Title: Six Sigma DMAIC Training (excerpts)
1 Six Sigma DMAIC Training (excerpts)
Presenter Bruce Berger (386) 852-9054
BergerConsulting_at_aol.com
2Six Sigma Overview
Why do we need Six Sigma?
Six Sigma is a proven methodology that will help
us improve our work in order to consistently
ensure
- Our products and services meet (or exceed)
customers needs - Our Processes are cost-effective
- DBS employees are well-trained and motivated
- State and federal statutory requirements are met
3Six Sigma Overview
What is Six Sigma?
- A philosophy for systematically improving
quality, and therefore efficiency. - A standard of performance equal to 3.4 defects
per million outputs (i.e. near perfection). - Most operations are about 2.8 sigma (100,000
defects / million). - Very good operations are about 4 sigma (3,500
defects / million).
4Six Sigma Overview
Six Sigma is all about
1) Providing Customer Satisfaction through the
total involvement of ALL employees
2)Or put another way
Making Line Graphs move in the direction you
want them to go.
Line Graphs Help Us Understand Our Performance
5We know were Successful when
Six Sigma Overview
Customer Satisfaction
- Our customers tell us that they are
pleased with our services.
- Our Services are Delivered On-Time.
- Our costs for doing business are the lowest
possible.
- Our Employees are efficient.
6Six Sigma Overview
Moving line graphs requires efforts in three (3)
areas
Strategic planning helps us focus on key
projects to reach our Vision.
Process Management helps us maintain good results
as we perform our Mission.
Process Improvement using the DMAIC process helps
us fix work problems and improve our Performance.
To be successful as an organization, we must
learn how to effectively apply ALL three (3)
areas.
Todays training will overview the DMAIC process.
7DMAIC Overview
Process Improvement utilizes a 5 step problem
solving DMAIC process
DMAIC 5 Steps
1) Define
2) Measure
3) Analyze
4) Improve
5) Control
8DMAIC Overview Step 1 Define
The objective of step 1 is to Demonstrate the
importance of improvement needs in measurable
terms.
Lets look more closely at the two important tools
used in Define.
Define
Measure
Analyze
Improve
Control
9Step 1 Define - Spreadsheet Tool
- MS Excel is used to construct unique spreadsheets
to record data for analysis - Spreadsheets segment information into four key
sections - Demographics (contain who, what, where or
when--information about the process) - Milestone Dates (key completion dates/times of
steps in the process) - Durations (Performance Results calculated from
the milestone dates automatically) - Outcomes (Performance results of the process)
- Data collection can be either manual or
downloaded from existing systems - Can be used for ongoing monitoring of process
performance after the project is completed
10Step 1 Define - Line Graph Tool
Gap
- Used to display performance trends
- Relates performance to a target that is
established by either customers or the business - Displays the Gap between the observed performance
and the target
11DMAIC Overview Step 2 Measure
The objective of step 2 is to Investigate the
features of the indicator, stratify the problem
and set a target for improvement.
Lets look more closely at two important tools
used in Step 2 Measure
12Step 2 Measure Histogram Tool
- MS Excel and QC Tools software used to construct
graph - Fits data into a frequency distribution
- Can show upper and lower specification limits and
denote data that falls outside those limits (the
area on which the story should focus) - Used for data breakdowns by hours, minutes,
dollars, etc.
13Step 2 Measure Pareto Tool
- MS Excel and QC Tools software used to construct
graphs - Tool used to rank data by groups from the group
that contains the most data points to the group
that contains the fewest data points. - Look for a large bar or young mountain
14Team Operations and Group Dynamics
The following are a few dynamics that all teams
need to be successful
- P-A-L (Purpose Agenda Limit)
- Parking Lot
- Recognition
- 4 Stages of Team Growth
- Consensus and Brainstorming
- Rules of Conduct
15P-A-L
Why Are Effective Meetings Important?
Because organizations spend 7.15 of their
personnel budgets, 35 of middle management's
time, and 60 of top management's time in
meetings.
What Is An Effective Meeting?
- An effective meeting is a meeting
- which is necessary.
- which includes all individuals required to
accomplish the intended PURPOSE?. - which covers the AGENDA.
- where people know what is expected of them.
16P-A-L (Cont.)
- What Is An Effective Meeting? (Cont.)
- An effective meeting is a meeting
- where the real issues are on the table and being
dealt with and where most hidden agendas are
legitimized and surfaced for discussion. - where decisions and commitments are made, plans
are developed, problems are solved. - where people leave knowing what was accomplished
and what they are to do. - which meets its intended PURPOSE.
- which respects people by starting and ending on
time (LIMIT).
17P-A-L (Cont.)
- When Are Meetings Needed?
- Meetings are useful
- for group problem solving.
- for sharing information or advice.
- for building commitment to a common goal.
- for addressing problems or issues that involve a
number of people. - for planning.
- for defining accountability and responsibility.
- for group decision-making.
18P-A-L (Cont.)
- How Are They Created?
- Send a draft of the agenda. The person calling
the meeting should send out information on the
agenda so that the purpose, time frames and
topics are clear before people come to the
meeting. - Start the meeting on time.
- Revise and agree on an agenda. Add agenda items
suggested by others attending the meeting, as
appropriate. Finalize and agree on the agenda. - Agree on ground rules.
19P-A-L (Cont.)
- How Are They Created? (Cont.)
- Encourage active participation from all members.
- Choose a process facilitator. To ensure an
effective meeting, someone needs to take
responsibility for managing the process portion
of the meeting. - Focus the discussion. Clarify and summarize as
necessary to facilitate mutual understanding of
perspectives and ideas. - Decide how to decide. Determine how decisions
will be made in the meeting - by consensus, by
multi-voting, by majority voting, or by the team
leader.
20P-A-L (Cont.)
- How Are They Created? (Cont.)
- Address all items raised. Insure that all items
raised are addressed by the end of the meeting
and that the person who raised the item knows
what the next step will be, specifically. - Check with the person who raised the issue to
ensure they know what needs to happen next to get
the issue addressed and that the proposed plan
meets their needs.
21Parking Lot
- Parking Lot is a strategy for recording and
postponing items raised during a meeting. Create
a side list of items to be addressed later.
Before the meeting adjourns, review ALL "parked"
items and decide - whether this group will address the item or refer
it elsewhere, and if the item will be addressed
by the group, decide when and how it will be
addressed - (e.g., agenda next meeting, assign). - communicate decisions to the person who raised
the item.
22Parking Lot (Cont.)
- Summarize results, agreements, and next steps.
Acknowledge agreements. At the close of the
meeting review the decisions and agreements and
other accomplishments that happened in the
meeting, and review the next steps. WRITE IT ALL
DOWN! Acknowledging and celebrating what was
accomplished at a successful meeting gives people
a sense of progress, and rewards them for the
time and effort the meeting required. It also
encourages them to work to make the next meeting
productive. - End the meeting on time.
23Recognition
The purpose of recognition is to formally
acknowledge the accomplishments of teams or team
related activities.
- Two major forces help drive Quality Improvement.
These are - Personal satisfaction from participation in the
process and the knowledge that you can make
constructive changes in your work environment,
which help meet the needs of the customer. - External recognition, which honors those who
contribute to quality improvement.
24Recognition (Cont.)
Recognition is meant to be a "Win-Win" situation,
but it is often difficult to implement in a way
that everyone perceives it as such. Teams should
recognize that successful long-term recognition
is most applicable on a local level. Peer
recognition and recognition by your local
management have a more direct, lasting impact.
25Team Growth
- When small groups of people come together for the
first time or when other events occur, these
groups are said to be in transition and will
undergo some predictable phases of team change or
growth. A corresponding change in individual
comfort levels brings tension and a sense of
uneasiness to the whole team. - The net result is usually some form of undesired
or dysfunctional team behaviors. An awareness of
these stages of group development and their
related behaviors is important, especially for
people leading teams in transition. The
transition can be triggered by numerous events,
including - A small group coming together for the first time
- Changing team leaders on an existing team
- Member turnover
- An unexpected surprise visitor sits in with the
team
26Team Growth (Cont.)
- Stage I Form This is where the group comes
together either for the first time or after being
apart for long periods. - Stage II Storm This phase is characterized by
intra-team conflict as members become more
familiar and more comfortable with the team
environment. They take more risks, and often
begin to become competitive with each other.
27Team Growth (Cont.)
- Stage III Norm This phase is typified by the
development of team cohesion. After all the
conflict of phase II, the members begin to
recognize and accept the team norms, their roles
and the pecking order established in stage II.
The personal "quirks" of other members also
become accepted, or at least better tolerated and
torn relationships get patched back up. - Stage IV Perform This is when the team really
begins to operate smoothly like a well-oiled
machine. Members now know one another well they
freely depend on each other for support and can
thus focus on solving the problem and objective
decision-making instead of each other.
28Team Growth (Cont.)
- What Does This Mean To You?
- Because the Form, Storm and Norm stages of group
development result in less than optimum output,
teams often try and push through these phases
before their chemistry is ready to move on in
order to improve team productivity. - This might seem like a good idea, but it is
really dysfunctional. - It is natural for people to go through
predictable phases of growth depending on
maturity, experience, and other factors. It is
natural for teams to do so too. They must go
through these predictable phases as they mature
and gain experience with each other and the DMAIC
Story.
29Team Growth (Cont.)
- What Does This Mean To You? (Cont.)
- The duration of each phase depends on individual
and team maturity, task complexity, leadership,
and the sponsor's support. - While it is natural that teams go through these
stages some teams can get stuck in different
stages. Given that the stages are unavoidable, an
idea to consider to help reduce the time needed
for a "team in transition" to go through the
stages and be fully productive, is to share
expectations about the group and its preferences
and direction. - Specifically, the team can establish (as part of
their rules of team conduct) for example, there
will be no "surprises". This can help establish
an atmosphere of trust earlier in the
evolutionary process allowing for some
interpersonal issues to be put aside so people
can focus on team objectives.
30Team Growth (Cont.)
31Consensus and Brainstorming
- Consensus is a group decision-making process that
takes each member's ideas and opinions into
account and results in a decision that everyone
in the group can support. It is an effective
method for decision-making because it involves
every member's participation. Consensus improves
decision quality, equalizes power, causes
examination of alternatives, increases commitment
to implement the decision and promotes unity
among the team members. - Brainstorming is a method used by a group of
people to produce a large number of creative
ideas in a relatively short period of time.
32Consensus (Cont.)
- How To Reach Consensus
- The leader clearly lists the alternatives the
group has to choose from and opens the topic for
discussion. - Each member of the group shares her/his ideas
opinions and known facts about what each feels
the group's decision should be. - When the leader feels that the team is beginning
to come to a common agreement, he/she will
clarify the position and ask the team if there is
a consensus. If everyone agrees that it is the
best decision, or feels that it is a decision
that they can support, they state their agreement
and the leader confirms the decision. If a member
has new information or clarification of previous
information that may be helpful to the team, time
is spent discussing the concern and the process
continues until consensus is achieved.
33Consensus (Cont.)
- Key Guidelines For Decision Making By Consensus
- Avoid arguing based on opinion. Strive to focus
on facts and objectivity. Don't change your mind
to avoid conflict. Change it based on facts and
objectivity. Look at differences among the group
as positive ways to make change. Coach each other
to be honest, open and data based as much as
possible. - The following is an exercise to practice the
decision-making technique of consensus in a group
setting. Pay special attention to member
involvement, as this will drive your success.
34Brainstorming
- Brainstorming is an effective technique because
of two main principles - Delayed Judgment - People are able to produce
more ideas when they delay evaluation of ideas
until a later time. - Extended Effort - More original and useful ideas
are created when the group continues to generate
ideas beyond the initial, more obvious responses
by filling an agreed upon time limit or an agreed
upon number of ideas. The emphasis in the
Generation Phase of a brainstorming session is
always on the "quantity" of ideas not the
"quality." The quality will come later when
ideas are clarified and evaluated.
35Brainstorming (Cont.)
- How To Brainstorm
- The leader selects the method of brainstorming
that will be used and informs the team. It will
usually be one of two popular types - Structured or Round Robin
- Unstructured Open Forum or Green Lighting
- The leader clearly states the topic and purpose
of the brainstorming session. Everyone agrees on
the topic or issue. The topic is then written and
placed in a prominent, visible position. - A recorder is selected to record all ideas on a
flipchart or viewgraph transparency for all to
see. Always having the words visible to everyone
at the same time avoids misunderstandings and
helps to inspire other new ideas.
36Brainstorming (Cont.)
- How To Brainstorm (Cont.)
- The leader reviews the following "Rules for
Brainstorming" with the group - No discussion, comments or evaluation of any idea
during the generation phase. - All ideas will be recorded.
- Quantity not quality is important during the
generation phase. - State ideas briefly and clearly.
- Build on recorded ideas.
- Generation Phase- Begin the brainstorming session
by posting ideas on the flip chart. Make sure all
ideas remain visible to the team. Continue until
the agreed upon time is used or the agreed upon
number of ideas are generated.
37Brainstorming (Cont.)
- How To Brainstorm (Cont.)
- Clarification Phase- During the Clarification
Phase of Brainstorming, the team goes over the
list to make sure that everyone understands all
of the items. Do not discuss ideas. Criticism and
discussion will take place during the Evaluation
Phase and in Multi-voting. - Evaluation Phase- Finally, during the Evaluation
Phase, the team reviews the list to eliminate
duplications, irrelevancies and issues that are
off limits or cannot possibly be addressed or
acted upon by this team.
38Rules of Conduct
- Rules of Conduct
- One practical way to reinforce the principle of
Respect People is to establish and follow Rules
of Conduct during meetings. Your team can either
adopt the Rules of Conduct, shown below, or
modify them to best suit your team's needs.
39Rules of Conduct (Cont.)
- With the ground rules established, the team can
begin the continuous improvement cycle, P-D-C-A,
but meetings must be effectively managed to
ensure progress and success.
40How to Construct Line Graph Outcome Indicators
- Draw and label each axis. Label the horizontal
axis with the frequency of measurement (i.e.,
hour, day, week, month, etc., or by occurrence).
Label the vertical axis with the indicator to be
displayed. Construct appropriate measurement
scales on each axis. - Title the line graph with full Indicator
Description including Location and Time Period.
41Construct Line Graph Outcome Indicators (Cont.)
- Show indicator formula if the indicator results
from a calculation. - Draw a good arrow and target. The target is
displayed as a dashed line. - Fill in the source block and include source of
the data, who collected the data and the time
period that data was collected from the source.
42Data Collection Spreadsheet
- MS Excel is used to construct unique spreadsheets
to record data for analysis - Spreadsheets segment information into four key
sections - Demographics (contain who, what, where or
when--information about the process) - Milestone Dates (key completion dates/times of
steps in the process) - Durations (Performance Results calculated from
the milestone dates automatically) - Outcomes (Performance results of the process)
- Data collection can be either manual or
downloaded from existing systems - Can be used for ongoing monitoring of process
performance after the project is completed
43The ParetoBackground
How the Pareto Diagram was Born
- 1897 . . . Italian Economist, Vilfredo Pareto,
presented a formula showing that the distribution
of income is uneven (i.e., the largest share of
the world's income is held by small number of
people). - 1907 . . . U.S. Economist, M. C. Lorenz,
expressed a similar theory in a diagram. - Later . . . Quality Control expert, Dr. J. M.
Juran, applied Lorenz's diagram method to
classify problems of quality into "vital
44The ParetoBackground
What is a Pareto Diagram?
- The Pareto is a graphical tool used to rank
datasets within a data group. It helps us
distinguish between the significant few and the
trivial many datasets. It is primarily used to
identify the most serious or most frequently
occurring dataset(s) and is based on the concept
that 80 of the data group problems (or, at least
a large percentage) result from 20 of the
datasets. Pareto diagrams are to be constructed
for only discrete (or countable or attribute)
data.
45The ParetoConstruction
- Draw a box.
- Display the number of items in the upper left
corner as shown below (n101). - Title the PARETO by describing the data that is
being stratified. (Hint answer the Question,
What is n?(i.e What are the 101?) - Label three (3) sides of the box as follows
- Left side Number of __________ Construct a
measurement scale on the left side starting with
zero at the bottom and the n (e.g., 101) value
at the top. Add additional appropriate scale
values on the left side. - Bottom side Label with the name of the What,
Where, When or Who data group to be displayed
(e.g., County). Draw each bar at the appropriate
height descending from the left starting with the
biggest bar. Label each bar and display bar
height values above each bar. - Right side Label this side Cumulative
Percentage and display measurement grids at 0,
25, 50, 75 and 100. - Construct a Cumulative Percentage line Line
starts in lower left corner at zero and
connects labeled data points plotted at or
directly above the upper right corner of each bar
and at a height equal to the cumulative
percentage, calculated as follows (bar
heights of all bars to left data point) (the
total n) 100 (e.g., (7620) (101) 100
96). - Add a source box.
46The Pareto Example