accelerating the six sigma learning process using ... the six sigma learning...113.0 we i g h t 11.0...

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_________________________________________________________________ABI Associates, Inc.

All Rights Reserved , ABI Associates, Inc. 2006

Accelerating the Six Sigma Learning Process usingStatgraphics Centurion

ABI Associates, Inc.

Terry Russell Dir. of Mgmt. Systems (513) 304-0384 [email protected]

George Dyson Dir. of Engr. Statistics(513) 919-3823 [email protected]



Statgraphics CenturionTM and ABI Associates, Inc.

Can HELP Your Business INCREASE PROFIT!

Statgr

aphic

s

Centu

rion

AcceleratingSix Sigma

$

• Statgraphics Centurion includes the frameworkfor Six Sigma Implementation

• Statgraphics Centurion & ABI –the perfect linkfor Six Sigma Training & Application

• ABI applies Statgraphics Centurion with proven methods for your business

• ABI applies Over 50 years of combined Engineering / Management Expertise

ABIAssociates

Inc

3



ABI is Applied Business Improvement

• First and foremost, we listen to the Voice of the Customer…… to Customize our training for you

• Generally, we start with our traditional Six Sigma Executive Overview

• Black Belt or Green Belt Training is our main focus

• Statgraphics is the key ingredient……to Reinforce & Simplify our Training

4



Six Sigma is ….

….an Improvement System Focusedon Driving Business Success

• Customer focused business strategy

• A disciplined data-driven approach for eliminating defects

• A statistical measurement - 3.4 DPMO

• A dedication to meeting customer requirements

• A philosophy, culture change for greater customer

satisfaction

5



Why Six Sigma Works

• Customer and Process Focus

• Senior Management Involved

• Disciplined Approach Used

• Short Project Completion Times (3 to 6 months)

• Clearly Defined Measures of Success

• Infrastructure of Trained Individuals (Black Belts, Green Belts)

• Sound Statistical Approach Used

• Bottom Line Results

6



Six Sigma Business Successes

• Cost Reduction

• Market Share Growth

• Defect Reduction

• Culture Change

• Productivity Improvement

• Customer Relations Improvement

• Product and Service Improvement

• Cycle - Time Reduction

Six Sigma Goal is Business ImprovementSix Sigma Goal is Business Improvement

7



Motorola’s Early Experience With Six Sigma

• Five-fold growth in sales• Profits increased 20 percent per year• $14 billion in cumulative savings• Stock price gains compounded at 21% annual rate

Motorola set the original Six Sigma BenchmarkMotorola set the original Six Sigma Benchmark

8



After Motorola……….

Many other Companies and Industries have Embraced Six Sigma achieving Greater Customer Satisfaction and Improved Profitability

• Healthcare

• Education

•Government

• Other Service- IT

• Texas Instruments

• GE

• Allied Signal/Honeywell

• Black and Decker

• DuPont

• Caterpillar

• Polaroid

• Boeing

• Federal Express

• Sony

• Toshiba

• Nokia

And the Journey Continues!And the Journey Continues!

9



Six Sigma Success Stories

• GE (Mid 1990’s)– Jack Welch: CEO – implemented 6s in 1996 to be aligned with GE’s business needs– Creates knowledge leading to higher quality products in less time than the competition.– Significant bottom-line benefits to the company.

• The GE 1997 annual report - Six Sigma delivered more than $300 million to operating income • Medical – 10X increase in the life of CT scanner x-ray tubes• “Super Abrasives” (Industrial Diamond Business) – quadrupled their return on investment• Railcar Leasing – 62% reduction in turnaround time at repair shops. Additional 50% later.• Plastics – 300 million pounds of new capacity (“free plant”). Saved $400 million in investment.

• Other Six Sigma Success Stories– Raytheon – 25% of sales spent fixing problems at 4sigma; 1% predicted at 6sigma level.– Allied Signal – $85 million plant not needed; $30–$50 million savings per year.– Lockheed Martin – Could not solve problem by traditional methods; now saves $14k per jet.– Yale – New Haven Hospital - Measurable success in improving service levels, cost productivity

and customer satisfaction

10



Variability Drives Cost

SpecificationLimitsCustomer Focused View

TargetLSL USL

Any deviation from target will result in losses

The further from target the greater the cost

Any Variation from Target will Increase CostsAny Variation from Target will Increase Costs

11



Statistically Speaking, What is Six Sigma?

• Plot Sample data as a Histogram

• Draw the Normal Distribution curve over the histogram, describedby its Mean (location) and Standard Deviation or Sigma (spread).

• The “bell shaped curve” is used to identify the probably of a defect.

• A Six Sigma level process limits defects to 3.4 per million opportunities – virtual defect-free performance.

% Defective,or p(d)

−3σ −2σ −1σ 0 1σ 2σ 3σHistogram of Data

Calculate Mean,

& Sigma

USL

12



Examples of Sigma Levels

3

4

5

6

1 putt missed per

round

1 putt missed per 9

rounds

1 putt missed per 2.33 years

1 putt missed per 163 years

1.5 misspelled words per page

in a book

1 misspelled word per 30

pages

1 misspelled word in a set of encyclopedias

1 misspelled word in all the

books in a small library

3.5 months per century

2.5 days per century

30 minutes per century

6 seconds per century

Sigma Level

Sports Spelling Time

99.9 Percent Yield (Sigma Level ~4.5) May Not be Good Enough20,000 Wrong

Drug Prescriptions per Year

25,000 Newborn Babies Dropped

per Year

2 Short / Long Landings at O’Hare

Airport per Day

500 Incorrect Surgical Operations

per Week

13



Six Sigma Savings and Cost Breakdown

• DirectRevenue (Price, Growth, Capacity)Material Cost (Price, Material Productivity, Services)Conversion Cost (Productivity, Overhead)Base Cost (Engineering, Warranty, Concessions)Other Income (Taxes)

• IndirectConversion (Productivity reductions)Base Cost (Engineering savings)

• Avoidance (Direct, Balance Sheet Plant & Equipment, Tooling)• Implementation Cost

14



Cause and EffectInputs Determine the Output

XX

XX

XXInputs OutputY = f(X)

Key Six Sigma Concept

Process Output (Y) is Function (f) of its Inputs (Xs)Process Output (Y) is Function (f) of its Inputs (Xs)

15



The Process for DMAIC Six Sigma Projects

Define -Listening to the Voice of the Customer• Prerequisites

(Philosophy, Mgmt buy-in)• Y=f(X) Concept & Strategy• ID Team / Key Constituents • Project Statement (4 Boxer.ppt)• Process Mapping/ Risk Assessment• Quality Function Deployment (QFD)• Financial Analysis

MeasureMeasuring Current Process Health• Define Performance Standards• The Y’s (CTQ’s) & the Z’s• 7 Basic Tools (Pareto Analysis, Run

Chart, Scatter Diagrams etc.)• Fishbone Diagrams• Validate the Measurement System • Establish SPC and Process Capability• Establish Tolerance Limits

AnalyzeIdentifying important causes of the defects• Multiple Box-Whisker• Regression Analysis (y vs x)• ANOVA / Components of Variance• Hypothesis Testing• Chi Square Testing• Screening Designs

ImproveRemoving the causes of the defects• Fishbone Revisited• Sequential Design of Experiments

(DoE)• Error Proofing• Revisit Tolerance Limits

ControlMaintaining the improvements• Statistical Process Control

(reduced inspection)• Capability Monitoring• Failure Mode Effects

Analysis• Action Plans

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Using the Six Sigma (DMAIC) Modelin Statgraphics Centurion

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The new Statgraphics Centurion Six Sigma Menu Option - Define

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Quality Function Deployment - The House of QualityListening to the Voice of the Customer

Low Cost Reproducible Factory Implementation/Demo. Process Verification (Proof) High Reliability (>85,000) hrs. Small Size - Light Weight Performance Expandable Meets Module Elect. Performance System Maintainability

Yie

ld

49.0438.0

Pro

cess

Cap

abilit

y

60.0504.0

Rat

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56.0500.0

Mod

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48.0428.0

MTB

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22.0123.0

Fai

l Fre

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p. P

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22.0123.0

Siz

e15.0113.0

Wei

ght

11.088.0

Pro

cess

Fle

xibi

lity

16.0122.0

Cos

t to

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ntai

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21.0113.0

Ava

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lity

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rray

19.095.0

Prio

rity

10.010.010.010.09.08.06.05.01.069.0345.0

Our

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2.72.92.13.12.62.43.53.63.526.4193.1

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hrs.

10,

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hrs.

4"x

.46"

x0.2

"

1 O

Z.

TB

D

TB

D

TB

D

Absolute weight Relative weight

InteractionsStrong PositivePositiveNegativeStrong Negative

Cus

tom

er D

eman

ds

Design Requirements

RelationshipStrong = 9.0Medium = 3.0Weak = 1.0

19



Cost of Quality for a Six Sigma Project

Cost of Quality History

CO

Q

PreventionAppraisalInt. FailureTotal COQTotal Failure

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

0

20

40

60

80

20



Brainstorming over a Fishbone Diagram

Defects

Raw card

Short circuit

Shroud

Moisture contentTime

Temperature

Solder process

SplatterChain speed

Wave pumpHeight

FlowFlux

TemperatureSetup

Control

Inspection

Measurement

Test coverage

Inspector

Components

Wrong part

Functional failure

Missing from reelVendor

Setup

Component insertion

Wrong componentMissing component

AlignmentAutoposition

Operator

Crimp

21



The Process Map to Understand your ProcessEarly in Six Sigma

Flow ChartProcess

1

AuditProcess

2

Problems? 3Correct

Problems 4

Collect Data 5

Analyze Data 6

In Control? 7

PlotHistogram

8

Estimate ProcessCapability

9

Capable? 10

Sort Product 11

ImproveCapability

12

Meeting 13

No

Yes

Yes

Yes

No

No

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The new Statgraphics Centurion Six Sigma Menu Option - Measure

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Statgraphics & Six Sigma can take “failure to meet minimum” to a 6 sigma process

Bad Process Good Process

0 10 20 30 40 50

0

2

6

8

4

10

LSL Nominal

100% Defective(failure to meet minimum)

-3s

0 10 20 30 40 50

0

2

6

8

4

10

LSL Nominal

freq

uenc

y

Response Variable Response Variable

6 sigma process-3s

24



The new Statgraphics Centurion Six Sigma Menu Option - Measure

25



Which Driver has the best mileage?

1 2 3 4 5 6

Box-and-Whisker Plot

17

18

19

20

21

22M

PG

_20_

1

Driver

26



The new Statgraphics Centurion Six Sigma Menu Option - Analyze

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X-Bar Variables Control Chart

X-bar Chart for Dia DevFromTargetX

-bar

CTR = 0.00

UCL = 17.59

LCL = -17.59

Subgroup

Target = 0

0 4 8 12 16 20-30-25-20-15-10

-505

1015202530

You Can’t Predict the Future if your Process is Out of Control!

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The new Statgraphics Centurion Six Sigma Menu Option - Analyze

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Defining Process Capability

+/-3 sigmaUSLLSL

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SnapStat: Capability Assessment (Individuals)

Data variable: strengthSample size = 100 Mean = 254.64

Specifications Beyond Spec. Z-ScoreUSL = 300 0.000000% 4.25Nom = 250LSL = 200 0.000000% -5.12

Long-Term Capability Short-Term CapabilitySigma = 10.6823 Sigma = 10.1637Pp = 1.56 Cp = 1.64Ppk = 1.42 Cpk = 1.49DPM = 11.03 DPM = 4.08

X Chart

Observation

stre

ngth

0 20 40 60 80 100220

240

260

280

300

254.64

285.13

224.15

Capability Histogram

strengthfre

quen

cy

200.00 250.00 300.00

200 220 240 260 280 3000

5

10

15

20

25

Range Chart

Observation

MR

(2)

0 20 40 60 80 1000

10

20

30

40

50

11.46

37.46

0.00

Probability Plot

strength

Nor

mal

Dis

tribu

tion

200 220 240 260 280 300200

220

240

260

280

300

Tolerance Chart

Observation

stre

ngth

0 20 40 60 80 100200

220

240

260

280

300

250.00

300.00

200.00

Snapstats: A Special Feature inStatgraphics Centurion forQuick Process Capability

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The new Statgraphics Centurion Six Sigma Menu Option - Improve

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Best Fit Model Selected from 27 Transformations

Plot of Fitted Model

weeks

chlo

rine

0 10 20 30 40 500.38

0.4

0.42

0.44

0.46

0.48

0.5Reciprocal -X

33



The new Statgraphics Centurion Six Sigma Menu Option - Improve

34



0 5 10 15 20 25 30 35 40 45

1

2

3

4

Fat (gms) UGH!

Cos

t/Vol

ume

(cen

ts)

Orville

Pillsbury

Betty Crocker

Kohls

Regular (plain)Reg+1 tbsp

Reg+2 tbspReg+3 tbsp

Reg+4 tbsp

Regular = Non-Microw ave Old Capitol Popcorn

Six Sigma Enters the World of a Science Project“Maybe Microwave Popcorn ain’t so Hot !”

X2-

X1X3

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Process Development Using Sequential Experimentation

0

10

20

30

1 2 3 4 5 6 7

Experiment No.

Res

pons

e Va

riabl

e ResponseSurface

Factorials

Screening Designs

Climbing to the peak of themountain in the fewestnumber of trials

36



The new Statgraphics Centurion Six Sigma Menu Option - Control

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Detecting Small Sigma Shifts

EWMA Chart for DATA

Observation

EWM

A

CTR = 6.04UCL = 17.91

LCL = -5.84

0 20 40 60 80-6

-1

4

9

14

19

24

38



ABI Six Sigma Course Offerings (using Statgraphics Version 5 or CenturionTM )

• Six Sigma Executive Overview (1/ 2 Day) $ 2,500

• Six Sigma Overview (2 Day) $ 5,000

• Six Sigma Green Belt (10 Days Total) $ 25,000 (Four x 2 Day sessions + 2 Day Project Mentoring)

• Six Sigma Black Belt (14 Day) $ 35,000 (three x 2 + two x 3 Day sessions +2 Day Project Mentoring)

• Process Understanding and Improvement (1/2 Day) $ 2,500 (1 Day also available)

• Design of Experiment – Executive Overview (1/2 Day) $ 2,500(1 Day also available)

• Design of Experiments – Introduction (1 Day) $ 2,500• Design for Six Sigma (DFSS) (Under Development)

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Six Sigma OverviewDefine / Measure / Analyze (Day 1)

• What is Six Sigma?• DMAIC Model • Project Selection • Project Charter• Team Roles and Responsibilities• Voice of the Customer• Concept Engineering• Quality Function Deployment• Using SIPOC for Process Identification • Process Mapping• Measurement System Analysis• Data Collection Methods• Understanding Variation• Fundamentals of Statistical Process Control (SPC) • Defining Process Capability• Calculating Sigma Levels /DPMO

40



Six Sigma Overview

Analyze / Improve / Control (Day 2)

• Seven Basic Quality Tools for Analyzing Data• Basic Regression• Design of Experiments (DoE)• Analysis of Variance (ANOVA)• Failure Mode & Effects Analysis (FMEA)• Error Proofing• SPC for Process Control• Piloting and Implementing a Process Control Plan• Lean Enterprise / Lean Six Sigma• Reporting Project Benefits / Financial Impact • Leveraging “Best Practices”• Summary and Lessons Learned

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Six SigmaBlack Belt Training

Session 1Define2 Days

• Six Sigma Overview

• What’s In It for Me?

• DMAIC Model

• Project Selection

• Project Charter

• Team Roles and Responsibilities

• Voice of the Customer

• Quality Function Deployment (QFD)

• Process Mapping

• Using SIPOC for Process Identification

• Pareto Diagram

• Cause and Effect Diagram

• Define Phase Summary

• Statgraphics Tutorial

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Session 2Measure3 Days • Leadership Team Project Reviews

• Measurement System Analysis

• Data Collection Methods

• Understanding Variation

• Using Statistical Process Control (SPC)

• Defining Process Capability

• Calculating Sigma Levels/ DPMO/ Cycle Time

• Measure Phase Review

• Statgraphics Training

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Session 3Analyze3 Days • Leadership Team Project Reviews

• Seven Basic Quality Tools for Analyzing Data

• Linear and Multiple Regression

• Design of Experiments (DoE)

• Six Sigma DoE Exercise

• Analysis of Variance (ANOVA)

• Use of e-Tools/ Wizards

• Analyze Phase Review


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Session 4Improve3 Days • Leadership Team Project Reviews

• Failure Modes and Effects Analysis (FMEA)

• Error Proofing

• Design for Six Sigma (DFSS)

• Piloting Process Improvement

• Process Improvement Assessment

• Implementing Process Improvement

• Improve Phase Review


45



Session 5Control2 Days • Leadership Team Project Reviews

• SPC for Process Control

• Process Control Plan

• Process Documentation

• Reporting Project Benefits/Financial Impact

• Leveraging “Best Practices”

• Summary and Lessons Learned

• Control Phase Review

• Lean Enterprise/ Lean Six Sigma

• Black Belt Certification Assessment

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ABI Associates

George Dyson and Terry Russell have been actively involved in both teaching and mentoring Six Sigma and Design for Six Sigma directly with domestic and International businesses. Recently Terry and George were invited to participate in teaching Six Sigma and Design for Six Sigma for General Electric.

George H. Dyson III

George Dyson is Director of Engineering Statistics for ABI Associates, Inc., a business improvement consulting practice devoted to optimizing Six Sigma training/Implementation to improve business performance.

George is also the area Six Sigma representative for StatPoint, Inc., the developer of the STATGRAPHICS Centurion TM

software package. Prior to his current position, George accumulated 33 years of professional experience with United Technologies and General Electric Aircraft Engines. During his career at GE, he provided statistical support, managed teams, and developed new courses and patent applications to solve a wide variety of engineering and manufacturing problems, including new process development, Reliability/Quality and Six Sigma training and project support. His individual Six Sigma andDesign for Six Sigma projects saved GE $1.5 Million.

George holds an Associate in Applied Science, a Bachelor’s Degree in Mechanical Engineering and a MS Degree in Engineering Management. He has taught undergraduate courses in Engineering Statistics and holds instructor certifications from GE and Motorola (Six Sigma). He has an Honorable Discharge from the U.S. Air Force Reserves 440th Troop Carrier Wing, Staff Sergeant.

Terry Russell

Terry Russell is Director of Management Systems for ABI Associates,Inc., a business improvement consulting practice working with domestic and international companies to improve business performance through management system and process improvement and through Six Sigma training and implementation. Clients have included companies in both product manufacturing and service sectors.

Prior to his current position, Terry accumulated 36 years of professional experience with the National Aeronautical and Space Administration and General Electric Aircraft Engines. With GE, Terry was recognized for his leadership in the development and implementation of international TQM based business improvement programs.

Terry holds a Bachelor’s Degree in Mechanical Engineering and Master’s Degrees in Mechanical Engineering and Business Administration. He holds instructor certifications from GE, Motorola (Six Sigma) and Ford (TOPS8D), and has been Leader of the Day for several Center for Quality of Management courses. He is a registered Professional Engineer in the State of Ohio and serves as Chair of the Industrial Advisory Board for the Ohio University Department of Mechanical Engineering. He has an Honorable Discharge from the U.S. Army Ordnance Corps, First Lieutenant.

accelerating the six sigma learning process using ... the six sigma learning...113.0 we i g h t 11.0...

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