LSSGB (Simplilearn, 2014) - Lesson - 5. Improve

Lean Six Sigma Green Belt
Lesson 5—Improve
Copyright 2014, Simplilearn, All rights reserved.

Objectives
After completing ● Describe the concepts of Design of Experiments (DOE)

this lesson, you will
● Explain the uses of Residuals Analysis and Box and Cox Transformation
be able to:
technique
● Discuss the cause and effect matrix and the 5 Why tool in the root cause
analysis
● Explain the Lean and Kaizen techniques
Copyright 2014, Simplilearn, All rights reserved. 2

Improve
Topic 1—Design of Experiments

Design of Experiments—An Introduction
Design of Experiments (DOE) is a

structured method that tests input
Trials Factor A Factor B Factor C Response
variables and their impact on the output 1 1 1 1
2 1 1 2
variable. DOE:
3 1 2 1
● is used as a one-stop method for Blocking 4 1 2 2
5 2 1 1
analyzing all influencing factors; 6 2 1 2
7 2 2 1
● is preferred over One Factor at a Time 8 2 2 2
(OFAT) experiments; and

● uses techniques such as blocking and
replication.

DOE—Plastic Molding Example
The objective of the experiment is to achieve uniform dimensions for a part at a particular target
value to reduce variations.
Inputs(X) Process Output(Y)

Cycle Time
Mold Temp
Holding Pressure Molding Part
Holding Time Hardness
Material Type
Factors Response
in the of the
experiment experiment
Components of DOE in the Molding Example
The components of DOE are:
Output Part hardness that is measured as a result of the experiment and is used to judge
Response the effects of factors
Factors Cycle time, mold temperature, holding pressure, holding time, and material type
Levels Mold temperature (600° and 700°) and Plastic type (Fillers and No Fillers)
Interactions Time∗Temp (the best level for time depends on the set temperature)

Full Factorial Experiment—An Example
Full factorial experimental design: Factor B: Oven Factor A: Draw

● contains all combinations of all levels of all Time (X2) Temperature (X1)
700° 900°
factors;
Y1 Y5
● ensures no possible treatment combinations 30 mins
Y2 Y6
get omitted; and Y3 Y7
60 mins
● is preferred over other designs. Y4 Y8
The table shown here is for a two-way heat

treatment experiment, where Y = Part Hardness.

Analysis of the Mean Effect
Based on the example, an analysis of the means helps Factor B: Oven Factor A: Draw
in understanding how: Time (X2) Temperature (X1)
700° 900°
● a change in temperature at which the material is
Y1 Y5
drawn creates a difference in the average part 30 mins
Y2 Y6
hardness; Y3 Y7
60 mins
● a change in oven time creates a difference in the Y4 Y8
average part hardness; and The table shown here is for a two-way heat
treatment experiment, where Y = Part Hardness.
● interaction between temperature and time affects
the average part hardness.

Main Effect
The calculation of main effect is shown below.
Factor B: Factor A: Draw

Oven Time Temperature
A1 = 700° A2 = 900°
90 84
B1 = 30 mins
87 87
95 79
B2 = 60 mins
92 78
The table shown here is for a two-way Results: We can see that changing the Results: We can see that changing
heat treatment experiment. draw temperature seems to change the oven time seems to have no
the average hardness. major change in the average
hardness.
Interaction Effect
The calculation of interaction effect is shown below.
95
Brinnell Hardness
Factor B: Oven Factor A: Draw
Time Temperature
90 700
A1 = 700° A2 = 900°
90 84 85
B1 = 30 mins
87 87 900
80
95 79
B2 = 60 mins 90+87
92 78 A,B, = = 88.5 30 min. 60 min.
2
The table on the right Results: The interaction plot shows that low
shows the mean of A1 A2 temperature and high oven time should be
the factors. B1 88.5 85.5 selected to achieve the highest desired output of
hardness. The parallel lines indicate the output if
B2 93.5 78.5 no interactions occur between the main effects.

Design of Experiments—Runs
The number of experiments in a DOE setting is known as Runs. The number of runs in a:
Full factorial experiment without replication on 5 factors and 2 levels are: 25 = 32
Full factorial experiment with 1 replication on 5 factors and 2 levels are: 32 + 32 = 64
Half fractional factorial experiment without replication on 5 factors and 2 levels are: 25-1 = 16
Half factorial experiment with 1 replication on 5 factors and 2 levels are: 16 + 16 = 32
The difference between a full factorial and half fractional factorial experiment can be seen through the
! number of runs.
Improve
Topic 2—Root Cause Analysis

Residuals Analysis
During regression analysis of linear or non-linear model, the value for Y at level X is predicted.
However, the actual value for Y observed at that level of X is different from the predicted value. This
difference is called Residual.
Residual = Observed value − Predicted value
The assumptions on random errors can be validated, as they:

● are independent,
● exhibit normal distribution,
● have a constant variance (σ2) for all the settings of the independent variables, and
● have zero mean.

Residuals Analysis (contd.)
As the linear regression model is not always appropriate for the data, the appropriateness of the
model should be assessed by defining residuals and examining the residual plots.
● If all the assumptions are satisfied, residuals is zero and no systematic patterns are observed.
● In residuals analysis, the values of both sum and the mean of the residuals are zero.
● Residuals and diagnostic statistics help in identifying the patterns that:
o either poorly fits in the model with strong influence upon the estimated parameters, or
o have a high leverage.
! Interpret these diagnostics together to understand any potential problems with the model.

Data Transformation using Box Cox
Box and Cox is a procedure used for estimating the best transformation to normality, within the
family of power transformation. It works by taking the current Y data and raising it to a power (λ).
∗ (Yλ −1)
Y = where λ ≠ 0
λ
∗
Y = log (Y) where λ = 0
The family of power transformations can be used for the following:

● Converting a dataset so that parametric statistics can be used.
● Any continuous data > 0 (This will not work when the values ≤ zero, transforming specs).
! The use of the transformation does NOT guarantee normality.

Data Transformation using Box Cox (contd.)
The table shows how the data can be transformed using Lambda.
Lambda Value Transformed Value

-2 Y-2 = 1/Y2
-1 Y-1 = 1/Y1
-0.5 Y0.5 = 1/Y0.5 = 1/√Y
0 Log(Y)
0.5 Y0.5 = √Y
1 Y1 = Y (i.e., no transformation)
2 Y2

Data Transformation using Box Cox—Example
The difference between original data and the data transformed using Box Cox is shown.
Abnormal Normal
Max λ = −0.3
Figure 1: Original data plotted on histogram Figure 2: Transformed data plotted on histogram

Process Input and Output Variables
To improve a process, the steps to assess the level

of improvement are as follows:
Process Output Variables
● Check for the relationship between the input A B C D E
Prioritization Number 4 1 7 11 5 Results %

and output variables.
1 3 4 7 117 33
● Measure key process variables through metrics. 2 8 5 3 4 96 27
Process Input
3 6 2 46 13
● Identify critical variables by the process owners. Variables
4 7 5 32 9
● Multiply process output priority with the input 5 3 4 65 18
Totals 356 100

variables.
● Add the values to determine the results for each
input variable.

Cause and Effect Matrix Template
The Cause and Effect Matrix gives the correlation between input and output variables.
Rating of Importance to
Customer
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Process Inputs
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
10 0
11 0
12 0
13 0
14 0
15 0
16 0
17 0
18 0
19 0
20 0
0
0
Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cause and Effect Matrix—Steps to Update
The steps for updating the Cause and Effect Matrix are:
1 2 3
List the output Rank the output

List the input
variables variables based on
variables vertically.
horizontally. customer priority.
! The input variables with the highest score become the point of focus.

Cause and Effect Diagram
The Cause and Effect diagram is used to find the root cause and the potential solutions to a problem.
It breaks down a problem into bite-sized pieces and also displays the possible causes in a graphic
manner.
The four steps to construct a Cause and Effect diagram are:
1 2 3 4
Draw a Cause
Classify the and Effect Write the causes
Brainstorm on the diagram
major causes diagram with the
possible causes under the
under various problem at the
of the problem. classifications
headings. point of the
central axis line. chosen.

Cause and Effect Diagram—Example
The figure shows the Cause and Effect diagram for solder defects on a reflow soldering line. This
diagram helps in collecting data and discovering the root cause.
Training
Materials Manpower
Skill
Type of Solder Paste Operator
Knowledge
Size
Self-sufficiency
Components Shape
Shifts
Thickness Schedule
Components Packaging Weekends Reflow
Full reflow
Types of Screen
Defect
Batch size Tools
Technology Feeder
Component density
Speed
Fine pitch Oven
Preventive Maintenance Temperature
Methods Machinery
The 5 Why Technique
5 Why is one of the tools used to analyze the root cause of a problem. In this technique:
● the responsibility of the root cause analysis lies with the team;
● the ‘why’ question is asked for every problem till the root cause is obtained;
● the interrogation is not restricted to five questions.
! The 5 Why technique can be used along with the Cause and Effect diagram.

The 5 Why Process
The process for the 5 Why technique is given here:

1 2 3
Identify the problem and the Arrange for a team
problem statement. brainstorming session. Explain the purpose.
4 5
Analyze the problem and Ask ‘why’ for the answers
brainstorm backwards. obtained.
! If a problem occurs, it is usually due to the process and not because of a person or team.

5 Why—Example
Nutri Worldwide Inc. investigated erroneous deliveries by the Delivery Management team using the 5
Why technique.
PROBLEM STATEMENT: Delivery of parcels to incorrect addresses
Why? Incomplete addresses given on the parcel.
Why? Complete addresses were not collected from the customers.
Why? The addresses were given to the operators over phone calls.
Why? The operators were unable to gage if the addresses were incomplete.
Why? An official format for capturing delivery addresses from customers was unavailable.
COUNTER MEASURE: Prepare a template capturing details such as flat number, street name and number, region, city,
and zip code along with the customer’s contact number.
Improve
Topic 3—Lean Tools

Lean Techniques
The first four Lean techniques are:
Techniques Description
Kaizen All incremental changes routinely applied and sustained over a
(Continuous Improvement) long period of time result in significant improvement.
Poka Yoke It is good to do it right the first time and even better to make it
(Mistake Proofing) impossible to do it wrong the first time.
5S Sorting items according to a rule, setting them in order, cleaning
(Sort, Set in order, Shine, Standardize, and the area, forming and circulating a set of written standards, and
Sustain) sustaining the process.
Producing the necessary units, in the necessary quantity, at the
Just in Time (JIT)
necessary time, with the required quality.

Lean Techniques (contd.)
The last four Lean techniques are:
Techniques Description
Kanban Utilizing visual display cards to signal movement of material
(Signboard) between steps of a product process.
Implementing supervisory function in production line and stopping
Jidoka
the process as soon as a defect is encountered. The process does
(Autonomation)
not start again till the root cause of the defect is eliminated.
Takt time The maximum time in which the customer demands his needs to
(TAKT Time = Time Available/Demand) be met.
Heijunka Reducing waste occurring due to fluctuation in customer demand.

Cycle Time Reduction
Cycle time reduction refers to the reduction in the time taken for a complete process. Low cycle time:
● increases productivity and throughput;
● releases resources early;
● reduces internal and external waste;
● simplifies the operational process; and
● decreases product damage.
! Low cycle time indirectly helps in satisfying the customer and staying ahead of competition.

Cycle Time Reduction—Example
The changes brought by implementing Lean techniques on an existing process are illustrated in the
diagram below.
Old process Improved process
In In
Process 1
Operator 1
Process 1 Process 2
Lean Techniques
Process 4 Operator 1 Operator 2
Operator 3
Process 5 Operator 4
Operator 5
Process 5 Process 4 Process 3
out Process 3 Process 2

Operator 3 Operator 2 out

Kaizen and Kaizen Blitz—Introduction
Kaizen is a continuous improvement method to improve the functions of an organization. The

improvements could be in process, productivity, quality, technology, and safety.
Kaizen Blitz is known as Kaizen event or Kaizen workshop. Teams improve processes through
structured workshops.

Kaizen and Kaizen Blitz—Differences
The differences between Kaizen and Kaizen Blitz are given here:
Kaizen Kaizen Blitz
● Is a method ● Is a workshop or an event

● Brings in incremental change ● Brings rapid solutions when required
● Standardizes, measures, and compares the ● Plans, executes the event, decides a solution,
process and follows it through
● Is lead by the management and the team ● Is lead by the management
● Relatively delays the process of decision making ● Accelerates the process of decision making
● Is an improvement process ● Is a part of improving the process

Kaizen and Kaizen Blitz—Examples
Kaizen and Kaizen Blitz are practiced in many organizations. The examples are as follows:
Kaizen Kiazen Blitz

In Toyota, the production In a wood window company,
cycle is resumed after the scraps are eliminated, work
problem is identified and areas are reorganized, and
solved. inventory is reduced.

Quiz

QUIZ
How many runs are there in a full factorial experiment with 3 factors, each at 2 levels?
1
a. 9
b. 6
c. 12
d. 8

QUIZ
How many runs are there in a full factorial experiment with 3 factors, each at 2 levels?
1
a. 9
b. 6
c. 12
d. 8
Answer: d.
Explanation: The answer is given by the total no. of levels for each factor to the power of
no. of factors, which is equal to 23 = 8.
Copyright 2012-2014,Simplilearn,All rights reserved
QUIZ
The input categories for a classical cause and effect diagram would not include:
2
a. maintenance.
b. manpower.
c. machine.
d. material.

QUIZ
The input categories for a classical cause and effect diagram would not include:
2
a. maintenance.
b. manpower.
c. machine.
d. material.
Answer: a.
Explanation: The 4M of the cause and effect diagram includes categories like machine,
material, method, and manpower, but not maintenance.
QUIZ
Cause and Effect diagram is also known as:
3
a. Pareto chart.
b. Gantt chart.
c. Ishikawa diagram.
d. Tree diagram.

QUIZ
Cause and Effect diagram is also known as:
3
a. Pareto chart.
b. Gantt chart.
c. Ishikawa diagram.
d. Tree diagram.
Answer: c.
Explanation: The Cause and Effect diagram was developed by Dr. Ishikawa and therefore
also called the Ishikawa diagram.
QUIZ
The 5 Why analysis can be used as a part of:
4
a. Cause and Effect matrix.
b. Fishbone diagram.
c. DOE.
d. OFAT.

QUIZ
The 5 Why analysis can be used as a part of:
4
a. Cause and Effect matrix.
b. Fishbone diagram.
c. DOE.
d. OFAT.
Answer: b.
Explanation: The 5 Why analysis can be used along with the Cause and Effect diagram,
which is also known as a fishbone diagram.
QUIZ
What is the benefit of using cycle time reduction?
5
a. Increase in resources
b. Reduction in managerial control

c. Streamlining of process
d. Effective risk management

QUIZ
What is the benefit of using cycle time reduction?
5
a. Increase in resources
b. Reduction in managerial control

c. Streamlining of process
d. Effective risk management
Answer: c.
Explanation: Cycle time reduction decreases the time taken for the entire process by
streamlining it. It reduces waste using Lean methodology and thereby reduces cost and
increases productivity.
QUIZ A production line uses signs at specific points on the line to indicate when components
6 or raw materials need to be replenished. This practice is an example of:
a. Kanban.
b. Kaizen.
c. Poka Yoke.
d. FMEA.

QUIZ A production line uses signs at specific points on the line to indicate when components
6 or raw materials need to be replenished. This practice is an example of:
a. Kanban.
b. Kaizen.
c. Poka Yoke.
d. FMEA.
Answer: a.
Explanation: Kanban literally means signboards. Kanban uses display cards to signal
movement of material.
QUIZ
Kaizen Blitz is:
7
a. an eliminating variation.
b. a methodology.
c. an event.
d. a part of the control plan.

QUIZ
Kaizen Blitz is:
7
a. an eliminating variation.
b. a methodology.
c. an event.
d. a part of the control plan.
Answer: c.
Explanation: Kaizen Blitz is known as Kaizen event or Kaizen workshop. It is part of Kaizen.

QUIZ
Which of the following statement is true for residuals analysis?
8
a. When the sum of all the residuals is greater than zero, the data set is nonlinear.
b. A random pattern of residuals exhibits a linear model.

c. A random pattern of residuals exhibits a non-linear model.
d. When the sum of all the residuals is less than zero, the data set is nonlinear.

QUIZ
Which of the following statement is true for residuals analysis?
8
a. When the sum of all the residuals is greater than zero, the data set is nonlinear.
b. A random pattern of residuals exhibits a linear model.

c. A random pattern of residuals exhibits a non-linear model.
d. When the sum of all the residuals is less than zero, the data set is nonlinear.
Answer: b.
Explanation: A random pattern of residuals will always exhibit a linear model. If you have a
non-random pattern it will always exhibit a non-linear model. In Residuals Analysis, the sum
of residuals is always zero.
QUIZ
The Box Cox Transformation is used for:
9
a. plotting Box Cox.
b. fixing the data issues.

c. estimating the best transformation to normality.
d. analyzing if the data is normal.

QUIZ
The Box Cox Transformation is used for:
9
a. plotting Box Cox.
b. fixing the data issues.

c. estimating the best transformation to normality.
d. analyzing if the data is normal.
Answer: c.
Explanation: Box and Cox developed a procedure for estimating the best transformation to
normality, within the family of power transformation.
Summary
Here is a quick ● DOE are a series of planned and scientific experiments that test the impact
recap of what we
of independent variables on dependent variables.
have learned in this
lesson: ● During regression analysis of linear or non-linear model, the value for Y at
level X is predicted.
● Residuals Analysis helps you understand the accuracy of the analysis of
linear or non-linear model.
● Box and Cox procedure is used for estimating the best transformation to
normality within the family of power transformation.
● The 5 Why tool is used to analyze the root cause of a problem.
● Cycle time reduction, Kaizen, and Kaizen Blitz help in improving processes.

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Lean Six Sigma Green Belt

Copyright 2014, Simplilearn, All rights reserved.

Copyright 2014, Simplilearn, All rights reserved.

After completing ● Describe the concepts of Design of Experiments (DOE)

Copyright 2014, Simplilearn, All rights reserved. 2

Copyright 2014, Simplilearn, All rights reserved.

Design of Experiments (DOE) is a

(OFAT) experiments; and

Copyright 2014, Simplilearn, All rights reserved. 4

Inputs(X) Process Output(Y)

The components of DOE are:

Copyright 2014, Simplilearn, All rights reserved. 6

Full factorial experimental design: Factor B: Oven Factor A: Draw

The table shown here is for a two-way heat

Copyright 2014, Simplilearn, All rights reserved. 7

Copyright 2014, Simplilearn, All rights reserved. 8

The calculation of main effect is shown below.

Factor B: Factor A: Draw

The calculation of interaction effect is shown below.

Copyright 2014, Simplilearn, All rights reserved. 10

Full factorial experiment without replication on 5 factors and 2 levels are: 25 = 32

Full factorial experiment with 1 replication on 5 factors and 2 levels are: 32 + 32 = 64

Half factorial experiment with 1 replication on 5 factors and 2 levels are: 16 + 16 = 32

Copyright 2014, Simplilearn, All rights reserved.

Residual = Observed value − Predicted value

The assumptions on random errors can be validated, as they:

Copyright 2014, Simplilearn, All rights reserved. 13

● Residuals and diagnostic statistics help in identifying the patterns that:

o have a high leverage.

Copyright 2014, Simplilearn, All rights reserved. 14

The family of power transformations can be used for the following:

! The use of the transformation does NOT guarantee normality.

Copyright 2014, Simplilearn, All rights reserved. 15

Lambda Value Transformed Value

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To improve a process, the steps to assess the level

Prioritization Number 4 1 7 11 5 Results %

Totals 356 100

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List the output Rank the output

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The process for the 5 Why technique is given here:

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PROBLEM STATEMENT: Delivery of parcels to incorrect addresses

Why? Incomplete addresses given on the parcel.

Why? Complete addresses were not collected from the customers.

Copyright 2014, Simplilearn, All rights reserved.

The first four Lean techniques are:

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The last four Lean techniques are:

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Old process Improved process

out Process 3 Process 2

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Kaizen is a continuous improvement method to improve the functions of an organization. The

Copyright 2014, Simplilearn, All rights reserved. 31

Kaizen Kaizen Blitz

● Is a method ● Is a workshop or an event