parts/years
Customers/Suppliers USA etc.)
Prod 2 25000 parts/years
processes. Place in the top •Number of products required
... right/left corner of the diagram •Mix of products
(page 33) A •Batch
B t h size/delivery
i /d li llead
d ti
time ((supplier)
li )
STEP1
Use to show a process,
Identify Process Name
NAME OF Process Step (exclude elementary work
PROCESS Identify kind of process
B tasks)
Example of information for a

Use to show all important process:
information concerning each • No. of Operators (VSM icon )
Data Box process/customer/supplier. This • Cycle Time/Set Up Time/Uptime
• No. of Shifts
is generally placed under each
X SIGMA MIINIBOOK
• Batch Size
process • Wip
C • % Defects (PPM,DPMO)
LEAN SIX
How to calculate time; example:
600 pieces • average Customer requests →
Use to show inventory; try to 30,000 parts/year
Inventory quantify the inventory in terms of • average Customer demand per day →
parts, inventory value and time 30000/220 (220 days
d in
i 1 year)) =
136 parts/day
4.4 days D • inventory time: 600/136= 4.4 days
2X
Week
Id if
Identify:
Shipment Method Use to identify kind of shipment • shipment method (truck; airplane;
1 X
Month
ship)
• delivery frequency
• date of shipment
1 X Month
X SIGMA MIINIBOOK
E
LEAN SIX
Movement of finished goods This icon is used if a supplier is
External
to the customer or movement involved during the production
transportation cycle
F from supplier to the company
Material is produced and moved This happens when production is

Movement of material
to the next step process when based on schedule but not on
in push logic C
Customer demand
d d
not needed
G
Electronic Communication between Example:

Information processes in an electronic flow • IT system information
H
Example:
U to describe
Use d ib a manuall
Manual information • production schedule
information flow • delivery schedule
X SIGMA MIINIBOOK
Weekly
Identify
f the frequency
f off the
Information Use to identify information information
Schedule I
LEAN SIX
The level of buffer stock must be

Used to indicate the buffer/safety
Buffer or safety stock measured (in days or number of
stock pparts)) under the icon
3 days
d
Replenishment is based on actual con-

A controlled inventoryy of pparts sumption of stock.
stock If the supermarket is
Supermarket that “pull” the production from not used, the upstream process doesn’t
produce any product on supermarket
an upstream process
L (Pull System)
Used usually for a request from a

process to a supermarket/warehouse
Withdrawal
Used to represent a pull material
(Pull material)
M
Used to represent transfer of The first ppart that goes

g into the
X SIGMA MIINIBOOK
First In First Out
FIFO material between process is the first part to go out.
Sequence (Example: Conveyor)
processes in a “FIFO” sequence
LEAN SIX
Used to instruct the material
handler to take and
Withdrawal Kanban transfer parts from a
supermarket/inventory to a
N downstream process
1 - The upstream process produces what
Used to engage the upstream has been consumed from the
process to produce what is supermarket
Production Kanban 2 - The downstream process withdraws
necessary for replenishment of
from supermarket what it needs in the
O supermarket/inventory right quantity
This signal is used when the The “batch kanban” is necessary when
Signal Kanban reorder point (G) is reached and a supplying process must produce in
new batch must be produced batches because of Changeovers
P
Used to show place where
The kanban post could be a mailbox
Kanban are collected to be taken
Kanban Post which collects the kanban card or a place
from material handler to which collects bins/balls, etc.
X SIGMA MIINIBOOK
Q replenish
l i h processes
LEAN SIX
The icon is used to indicate Tooll to intercept
T i batches
b h off
Level load kanban and levelling the volume
levelling of production quantity and mix over a period of time
production
R rather than batching (“Every part every day”)
Gathering of information through
Used to highlight a point where visual checks. Visual management
Visual Checking and
the inventory level is checked is one of the most important and
scheduling q
frequent concepts
p in lean
visually
S deployment
To get a global view of what is

Used to highlight improvement at needed to reach a lean flow.
flow
Improvement activity a specific point of the process The improvement can be Kaizen
stream Workshop, Six Sigma project,
Problem Solving activities, etc.
IMPROVEMENT T
The timeline is used to calculate the
The timeline shows value added
Process Cycle Efficiency, i.e. the ratio
times (Cycle Times) and non- between Value-Added Activities and Not
Value Added Activities:
X SIGMA MIINIBOOK
Timeline value added times.
times Use this to
Lead Time calculate Lead Time and Total
U Cycle Time
LEAN SIX
Value Stream Mapping (VSM): Future State
What does “Lean” do in a value stream? Key elements for a good
future state map design:
1. Identify and eliminate sources of overproduction
2. Produce product/service with takt-time rhythm (identify Takt Time)
3. Create continuous flow, where possible
4 Where a continuous flow is not possible,
4. possible use pull system for process connection
instead of a push system (using supermarket)
5. Reduce batch size and, where possible, introduce the “one piece flow” approach
6. Send the scheduling to the process nearest the Customer (Pace-Maker process).
Will the customer pull from a finished goods supermarket or directly from shipping?
7 Level
7. L l mix
i / volume
l production
d i at the
h Pace-Maker
P M k process
8. Identify potential improvements for each process step (Change-over, Standard
g , Problem Solving)
Work,, TPM,, Variabilityy reduction,, Kanban,, Cell Design, g)
X SIGMA MIINIBOOK
LEAN SIX
How to reach the Future State Map:
T
Kanban
Supermarket
Supermarket
Supermarket
One piece flow Cycle Time

Reduction
Six Sigma
Project
X SIGMA MIINIBOOK
LEAN SIX
Example of a Future State Map:
N
S O
Q
L
M
X SIGMA MIINIBOOK
U
LEAN SIX
Example of a Value Stream Map:
X SIGMA MIINIBOOK
LEAN SIX
CTQ-Tree Diagram
Objective:
• Tree Diagram is a tool moving from VOC(G) (Voice Of the Customer)
to one or more CTQs, translating the customer’s voice into objectively
measurable indicators.
indicators
Overview:
B A
R
Request i customer’s
in ’ language
l
A
B
The CTQ expresses customer
needs in a clear, unmistakable
X SIGMA MIINIBOOK
l
language that
h everybody
b d can
understand
LEAN SIX
Kano Diagram
Objective:
• Kano Diagram is a tool that aims to identify the important aspects to
drive Customer Satisfaction (G)
Overview:
POST-IT Must Be: Qualities that are present and what
POST-IT
customers expect to be present (e.g. product
or service must be safe)
POST-IT
More is Better: These qualities are directly

correlated to customer satisfaction. The more
present they are, the bigger the Customer
POST-IT
Satisfaction
POST-IT
POST IT
POST-IT POST-IT
Delighters: Qualities unexpectedly found by

POST-IT the Customer and consequently, if present,
increase his/her satisfaction
X SIGMA MIINIBOOK
LEAN SIX
Project Charter
X SIGMA MIINIBOOK
LEAN SIX
Project Charter
Contents of Project Charter:
Title Indicate project title
Describe in more detail the purpose of the project, in order to better explain the
Scope meaning of the title
Insert the people who are involved in the project deployment:
– Team Leader
Team – Team Members
– Process Owner: Owner of the area (Department/Office) involved in the project
– Champion/Sponsor: is the financial backer of the project Six Sigma
Duration Identify project duration (4-5 months)

Identify the project CTQ to be analyzed (it could be one or more than one), the current
CTQ value and the expected value (target) at the end of the project
Insert the value of financial benefits ((in terms of revenue and/or cost)) that should be
SSavings
i (G) achieved when the CTQ target is reached at the end of the project (benefits per year)
Constraints Identify the constraints which must be respected during the project development
g g the start-upp date for each pphase,, expected
Highlight p closure date and the real ppercentage
g
X SIGMA MIINIBOOK
Phases of progress (Project Charter is an “ongoing document” and the starting point of all
project meetings)
LEAN SIX
COPQ: Cost Of Poor Quality
• Cost of Poor Quality, called COPQ(G) (Cost Of Poor Quality), are

those costs due to poor performance of manufacturing and/or trans-
actional processes and include labor costs, energy, materials, depreci-
ation,
i which
hi h must be
b sustained
i d to avoid
id generating
i non-conformity
f i or
in response to their occurrence
• A possible model for COPQ could be the following:
• Prevention costs
COSTS OF QUALITY
• Checking costs
OPQ
CO
• Costs due to internal defects
COSTS OF NON
CONFORMITY • Costs due to external defects
X SIGMA MIINIBOOK
LEAN SIX
COPQ: Cost Of Poor Quality (example)
X SIGMA MIINIBOOK
LEAN SIX
MEASURE
X SIGMA MIINIBOOK
LEAN SIX
MEASURE
Measure phase is the second step of a Lean Six Sigma project,
where:
h
• a “rational” data collection is pperformed for the scope
p chosen: this
collection requires effective and efficient planning in order to
create a database of knowledge to record the process which will
highlight
g g t tthee ccritical
t ca issues
ssues from
o aan object
objective
ve sta
standpoint
po t
• the data is interpreted through statistical tools (in case of samples,
to test their significance and how they are seen/shown over-
viewed)
• the reliability of data is verified
• process performance is calculated through the proper KPI (OEE,
Takt Time, Process Sigma, Process Capability etc.)
X SIGMA MIINIBOOK
LEAN SIX
Sampling
Objective:
• Gather a subset of data (n) representative of the population (N)
Wh to use it:
When
• When the observation of all data (population) would:
– require too many financial resources
– take longer than the time at one’s disposition
– “destroy”
destroy the entire population (e.g.
(e g in case of destructive tests)
X SIGMA MIINIBOOK
LEAN SIX
Sampling
overview:
Rules to obtain sampleRandom Systematic Subgroups
Subgroups
Sampling
Samp
Sampling
plingg strategy Stratified Random Sampling
Samp
pling
Sampliing
Sampling Sampliing
Sampling Sampling
Sampliing
Process configuration
(population)
Sample
X units are selected at

Each element has an equal The sample respects the Each sample unit is collected eequally
qually spaced intervals of
Description
Description
chancee off beingg selected population
n proportions "m
everyy "m"
m" units timee (seconds,, minutes,,
hours, etc.)
X SIGMA MIINIBOOK
LEAN SIX
Sampling
Sample size calculation to estimate the population’s mean (formula for continu-
ous data):
2
§ 2s · Formula (i)
n= ¨ ¸
© d¹
where:
• n = Sample size
• s = Standard deviation or its estimate
• 2 = factor corresponding to a Confidence Interval of 95%
(th exactt value
(the l isi 1.96)
1 96)
• d = Precision required in mean estimation
X SIGMA MIINIBOOK
LEAN SIX
Sampling
Sample size calculation for the estimation of the population proportion (formula
for discrete data):
2
§ 2· F l (ii)
1 p) Formula
n= ¨ ¸ ( p)(1-
d
© ¹
where:
• n = Sample size
• p = Proportion estimation (if it is not known use p = 0.50)
• 2 = factor corresponding to a Confidence Interval of 95% (the
exact value is 1.96)
• q
d = Precision required in pproportion
p estimation
X SIGMA MIINIBOOK
LEAN SIX
Sampling
• Formulas (i) and (ii) are valid if the sample size is less than 5% in
comparison with population size
n
< 0.05
0 05
N
• If the sample size is more than 5% of the size of the population, it is

possible to adjust the sample size obtained with (i) and (ii) using the
formula below:
n=
n CORRECTIVE
correct FORMULA
X SIGMA MIINIBOOK
1 +n
N
LEAN SIX
Basic Statistics
Obj ti
Objective:
• Represent the main statistical properties of a set of data (sample or
population)
Characteristics:
• Location parameters
– Mean,
Mean Mode,
Mode Median,
Median Quartiles,
Quartiles Percentiles
• Dispersion parameters
– Range, Standard Deviation, Variance
• Shape parameters
– Skewness, Kurtosis
X SIGMA MIINIBOOK
LEAN SIX
Basic Statistics
Location parameters
The location parameters aim to identify the most frequent values of
distributing data
Dispersion parameters
The dispersion parameters can assess the variability of data
Shape parameters
The shape parameters are used to assess whether the data collected are
arranged according to a symmetrical distribution
X SIGMA MIINIBOOK
LEAN SIX
Basic Statistics
Location parameters:
¦X i i
Mean X =
N
Mode The value, among data, with highest frequency
The value having the characteristic that one half of the values is larger and the
Median other half smaller. The value divides the set of data into two equal parts (it is the
mean of the two central values if the number of data is even)
The value of a concept
p for which three q
quarters ((75%)) of the value are larger
g
First Quartile (Q1) and one quarter (25%) is smaller
The value of a concept, thus one quarter (25%) of the value is greater and three
Third Quartile (Q3) quarters (75%) are smaller
Dispersion parameters:
Range Range = xmax − xmin
Standard Deviation ¦(X i − X )2
σ=
(StDev) N −1
X SIGMA MIINIBOOK
Variance σ2 = ¦ ( X i − X )2
N −1
LEAN SIX
Basic Statistics
Shape parameters:
Skewness The value that measures the asymmetry of distribution:
3
• Skewness < 0: the distribution is shifted to the right
N ª xi − x (
«
Skewness =
) »º
¦ • Skewness > 0: the distribution is shifted to the left
( N − 1)( N − 2 ) «¬ s »
¼
• Skewness
Sk = 0:
0 the
th distribution
di t ib ti isi symmetrical
ti l
Kurtosis The Kurtosis is a measure of how the distribution of the

analyzed
l d data
d differs
d ff f
from a normall distribution:
d b
4
N ( N − 1) ª xi − x
(
«
Kurtosis =
) º» − • Kurtosis < 0: the distribution has a softer peak, shoulders
»
( N − 1)( N − 2 )( N − 3) ¦ ¬« s ¼ are bigger and tails are thinner than a normal distribution
2
3 ( N − 1)
− • Kurtosis > 0: the distribution has a sharper peak, shoulders
( N − 2 )( N − 3)
are finer, and tails are larger than a normal distribution
X SIGMA MIINIBOOK
LEAN SIX
Basic Statistics
A graphic explanation of the meaning of Skewness, a symmetry parameter, is as
f ll
follows:
S<0 S=0 S>0
Distribution skewed to the Distribution skewed to the

right (the mode is shifted left (the mode is shifted to
X SIGMA MIINIBOOK
Symmetrical distribution
to higher values of the lower values of the
distribution) distribution)
LEAN SIX
Basic Statistics
A graphic explanation of the meaning of the Kurtosis, a symmetry parameter, is
as follows:
K<0 K=0 K>0
Distribution with “flat” Distribution with “sharp”
X SIGMA MIINIBOOK
shape N
Normal
l di
distribution
ib i shape
LEAN SIX
Basic Statistics
MINITAB:
Stat > Basic Statistics > Display Descriptive Statistics…
X SIGMA MIINIBOOK
LEAN SIX
Basic Statistics
Insert the column of the sample to be

analyzed
y in terms of basic statistics
A
B
Select all parameters of interest

B
MINITAB Output:
X SIGMA MIINIBOOK
LEAN SIX
Confidence Interval
What is it?
• The Confidence Interval (CI)(G) is the interval that contains the mean (or
proportion, median, standard deviation) of the population with a prob-
ability of 95%
When to use it:
• The Confidence Interval is used to identify whether the analyzed sample
belongs to a certain population
Overview:
Sample mean X
X SIGMA MIINIBOOK
Interval within which is located, with a probability of 95%, the
mean of the population from which the sample comes
LEAN SIX
Confidence Interval
The formula for determining the width of the Confidence Interval for the
mean off a sample
l is:
i
s
CIμ = X ± 2
n
where: Example: Estimation of the mean width

off a particular
ti l mechanical
h i l partt
X = Sample mean
CI = 95% Confidence interval
X = 21.0
21 0 mm
n = Sample size s = 0.25 mm
CI
CI == (21.0 098 )
( 21, 0 ±±0,0.098)
s = Sample standard deviation* n = 25
X SIGMA MIINIBOOK
*when the population standard deviation is known, use it instead of the sample standard deviation (s)
LEAN SIX
Confidence Interval
The following formula is used to determine the width of the Confidence
I
Interval
l for
f the
h proportion
i off a sample:
l
p× (1-
(1 p))
CIP = p± 2
n
Example: Estimate in order to

where: assess the proportion of defects
in a specific process
p = Sample proportion estimate
p = 0.15
0
CI = 95% Confidence Interval CI = (0.15 ± 0.0714)
n = 25
p size
n = Sample
X SIGMA MIINIBOOK
p
LEAN SIX
Graphical Summary
Objective:
• The tool aims to give graphical and statistical representation of
the parameters found in the collected data
g 72):
Characteristics ((see ppage )
• Histogram with reference curve A
• Normalityy Test B
• Basic Statistics C
(G)
• Verification of Outliers presence D
• Confidence Interval E
X SIGMA MIINIBOOK
LEAN SIX
Graphical Summary
MINITAB:
Stat > Basic Statistics > Graphical Summary…
X SIGMA MIINIBOOK
LEAN SIX
Graphical Summary
A
A
Insert the column containing
the sample to be analyzed
B
B
Insert potential stratification
factors
C C
Choose the level of confidence

to determine the width of the
Confidence Intervals
X SIGMA MIINIBOOK
LEAN SIX
Graphical Summary
MINITAB: Output
B
A
E
D
X SIGMA MIINIBOOK
LEAN SIX
Graphical Summary
A
• This is a schematic Bar Chart (Histogram)
• The chart is useful to check on a qualitative way the pattern of
data collected in terms of mean, variability and presence of any
abnormalities
b li i such
h as outliers,
li mixture
i off two di
distributions,
ib i etc.
• This chart shows the normal curve that best fits the data shown
2 4
B • It reports the results of the Anderson-Darling statistical test in

order to verify the normality of the sample:
– if the P-Value (G) is bigger than the threshold value chosen (generally
) it is p
0.05, that is 5%), possible to sayy that the sample
p comes from a
normal distribution
– if the P-Value is less than the threshold value chosen, the sample
data doesn’t respect a normal distribution
X SIGMA MIINIBOOK
LEAN SIX
Graphical Summary
C • This section has a summary of data through the usage of the
parameters of location,
location dispersion,
dispersion symmetry and sample size
(see pages 60 and 61)
• Location parameters: Mean, Median, First Quartile, Third

Quartile
• Dispersion parameters: Minimum, Maximum, Standard

2 Deviation (StDev)
• Shape parameters: Skewness, Kurtosis
D
• D is a graph of the sample data through the use of the Boxplot
• The symbols * highlight points that may not belong to the same
d
distribution
b off the
h remaining d
data
• These points are called Outliers and can often be associated
with special events
X SIGMA MIINIBOOK
LEAN SIX
Graphical Summary
• Seen in this chart are confidence intervals (with confidence level of

95%) for the estimation on population, which the sample of the
analyzed data comes from:
– Confidence Interval for mean
– Confidence Interval for median
– Confidence Interval for Standard Deviation
X SIGMA MIINIBOOK
LEAN SIX
Boxplot
Objective:
• The Boxplot is a tool useful for studying the distribution of col-
l
lected
d data
d and
d to obtain
b information
f on position, dispersion,
d and
d
symmetry
When to use it:

• With the Boxplot you can see if any Outliers exist (if yes,
yes an inves-
inves
tigation must be done to find out the reasons), or if there are any
points not belonging to the same distribution of the remaining data,
they must be probed, too
X SIGMA MIINIBOOK
LEAN SIX
Boxplot
MINITAB:
Graph > Boxplot…
X SIGMA MIINIBOOK
LEAN SIX
Boxplot
A
A
Select the variable stored in a

single column to be plotted
X SIGMA MIINIBOOK
LEAN SIX
Boxplot
F E C
X SIGMA MIINIBOOK
LEAN SIX
Boxplot
A Lower Quartile or First Quartile (Q1): Cut-off point for lowest 25% of data
B Upper or Third Quartile (Q3): Cut-off point for lowest 75% of data (or highest
25% of data)
C Median (Q2): Cut-off point for 50% of data (50th percentile)
Outliers: Observations that are numericallyy distant from the rest of data, i.e.
D
unusually large or small data points (verify why they are present!). Minitab uses
the quartile method
QUARTILE
LS= Q3 + 1,5 ( Q3 - Q1 )
Lean6ı METHOD
LI = Q1 -1,5 ( Q3 - Q1 )
E
Upper whisker and Lower whisker: These are estimates of the upper and
lower limits of the data set (excluding outliers)
F Range: Maximum – Minimum
LEAN SIX SIGMA MINIBOOK

Gage R&R
Objective:
• Gage R&R is a measurement of the capability of a measurement system
to obtain the same measurement reading consistently with repeated
measurement takings. Gage R&R decomposes the total variation in
measuredd data
d i
into part to part variation
i i and
d measurement variation,
i i
and determines the capability of the measurement system by comparing
measurement variation vs total variation
Components of Variation :
σ 2total = σ 2 part −to − part + σ 2 measurement
σ 2 repeatability + σ 2 reproducibility
X SIGMA MIINIBOOK
The measurement system is valid if the greater part of
variability is attributable to the process (part to part)
LEAN SIX
Gage R&R
X SIGMA MIINIBOOK
(Source: AIAG, Automotive Industry Action Group)
LEAN SIX
Gage R&R (Continuous Data)
Gage R&R Test Plan (Manual):
1. Each operator will measure each part multiple times (recommended 3 times)
2. The data must be balanced, i.e., each operator
p must measure the same p part equal
q number
of times
3. The selected parts must be representative of the range of variation of the process
X SIGMA MIINIBOOK
4
4. Operators should carry out the tests “blindly”
blindly , i.e.
i e without being influenced by other
operators’ measurements, and sequence their measurement jobs randomly
LEAN SIX
Gage R&R Test Plan (Automatically Created by Minitab):
MINITAB:
Quality Tools > Gage Study > Create Gage R&R Study Worksheet…
X SIGMA MIINIBOOK
LEAN SIX
A
A C Select the number of parts to be
measured
D B
B Enter part number/name
C
Select the number of operators
F
D
E Enter the name/label for operators
E
Select the number of replicates
F
X SIGMA MIINIBOOK
Select this option if you want to
randomize the test
LEAN SIX
MINITAB: Output
A B C D E
A
Standard order of test (without randomization)
B
Randomized test run order
C
Part number to be measured in each run
D
Operator number/name
X SIGMA MIINIBOOK
E
Measurement data to be entered
LEAN SIX
Analysis of Gage R&R with MINITAB:
Stat > Quality Tools > Gage Study > Gage R&R Study (Crossed)…
X SIGMA MIINIBOOK
LEAN SIX
Gage R&R Study (Crossed)…
A
Enter the parts name/label column

A
B
C B
Enter operators name/label column

D
C
Enter the measurements data column
D
Choose the most appropriate analysis
method
X SIGMA MIINIBOOK
LEAN SIX
A D
B
E
C
F
X SIGMA MIINIBOOK
LEAN SIX
A
• Each set of bars represents a source of variation. By default there are
% Contribution and % StudyVar, but if you enter the option of Tolerance
(or the Historical Tolerance) , it shows a third bar % Tolerance
• In a good measurement system the biggest contributor of variability should
be the Part-to-Part Variation
• Note that, in case of % StudyVar and % Tolerance, the sum of the bar
heights of repeatability and reproducibility will not be equal to the bar
height of Gage R&R. This is because the standard deviations will not add
up (unlike σ²)
B
• The R-chart shows the variability in the measurements for each operator
• Specifically, it shows:
- each dot in the R-chart for a particular operator shows the range
(maximum-minimum) of repeated measurements; if they are same, same the range
will be zero
- the Center line is calculated by averaging all the ranges for each subgroup
of repeated measurements for each part
p
- Control Limits ((UCL and LCL)) are computed byy usingg the variance within
X SIGMA MIINIBOOK
the subgroups
LEAN SIX
C
• The X-bar chart shows Part-to-Part variation by displaying the mean of

repeated measurements of each part
• Specifically, it shows:
- the dots in the chart represent, for each operator, the mean of repeated
measurements of each part
- the Center Line represents the mean of all measurements from all operators
and all parts
- Control Limits (UCL and LCL) are calculated from measurement data
• The measurement system is acceptable when plotted dots are out of control
limits
• The variation caused by Repeatability should be much smaller than Part-to-Part
variation
D
• This chart shows the dotted plots for the measured values of each part
aggregating all operators
• In the chart, circles are individual measurements, solid dots represent mean
value
l off measurements for
f each h part
• Ideally:
- measurements for each part should closely cluster together, with little
variation
- part-to-part measurement variation should be much larger than the variation
X SIGMA MIINIBOOK
off measurements on theh same part
LEAN SIX
E
• Measurement by operator graph may help to determine if

reproducibility will affect the measurements
• It shows all the measurements taken by different operators:
the circles show averages.
averages The line connects the mean
measurements for each operator
• With this graph, we can also determine whether the total
variability in the parts is the same for each operator
(variability should have similar mean and variation)
• Guidelines AIAG
Line condition… Indication…
Parallel to X-axis Operators yield similar measurement

means
Not pparallel to X-axis Operators yield different measurement
X SIGMA MIINIBOOK
means This indicates operators
means. o erators mea-
mea
sure in different ways
LEAN SIX
F
• This Operator*Part Interaction chart shows lines that

connect the mean measurements for each operator measur-
ing each part; each line indicates an operator
• In an ideal situation, all lines should be coincidental with each
other, indicating no operator induced measurement variation
among all parts
• Guidelines AIAG
Line condition Indication
Virtually parallel The operators measure parts in a similar way
A line is substantially higher or An operator consistently yields measurements higher or lower than
lower than others others
X SIGMA MIINIBOOK
Non parallel or crossed lines The results of the operators
operators’ measurements are affected by different
parts
LEAN SIX
A
Identifying significance of source of variability by p
value:
A
For a main effect,
effect a p value less than 5% indicates
its significance and for an interaction less than 25%
may indicate its significance.
B
Rule of thumb: Performance level of a gage
(threshold values of acceptability)
X SIGMA MIINIBOOK
C
C NDC (Number of Distinct Categories) 5
LEAN SIX
Gage R&R (Attribute Discrete Data)
Gage R&R Test Plan:
Example of Gage R&R Test for Good/Not Good Judgments
• Select 20-30 pparts that can show the variabilityy of the pprocess
• Use an expert to evaluate all selected parts in order to create a standard
reference value
X SIGMA MIINIBOOK
• Use 2 or 3 operators to evaluate all parts and give good/not good ratings
• Apply randomization and blinding in the test
LEAN SIX
MINITAB:
S > Quality
Stat Q Tools > Attribute
A Agreement
A Analysis…
A
X SIGMA MIINIBOOK
LEAN SIX
A
A
Use this option when data are grouped in
columns
B B
C Use this option when different evaluation trials

are stored in different columns
D
E C
E
Enter the
h number
b off operators
D
Enter the number of trials
E
X SIGMA MIINIBOOK
Enter the standard reference value (if available)
LEAN SIX
A B
X SIGMA MIINIBOOK
LEAN SIX
A • This chart shows the consistency in responses for each operator
• For each operator
– the blue dot shows the percentage of consistency in his/her
answers
– the red line gives the 95% confidence interval for the percentage of
consistency in his/her answers
– the blue X provides the upper and lower confidence limits
• This chart is ggenerated when there is a standard as reference

B
• This chart shows the correctness of responses for each operator (accuracy
in the answer)
• For each operator, the chart provides the following information:
– the blue dot shows the percentage off consistency with the standard
of reference
– The red line represents 95% confidence interval of the percentage of
consistency with the standard of reference
X SIGMA MIINIBOOK
– The blue X represents the upper and lower limit points of the
confidence interval
LEAN SIX
A A Comparing operators
B C
Percentage consistency for each operator
B
(without comparing with standard)
C Confidence Intervals on percentage consistency
C i operators with
D Comparing i h standard
d d
E Percentage correctness of each operator
F Confidence Intervals on correctness

D
Rule of Thumb: Performance evaluation standard for
E F
attribute
tt ib t Gage
G R&R
B
X SIGMA MIINIBOOK
E
LEAN SIX
A Comparison between operators
A
B C
Percentage of consistency between different
B operators (similar to the concept of
reproducibility)
C Confidence Interval for percentage consistency
D Comparison of all operators with standard
E Percentage of correctness among all operators

D vs standard
E F
F Confidence Interval
Rule of Thumb: Performance evaluation standard
for Gage
g R&R with discrete attributes
X SIGMA MIINIBOOK
E
LEAN SIX
Gage R&R & Minitab
Minitab Assistant helps you to choose the right Gage R&R methodology
X SIGMA MIINIBOOK
LEAN SIX
Pareto Diagram
Obj i
Objective:
• Pareto diagram can help to identify high priority actions or areas, by
graphically displaying them in terms of frequencies or scores in
decreasing order, which allows us to focus our intervention and
resources in key areas
Features:
• This tool will allow management to focus on high impact area
• This is also a supporting tool for diagnosis of current situation and
determination of priorities
X SIGMA MIINIBOOK
LEAN SIX
Pareto Diagram
MINITAB:
Stat > Quality Tools > Pareto Chart…
X SIGMA MIINIBOOK
LEAN SIX
Pareto Diagram
A A
B
B
C
D
A
Insert the column that contains defect
labels (names)
X SIGMA MIINIBOOK
I
Insert
t the
th column
l th t contains
that t i f
fre-
quency of occurrences for defects
Raw data Grouped data
LEAN SIX
Pareto Diagram
MINITAB: Output
A
A is the item that is most critical
“80-20” Rule to business:
C
Completely
l l removing
i defect
d f
type A would reduce total
defects by 48.7%
A
X SIGMA MIINIBOOK
LEAN SIX
Normality Test
Objective:
j
• The normality test is a statistical test that checks the validity of the
assumption on data to be normally distributed. This normality assump-
tion is critical for many statistical analyses
Statistical tools that need normalityy assumption:

p
• 1-Sample t
• 2-Sample
p t
• Paired t-Test
• ANOVA
• Control Chart for continuous data
• Capability Analysis
X SIGMA MIINIBOOK
LEAN SIX
Normality Test
MINITAB:
Stat > Basic Statistics > Normality Test…
X SIGMA MIINIBOOK
LEAN SIX
Normality Test
X SIGMA MIINIBOOK
Insert the column that contains data to be tested for normality
LEAN SIX
Normality Test
MINITAB: Output
Data are not normal because

A
the P-Value is less than 0.05
P-Value > 0.05 Data are normal
X SIGMA MIINIBOOK
P-Value < 0.05 Data are not normal
LEAN SIX
Capability Analysis
Objective:
• Capability Analysis or Process Capability Analysis (G) is a study to deter-
mine the ability of current process to satisfy customer required speci-
fications
Basic Assumptions:
• Normal data
• Stable process
LSL USL LSL USL
X SIGMA MIINIBOOK
LEAN SIX
Capability Analysis
Short Term (ST)
Potential capability index Actual capability index
US
USL − LSLS USL − μ μ − LSL ½
Cp = C pk = min
i ® ; ¾
A 6σ ST B
¯ 3σ ST 3σ ST ¿
LSL USL
A Cpp does not take into account the process

p
centering
LSL USL
Cpk takes into account the process centering

B
X SIGMA MIINIBOOK
LEAN SIX
Capability Analysis
Long Term (LT)
Potential performance Actual performance
capability index capability index
USL − LSL USL − μ μ − LSL ½

Pp = Ppk = min ® ; ¾
A 6σ LT B ¯ 3σ LT 3σ LT ¿
LSL USL
A Ppp does not take into account the pprocess

centering
LSL USL
Ppk takes into account the process centering

B
X SIGMA MIINIBOOK
LEAN SIX
Capability Analysis
MINITAB:
Stat > Quality Tools > Capability Sixpack > Normal…
X SIGMA MIINIBOOK
LEAN SIX
Capability Analysis
A
A Insert the column that contains

process data to be assessed for
B
capability
p y
Insert subgroup size by either in-

in
C puting a number or a subgroup
D index column
Insert lower specification limit
X SIGMA MIINIBOOK
I
Insert upper specification
ifi i limit
li i
LEAN SIX
Capability Analysis
MINITAB: Output
A D
B E
C F
X SIGMA MIINIBOOK
LEAN SIX
Capability Analysis
MINITAB: Output
A D
Xbar chart assesses This chart shows the
the stabilityy of sub- histogram for the data set
groups means and fitted normal distribution
curves for both long term
and short term variation
B E
S chart assesses the This graph checks
stability of sub- normality of the data
groups variances
i
C F
This chart shows the This graph displays the values of
trend of subgroups Cp, Cpk, Pp, Ppk, StDev PPM
variations based on short term and long
X SIGMA MIINIBOOK
term, and displays the natural
variation of the process vs
specifications
LEAN SIX
Calculation of DPMO
Objective:
• DPMO(G), i.e. Defects Per Million of Opportunity is a performance indicator
calculated as a ratio of number of defects divided by the maximum number
of potential defects in a batch of units inspected
Definitions:
• U = number of units inspected
• D = number of total defects
• O = number of opportunities for defect per unit inspected. It is the
maximum number of potential defects of all failure modes for a unit
X SIGMA MIINIBOOK
DPO =
U× O
LEAN SIX
Calculation of Process Sigma
Objective:
• Process Sigma (G) calculates Sigma level of a process based on defects de-
tected in a batch of units
Calculation procedure: 51
DPO =
1000× 2
51
η =1- = 0.9745
1000× 2
X SIGMA MIINIBOOK
LEAN SIX
Takt Time
Objective:
• The Takt Time (G) represents the rhythm of production/delivery that a pro-
p
cess ((workstation, Cell, etc.)) must respect to satisfyy customer demand. Each
step of the process must produce to Takt Time to ensure a stable flow of
outputs to meet customer requirements
Calculation method:
Available Time: Total available time minus
Available Time (Time) planned downtime (example: Breaks)
TAKT TIME =
Customer Demand (pcs/Time) Customer Demand: Total expected demand
from Customer (pieces per unit of time)
Cycle Time Cycle Time: Total manual working time for

N㼻 Operators necessary = one cycle (Touch Time) plus automatic run
Takt Time time. In case of production mix, the
X SIGMA MIINIBOOK
weighted mean (weighted on quantity) can
be useful
LEAN SIX
Takt Time
Step n㼻1: Determine how fast the process (Takt Time) must be
• Customer Demand: 35000 units/year
• Time per shift: 8 hours (1 shift per day)
• Breaks (2 x 15 minutes): 30 minutes
27000
TAKT TIME = = 170 s
Time per shift (8 hours x 3600 seconds) = 28800 s 159
Breaks(30 minutes x 60 seconds) = 1800 s The customer buys goods at the rate of one every 170 seconds. This
Available time= 27000 s is the “Target” frequency which all processes must reach to produce
Customer Demand / day = 35000 / 220 = 159 pieces each part or component to meet customer demand
Step n㼻2: Identify how many people are necessary for each process to satisfy Customer demand
No. Operators 510
Takt Time = =3O
Ops.
Traditional production line =170 s necessary 170
240 Takt Time =170 s
Time (s)
e (s)
120
90
Time
60 170 170 170

Op 1 Op 2 Op 3 Op 4
Op. 1 Op. 2 Op. 3 Op. 4
1 Min/pc 2 Min/pc 4 Min/pc 1,5 Min/pc Operator
p Op. 1 Op. 2 Op. 3
X SIGMA MIINIBOOK
• Cycle time = 60 + 120 + 240 + 90 = 510 s New asset: the contribution of the three oper-
(total time necessary for the production of one piece) ators in the production of each piece is the
same and equal to Takt Time
LEAN SIX
Overall Equipment Effectiveness (OEE)
Objective:
• The OEE(G) (Overall
Th (O ll Equipment
E i Effectiveness)
Eff i ) iis a powerfulf l method
h d to monitor
i and
d
improve the efficiency of manufacturing and transactional processes. OEE is frequently
used as a key metric in TPM (Total Productive Maintenance) and Lean programs. One of
the
h maini goals
l iis to reduce
d what
h are called
ll d the
h SixSi Bi l
Big LLosses clusteredd in
i three
h
categories: Downtime, Speed and Quality losses
SIX BIG LOSSES CATEGORY EXAMPLE NOTES
The threshold value between a breakdown and a minor stoppage can
Equipment failure
Breakdowns Downtime Loss change from company to company (in most common situations 5
Unplanned maintenance
minutes)
Setup/Changeover
A ggood wayy to reduce this kind of loss is SMED ((set-upp reduction
Setup Downtime Loss M t i l/O
Material/Operator
t shortages
h t
methodology)
Warm up Time
Parts jam
The general definition of minor stoppages is a stop less than 5 minutes
Minor Stoppages Speed Loss Checking
that does not require Maintenance operator intervention
Framed ppieces
Equipment wear
These kinds of causes prevent the process from operating at
Reduced Speed Speed Loss Lack of equipment knowledge
maximun speed (theoretical speed)
Operator inefficiency
Scraps
X SIGMA MIINIBOOK
Start Up Losses Quality Loss Scraps produced during start up phase
Reworks
Scraps
Scraps and reworks Quality Loss Scraps or reworks produced during production phase
Reworks
LEAN SIX
Overview:
TOTAL AVAILABLE TIME
PLANNED
SCHEDULED PRODUCTION TIME
SHUT DOWN
DOWNTIME BREAKDOWN
OPERATING TIME LOSS
Availability
SET-UP
SPEED MINOR STOPPAGES

RUNNING TIME LOSS
Performance
REDUCED SPEED
VALUE ADDED START UP LOSSES
QUALITY LOSS Quality
TIME SCRAPS & REWORKS
Value Added Time Not Value Added Time
OEE represents the percentage of production time spent
X SIGMA MIINIBOOK
Value Added Time
OEE = =% making good pieces (no quality loss), as fast as possible (no
Scheduled production Time speed loss), without interruption (no downtime)
LEAN SIX
How to calculate OEE index:
Number of acceptable units produced
OEE = X 100% Formula based
eo et ca number
Theoretical u be o of uunits
ts tthat
at cou
could have
ave bee
been produced
p o uce
in the scheduled time running at standard speed
on units
it
p
• Standard speed = 110 pieces/minutes
p
• Number of good units produced = 11253 pieces
MINOR CHARGE
SET UP PKG CLEANING PKG PKG PKG
STOP MATERIAL
Total time = 280 minutes
11253 11253 Average OEE = 60%

OEE = X 100% = X 100% = 36% World Class OEE = 85%
X SIGMA MIINIBOOK
110 x 280 30800
LEAN SIX
How to calculate OEE index considering the three OEE factors:
OEE = Availability x Performance x Quality x 100%
Operating Time World Class = 90%

Availability = X 100 %
Scheduled Production Time
Total pieces x Theoretical time to produce 1 unit

Performance = X 100 % World Class = 95%
Operating time
Good pieces
Quality = X 100 % World Class = 99,9%
T l pieces
Total i
Number of good pieces produced x Theoretical time to produce 1 unit Formula
X SIGMA MIINIBOOK
OEE = X 100%
Scheduled production time based on time
LEAN SIX
Example of the OEE data collection:
X SIGMA MIINIBOOK
LEAN SIX
How to apply OEE on a transactional process:
Lack of operator. Lack of information.
Organization Problem
Role & Responsibility. Lack of flexibility
Scheduled Computer breakdowns Generally stoppages > 5 minutes

stoppages Activity change Time to start a new application
Organization
problems Scheduled stoppages Underload. IT Test
Activity
Change
C
Computer
Stops/Breakdown
Auxiliary activities
Non quality (scraps;

rework; recheck)
Value Added Time

OEE = =%
Scheduled Time
X SIGMA MIINIBOOK
TOTAL SCHEDULED VALUE
AVAILABLE TIME ADDED
TIME TIME
LEAN SIX
Time Series Plot
Objective:
j
• Time Series Plot is a tool to analyze a potential time trend in a sequence
of data
Features:
• It is a tool to analyze any trends over time, to assess the need to stratify
the data (eg. cyclic patterns), to explore and validate the data before
applying other tools (eg. Regression modeling)
Featurre
X SIGMA MIINIBOOK
Time
LEAN SIX
Time Series Plot
MINITAB:
Stat > Time Series > Time Series Plot…
X SIGMA MIINIBOOK
LEAN SIX
Time Series Plot
A
A
Select the column that
contains the data to studyy
time trends
B
Select “Stamp” and insert
the columns containing
B appropriate time index
labels for the data
X SIGMA MIINIBOOK
LEAN SIX
Time Series Plot
Time Series Plot of Production
32000
31000
A
30000 It is possible to observe an
29000 increasing trend for
A
28000 production over time
27000
P
Production
26000 B
25000
Possible cyclic pattern:
24000 B
stratification might
g be needed
23000 (eg. day of the week)
05 05 05 05 5 5 6 6 6 06
r- b- r- u- t-0 -0 -0 -0 -0 g-
ap fe ap gi se nov gen ar ag lu
- 8- - 9- - - - -m m -
6 10 10 16 18 5- 28
13
Date
X SIGMA MIINIBOOK
LEAN SIX
Run Chart
Objective:
• Run Chart is a tool that identifies possible special causes for the
process performance variation
Features:
• Common Causes(G): Random causes are not attributable to special p
events, but to natural variability inherent in all processes
• Special Causes(G): Special causes may be associated with special
events, or else
l the
h result l off temporall trends
d (Clustering
Cl i , Mixture
Mi ,
Trend, Oscillation). If they are present the process will be “out of
control”
CAUTION:
X SIGMA MIINIBOOK
Thee use o
of a Run
u C
Chart
a t doesn’t
oes t require
equ e normality
o a ty assu
assumption
pt o
in process data
LEAN SIX
Run Chart
Patterns that indicate special causes:
• Clustering is a pattern characterized by grouped data in a certain area of the graph (Clustering
could be caused by variation in measurement systems, batch-batch variation, sampling issues)
• Mixture is a pattern in which a few points are near the median (Mixture is usually caused by a
combination of two populations or processes operating at different levels)
• Trend is a pattern in a sequence of points increasing or decreasing (Trend could be caused by such
things as worn out tools and fatigue of workers)
• Oscillation indicates fluctuating data that moves up and down rapidly and could mean that the
process is unstable
X SIGMA MIINIBOOK
Clustering Mixture Trend Oscillation
Run is defined as the number of consecutive points that are on the same side than the median
LEAN SIX
Run Chart
MINITAB:
Stat > Quality Tools > Run Chart…
X SIGMA MIINIBOOK
LEAN SIX
Run Chart
A
A Input column that contains the data

to be plotted in run chart
B
Input
p subgroup
g p size
C C
For subgroup data, select either sub-

group mean or median to be plotted
in order to track the change in cen-
tral tendency
X SIGMA MIINIBOOK
LEAN SIX
Run Chart
Run Chart of Sales
19000000
18000000
17000000
6000000
16000000
15000000
14000000
Sales
Median
13000000
12000000
11000000
10000000
2 4 6 8 10 12 14 16 18 20 22 24
Observation
Number of runs about median: 11 Number of runs up or down: 19
Expected number of runs: 13,0 Expected number of runs: 15,7
Longest run about median: 6 Longest run up or down: 2
A
Approx P V l for
P-Value f C lustering:
l t i 0 202
0,202 A pprox P-Value
P V l for
f Trends:
T d 0 953
0,953
Approx P-Value for Mixtures: 0,798 A pprox P-Value for Oscillation: 0,047 A
X SIGMA MIINIBOOK
The P-Value is less than 0.05 and indicates that there is significant oscillation
LEAN SIX
ANALYZE
X SIGMA MIINIBOOK
LEAN SIX
ANALYZE
Analyze g
y is the third stepp in a Lean Six Sigma pproject
j roadmap.
p In
this phase we try to:
• Explore the relationships among variables and start root cause

y of major
analysis j pproblems
• Conduct cause - effect analysis for trouble shooting
• y p
Discover the real root causes rather than take care of symptoms
• Use statistical significance testing as a tool to identify key variables
for response
X SIGMA MIINIBOOK
LEAN SIX
Cause-Effect Diagram
Objective:
• The Cause-Effect Diagram is a visual tool that can help to identify

the relationship between an effect and its possible root causes
• The Cause-Effect Diagram is also an effective tool for quality

management and Brainstorming(G). It is one of the common tools for
Lean Six Sigma projects and problem solving techniques
X SIGMA MIINIBOOK
LEAN SIX
Why use the Cause-Effect

Cause Effect Diagram?
• It is easyy to understand and is a comprehensive

p ggraphic
p template
p that can
logically display complex cause and effect relationships
• It can improve the understanding of a detailed relationship between cause
andd effect
ff t
When to use it:
• If there is a large number of possible root causes

• When the relationship between cause and effect is not clear
X SIGMA MIINIBOOK
LEAN SIX
How to build a Cause-Effect Diagram:

g
1. Define the pproblem and identifyy the effect to be analyzed

y
2. Identify the categories of possible root causes (commonly used catego-
ries: Measurements, Machines, Man/Personnel, Materials, Methods,
Mother Nature/Environment)
3. Identify potential causes and group them into categories. The method of
the 5 Whys can be used to determine the exact relationship between
causes and effect
g
4. Sort the causes accordingg to the ppossible degree of influence towards
the effect
X SIGMA MIINIBOOK
LEAN SIX
MINITAB:
Stat > Quality Tools > Cause-and-Effect…
X SIGMA MIINIBOOK
LEAN SIX
Enter the columns that contain the

A g
main categories of causes
B B
Enter the columns that contain the

C secondary causes
Enter the effect to be analyzed
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
A
A
Main cause categories
g
B
Effect
B
C
Root causes drill down by 5 whys:

• Why Y happens? Because of Machine
C
• Why machine influences Y? Because
X16
• Why X16 influences machine?
Because X16.1 X16.2 e X16.3
• Why…
y
X SIGMA MIINIBOOK
LEAN SIX
Statistical Hypothesis Testing
Objective:
j
• Statistical Hypothesis Testing is used to make an inference or conclusion
for a population, starting from sample data observation
• Typical applications of Hypothesis Testing are:
– the comparison of means between two or more groups

– the comparison of variances between two or more groups
– the comparison of proportions, also extracted from samples of different sizes
X SIGMA MIINIBOOK
LEAN SIX
Statistical Hypothesis Testing
There are many types of hypothesis testing. We need to select the right
H othesis Testing
Hypothesis Testin method for the right
ri ht problem,
roblem as illustrated
ill strated by
b the fol-
fol
lowing table:
HYPHOTESIS TESTING
HYPHOTESIS PURPOSE
PURPOSE
1-Sample t To compare means between a sample and a reference known mean
parison
22-Sample
Sample t To compare means between two groups
Paired t-TEST To compare means between two groups when data are paired
Mean comp
ANOVA (F TEST) To compare means between more than two groups
Variance Test To compare variances between two or more groups
Variance
ccomparison
Chi- Square Test To compare proportions between two or more groups
oportion
mparison
X SIGMA MIINIBOOK
Pro
com
LEAN SIX
Hypothesis Testing: 1-Sample t
Objective:
• The 1-Sample t test compares the mean of a sample with a given value
Fundamental Assumptions:
• Data should be normally distributed
How to read the test result:

• It is based on P-Value
There is no significant difference between the population

P V l > 0.05
P-Value 0 05 mean, from which the sample comes, and the given value
X SIGMA MIINIBOOK
Thee popu
population
at o mean
ea iss ssignificantly
g ca t y different
e e t tthan
a tthee ggiven
ve
P-Value 0 05
P V l ≤ 0.05 value
LEAN SIX
MINITAB:
Stat > Basic Statistic > 1-Sample t…
X SIGMA MIINIBOOK
LEAN SIX
A
Enter the column that contains the
sample data
Enter the value that yyou want to

compare with the mean
C
B
Choose additional graph to illustrate
the result
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
A
You can graphically observe if the
Confidence Interval for the population
mean contains the given reference
value, if the interval doesn’t contain
the value, it indicates that population
mean is not equal to the given value
A B
With P-Value ≤ 0.05, it indicates that

the population
p p mean is statisticallyy and
significantly different than the given
value
B
X SIGMA MIINIBOOK
LEAN SIX
Objective:
• The 2-Sample t test compares the means of 2 populations
Fundamental Assumption:
• Data are normally distributed
How to read the test result:

• It is based on P
P-value
value
There is no statistically significant difference between

P-Value > 0.05 the two population means
X SIGMA MIINIBOOK
P-Value 0 05
P V l ≤ 0.05 The two population means are significantly different
LEAN SIX
MINITAB:
Stat > Basic Statistic > 2-Sample t…
X SIGMA MIINIBOOK
LEAN SIX
A
A
Select this option if the two samples
are arranged in one column
B
B
Select this option if the two samples
of data are in different columns
C
D
Choose graphical display options
C Choose this option if two variances
X SIGMA MIINIBOOK
are tested to be the same (page 168)
LEAN SIX
MINITAB: Output
A
A It is visually possible to observe if

two groups have equal means (two
clusters of points will be at the same
height if means are equal)
If the P value is less than 0.05, it

indicates that two population means
are statistically and significantly
different
X SIGMA MIINIBOOK
B
LEAN SIX
Hypothesis Testing: Paired t-Test
Objective:
• Paired t-Test is a hypothesis test that compares the mean differences
of two related samples (ppaired samples). It is useful when we want to
eliminate
li i t theth presence off significant
i ifi t differences
diff among samplel
members (person, machine, etc.) from the tests. For example, we can
p
use Paired t-Test to compare the effects of two different machines
(Machine A and B) on the same part
• The Paired t-Test would likely create tighter Confidence Intervals,
b
because only
l the
h variation
i i ini paired
i d difference
diff i considered
is id d
• Two data sets have to be matched
X SIGMA MIINIBOOK
• The distribution of the difference of data must be normal
LEAN SIX
Example of paired data collection:
How to read the test results:

• The testing result is based on P-Value
There is no statistically significant difference for two

P-Value > 0.05 matched data sets
X SIGMA MIINIBOOK
There is a statistically significant difference in two
P-Value 0 05
P V l ≤ 0.05 matched data sets
LEAN SIX
MINITAB:
Stat > Basic Statistic > Paired t…
X SIGMA MIINIBOOK
LEAN SIX
A Select this option (samples in

columns) if two data sets are in
different columns and select
columns for two samples
Select graphic display options for

the
h test ((e.g., select
l hi
histogram off
differences)
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
A
This graphic display is to check if the
confidence interval contains zero. If
yes, it indicates H0 cannot be reject-
ed i.e. there is no significant differ-
ence for two data p pairs
B
A
If P-Value is ≤ 0.05, it indicates that
two data pairs are statistically dif-
ferent
X SIGMA MIINIBOOK
LEAN SIX
Hypothesis Testing: ANOVA
Objective:
• ANOVA is a Hypothesis Testing procedure that can compare the
means of 2 or more groups
• ANOVA is also an analysis procedure that can perform key tests for
other statistical methods such as Regressions and DOE
F d
Fundamental
t lAAssumptions:*
ti *
• Data is normally distributed
• Variances
V i are th
the same for
f allll groups (page
( 168)
P-Value
P Value > 00.05
05 There is no significant
g differences amongg ggroup
p means
At least one group mean is significantly different than
X SIGMA MIINIBOOK
P-Value ≤ 0.05 others
* Residuals analysis can be used to identify the goodness of the analytical model (also used in Regression, page186)
LEAN SIX
MINITAB:
Stat > ANOVA > One-Way…
A Select:
• One Way (Unstacked). When
sample data are placed in different
columns
• One-Way. When all sample data
are placed
l d iin one column
l
X SIGMA MIINIBOOK
LEAN SIX
Enter the response columns to be

A
analyzed
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
A
When P-Value is ≤ 0.05, it indicates
A
that at least one population mean is
statistically and significantly different
than others
B
Visually, overlapping Confidence
I t
Intervals
l (indicated
(i di t d byb the
th redd line
li
crossing 3 groups) highlights there is
no significant difference on means for
these groups.
groups Non-overlapping
Non overlapping Confi-
Confi
dence Intervals indicates significant
B differences
X SIGMA MIINIBOOK
LEAN SIX
Hypothesis testing: Chi-Square
Objective:
• The Chi-Square test aims to compare proportions or frequencies of
p
occurrences byy several ggroups
Note:
• Normal distribution of data is not required
There is no difference between the proportions

P-Value > 0.05 ((frequencies)
q ) of samples
p
The proportion (frequencies) of at least one group is

P-Value ≤ 0.05 statistically different than others
X SIGMA MIINIBOOK
LEAN SIX
Hypothesis Testing: Chi-Square
MINITAB:
Stat > Tables > Chi-Square Test (Table in Worksheet)…
X SIGMA MIINIBOOK
LEAN SIX
A
E t the
Enter th columns
l containing
t i i
A
the groups to compare
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
A
Highlighted Items:
• The calculated Chi Square statis-
tic
i value
l bby the
h fformula:
l
2
χ2 = ¦
( Observed − Expected )
Expected
• P-Value ≤ 0.05 is needed to indi-

cate statistical significance be-
tween groups. For example,
P-Value of 0.226 indicates there
is no significant differences among
X SIGMA MIINIBOOK
A groups
LEAN SIX
Hypothesis Testing: Test for Equal Variances
Objective:
• This test compares Variances of several groups to determine if they are
equal
• It is necessaryy to choose the most appropriate
pp p method based on the
distribution of data:
– Normally distributed data F-Test (for 2 samples) and Bartlett’s Test (for more
than 2 samples)
– General continuous distribution Levene’s Test
Th
There i no statistically
is i i ll significant
i ifi diff
difference on Var-
V
P-Value > 0.05 iances of groups
X SIGMA MIINIBOOK
There is at least one group Variance that is significantly
P-Value ≤ 0.05 different from others
LEAN SIX
MINITAB:
Stat > Basic Statistics > Test for Equal Variances…
X SIGMA MIINIBOOK
LEAN SIX
A
A
Enter response variable
B
B
Enter the columns containing the factors

in the model
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
A
Minitab will choose F-Test
F Test or Bartlett
Bartlett’ss
Test depending on the number of
groups. We have to choose the right
test (Bartlett or Levene) based on the
distribution of data (normal or generic
continuous distribution)
W need
We d to see P-Value
PV l 0 05 in
≤ 0.05
A order to determine whether there is a
significant difference in group variances
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
A
Minitab also gives graphical
outputs, p
p-values
values and Con
Con-
fidence Intervals
B
Minitab output in case of 2
A
samples analysis
X SIGMA MIINIBOOK
B
LEAN SIX
Hypothesis Testing & Minitab
Minitab Assistant helps you to choose the right Hypothesis Testing:
X SIGMA MIINIBOOK
LEAN SIX
Scatter Diagram
Objective:
• Scatter Diagram is a graph that can be used to determine a possible
correlation between a pair of input and output variables
• There are 3 possible situations:
Q (x)
Q (x)
Q (x)
CTQ
CTQ
CTQ
Variable (x) Variable (x) Variable (x)
X SIGMA MIINIBOOK
Positive Correlation Negative Correlation No Correlation
LEAN SIX
Scatter Diagram
MINITAB:
G h Scatterplot…
Graph> S l
X SIGMA MIINIBOOK
LEAN SIX
Scatter Diagram
A
Enter the column that contains
output variable (Response or Y
variable)
B
A B
Enter the column that contains
input variable (X variable)
X SIGMA MIINIBOOK
LEAN SIX
Scatter Diagram
MINITAB: Output
Scatterplot of Output 1 vs Input 1 A A
350
S tt Diagram
Scatter Di i a graphic
is hi
plot that displays Input-Out-
325 put data pairs in X-Y axes
This plot can be used to
300 qualitatively observe if there
is a dependency relationship
Output 1
between 2 variables (poten-
275 tial correlation)
250
5 6 7 8 9 10
Input 1
X SIGMA MIINIBOOK
LEAN SIX
Regression: Fitted Line Plot
Objective:
• Regression is an analytical tool that can be used to establish, if it exists, a mathe-
matical model between Input and Output variables (see Analytical Approach,
ppage
g 183))
• Variable Y Continuous
• Variable X Continuous
• Residuals random variable
8
Y (Output) 4
3
(Example of Fitted Regression line)
2
X SIGMA MIINIBOOK
1
0 1 2 3 4 5 6 7 8 9 10
X (Input)
LEAN SIX
• For a Fitted Regression model,

model there is a commonly used performance
indicator that can measure how good this model fits the data
• This indicator, called R-Squared (R-Sq%, or R-Sq), tells you the percen-
tage of variations in data (from 1% to 100%) that can be explained by the
regression model and is calculated by:
explained var iation

R - Sq =
total var iation
The mathematical model explains the data corre-

corre
R-Sq ≥ 70 lation well
X SIGMA MIINIBOOK
The mathematical model doesn
doesn’tt explain the data cor
cor-
R S < 70
R-Sq relation well
LEAN SIX
MINITAB:
Stat > Regression > Fitted Line Plot…
X SIGMA MIINIBOOK
LEAN SIX
A
A
B Insert the column that contains
Output (Y variable)
C
B
Insert the column that contains In

In-
put (X variable)
Examples
p of fitted line pplot, with different types
yp of C
models:
Choose an appropriate model form
(linear, quadratic, or cubic) for Re-
gression. It may be useful to make a
Scatter Diagram first to observe the
pattern in data
X SIGMA MIINIBOOK
Linear Quadratic Cubic
LEAN SIX
MINITAB: Output
A
Minitab provides the graphical

illustration of a Fitted Regres-
sion line model, a Scatter Dia-
A ggram of all data as well as cal-
culated R-squared value
X SIGMA MIINIBOOK
LEAN SIX
Regression: Analytical Approach
MINITAB:
Stat > Regression > Regression…
X SIGMA MIINIBOOK
LEAN SIX
A A
Insert the column that contains

B Output (Y variable)
Insert the column that contains In-

put (X variable)
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
p
A
Explicit Linear Regression equation with esti-
mated coefficients
A
B
Significance tests of coefficients. If P-Value is
B ≤ 0.05, then the predictors are significant
C
R-sq value is calculated, and indicates how
C well the Regression model fits the data
D
In this test, if P-Value is ≤ 0.05 then it in-
D dicates that the Regression relationship is sig-
X SIGMA MIINIBOOK
nificant
LEAN SIX
Regression: Assumptions
Residual analysis (also applicable for Fitted Line Plot):
• Residuals
R id l nott bbe related
l t d tto X
• Residuals should be independent of time
• Residuals should be near constant regardless of predicted Y values
• Residuals should be normally distributed
Residual Plots for Output 1
Normal Probability Plot of the Residuals Residuals Versus the Fitted Values A
99
90 1 Minitab generates 4 graphs to verify these

50 0 four assumptions
Percent
10 -1
Residuals Versus Input 1
Standardized Residual
1 (response is Output 1)
-2 -1 0 1 2 250 275 300 325 350
1,5
Standardized Residual Fitted Value
A 1,0
Histogram of the Residuals Residuals Versus the Order of the Data
dual
0,5
4,8
1
0,0
3,6
0 -0,5
2,4
Frequency
Standardized Resid
-1,0
1,2
,
ndardized Residual
1
-1
X SIGMA MIINIBOOK
-1,5
Stan
0,0
-1,5 -1,0 -0,5 0,0 0,5 1,0 1,5 2 4 6 8 10 12 14 16 18 20 5 6 7 8 9 10
Standardized Residual Observation Order Input 1
LEAN SIX
IMPROVE
X SIGMA MIINIBOOK
LEAN SIX
IMPROVE
The Improve phase is the fourth step of the DMAIC Lean Six
Sigma roadmap. In this step the existing process will be changed
and optimized:
• This process optimization will be based on sound data analysis, a

g understandingg of the relationshipp between keyy pprocess
thorough
responses/performance metrics and key process variables, so this
process optimization will be more likely to achieve real results
b k d by
backed b statistical
t ti ti l confidence
fid
• The improvement will take into account Lean applications, typical
of Lean methodology and mindset, in order to reduce waste and
to increase process efficiency
• The process optimization is based on scientific approach, real and
X SIGMA MIINIBOOK
accurate data. It is not based on subjective judgments
LEAN SIX
5S Program
Objective:
• The “5S Program” is a system for creating and maintaining a work envi-
ronment clean, orderly, efficient and safe. The benefits of this method can
be evaluated in terms of Quality, Safety and Productivity:
Productivity Safety Quality
• Eliminate wastes of time lookingg for • Reduce the likelihood of accident • Eliminate the ppossibilityy of usingg
equipment or items necessary for the job • Making the workplace more parts previously discarded
• Reduce cycle times ergonomic and comfortable • Eliminate the possibility of using
• Maintain efficient equipment through inappropriate tools
pproper
p maintenance and cleaningg
Overview:
SORT SET IN ORDER SHINE STANDARDISE SUSTAIN
X SIGMA MIINIBOOK
LEAN SIX
5S Program
STEP 5S OBJECTIVE PRACTICAL NOTES
Identify what is needed and what is not Try to answer these questions:
What is the use of this object?
SORT needed in the workplace. Eliminate or Why do I have it?
segregate what is not necessary How often is it used?
Place all necessary items in the best possible location, at the “point of
Organize and arrange everything you need use”
Use the 'visual' area approach (standard and not standard must be easily
SET IN ORDER in the workplace so it can be quickly found, identified)
used and stored U labels
Use l b l andd boards
b d to t makek clear
l th
the inventory,
i t equipment
i t and
d
other items so that everybody can understand the workplace
Clean inside, under, over and around machinery and furniture. The
Clean and maintain order in the workplace,
SHINE cleaning of machine is a very important point because it can help
q p
equipment,, floors into the shopfloor/office
p prevent damage before it happens
Introduce changes to the workstations that make cleaning and removal
of dirt at the root easy and quick
Maintain and improve the standard of the
STANDARDISE Use checklist to perform daily tasks of cleaning, maintenance and
first 3S organization
Identify areas and responsibilities
Strengthen the workstation habits according to the 5S approach. Use

Make the standard 5S a daily habit and part audits with a “Steering Team” and relative corrective actions.
X SIGMA MIINIBOOK
SUSTAIN of everyday work Continuous improvement of 5S
Use, if necessary, the OPL (One Point Lesson) and information board
LEAN SIX
5S Program
How to conduct a 5S event in practical steps:
1. Identify the area where the 5S system (production, warehouse, shipping,

quality laboratory) is implemented
quality,
2. Divide the area into zones and related people in charge
3. Define a Steering Team
Team*
4. Define roles of area responsible
p
5. Identifyy Steeringg Team responsibilities
6. Define the 5S Checklist and audit standard format
7. Establish the terms and timetable for implementing audit
8. Implement the 5S information board
X SIGMA MIINIBOOK
* See the examples of format in Kaizen standard form session (page 310)
LEAN SIX
5S Program
X SIGMA MIINIBOOK
LEAN SIX
5S Program
How to measure 5S performance:
STEP 1:
Assess the 5S performance at the end of
Kaizen Event using the audit format
STEP 2:
Identify 5S current performance and plan
an action list in order to improve it
STEP 3:
Conduct audit in order to detect
the improvement effectiveness
STEP 4:
X SIGMA MIINIBOOK
G to Step
Go S 2
2…
LEAN SIX
5S Program
Some tips before getting started:
• For the success of 5S implementation go through employee involvement

• Make sure that employees
p y understand the 5S system
y and whyy it is so important
p for
them and for the company
• Start with a pilot phase and then extend the approach to other areas
• It
I is necessary in the
h first
f phase
h off implementation
l for
f everyone to sacrificef and d
appreciate the real benefits of the approach
• The managerg should sponsor
p the activityy
• Make responsibilities clear and understood by everybody
• Make the process as visual as possible
• Link the 5S program to all other Kaizen activities (e.g. Standard Work, SMED,
TPM, Six Sigma projects etc.)
X SIGMA MIINIBOOK
• If possible,
possible integrate the 5S program with safety program
LEAN SIX
Standard Work
Objective:
• Standard Work (G) is the most effective combination of manpower, materials
and machinery to produce something in the time, quality and quantity
required
q byy the customer. This is done through
g continuous observation and
improvement of the workplace. Standard Work is characterized by three
main elements: Takt Time; Standard Work in process and Work sequence
Definition:
• Standard Work in process: The minimum work-in-process
work in process needed to maintain
Standard Work. Standard WIP can be parts completed and in the machine after
auto cycle, parts placed in equipment with cycle times bigger than Takt Time, and
parts handled
h dl d by
b theh operators on the
h production
d i line li
• Work sequence: The sequence of steps and activities that need to be performed
X SIGMA MIINIBOOK
in order to complete the production process
• Takt Time (see page 120)
LEAN SIX
Standard Work
Step 1: analyze the operator Cycle Time
X SIGMA MIINIBOOK
LEAN SIX
Standard Work
Step 1: analyze the operator Cycle Time
A
A Define the activity and the team
involved in it
B
B Identify the main tasks to complete a
cycle
C D
C
Measure, where possible,
Measure possible one entire
cycle recording the single task time and
the cumulative time
• Each task must be between 5 and 10 s
• D
Document the
h complete
l sequence off the
h operator D
• Generally, in order to have a robust time, it is necessary to For each task identify mean and lowest
repeat the measurement from 7 to 10 times repeatable performance. The time will
• Use the chronometer and teach the operators
p how to measure
X SIGMA MIINIBOOK
be equal to the mean if the lowest
by themselves repeatable is smaller than mean
• During measurement try to identify potential improvements
LEAN SIX
Standard Work
Step 2: understand the relation between Cycle Time and Takt Time
Available Time: Total available time minus
Available Time (Time) planned downtime (example: Breaks)
TAKT TIME =
Customer Demand (pcs/Time) Customer Demand: Total expected
demand from Customer (pieces per unit of
time)
Cycle Time Cycle Time: Total manual working time for
N Operators necessary = A one cycle (Touch Time) plus automatic run
Takt Time
time. In case of production mix, the
weighted mean (weighted on quantity) can
be useful
CAUTION (LEAN METHODOLOGY BASIC CONCEPT):

Customer demand increase → Takt Time Decrease (increment of speed rate) → No. Operator needed increase
X SIGMA MIINIBOOK
Customer demand decrease → Takt Time Increase (reduction of speed rate) → No. Operator needed decrease
LEAN SIX
Standard Work
Step 3: measure machine process capacity
Observation Date 21.09.2010 Opearting time per shift 27600 s
Company XFS Factory Shift No 1
Part No Cylinder Daily demand 400 pieces
Process Assembly Line 23 Supervisor Mrs. Brown
Process Capacity Form

Process
Base Time Tool Change

Step Total Time Processing
Process Description Machine Manual Machine # Pieces Change Tool Change Remarks
# (s) Capacity
Time (s) Time (s) /Change Time Time (s)
1 Press HL 345 3 15 100 180 1,8 19,8 1394
2 Drilling D10 6 65 70 200 2,9 73,9 374 Maximum capacity 374 pieces
3 Testing TEST3 5 45 150 300 2,0 52,0 531
X SIGMA MIINIBOOK
Total: 14 Maximum daily production: 374
LEAN SIX
Standard Work
Step 3: measure machine process capacity
Observation Date 21.09.2010 Opearting time per shift 27600 s
Company XFS Factory Shift No 1
Part No Cylinder Daily demand 400 pieces
A
Process Assembly Line 23 Supervisor Mrs. Brown
Process Capacity Form

Process
Identify machine process during the
Base Time Tool Change
cycle
Step Total Time Processing
Process Description Machine Manual Machine # Pieces Change Tool Change Remarks
# (s) Capacity
Time (s) Time (s) /Change Time Time (s)
B
1 Press HL 345 3 15 100 180 1,8 19,8 1394
2 Drilling D10 6 65 70 200 2,9 73,9 374 Maximum capacity 374 pieces
A For each cycle, identify machine cycle
3 Testing TEST3 5 45 150 2,0 52,0 531
B300 time. Manual contribution and pieces
C change time to calculate one process
cycle time
Total: 14 Maximum daily production: 374
C
• The capacity sheet is used to highlight machine capacity Calculate machine capacity as the ratio
• Identifies process bottlenecks: in the example Drilling off operating
ti ti
time per shift
hift andd total
t t l
Process has a maximum capacity of 374 pieces. At a daily time for each machine; example:
• Press Total Cycle time = 19.8 s
demand of 400 pieces the machine is not capable of
p
• Operatingg time = 27600 s
X SIGMA MIINIBOOK
reaching customer needs
• Maximum capacity = 1394 pieces
• Use one worksheet for each cell
LEAN SIX
Standard Work
Step 4: analyze interaction between operator and equipment
Observation Date 21.09.2010 Opearting time per shift 27600 s = Machine
Company XFS Factory Daily demand 400 pieces = Manual
Part No Cylinder Takt Time (s) 69 = Walking
Process Assembly Line 23 Supervisor Mrs. Brown = Takt Time
Standard Work Combination Form

Standard
Time Operation Working Time (s)

Step
Man. Auto Walk
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
# Task/Activity Description
Task/Activity
1 Activity 1 3
2 A ti it 2
Activity 5 2
3 Activity 3 2 60 3
4 Activity 4 15 3
5 Activity 5 10 2
6 Activity 6 2 30 2
7 Activity
y7
X SIGMA MIINIBOOK
20
LEAN SIX
Standard Work
Step 4: analyze interaction between operator and equipment
Observation Date 21.09.2010 Opearting time per shift 27600 s = Machine
Company XFS Factory Daily demand 400 pieces = Manual
Part No Cylinder Takt Time (s) 69 = Walking A
Process Assembly Line 23 Supervisor Mrs. Brown = Takt Time
SStandard
tandard Work Combination Form Identify the main steps (task/activity)
Step
Time Operation Working Time (s) necessary to complete one cycle
Man. Auto Walk
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
# Task/Activity Description
Task/Activity
1 Activity 1 3 B
2 Activity 2 5 2
3 Activity 3 2 60 3 Identify
Id tif for
f eachh step
t th operator,
the t
4 Activity 4 15 3
5 Activity 5 A 10
B 2 C machine and walk time contribution
6 Activity 6 2 30 2
7 Activity 7 20
C
Identify on the sheet the operator

steps, machine phases and walk steps.
• The Standard Work combination sheet could be a good
Highlight the Takt Time line
starting point for improvement identification
• Combines Man and equipment interactions
• Identifies the relation between Takt Time and process Cycle
Time
X SIGMA MIINIBOOK
• It could be useful to have one sheet for each operator
LEAN SIX
Standard Work
Step 5: map operator workload and make comparison with Takt Time
50
T
45 TAKT TIME = 69 s
Storage on floor 2 S
40 Checks 5 R
E
me (s)
35 Assembly 5 J Q
Tim
D
Searches tool 3
Reduce:
Reduce: I P
30 5S
5S -- Tools
Tools at
at "point
"point of
of use"
use" C H O
Moves to assembly
3 Eliminate:
Eliminate: B G N
worstation
Attach
Attach the
the workstations
workstations
25 Downloads machine 2 2 A F M
g machine cycle
Waiting y 2 4
me (s)
Operator 1 Operator 2 Operator 3
20
Starts machine cycle 2 2
Tim
Loads machine 2 2
15
Reduce:
Compare operator workloads with Takt
Moves to machine 2 5 Reduce:
Relayout
Relayout
10 Downloads machine 1 2
Time
Eliminate:
Eliminate:
Waiting machine cycle 1 5
Introduce
Introduce standard
standard WIP
WIP
5
Starts machine cycle 1 2
Picks part and loads
3
0 machine 1
"AS-IS"
Operator Cycle time TAKT TIME = 69 s
S
T R
(
For each operator map the “as as-is

is” E
J Q
Time (s)
workload D
I P
Determine the workload distribution C H O
B G N
for all the cell operators A F M
X SIGMA MIINIBOOK
O
Operator
t 1 O
Operator
t 2 O
Operator
t 3
Balance operators’ workload in order to

reach the Takt Time rhythm
LEAN SIX
Standard Work
Step 6: prepare Standard Work sequence configuration according to Takt Time
X SIGMA MIINIBOOK
LEAN SIX
Standard Work
Step 6: prepare Standard Work sequence configuration according to Takt Time
A
For each workstation identify Standard
Work-in-process (the minimum work-
in-process needed to maintain Standard
Work), safety precautions and quality
control
A
B
B
In this part of the sheet,
sheet highlight the
movements of the operators involved in
the process
C C
The configuration identifies:
• It could be useful to have one sheet for each configuration - No. Pieces WIP (in the example = 2)
X SIGMA MIINIBOOK
of the cell - Takt
T kt Time
Ti (i the
(in th example l = 95”)
• Involve the team during sheet preparation - Cycle time (in the example = 380”)
LEAN SIX
Standard Work
Step 7: balance workload according to Customer Demand
• For each Takt Time the

configuration should
change
• Identify work sequence to
have balanced operator
workload
• Create the “playbook”,
p y the
collection of different
configurations
• The playbook should be
placed next to the
workstation so that
operators can read the
X SIGMA MIINIBOOK
work sequence when
necessary
LEAN SIX
Standard Work
Japanese experience:
• At the beginning
be innin of the 20th century,
cent r especially
es eciall in the USA,
USA industrial
ind strial engineers
en ineers designed
desi ned and im-
im
plemented the standards of work, which often caused tense labor-management relationships. After
the 1950s, in Japan, work standards were run by “quality circles” and constantly improved and
revised byy workers. This p
practice was pproven to be veryy effective and empowering
p g ((Imai, 1997))
Features of a ggood Standard Work ((Imai, 1997):

)
1. Standards are the best, easiest, and safest way to do a job
2. They preserve know-how and expertise. Years of experience and knowledge can be lost by the loss of
employees
3. They provide a way to measure performance
4. Correct standards show the relationship between cause and effect, leading to desired effects
5. Standards provide a basis for maintenance and improvement
6 They provide a set of visual signs on how to do the job
6.
7. Standards are a basis for training
8. They are a basis for auditing
9. They are a mean to prevent recurrence of errors
X SIGMA MIINIBOOK
10. Standards minimize variability
LEAN SIX
Cell Design
What is a “Cell”:
• A “Cell
“C ll(G)” is
i a workplace
k l i which
in hi h equipment,
i t people,
l machinery,
hi materials
t i l
and methods are arranged to have a continuous production flow (Contin-
uous Flow). It allows the “One piece flow” principle: an operator can
process the entire product from beginning to end without interruption. The
cell generally runs for a family of products. A typical configuration is the “U”
shape.
p
Overview:
From traditional line to
CELL DESIGN
X SIGMA MIINIBOOK
Full-size cardboard cutouts Cell Layout example
LEAN SIX
Cell Design
U shape cell advantages:
Assembly
• Allows a better balance of workload
• Promotes Visual Management approach
• Reduces movements along the line
• Improves
p communication
ng
Drrilling
Testin
• Allows multi-processing
• Identifies abnormalities easily
• Does not interrupt the production inside the
cell through the supply of materials from
Molding
Packaging
P
o tside thanks to ““water
outside, ater sspider”
ider”
• More flexibility in changing the Takt rhythm
X SIGMA MIINIBOOK
Finished goods Raw materials
LEAN SIX
Cell Design
How to implement a “cell”? Follow the operating steps below:
• Categorize products in “Product Family”
• Determine Takt Time for each family (using, if necessary weighted mean)
• Make a study off the elementary steps and relative times
• Workload balance and Standard Work
• Design
g the “U” shapep cell in terms of:
− Layout & workstation
− Number of operators necessary to reach
customer demand
− Movements
− Materials management and Standard WIP
• Simulate, where necessary, the cell with full-size cardboard cut-outs
• Cell implementation
• performance and relative ggoals for the cell designed
Set p g
X SIGMA MIINIBOOK
• Establish a continuous improvement approach … (perfection)
LEAN SIX
Cell Design
Practical tips during cell design and implementation:
• Tools and materials should be located where needed (“Point Of Use”)
• During cell design think about the reduction of walking distance
• Reduce unnecessaryy movements
• Materials must be in front of the workstation
• Use “Safety first” approach (the workplace must be safe and ergonomic)
• M t i l supply
Materials l should
h ld be
b simple
i l and d immediate
i di t
• Use 5S and Visual Management
X SIGMA MIINIBOOK
LEAN SIX
Cell Design
Example of cell and cell management:
X SIGMA MIINIBOOK
LEAN SIX
SMED - Single Minute Exchange of Die
Objective:
• The Single Minute Exchange of Die (SMED) is a method that aims to
reduce the changeover time of machine equipment, or in general a pro-
duction/service process
Definition:
• Changeover time: it is the time required to prepare a device, machine,
process, or system from the last piece of the previous batch to the first
good
d piece
i off the
th nextt batch
b t h
AVAILABLE TIME
PRODUCT A CHANGEOVER PRODUCT B
Last piece First good
X SIGMA MIINIBOOK
of A piece of B
CHANGEOVER TIME
LEAN SIX
When to use it:
• Capacity problem: it is necessary to reduce the changeover time in order
to gain time available for production:
Before PRODUCTION CHANGEOVER PRODUCTION

Time useful for
more production
d i
After PRODUCTION CHANGEOVER PRODUCTION
• Need flexibility: if the changeover time decreases the batch size can be
smaller and consequently the flexibility of production can increase:
Before PRODUCT A CHANGEOVER PRODUCT B

The mix of products at the end of the available time is bigger
X SIGMA MIINIBOOK
After PRODUCT A CHANGEOVER PRODUCT B CHANGEOVER PRODUCT C CHANGEOVER
LEAN SIX
How to perform a SMED activity:
1. Analyze actual procedure and elementary steps to realize the changeover (use a
videotape
p if ppossible, especially
p y in multi-person
p changeover)
g )
2. Establish goals (WIP; batch size; changeover time reduction, etc.)
3. pp y the ggeneral pprocedure for set-upp reduction ((see next ppage)
Apply g )
4. Perform a test to validate the new set-up procedure
5. p
Identifyy new improvement opportunities
pp
6. Create a new standard operating procedure
CAUTION: Definition of external and internal activity

EXTERNAL ACTIVITY: Activity that can be performed when the machine/process is running
X SIGMA MIINIBOOK
INTERNAL ACTIVITY: Activity that can be performed only when the machine/process is stopped
LEAN SIX
How to apply the general procedure:
X SIGMA MIINIBOOK
LEAN SIX
How to collect data according to changeover activities:
X SIGMA MIINIBOOK
LEAN SIX
Practical tips to improve changeover time performance:
• Use checklist to identify all the material necessary to perform the changeover
activities
• Prepare all the raw materials before stopping the machine
• Check the raw materials to avoid placing the wrong one
• Try to plan the set-up in order to reduce the activity between the previous batch
andd the
h next one
• Try to perform the pre-heating of molds before machine stoppage in order to
reduce scraps because of incorrect temperature of the machine
• Use, “visual changeover” where possible
• Try to standardize size of screws and bolts, height of dies, etc. as much as possible
• Use qquick lock and qquick release systems
y
• If possible, use “before and after” approach, all material in line approach, kit
management approach or product family approach
X SIGMA MIINIBOOK
LEAN SIX
Typical proportions of the activities in a changeover process:
Attachments
(Dies, equipment, tools)
Adjustments
Materials preparation
(Raw material, clamps, dies, etc.)
X SIGMA MIINIBOOK
LEAN SIX
Changeover optimization examples:
Use Visual Management to identify the right All the tools necessary for the set-up must be
equipment for the changeover prepared before changeover starts
X SIGMA MIINIBOOK
With before and after material management approach the Use quick fastener system to reduce the
production is already prepared for next batch attachment time as much as possible
LEAN SIX
Kanban
Objective:
• Kanban(G) means ‘signboard’. Kanban can be used in many applications in
various processes. It is primarily used as an instruction mechanism that
controls the production,
production movement of goods,
goods material,
material or parts,
parts or jobs.
jobs
For example, in controlling production, Kanban will tell you what to pro-
duce, when to produce, and how much to produce
Benefits of Kanban:
• It is a basic tool for the pull system in production and supply processes
• It effectively reduces the inventory level of work in process (WIP), thus reducing
wastes
• It reacts effectively with fluctuating demands from customers or downstream
• It is used to connect two processes with very different lead times
• It is a “visual management”
g system
y
X SIGMA MIINIBOOK
LEAN SIX
Kanban
Withdrawal Kanban and Production Kanban:
Withdrawal Kanban: is used to order sup- Production Kanban: is used to control pro-
plies/materials or command movement of duction with detailed command including
duction,
process material/parts/semi-finished goods detailed information relating to quantity,
flows type, destination etc.
X SIGMA MIINIBOOK
LEAN SIX
Kanban
Types of Withdrawal Kanbans:
• Customer Kanban
– Transfers material from plant to customer
• Move Kanban
– Transfers material between work processes
• pp
Supplier Kanban
– Pulls material from supplier to plant
X SIGMA MIINIBOOK
LEAN SIX
Kanban
Types of Production Kanban:
• Production Kanban Card
– Gives instructions how to make one piece or one container
• Trigger
gg Kanban
– Instructs us to produce one batch
– Used when the processes require set-up. The Kanban authorizes production only when
the number of units to replenish is equal to the “Economic
Economic Order Quantity”
Quantity
X SIGMA MIINIBOOK
LEAN SIX
Kanban
Kanban sizing (analytical approach):
• EDDLT = Expected Demand During Lead Time (n㼻 pcs)
• AD = Average Demand per day (n㼻 pcs/day)
• OQ = Order Quantity (n㼻 pcs)
• ROP = Reorder Point (n
(n㼻 pcs)
• AIL = Average Inventory Level (n㼻 pcs)
AIL = OQ / 2 + SS
• LT = Total Lead Time (Production LT + Delivery LT (Days ))
• SS = Safety Stock (n㼻 pcs)
SS = n㼻 extra days x AD
• Q= Size of container (n
(n㼻 pcs)
SOME PRACTICAL TIPS: EDDLT = AD x LT

• The minimun number of kanban is 2 ROP = EDDLT + SS
• The Kanban number must be increased to one unit if the
process starts with one empty bin
X SIGMA MIINIBOOK
• If the bin is at the point of usage the Kanban number must be
increased by one unit
n㼻 K b = ROP / Q
㼻 Kanban
LEAN SIX
Kanban
How to implement Kanban Process:
• Perform Kanban sizing
• Realize physical Kanban (bins, cards, etc.)
• Organize supermarket
(Example kanban
• Implement FIFO mechanism collection point)
• Use “Visual Management approach” (blackboard, labels, colored bins, etc.)

• Organize point of collection
• T i the
Train th peoplel involved
i l d in i kanban
k b process
• Implement Kanban performance dashboard (Inventory level; Number of
stock shortages, etc.)
X SIGMA MIINIBOOK
CAUTION:
Don’t forget to start from products with high inventory turn index
LEAN SIX
Kanban
Kanban Card Designs:
Customer Kanban Move Kanban Supplier Kanban
P d ti K
Production Kanban
b C Card
d T i
Trigger Kanban
K b
X SIGMA MIINIBOOK
LEAN SIX
Heijunka
What is Heijunka?
• Heijunka(G) can be defined as “pursuit of even distribution of production
volume and production mix over time”
Why Heijunka is beneficial?
• Customer demands for products are uneven and non smooth in nature.
However the production processes work well at an even and smooth pace,
However, pace
Heijunka can effectively convert uneven demands into even ones and
predictable production process by leveling production volume and mix
• H ij k can be
Heijunka b usedd in
i combination
bi i with i h other
h Lean
L tools,
l suchh as Kanban,
K b
and SMED to create smooth value flow
C
Components
t off Heijunka:
H ij k
1. Production leveling
X SIGMA MIINIBOOK
2 Product mix leveling
2.
3. Heijunka box
LEAN SIX
Heijunka
Why Production Volume Leveling?
• Fluctuations in customer demand often create greater disturbances in
upper stream processes and supply chains
• Chasing
Ch i variations
i i i demand
in d d with
i h fluctuation
fl i ini production
d i often
f causes:
alternating overtime and idle time, quality problems, higher costs and
stressed out workers
What is Production volume Leveling?
Demand Production
1988 / 4 = 497
1748 / 4 = 437
X SIGMA MIINIBOOK
1588 / 4 = 397
LEAN SIX
Heijunka
Why Product Mix Leveling?
• Large batches of the same product may reduce number of changeovers, but it
usually causes long lead time and high inventory level
• Variations in dailyy work loads will lead to uneven work ppace, ppossiblyy creatingg
excessive idle time, overtime, and reducing quality
• A daily production schedule with stable product mix and stable work load will
make a stable pproduction pprocess
What is Product Mix Leveling?
X SIGMA MIINIBOOK
LEAN SIX
Heijunka
A Product Mix Leveling Example:
X SIGMA MIINIBOOK
Batches, uneven daily loads Stable mix, stable daily loads
LEAN SIX
Heijunka
What is Heijunka box?
• The Heijunka box is a visual scheduling tool for Heijunka application, both
production volume leveling and product mix leveling are visually displayed
X SIGMA MIINIBOOK
April 3 4 5 6 7 10 11 12
LEAN SIX
TPM - Total Productive Maintenance
Objective:
• Total Productive Maintenance (TPM) is a methodology focused on the
technical aspects of manufacturing processes. It aims to increase plant and
equipment productive performances through employees
employees’ empowerment
and skills. For that reason the real owner of the methodology is not only
maintenance but all the production system
TPM pillars:
• Total
T l Productive
P d i Maintenance
M i i based
is b d on 8* pillars
ill
− Focus improvement − Early equipment management
− Autonomous Maintenance − Office TPM
− Planned Maintenance − Education and training
− Quality maintenance − Safety, Health and environment
X SIGMA MIINIBOOK
* The number of pillars can change from company to company
LEAN SIX
TPM - Total Productive Maintenance
Overview:
• The TPM methodology is represented by a temple where at the base there are
two important points: lean waste culture and 5S approach (don’t forget to use
them everytime you look at the process optimization)
X SIGMA MIINIBOOK
LEAN SIX
TPM - Total Productive Maintenance -
What is the meaning of the 8 pillars?
FOCUS IMPROVEMENT PLANNED MAINTENANCE
Focus Improvement, or Kobetsu Kaizen, aims to Planned maintenance aims to move away from reac-
maximize the overall system efficiency (generally tive maintenance to a proactive approach (planned
measured d withh OEE index)
d ) through
h h the
h elimination
l off maintenance). The activity is complementary to auto-
equipment/process losses. It is one of the most nomous maintenance and generally requires the
important activities because of its rapid imple- maintenance team. It aims to improve the technique
mentation and impact dimension. This pillar is strictly and practice of maintenance, due to the increase of
related to all other pillars skills and ability to use diagnostic techniques. The
ideal goal is “Zero breakdowns”
AUTONOMOUS MAINTENANCE QUALITY MAINTENANCE

Autonomous maintenance is the involvement of Quality Maintenance aims to create and maintain
production workers in machine/equipment manage- the conditions of the process from which the
ment through the transfer of some activity like daily products come in order to ensure the quality level
inspection, lubrication, cleaning, minor repairs, etc. required by the customer. The starting point is not
typical of a maintenance team. The operator is the the product but the process control and con-
expert
p on the equipment
q p and for this reason he is sequently the management of its conditions (eg.
X SIGMA MIINIBOOK
primarily responsible for machine care. Continuous pressure, temperature, density, flow rate, etc.) to
improvement is the basis of this pillar maintain the desired result
LEAN SIX
TPM - Total Productive Maintenance -
What is the meaning of the 8 pillars?
EARLY EQUIPMENT MANAGEMENT EDUCATION & TRAINING
Early Equipment Management is a structured pro- Education and training pillar is the basis of TPM. Its
cess focusing on reducing the complexity associated goal is to ensure that all people involved in TPM
with the operation and maintenance of equipment. have all the skills necessary to support the change.
It helps to extend the principles of Lean to the Improving knowledge and skills of operators will not
design and manufacture of equipment only increase their operational abilities, but
encourage pride in their work,
work with great benefits to
all. The two main ways to reach this are “on the job
training” and “self-development”
OFFICE TPM SAFETY, HEALTH, ENVIRONMENT

The Office TPM pillar aims to involve the non- This pillar is really important for all company systems.
productive
p o uct ve departments
epa t e ts to focus
ocus oon bette
better pplant
a t pe
per- TPM doesn
doesn’tt only mean more efficiency of equipment
formance. The pillar helps administrative functions in or less defects, but also eliminates all problems
defining their goals to support the TPM process in the related to safety and environment. The main goal is
production area to create a workplace that is organized, safe and
X SIGMA MIINIBOOK
environmentally
i ll oriented
i d
LEAN SIX
Priorityy Matrix
Objective:
• Priority Matrix can be used to quantify the degree of correlation between

Input and Output variables
• In addition, it is often used to identify the best solutions according to
g
criteria, weightingg them appropriately
pp p y ((e.g.
g it can be useful when consensus is
not reached in making a group decision)
• In a Lean Six Sigma project, this method can be used in Measure Phase to
id if linkage
identify li k b
between i
input and
d output variables.
i bl It
I can be
b used
d in
i Improve
I
Phase to identify key variables/solutions to be implemented in order to solve
p
the problem
X SIGMA MIINIBOOK
LEAN SIX
Priorityy Matrix
How to Build a Priority Matrix*:
1. Identify criteria for evaluating different solutions
2. Team members assign weight to all criteria. For each member, all weight
assigned to criteria should added up to 1 (0 is allowed in weighting)
X SIGMA MIINIBOOK
* The example is related to a case of selecting the optimal solution in which four people suggest the selection criteria and
the weight to be associated with the solutions to implement
LEAN SIX
Priorityy Matrix
3. Sum the values for each criteria to get the total weight
X SIGMA MIINIBOOK
LEAN SIX
Priorityy Matrix
4. Each evaluator assigns a score of 1, 3 or 5 to rate the ability of each
solution to satisfy a criterion
5. Sum the scores from all evaluators and multiply the result by the weight
assigned
i d for
f eachh criteria,
it i and d fill outt the
th following
f ll i matrix
ti
X SIGMA MIINIBOOK
LEAN SIX
Priorityy Matrix
6. Sum the values for all rows to get the total score for each solution. The
solution with the highest score means that this solution is the best one
in terms of ability to fairly satisfy all weighted criteria
X SIGMA MIINIBOOK
A
This is the solution that has the highest impact based on weighted criteria
LEAN SIX
FMEA
Objective:
• FMEA(G) (Failure Modes and Effects Analysis

y ) is used to identifyy a detailed
list of failure modes of a product or process and their corresponding
causes and then rate them with severity level, likelihood of occurrence
andd detection
d t ti in i order
d tot manage system
t risk
ik
• In Lean Six Sigma projects, FMEA can be used as a systematic method to
link inputs with outputs, assign priority levels and degree of relationship,
or to assess risk associated with different solutions to be implemented.
For these reasons this technique can be applied to different stages of
DMAIC
X SIGMA MIINIBOOK
LEAN SIX
FMEA
RPN (Risk Priority Number) is a risk management index that is the product of
the following
follo in 3 values:
al es:
– O: Occurrence or probability of occurrence, which relates to causes
– S: Severity of the failure effect
– D: Detection, Chance of detecting the failure before it happens
Rule of Thumb:
X SIGMA MIINIBOOK
Corrective
C i action
i must be b taken
k if RPN valuel exceeds
d a threshold
h h ld
(e.g., 100) or severity exceeds 8
LEAN SIX
FMEA
1. Identify potential failure modes
2. Identify potential failure effect and its severity (Severity)
3
3. Identify the failure causes and the likelihood of occurrence (Occurrence)
4. Identify the effectiveness of current system to detect failure (Detection)
5. Multiply the values (S, O, D) to determine the risk level of each failure
mode (RPN)
6
6. Identify
Id f the
h corrective actions ffor the
h ffailure
l modes
d that
h hhave hhighh RPN
value (greater than the threshold value) or when Severity value is more
tthan
a 8 (9 oor 10)
0)
7. Recalculate RPN after improvement. Check the improvement until both
p
RPN and Severityy values are acceptable
X SIGMA MIINIBOOK
LEAN SIX
FMEA
X SIGMA MIINIBOOK
LEAN SIX
FMEA
Example of FMEA application:
X SIGMA MIINIBOOK
LEAN SIX
DOE
Objective:
j
• DOE(G) (Design Of Experiments) is a methodology that builds, through well-
planned experiments and analysis of the experimental results, the analytical model
relating to the cause-effect
cause effect relationship between input and output variables
• Residuals (difference between actual response and model prediction) is
normally distributed
• Residuals are independent of Xs (Input variables)
• Residuals are independent of predicted Ys (Fitted Value)
• Residuals are independent of time
Wh tto use it
When it:
• DOE can be used in Analyze Phase to identify key variables and interactions
p DOE can also be used in the Improve
that influence the output. p Phase to
X SIGMA MIINIBOOK
identify best parameter settings (Inputs) to optimize the Output variable
LEAN SIX
DOE
1. Define the problem
2. Select output (response) variable y
3. Select experimental
p factors ((input
p variables),
) their levels and values
4. Select the experimental design in order to manage the number of tests.
You can choose Full Factorial Design, which is a complete combination of
all the levels of all factors, or Fractional Factorial Design, which is a se-
lected portion of full factorial design. Fractional Factorial is economical but
it lacks some information (some data analysis issues can be handled via alias
structure, resolution and confounding)
5
5. Conduct experiments properly (randomization may be needed,
needed proper data
collection, etc.)
X SIGMA MIINIBOOK
6
6. Analyze the experimental data
LEAN SIX
DOE
Types of factorial experiments:
Replicates
p
General Full Factorial Design Run = a x b x c x d x … x n
Number of levels for factor A Number of levels for Factor B

2 Level Full Factorial Design Run = n x 2k
Number of factors
Replicates Number of levels

2 Level
L l Fractional
F i l Factorial
F i l Design
D i kq
R = n x 2k-q
Run
Degree of fraction:
• q = 1 half fraction 50%
Es.
• q = 2 ¼ fraction 25%
Full Factorial Design for
• q = 3 1/8 fraction 12,5%
X SIGMA MIINIBOOK
3 factors
LEAN SIX
DOE
Create an experimental plan by MINITAB:
Stat > DOE > Factorial > Create Factorial Design…
X SIGMA MIINIBOOK
LEAN SIX
DOE
C
Select desirable experimental
A C plan (Full or Fractional)
Choose the number
of factors D
B Choose factor name, variable
B
X SIGMA MIINIBOOK
type (Text or Numeric), level
Choose the number of type (coded +1 and -1 or
replicates actual values)
LEAN SIX
DOE
MINITAB: Output
B
Experimental plan created
Experimental design information

displayed in session window
X SIGMA MIINIBOOK
LEAN SIX
DOE
Manage statistical analysis plan
S > DOE > Factorial
Stat F l > Analyze
A l FFactoriall Design…
D
A
SSelect
l t column
l that
th t contains
t i Output
O t t (Y) B
data
B
X SIGMA MIINIBOOK
Enter the factors and interactions to be
studied
LEAN SIX
DOE
MINITAB: Output CAUTION:
Eliminate factors (one at a time) un-
til all remaining ones are significant
B A A
For any main effect, two way, three
way or higher
h h order d interaction, it is
significant only if its P-Value < 0.05
B
Regression coefficients for the ana-
lytical model
C C
Global importance of factors: if its P-
Value is < 0.05 , then at least one single
g
X SIGMA MIINIBOOK
factor or interaction (2 way or 3 way,
etc.) is significant
LEAN SIX
DOE
DOE Graphs
Stat > DOE > Factorial > Factorial Plots…
X SIGMA MIINIBOOK
LEAN SIX
DOE
A A
Enter response variable
B B
Enter factors to be analyzed
X SIGMA MIINIBOOK
LEAN SIX
DOE
MINITAB: Output CAUTION:
Graphical results must be
A supported by statistical analysis
Main Effects Plot

The greater magnitude in slope indicates A
larger main effect
B
Interaction Plot
X SIGMA MIINIBOOK
Parallel lines indicate that there is no
significant interaction effect
LEAN SIX
DOE: Assumptions
p
Residual analysis
S > DOE > Analyze
Stat A l Factorial
F i l Design…(Graphs)
D i (G h )
Residuals must be independent of Xs

Residuals must be independent of time
X SIGMA MIINIBOOK
Residuals must be independent of predicted Ys (Fitted Value)
Residuals should be normally distributed
LEAN SIX
CONTROL
X SIGMA MIINIBOOK
LEAN SIX
CONTROL
Control is the final step of Lean Six Sigma roadmap; the ob-
jective of this phase is to:
• Test the quality level because it is the result of previous Lean Six
Sigma steps
• Validate the method and its effectiveness used in improvement
• Standardize the method if its effectiveness is proven
• p
Implement control plan
p to sustain the improved
p longg term
performance
• Use visual management and an error proofing system to maintain
hi h llevell performance
high f
• Verify the applicabilities and possible extensions of the method for
X SIGMA MIINIBOOK
other possible problems or company areas
LEAN SIX
Control Chart
Objective:
• C
Controll Charts
Ch are useful
f l tools
l that
h can verify
f andd monitor the
h stability
bl
of performance levels for manufacturing, transactional and service pro-
cesses
• Control Charts are tools that can be used to identify “special causes’ in
the process
Features:
• Common Cause: The cause, random in nature and not related to anyy special p
event, is behind natural inherent variability shown in processes
• Special Cause: The cause is often associated with special events. The result of a
Special Cause is that the process often shows a trend,
trend seasonality or other non-
non
random patterns
X SIGMA MIINIBOOK
A process is “stable”
stable if it is only influenced by random causes
(common causes)
LEAN SIX
Control Chart: Individuals
When to use it:
• When it is necessary to
monitor individual continuous
variables
UCL = μ + Lσ
CL = μ
LCL = μ − Lσ
Formula for control limits
calculation
• Control limits are specified by the Upper Control Limit (UCL) and Lower
Control Limit (LCL), They determine the range for natural variation due to
X SIGMA MIINIBOOK
random causes. Any variation beyond UCL or LCL will be considered as
‘out of control’ and likely caused by a special event
LEAN SIX
MINITAB:
Stat > Control Charts > Variables Charts for Individuals…
X SIGMA MIINIBOOK
LEAN SIX
A Enter the column that contains Output (Y)

A
It is possible to customize the value of K
B
to determine the type of test desired
C B
Use this option to select desirable tests in or-

der to identify potential non random patterns
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
I Chart of Set-up Time A
80
UCL=78,10
,
A point outside control
70 limit indicating the pres-
ence of special cause
60 _
X=54,97 It is necessary to inves-
50 tigate the causes that lead
this out of control situa-
40
vidual Value
tion, in order to intervene
Indiv
LCL=31,84 and correct the problem
30
20
1
A
10
3 6 9 12 15 18 21 24 27 30 33
X SIGMA MIINIBOOK
Observation
LEAN SIX
Rules to determine out of control and non random trends
• One or more points out of control limits (usually 3-sigma lines)
• Two out of three points are beyond 2-sigma line (warning line) but usually within
3-sigma line
• Four out of five points fall beyond1-sigma line from center
• Eight consecutive points fall on one side of centerline
• Six consecutive points are in ascending or descending order
• 15 consecutive points are in zone C (both above or below centerline)
• 14 consecutive points are alternating up and down (zig-zag)
• 8 consecutive points alternate around centerline, but none in zone C
• Non random patterns are observed
X SIGMA MIINIBOOK
LEAN SIX
Control Chart: Xbar-R
When to use it:

• It is necessaryy to monitor
subgroups of continuous
variables
• Xbar-R
Xb R charts
h are often
f used
d
in high volume production
pprocess monitoringg
• Control limits are specified by the Upper Control Limit (UCL) and Lower
Control Limit (LCL). They determine the range for natural variation due to
X SIGMA MIINIBOOK
random causes. Any variation beyond UCL or LCL will be considered as ‘out
of control’ and likely caused by special events
LEAN SIX
Rational subgroups are samples that can be used to assess:
• Within group variation
• Between groups variation
Subgroup Subgroup
Control limits calculation:
Xbar Chart R Chart
UCL = x + A2 R U C L = D4 R where
CL = x CL = R
X SIGMA MIINIBOOK
LCL = x − A2 R LC L = D 3 R
LEAN SIX
MINITAB:
Stat > Control Charts > Variables Chart for Subgroups > Xbar-R…
X SIGMA MIINIBOOK
LEAN SIX
A
A Select this option if
B the data are arranged
in different columns
B
Enter the columns that contain Y responses
(sample element results)
C
C
With this command,
command choose all tests for iden-
iden
tifying out of control and non-random pat-
terns, or select only the tests that you want to
X SIGMA MIINIBOOK
use
LEAN SIX
A
A Select this option if all observations are
B in one column
Enter the column that contains response

Y to be analyzed
X SIGMA MIINIBOOK
Enter the column that contains subgroup
labels
LEAN SIX
MINITAB: Output
Xbar-R Chart A
1
34
U C L=33,753
B Xbar Chart: Each
33 A point in the chart
_
_
X=32,364
represents a mean
32 of a sample
p
S ample M ean
31 LC L=30,975
B
3 6 9 12 15 18 21 24 27 30
Sample
Presence of a
U C L=5,091 special cause
4,8
C
3,6
ange
C
_
2,4 R=2,408
R Chart: Each point
Sample Ra
1,2
represents the range
X SIGMA MIINIBOOK
0,0
00 LC L=0
L 0
value in a sample
3 6 9 12 15 18 21 24 27 30
Sample
LEAN SIX
Control Chart: P Chart
When to use it:
• To monitor the state of inspection
UCL Upper Control Limit
UCL
units, with 2 states, pass/failure,
good/bad, etc. p is often the ratio of
f l
failure (d
(discrete attribute
b variables)
bl )
P p (1 − p )
UCL = p + 3
n
CL = p
LCL Lower Control Limit
LCL p (1 − p )
LCL = p − 3
n
Formula to calculate control limits
• Control limits are specified by the Upper Control Limit (UCL) and Lower Control
Limit ((LCL).
) Theyy determine the range
g for natural variation due to random causes.
X SIGMA MIINIBOOK
Any variation beyond UCL or LCL will be considered as ‘out of control’ and likely
caused by special events
LEAN SIX
MINITAB:
Stat > Control Charts > Attributes Chart > P…
X SIGMA MIINIBOOK
LEAN SIX
A
Enter the column that contains num-
ber of non conformity A
B
B
Enter the column that contains sample
sizes
Select ‘out of control and non random patterns test’.

possible to make yyour own choice
It is p
X SIGMA MIINIBOOK
LEAN SIX
MINITAB: Output
P Chart of Non conformity
0,16
0,14 UCL 0 1429

UCL=0,1429
0,12
0,10
0,08
_
P=0,0676
Proportion
0,06
0,04
0,02
0,00 LCL=0
2 4 6 8 10 12 14 16 18 20 22 24
Sample
X SIGMA MIINIBOOK
In this example, the process appears in the state of statistical control
LEAN SIX
Control Chart & Minitab
Minitab Assistant helps you to choose the right Control Chart:
X SIGMA MIINIBOOK
LEAN SIX
Poka Yoke
Objective:
• Poka Yoke (G) (or Mistake Proofing) is one of the techniques that aims to
reach the “Zero Defect Quality” through the usage of devices or
procedures which allows detection of an error that could lead to waste
(scraps, reworks, breakdowns etc.). Poka Yoke could be a design choice
(Poka Yoke design) or a detection system on the process (Poka Yoke
P
Process))
Poka Yoke basic concept:
An error increases
• A i its
i economic
i impact
i if the
h time
i between
b when
h iit hhappens
and its discovery increases
p make mistakes but it is ppossible to pprevent
• It is natural that ppeople
human errors becoming defects before they happen
• Don’t try to do better next time: act now!
X SIGMA MIINIBOOK
LEAN SIX
Poka Yoke
Why a mistake could happen:
Machine Material Method
Mistake
Lack of experience F
Forgetfulness
f l
Lack of Standardardization Misunderstanding
M hi Readability
Machine R d bilit Bad Identification
Measurement Man
X SIGMA MIINIBOOK
LEAN SIX
Poka Yoke
Poka yoke strategy and examples:
…
Prevention
d happen…
area
Could
TAKE
MIST
Detection
area
X SIGMA MIINIBOOK
Alrready happened…
LEAN SIX
Poka Yoke
Types of Quality Inspections (Shingo):
1. Judgment Inspection: Good Products
Discover defects after the facts, sort out
bad products
Disadvantages: Inspection
• costly
• difficult to eliminate all defects if human inspection is
used
Defects
• no feedback to process
2 Statistical Process Control (SPC):

2.
A sampling based inspection and
process feedback Error
Disadvantages of SPC (Shingo): Error

• it is a sample inspection, so if the process is
not capable, it cannot catch all the defects Error
X SIGMA MIINIBOOK
• the feedback is usually slow
LEAN SIX
Poka Yoke
Desirable Types of Quality Inspections (Shingo):
1. Successive Check
Successive check is to let the immediate downstream process check output of the immediate upstream process
Error
Error
Error
Feedback Defects Feedback Defects Feedback Defects
2. Self Check
Self check is to let current process check itself and trouble shoot the process immediately if defect occurs
Error Feedback Feedback Feedback
Error
Defects Defects Defects

3. Source Inspection
S
Source inspection
i i iis bbased
d on the
h id
idea off di
discovering
i and
d correcting
i errors bbefore
f errors bbecome a defect
d f
Error
X SIGMA MIINIBOOK
Error
Error
LEAN SIX
Poka Yoke
Basic Principles of Good Quality Inspections (Shingo):
1. Always 100% Inspection
2. Judgment about defects should be done objectively
3. Inspection should be done automatically at low cost
4. When a defect occurs, information should be immediately given as feedback and
root causes immediately investigated
5 Discover hidden root causes one at a time
5. time, and eliminate them one by one
6. It is desirable to track the source of root cause therefore automatic inspection
devices should be installed (Source Inspection)
Poka Yoke System for Perfect Quality Inspection:

1.. Poka
o a Yoke
o e device
ev ce sshould
ou be ccheap,
eap, ab
ablee to pe
perform
o 100%
00% inspection,
spect o , aand ggives
ves
results instantly
2. Poka Yoke system can detect abnormalities by detection technology and/or
X SIGMA MIINIBOOK
process procedures
LEAN SIX
Poka Yoke
3 Types of Regulatory Mechanisms for Poka Yoke:
1. Control:
When abnormalities occur, the Poka Yoke system will halt the operations
Example: Coffee Pot

Type of Inspection:
Source Inspection
Poka Yoke Detection Mechanism:

Cheap Device
This automatic coffee pot is equipped with a “pause and serve” feature. The lid of the pot presses
upp the button ((shown above right),
g ) releasingg a valve which allows the coffee to p pour into the ppot.
X SIGMA MIINIBOOK
If you remove the pot before brewing is finished, the valve closes, so coffee is not spilled
LEAN SIX
Poka Yoke
2. Warning:
When abnormalities occur, the Poka Yoke system will send warning
Example 1: Bathroom Poka Yoke
Some people may hang coat in a
bathroom stall and then walk out
without it. A stall door in a bathroom
is designed so you cannot unlatch the
door without dropping your coat
unless you remove the coat first Type of Inspection: Source Inspection
Poka Yoke Detection Mechanism: Smart layout design
Example
p 2: Warningg Color
In a hospital, the circular ring chang-
es from purple to pink when water
X SIGMA MIINIBOOK
exceeds 40 degrees Celsius to avoid
hurting patients
LEAN SIX
Poka Yoke
3 Mistake
3. Mi k proof:f
When abnormalities occur, the Poka Yoke system will make mistakes impossible to happen
Example 1: Electrical Plug Example 2: Signatures Sheet

British 240v/50Hz electricity can injure people so
electrical plugs are designed so that live electrical
pins are never exposed:
1. the position and orientation of the pin are
such that the plug can only fit one way in the
socket Engineering change form requires different signatures depending on the
2. the pins are insulated near the plug body so nature of the change being considered. Sometimes engineers would get
that an electric shock is not possible via the too many signatures, and sometimes not enough
exposed pin if the plug is not pushed all the way
in but still making contact
X SIGMA MIINIBOOK
The revised
Th d form
f identifies
d f theh nature off the
h change
h in the
h columns
l and
d
indicates unnecessary signatures in gray. Creating forms that help the
user fill them out correctly is a part of mistake-proofing
LEAN SIX
Visual Management
Objective:
• Visual Management(G) is a method that makes all processes in a company
visual and tangible. Applying visual management will make the workplace
wellll structured
t t d and d processes will
ill be
b clear
l t everybody
to b d att allll levels
l l
(from top management to shopfloor). In other words “Make it visual”
Why to use it:

• Visual Management has many advantages:
− The detection of normal and abnormal operating conditions is easy and rapid
− Time reduction
− Space reduction
− Costs reduction
X SIGMA MIINIBOOK
− … in general waste reduction
LEAN SIX
Visual Management
How to implement Visual Management:
1. Decide what message is necessary to send or which mistakes you want

to prevent from
f h
happening.i D i this
During hi step it
i is
i really
ll important
i to
identify communication at all levels
2
2. Design a simple visual “tool”tool to clearly communicate your message
(colored lines, colored bins; visual dashboard; Andon; Kanban card,
gage, checklist etc.). It is necessary to involve people
3. Test the visual impact on people and ask for feedback from those in-
volved
4
4. M k allll the
Make th adjustments
dj t t or changes
h necessary to
t improve
i th com-
the
munication effects
X SIGMA MIINIBOOK
LEAN SIX
Visual Management
Visual Management examples:
Not standard condition: Standard condition: the Files are organized

Fil i d with
ith Blue bi
Bl bins iindicate
di t raw
the material rack is not material rack is in its colored labels (each color material. Yellow bins
in the designated place designated place represents a different indicate WIP materials
yyear))
X SIGMA MIINIBOOK
LEAN SIX
Visual Management
5S Dashboard: the information board allows employees at all levels Red lines and labels indicate a place
to see the 5S status for each area in which 5S method is imple- where scrap parts are segregated
mented
X SIGMA MIINIBOOK
LEAN SIX
Visual Management
Strategy deployment activity board: Team department dashboard to assess the follow up
phase of the annual strategy deployment cycle
X SIGMA MIINIBOOK
LEAN SIX
Visual Management
Manufacturing cell information board “Andon (G)” for production control
X SIGMA MIINIBOOK
LEAN SIX
OPL - One Point Lesson
Objective:
• The One Point Lesson (OPL(G)) is a method that allows a rapid and
effective transfer of information from the leader of a group to its mem-
b
bers. It mustt be
b written
itt as simple
i l as possible
ibl and
d should
h ld follow
f ll th 80-
the 80
20 rule and use 80% pictures and 20% words (or less). The lesson
should take from 5 to 10 minutes
Types of OPL:
• Basic information One Point Lesson: used to transfer essential basic in-
in
formation, practical know-how and know-how of methods
• Problem/Defect One Point Lesson: used to teach how to pprevent oc-
currence of a specific problem
• Improvement/Kaizen: describes the main characteristic and key measures
X SIGMA MIINIBOOK
in an improvement activity
LEAN SIX
One point lesson formats
X SIGMA MIINIBOOK
LEAN SIX
Why is OPL important?
• To train people fast on a precise item
• To strengthen their understanding of the functions of machines, lines
and processes in general (both manufacturing and transactional)
• To teach people about specific problems/defects in the process in order
to eliminate their occurrence
Who should use the OPL?

• Team leader or process expert
Where should the OPL activities happen?
• At the “Gemba” (shopfloor, next to the machine, next to the computer
g etc.))
in the case of software training,
X SIGMA MIINIBOOK
LEAN SIX
One point lesson example
X SIGMA MIINIBOOK
LEAN SIX
One point lesson example
X SIGMA MIINIBOOK
LEAN SIX
Lean Six Sigma
Checklist
X SIGMA MIINIBOOK
LEAN SIX
299
Define Checklist
Some steps to check Define phase completion:
X SIGMA MIINIBOOK
= Activity completed
LEAN SIX
300
Measure Checklist
Some steps to check Measure phase completion:
X SIGMA MIINIBOOK
LEAN SIX
301
Analyze Checklist
Some steps to check Analyze phase completion:
X SIGMA MIINIBOOK
LEAN SIX
302
Improve Checklist
Some steps to check Improve phase completion:
X SIGMA MIINIBOOK
LEAN SIX
303
Control Checklist
Some steps to check Control phase completion:
X SIGMA MIINIBOOK
LEAN SIX
304
APPENDIX A: Process Sigma Table (I)
X SIGMA MIINIBOOK
LEAN SIX
305
APPENDIX A: Process Sigma Table (II)
X SIGMA MIINIBOOK
LEAN SIX
306
APPENDIX B: Kinds of variables
This summary could be useful for the correct selection of indicators during
the
h implementation
i l i off a Lean
L Si Sigma
Six Si project
j
CONTINUOUS
(eg. weight, height, length)
VARIABLE
Discrete Attributes
(eg. good/not good, pass/fail)
DISCRETE
Discrete Numerical
X SIGMA MIINIBOOK
(eg. Number of complaints or errors in
invoices)
LEAN SIX
307
APPENDIX C: Kaizen Leader Standard Form
Waste Walk Analysis format example
X SIGMA MIINIBOOK
LEAN SIX
308
5S format example
X SIGMA MIINIBOOK
LEAN SIX
309
5S format example
X SIGMA MIINIBOOK
LEAN SIX
310
5S format example
X SIGMA MIINIBOOK
LEAN SIX
311
5S format example
X SIGMA MIINIBOOK
LEAN SIX
312
Standard Work: Cycle Time Observation Form
X SIGMA MIINIBOOK
LEAN SIX
313
Standard Work: Process Capacity Form
X SIGMA MIINIBOOK
LEAN SIX
314
Standard Work: Standard Work Combination Form
X SIGMA MIINIBOOK
LEAN SIX
315
OPL - Basic information
X SIGMA MIINIBOOK
LEAN SIX
316
OPL - Problem/Defect
X SIGMA MIINIBOOK
LEAN SIX
317
OPL - Improvement/Kaizen
X SIGMA MIINIBOOK
LEAN SIX
318
Kaizen Newspaper example:
X SIGMA MIINIBOOK
LEAN SIX
319
Kaizen performance:
X SIGMA MIINIBOOK
LEAN SIX
320
Index
1-Sample t, see Hypothesis Testing COPQ, 48
2-Sample t,
t see Hypothesis Testing Cost of Poor Quality,
Quality see COPQ
5S Program, 189 CTQ-Tree Diagram, 44
Activity Flow Diagram, 20 Design Of Experiments (DOE), 247

ANOVA see Hypothesis
ANOVA, H h i Testing
T i DOE see Design
DOE, D i Of Experiments
E i
Basic Flow Diagram, 17 Failure Modes and Effects Analysis, see FMEA
Basic Statistics, 58 g
Fishbone Diagram, see Cause-Effect Diagram
g
Boxplot, 76 Fitted Line Plot, see Regression
FMEA, 242
Calculation of DPMO, 118 Functional Flow Diagram, 18
Calculation of Process Sigma, 119
Capability Analysis, 111 Gage R&R:
Cause and Effect Diagram, 138 Continuous Data, 83
Cell Design, 208 Discrete Data Attributes, 95
Chi S
Chi-Square, see HHypothesis
th i T
Testing
ti G hi l SSummary, 69
Graphical
Confidence Interval, 66
Control Chart for attributes: Hypothesis Testing:
P Chart, 273 1-Sample t, 147
X SIGMA MIINIBOOK
Control Chart for continuous variables: 2-Sample t, 151
Individual, 262 ANOVA, 160
LEAN SIX
Xbar-R, 267
321
Index
Chi-Square, 164 Process Capability Analysis,
Paired t-Test,
t Test 155 see Capability Analysis
Test for Equal Variances, 168 Process Mapping, 16
Process Sigma:
Individual, see Control Chart for continuous variables see Calculation of Process Sigma
IIshikawa
hk (Diagram),
(D ) see C
Cause andd Eff
Effect D
Diagram Process Sigma table
table, 305
Product Family Matrix, 28
Kaizen Events, 7 Project Charter, 46
Kanban, 221
Kano Diagram, 45 Regression:
Analytical Approach, 183
Normality Test, 107 Fitted Line Plot, 178
Run Chart,, 132
Overall Equipment Effectiveness, OEE, 122
One Point Lesson, OPL, 293 Sampling, 53
Scatter Diagram, 174
P Chart,
Ch C
Controll Ch
Chart ffor attributes
ib Standard Work,
Work 195
Paired t-Test, see Hypothesis Testing SIPOC Diagram, 13
Pareto Diagram, 103 Single Minute Exchange of Die (SMED), 213
Poka Yoke, 278 SMED, see Single Minute Exchange of Die
X SIGMA MIINIBOOK
Priority Matrix, 237 S h i Diagram,
Spaghetti Di 25
Statistical Hypothesis Testing, 145
LEAN SIX
322
Index
Takt Time, 120
Test for Equal Variances, see Hypothesis Testing
Time Series Plot, 128
Variables (Kind of), 307

Value Added and Not Value Added
Added, 19
Value Stream Mapping, 30
Visual Management, 287
Waste Walk, 21
Xbar-R, see Control Chart for continuous variables
X SIGMA MIINIBOOK
LEAN SIX
323
Glossary
A
Andon: Andon is any visual indicator signaling the current status of a step in the production/process
system. It alerts team leaders or supervisors in case of existing or emerging production/process
problems.
B
Brainstorming: A group based creativity technology that is designed to generate and select ideas for
problems solving.
BVA, Business Value Added activity: Activity that does not add any value to the product/service but is
necessary from a business operations’ point of view.
C
Cell: It is a workplace in which equipment, people, machinery, materials and methods are arranged in
order to have continuous p production flow.
Confidence Interval (CI): is the interval which, with a likely probability, contains the mean (or pro-
portion, median, standard deviation) of the population, where the sample comes from.
X SIGMA MIINIBOOK
Common Cause: The cause, random in nature and not related to any special event, is behind natural
inherent variability displayed in processes.
LEAN SIX
325
Glossary
COPQ, Cost Of Poor Quality: COPQ are the costs related to poor performance of manufacturing or
transactional processes.
CTQ, Critical To Quality: The key measurable features of a product or process whose performance
standards or specification
p limits must be met in order to satisfyy the customer.
Customer: The client, internal or external, is the recipient of a process / product / service.
Customer Satisfaction: is a measure of how products and services supplied by a company meet cus-
tomer expectation.
expectation Customer expectation should be objectively and accurately measured by collecting
and analyzing “Voice Of the Customer” (VOC). It is the starting point for identifying improvements.
D
DMAIC: Stands for 5 phases of Lean Six Sigma methodology: Define, Measure, Analyze, Improve,
Control.
DOE,, Design
g Of Experiment:
p DOE is a methodology gy that builds,, through
g well-planned
p experiments
p and
analysis of the experimental results, the analytical model relating to the cause-effect relationship be-
tween input and output variables.
DPMO, Defects Per Million of Opportunity:
pp y DPMO is a p performance indicator calculated as a ratio of
X SIGMA MIINIBOOK
number of defects divided by maximum number of potential defects in a batch of units inspected.
LEAN SIX
326
Glossary
F
FMEA, Failure Modes and Effects Analysis: FMEA is a tool that can be used to identify a detailed list of
failure modes of a product or process and their corresponding causes and then rate them with a
severity level, a likelihood of occurrence and detection in order to manage the system risk.
H
Heijunka: is one of the elements of Just in Time and it is the process of smoothing the type and quantity
of production over a fixed period of time.
J
Jidoka: This term means “automation with human intelligence”. It means that an automated process is
sufficientlyy “aware” of itself so that it will detect pprocess malfunctions or product
p defects,, stopp itself and
alert the operator.
K
Kaizen: means “to
to become good through change
change”. A Kaizen event is a focused effort for make an
improvement activity.
Kanban: It is a method used in many applications in various processes. It is primarily used as an in-
X SIGMA MIINIBOOK
struction mechanism that controls the production,
production movement of goods,
goods material,
material or parts,
parts or jobs.
jobs
LEAN SIX
327
Glossary
L
LCL, Lower Control Limit: Represents the lower limit of a stable distribution for the variability of a
process (VOP).
Lead Time: is the time between the p placingg of an order and the receipt
p of ggoods/services ordered ((it is
also possible to speak about Production Lead Time, Delivery Lead Time etc.).
Lean: is the methodology that aims to identify and eliminate wastes in order to maximize speed and
flexibility of business processes so we can deliver what is needed, when needed and in the quantity
needed by the Customer.
LSL, Lower Specification Limit: Represents the lower limit of a tolerance region that is acceptable by the
customer.
customer
N
NVA,, Non Value Added activity:
y Activityy that does not add anyy value to the pproduct/service.
O
OEE, Overall Equipment Effectiveness: is a powerful method to monitor and improve the efficiency of
X SIGMA MIINIBOOK
manufacturing and transactional processes.
LEAN SIX
328
Glossary
OPL, One Point Lesson: is a method that allows a rapid and effective transfer of information from the
leader of a group to its members.
members
Outlier: An observation that is numerically distant from the rest of the data.
P
Poka Yoke: It is one of the techniques that aims to reach the “Zero Defect Quality” through the usage
of devices or procedures, which allows detection of an error that could lead to waste.
Process Capability Analysis: Also called Capability Analysis, is a performance index used to measure the
ability of a process (VOP) to meet the specification limits defined by customers (VOC).
Process Owner: is the owner of the p process, usuallyy the head of a department
p or office in which the
Lean Six Sigma project is implemented.
Process Sigma: Process Sigma is a performance metric that is based on comparing specification length
with the standard deviation (Sigma) of process. This performance index is related to defective rates.
Project Charter: is a document which contains key information on implementing a Lean Six Sigma
project.
X SIGMA MIINIBOOK
P-Value: is a measure of how much evidence we have against
g the importance
p of a factor. The smaller the
P-Value, the stronger the evidence. A P-Value of < 0.05 is an indication of statistically significant
evidence.
LEAN SIX
329
Glossary
R
Rational subgroups: The rational subgroups are samples chosen in a way that maximize the variability
between samples when there are special causes present and the variability within the sample is
minimized.
Reorder Point (ROP): is the inventory level of an item which signals the need for placement of a
replenishment order, taking into account the consumption of the item during order Lead Time and the
quantity required for safety stock.
Residual: Difference between actual value of data and predicted value from mathematical models
(derived by Regression or Design Of Experiments).
S
Savings: Economic or strategic benefits resulting from improvement/project activities.
SIPOC: High level process mapping to describe any kind of process (Supplier,
(Supplier Input,
Input Process,
Process Output,
Output
Customer).
Standard Work: It is the most effective combination of manpower, materials and machinery to produce
X SIGMA MIINIBOOK
something in the time,
time quality and quantity required by customer.
customer
LEAN SIX
330
Glossary
Six Sigma: A well structured and disciplined operating strategy (structured according to the DMAIC
phases),
h ) tto measure, analyze
l and
d iimprove th
the performance
f in
i terms
t off operational
ti l excellence.
ll Th
The Six
Si
Sigma methodology is sufficiently flexible and adaptable to different business contexts.
SMED: Single Minute Exchange of Die is a method that aims to reduce the changeover time of
equipment, machine or a production/service process in general.
Special Cause: The cause that is often associated with a special event and the result of a special cause
often lets the process form a trend, seasonality or other non random patterns.
T
Takt Time: It represents the rhythm of production/delivery that a process (workstation, Cell, etc.)
must respect to satisfy
i f customer demand.
d d
U
UCL, Upper Control Limit: Represents the upper limit of a stable distribution for the variability of a
UCL
process (VOP).
USL, Upper Specification Limit: Represents the upper limit of a tolerance region that is acceptable by
X SIGMA MIINIBOOK
the customer.
customer
LEAN SIX
331
Glossary
V
VA, Value Added activity: An activity that increases the value of the product/service from the cus-
tomer’s point of view. It is something that customers are willing to pay for.
Visual Management: It is a method that makes all processes within a company visual and tangible.
VOC, Voice Of The Customer: The “Voice of the Customer” is how the customer perceives the pro-
duct/process/service in comparison with their desires.
VOP, Voice
VOP V i Of Process:
P Th “Voice
The “V i off the
h Process”
P ” is
i what
h the
h process/product/service
/ d / i isi able
bl to de-
d
liver.
VSM, Value Stream Mapping: It is a diagram of every step involved in the material and information flow
necessary to bring the product/service from the order to delivery phase.
W
Waste: It is the use of resources (time,
(time material,
material labor,
labor etc.)
etc ) for doing something that the customers
are not willing to pay for and, therefore, does not add value to the product or service provided.
X SIGMA MIINIBOOK
LEAN SIX
332
References
- Arcidiacono G. (2006) Keys to success for Six Sigma, Proceedings of ICAD2006, Fourth International
C f
Conference on Axiomatic
A i ti Design,
D i Firenze
Fi (It l )
(Italy).
- Arcidiacono G., Calabrese C., Rossi S. (2007) Six Sigma: Manuale per Green Belt, Springer-Verlag
Italia, Milano.
- Breyfogle F.W., (2003) Implementing Six sigma: smarter solutions using statistical methods, Wiley,
Hoboken.
- Imai M. (1997) Gemba Kaizen: A Commonsense, Low-Cost Approach to Management, McGraw-Hill,
New York.
- Marchwinski C., Shook J., Schroeder A. (2008) Lean lexicon: a graphical glossary for lean thinkers,
Cambridge, The Lean Enterprise Institute.
- Liker J. (editor) (1997) Becoming Lean: Inside Stories of U.S. Manufacturers, Productivity Press,
Portland.
- Keats B.J.,
J , Montgomery
g y D.C. ((1996)) Statistical applications
pp in pprocess control, M. Dekker,, New York.
- Ohno T. (1988) Toyota Production System: Beyond Large-Scale Production, Productivity Press,
Portland.
X SIGMA MIINIBOOK
- Pyzdek T.,
T Keller P. McGraw Hill New York.
P (2010) The Six Sigma Handbook, McGraw-Hill, York
- Rother M., Harris R. (2010) Creating continuous flow, CUOA Lean Enterprise Center, Massachusetts.
LEAN SIX
333
References
- Rother M., Harris R., Wilson E. (2003) Making Materials Flow: a lean material-handling guide for
operations,
ti production-control,
d ti t l andd engineering
i i professionals L
f i l , Lean E t
Enterprise
i Institute,
I tit t Cam-
C
bridge.
- Rother M., Harris R. (2010) Creating continuous flow, CUOA Lean Enterprise Center, Massachusetts.
- Rother M., Shook J.R. (2003) Learning to see: Value-Stream Mapping to Create Value and Eliminate
Muda, The Lean Enterprise Institute, Cambridge.
- Shingo S. (1986) Zero Quality Control: Source Inspection and the Poka-Yoke System, Productivity
Press, Stamford.
- Shingo S. (1989) A study of the Toyota Production System From an Industrial Engineering Viewpoint,
Productivity Press, Cambridge (MA).
- Womack J.P., Jones D.T. (2003) Lean thinking: banish waste and create wealth in your corporation,
Free press, London.
X SIGMA MIINIBOOK
LEAN SIX
334

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Leading processes to lead companies:

Lean Six Sigma

ISBN 978-88-470-2347-5 ISBN 978-88-470-2492-2 (eBook)

Library of Congress Control Number: 2011931733

Springer Milan Dordrecht Heidelberg London NewYork

Apparently this is the least appropriate answer,

Better and suitable processes help people professional growth,

LEAN SIX SIGMA MINIBOOK

APPENDIX A: Process Sigma table page 305

Generation and Data interpretation and

• Lean Production or Manufacturing for production processes

Value added processes must be arranged in a continuous

4㼻 LEAN PRINCIPLE Produce to Customer demand (the right product, in the

Move from a reactive point of view to a “proactive” one,

When to use it:

IDENTIFY OPPORTUNITY SET THE TARGET KAIZEN TEAM

2. DURING KAIZEN EVENTS (3-5 days)

3. AFTER KAIZEN EVENTS

Scope Wide Circumscribed

Lean Six Sigma Training Kaizen specific training, on the job

Team size Depending on project 5-8 people

Depth of analysis Generally high Generally low

LEAN SIX SIGMA APPROACH

Useful qquestions duringg SIPOC construction:

Direction of logical flow

FUNCTION 1 FUNCTION 2 FUNCTION 3 FUNCTION 4

The horizontal line represents

“To be enhanced” “To be reduced”

When to use it:

• The method is very useful to highlight the macro-waste in a process and

1. Select a pproduct/service pprovided

Example of a file managed through a service company process

PLASTIC MOLDING MACHINE PLASTIC MOLDING MACHINE

When to use it:

• The tool is used before performing a value stream analysis. When

Example of information for a

Material is produced and moved This happens when production is

Electronic Communication between Example:

The level of buffer stock must be

Replenishment is based on actual con-

Used usually for a request from a

Used to represent transfer of The first ppart that goes

To get a global view of what is

One piece flow Cycle Time

More is Better: These qualities are directly

Delighters: Qualities unexpectedly found by

Duration Identify project duration (4-5 months)

• Cost of Poor Quality, called COPQ(G) (Cost Of Poor Quality), are

X units are selected at

• If the sample size is more than 5% of the size of the population, it is

Kurtosis The Kurtosis is a measure of how the distribution of the

Distribution skewed to the Distribution skewed to the

K<0 K=0 K>0

Distribution with “flat” Distribution with “sharp”

Insert the column of the sample to be

Select all parameters of interest

where: Example: Estimation of the mean width

Example: Estimate in order to

USL − LSL USL − μ μ − LSL ½