SIX SIGMA QUALITY

TECHNIQUES...
WHERE YOU NEED TO BE TO
COMPETE IN THE NEW
MILLENNIUM
Michael W. Piczak
Dipl.T., B.Comm., MBA
THE MAIN ELEMENTS
B a s ic C o m p o n e n ts E n a b lin g In itia tiv e s a n d T o o ls
Im p r o v e m e n t P r o c e s s Q u a lity In itia tiv e s
1 . D e fin e P r o d u c t s a n d S e r v ic e s 1 . S e lf D ir e c te d W o r k T e a m s
2 . I d e n tif y C u s t o m e r R e q u ir e m e n ts 2 . S h o r t - c y c le M a n u fa c tu r in g
3 . C o m p a r e P r o d u c t w ith R e q u ir e m e n t s 3 . D e s ig n fo r M a n u fa c tu r e
4 . D e s c r ib e th e P r o c e s s 4 . B e n c h m a r k in g
5 . Im p ro v e th e P ro c e s s 5 . S t a t is t ic a l P r o c e s s C o n tr o l
6 . M e a s u r e Q u a lity a n d P r o d u c tiv ity 6 . S u p p lie r Q u a lif ic a t io n

Q u a lity M e a s u r e m e n t Im p r o v e m e n t T o o ls
1 . O ld M e tr ic s - p r o c e s s m e a n (  ) a n d 1 . Q u a lit y F u n c tio n D e p lo y m e n t
s ta n d a r d d e v ia tio n (  ) 2 . F lo w c h a r ts
2 . C a p a b ilit y In d e x C p , C p k 3 . P a re to C h a r ts
3 . N e w M e tr ic s - d e f e c t s p e r u n it ( d p u ) , 4 . H is to g r a m s
d e f e c t s p e r m illio n u n its ( d p m u ) 5 . C a u s e - a n d - E f fe c t D ia g r a m s
4 . C o s t o f Q u a lity S t u d ie s 6 . E x p e r im e n ta l D e s ig n
7 . G uage R & R
 DE FACTO, 6 SIGMA IS:

The search for and control of

X’s
 GOALS OF 6 SIGMA
 Defect reduction
 Yield improvement
 Improved customer satisfaction
 Higher net income



 WHERE TO FOCUS?
For each product or process critical to quality
(CTQ):
Measure
 Analyze
 Improve
 Control
 PRIMARY SOURCES OF VARIATION

 Inadequate design margin

 Unstable parts and material
 Insufficient process capability
WHO IS THE ENEMY?

VARIATION
 RECOGNITION OF & STATEMENT OF
PROBLEM
CHOICE OF FACTORS (Xi’s), LEVELS, RANGES

SELECTION OF RESPONSE VARIABLE (Y)

CHOICE OF EXPERIMENTAL
DESIGN
PERFORMING EXPERIMENT

STATISTICAL ANALYSIS OF DATA

CONCLUSIONS, RECOMMENDATIONS, NEXT STEPS

 OUR BASIC RESEARCH PARADIGM

 Enter data and editing same

 Verify data integrity via
Counts/Describe
 Run Descriptives
 Generate graphs & charts of data
 Analyze ANOVAs
 Run regressions, DOEs, GR&Rs
PEDAGOGICAL APPROACH
 Lecture
 Discussion, debate and argument
 Videos
 Hands-on exercises using general and
company specific examples
 TERMINAL PERFORMANCE OBJECTIVES

As a result of taking this program, the participant

will be able to:
 Appreciate the scope of 6 Sigma practices in
context of other company initiatives
 Apply a variety of tools to solve problems
 T.P.O.s CONTINUED...
 Participate as a contributing member of
a continuous improvement or problem
solving team
 Use Minitab as a data analysis tool
GENESIS OF 6 SIGMA
Define Measure Results
Requirements and Against Targets
Set Targets

Recommend and Analyze

Implement Differences
Improvements Between Targets
and Results
WHAT ARE WE REACHING FOR?
ELEMENT 1
PORTER’S 5 FORCES MODEL
PEST MODEL
 ‘BONUS’ MODEL

A key element
VOICE OF THE CUSTOMER
 2 Brands of customers
internal
external
ALL ON THE SAME PAGE

Voice of the
customer
 DESCRIBE THE PROCESS
C 1 P r o f e s s io n a l G u id e lin e s C 2 H o s p it a l P o lic ie s & P r o c e d u r e s

R e fe r t o p h y s ic ia n
o rd e r O R r e s p o n d to I d e n t if ie d
I1
Rx Need
M o n it o r e d c a ll b e ll r e : P R N
R e s id e n t
$ 2 0 3 3 .0 5 A121
G e t n a r c o t ic s k e y s if
O b t a in e d
n e c e s s a r y a n d ta k e K e y s /C h a rt
c a rt to ro o m
W a k e r e s id e n t &
$ 4 0 6 2 .4 5 A122 r e p o s it io n b y e le v a t in g
h e a d o f b e d , a d ju s t in g P re p a re d
p o s itio n ( e . g . f la t o n R e s id e n t
back)
P o u r m e d ic a t io n , s e le c t
$ 1 0 1 5 7 .9 5 A12 t a b le ts o r c r u s h in to A d m in is t e r e d
3 a p p le s a u c e & g iv e to M e d ic a t io n
r e s id e n t

$ 2 0 3 3 .0 5 A124 Low er head of bed &

r e p o s itio n c o m f o r ta b ly R e - p o s it io n e d
R e s id e n t

$ 1 0 1 5 7 .9 5 A12
5 D o c u m e n t r e c ie p t o r O 1
r e fu s a l o f m e d ic a t io n in R e s id e n t C a r e
N u r s in g N o t e s , M A R S P ro v id e d
S h e e t & R e p o rt S h e e t O 2
A d m in is t e r e d
$ 2 0 3 3 .0 5 A126 M e d ic a t io n

M 1 R N M 2 R PN
IMPROVING THE PROCESS
 Elimination
 Simplification
 Combination
 Reuse
 Parallel processing
 Subcontracting
CRITICAL EXAMINATION
 NO NEW PROBLEMS PLEASE
 Poka Yoke techniques
• guide pins
• templates
• limit switches
• limited computer screen fields
• checklists
• interconnects
 GETTING BETTER?
 The need to measure in quantitative
terms important
 QS9000 demands it in terms of quality
and effectiveness
• customer satisfaction
• quality levels (# non-conformances, dpu, dpmo)
• cycle times
• die change times
ELEMENT 2: MEASUREMENT
Q u a lity M e a s u r e m e n t
1 . O ld M e t r ic s - p r o c e s s m e a n (  ) a n d
s t a n d a r d d e v ia tio n (  )
2 . C a p a b ilit y I n d e x C p , C p k
3 . N e w M e t r ic s - d e f e c t s p e r u n it ( d p u ) ,
d e f e c t s p e r m illio n u n it s ( d p m u )
4 . C o s t o f Q u a lit y S t u d ie s
 OLD METRICS
 Measures of central tendency or
typicality (mean, median, mode)
 Measures of dispersion (range, variance,
standard deviation)
THE NORMAL DISTRIBUTION
NORMAL CURVE CHARACTERISTICS

 Continuous
 Symmetrical
 Tails asymptotic to zero
 Bell shaped
 Mean = median = mode
 Total area under curve = 1
A KEY FORMULA
VARIATION IN PERSPECTIVE
 ± 1 Sigma
 ± 2 Sigma
 ± 3 Sigma
 ± 4 Sigma
 ± 5 Sigma
 ± 6 Sigma
 ± ? Sigma
VISUALIZING VARIATION
THE HUNT FOR X
 FIXING BELIEF
 Method of tenacity
 Method of authority
 Method of reasoning
 Method of science
THE SCIENTIFIC METHOD
VISUALIZING VARIATION
PROCESS CAPABILITY
PROCESS CAPABILITY II
 THE JOURNEY
 Most companies presently at 3-4 sigma
 The move is toward 6 sigma (Cp = 2)
 Literature has references to 12 sigma
(Cp = ?)
Cpk
HYDRAULIC LIFT COMPANY

See case on Page 37

CAPABILITY ST & LT
Cp LONG TERM (LT)
ST to LT
 NEW METRICS
 dpu
 dmpo

THE CAVEAT
 Dpmo, Cp and Sigma
 using page 608 Lindsay and Evans,
derive figures shown
 using page 48 Piczak, derive figures
shown
2 ROADS TO PROFITABILITY
 COSTS OF QUALITY
C o s t s O f Q u a lit y

D is c re tio n a ry C o s ts C o n s e q u e n tia l C o s ts

P r e v e n tio n A p p r a is a l In te r n a l E x te rn a l
N o n -c o n fo r m a n c e N o n -c o n fo rm a n c e

   

   

   

   

   

   
ELEMENT 3: QUALITY INITIATIVES

Q u a lity In itia tiv e s

1 . S e lf D ir e c t e d W o r k T e a m s
2 . S h o r t - c y c le M a n u f a c t u r in g
3 . D e s ig n f o r M a n u f a c t u r e
4 . B e n c h m a r k in g
5 . S t a t is t ic a l P r o c e s s C o n t r o l
6 . S u p p lie r Q u a lif ic a t io n
 SDWT’s
See Appendix G
LITERATURE IDENTIFIED BENEFITS
 Productivity  15% -250%
 All employees can perform all tasks
 Costs  30%
 Cycle time  50%-90%
 Inventory  66%
 Rework due to engineering flaws  50%
 BENEFITS CONT’D
Late jobs  1000%
Quality 
Recurring defective product problems
 10%
Return on investment/sales 
 BENEFITS CONT’D
Sales  830%
Operating statistics improved by 25-40%
Accounts receivable  from 66 days to 51
days
Corporate overhead  from $100M to $24M
Accidents  72%
 SHORT CYCLE MFG.
 SMED
 automated & computerized inspection
 X and moving range control charts
 automated systems
(MAPs/CAD/CAM/flexible mfg., etc.)
 flexible, self directed work force
 DFM
 Group technology
 accessibility of different parts & areas
 ease of workpiece handling
 ergonomic principles
 safety requirements
 appearance
 QFD
 BENCHMARKING
 more than just organized tourism
 more than just a nice walk over at a
friend’s plant
 not industrial espionage
 not a one way channel of communication
THE ALCOA SEQUENCE
 SPC
 using numbers to describe absence or
presence of a phenomenon
 systematic gathering of data
 using a collection of analytics that
promote common understanding
 emphasis is on measurement
 STATISTICS
 Collecting
 Organizing
 Summarizing
 Analyzing
 Presenting
 THE ANALYST’S DUTY
 Start with a regularity, uniformity or
curiosity
 identify all previously significant
predictors of phemon in question
 theorize as to why independent variables
(X’s) should be predictive of dependent
variables (Y)
 construct conceptual model of
hypothesized relationships
 set out research question(s) clearly
 gather data
 organize same into spread/worksheet
 run full model followed by reduced form
 draw conclusions/rec’s and share same
 3 KINDS OF STATISTICS
 Descriptive (p. 71)
 Inferential
 Predictive
NASA DATA & REGRESSION LINE

'O' RING EROSION x TEMPERATURE

Erosion Depth
(thousandths)

60
50
40
30
20
10
0
-10
-20 0 25 50 75 100
Launch Temperature (F.)
 SPACE SHUTTLE '0' RING DEFORMATION EMPIRICAL DATA FOR 22 FLIGHTS
0 RING ACTUAL
TEMPERATURE EROSION OF Predicted Y
AT LAUNCH RINGS
66 0 13.45
70 53 7.80 SUMMARY OUTPUT
69 0 9.21
68 0 10.63 Regression Statistics
67 0 12.04 Multiple R 0.555177335
72 0 4.97 R Square 0.308221873
73 0 3.56 Adjusted R Square 0.273632967
70 0 7.80 Standard Error 5.74984396
57 40 26.18 Observations 22
63 0 17.70
70 28 7.80 ANOVA
78 0 -3.51 df SS MS F Significance F
67 0 12.04 Regression 1 1910.597 1910.597 8.911003727 0.007316599
53 48 31.84 Residual 20 4288.175 214.409
67 0 12.04 Total 21 6198.773
75 0 0.73
70 0 7.80 Coefficients Standard Error t Stat P-value
81 0 -7.76 Intercept 106.778 33.343 3.202 0.004
76 0 -0.69 X Variable 1 -1.414 0.474 -2.985 0.007
79 0 -4.93
75 0 0.73
76 0 -0.69
 DATA TYPES
 Discrete
 Continuous
CHART TYPES
 CHART TYPES
 X Bar and R charts

 X and Moving Range charts

 p charts
 c charts and
 u charts
CONTROL LIMITS FOR X BAR & R CHARTS

 Upper control limit (UCL )= x double

bar + Z
 Lower control limit (LCL ) = x double
bar - Z
OR
FOR R
X & MOVING RANGE CHARTS
PLOTTING R
PLOTTING X
P CHARTS
AN EXAMPLE P. 102
A SUMMARY TABLE OF FORMULAS
 INTERPRETING CHARTS
 Examining patterns to make rational
decisions
 Using patterns puts the odds of making a
good decision on your side
 Can make two good decisions and two
bad decisions
U CAN BE RIGHT, U CAN BE WRONG
PATTERN ANALYSIS FIG. 41
CHANGE OR JUMP IN LEVEL
RECURRING CYCLES F. 43
TREND OR STEADY CHANGE IN LEVEL
NO BRAINERS
50% ABOVE/BELOW MEAN
6 POINT RUN
CYCLICAL PATTERN
CYCLICAL PATTERN
SHORT TERM TREND WITH ADJUSTMENT
68% WITHIN 1 SIGMA
SYSTEMATIC CAUSES OF VARIATION

 Lack of preventative maintenance

 Worn tools
 Operator performance
 Differentials
 Environmental changes
 Sorting practices