Ops2

• 1. Define
• 2. Measure
• 3. Compare to a standard
• 4. Evaluate
• 5. Take corrective action
• 6. Evaluate corrective action

• 1. Random Variation: Natural variations in the output of process, countless factors
• 2. Assignable Variation: A variation whose source can be identified

a mechanism to detect the occurrence of assignable variation.

• Mean 95.44% +/- 2 Std Dev
• Mean 99.74% +/- 3 Std Dev

• Numbers that fall between the UCL & LCL reflect normal variation due to chance.
• Numbers that fall outside the UCL & LCL "out of control" reflect abnormal variation due to assignable sources

• When Process Mean shifts upward, x-Chart detects shift, R-chart does not.
• When Process variability increases (bells get larger) x-chart does not reveal increase, R-chart does.

• Continuous Variable (X-bar and R-charts):
• -diameter
• -length
• -weight
• -time

• p-Chart - Control chart used to monitor the proportion of defectives in a process. (proportion)
• c-Chart - Control chart used to monitor the number of defects per unit. (counting)

(Sample size remains the same)

• 1. When observations can be placed into two categories:
• -good/bad
• -pass/fail
• 2. When the data consists of multiple samples of several observations each

• Use only when the number of occurrences per unit of measure can be counted; non-occurrences cannot be counted.
• -Scratches, chips, dents etc
• -Cracks or faults per unit of distance
• -Breaks or tears per unit of area
• -Bacteria per unit of volume
• -Calls, complaints or failures per unit of time

• Tolerance - specifications
• Process variability - natural variability in a process
• Process capability - process variability relative to specification

• Target is 1.33 (33% more capable than the process requires)
• Variability is well within specifications (not matching or exceeding)
• 16.5% on Lower and Upper
• Six Sigma shoots for 2x as capable

• 1. Reliability
• 2. Responsiveness
• 3. Assurance
• 4. Empathy
• 5. Tangibles

• -Ability to perform the promised service dependable and accurately
• -Accomplished on time, in the same manner without errors every time
• -Accuracy in billing and record keeping
• Example: ZReceive mail at the same time each day

• -The willingness to help customers, to provide prompt service
• -Ability to recover quickly, wiht professionalism
• Example: avoid keeping customers waiting for no apparent reason

• -The knowldege and courtesy of employees to convey trust and confidence
• -Competence to perform
• -Politeness and respect for the customer
• -Effective communication to the customer
• -General attitude

• -Your problem is my problem
• -THe provisionj of caring, individualized attention
• -Approachability
• -Sensitivity
• -Effort to understand the customer's needs

• -The appearance of physical facilities, equipment, personnel and communication material
• -Cleanliness

Bill Smith, Sr. Engineer at Motorola in 1986 as a way to standardize the way defects were tallied.

The Greek symbol used in statistics to refer to standard deviation which is a measure of variation.

A measure of process performance (sigma) wiht the goal of nearly perfect quality (six)

a comprehensive and flexible system for achieving, sustaining and maximizing business success. SIx Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes.

DMAIC

Lean

• 1. Define
• 2. Measure
• 3. Analyze
• 4. Improve
• 5. Control

• Define:
• -goals for process improvement
• -the customer
• -project scope
• -the problem/opportunity

• -Identify appropriate performance measures
• -Collect data
• -Evaluate current process performance

• -Develop and test theories related to root causes of problems
• -Identify cause and effect relationships

-Develop, evaluate, and implement solutions to reduce gap between desired process performance and current performance

• -Monitor process to sustain improved performance
• -Ensure that problems do not resurface

Gantt Chart

• 1. Design for Six Sigma
• 2. Lean Tools
• TOC (Theory of Constraints) is one of the Lean Tools.

The define phase of a DMAIC project focuses on clearly specifying the problem or opportunity, what the goals are for the process improvement project, and what the scope of the project is. Identifying wo the customer is and their requirements is also critical given that the overarching goal for all Six Sigma projects is improving the organization's ability to meet the needs of its customers.

• 1. Benchmarking
• 2. Quality Function Deployment (QFD)

• -Benchmarking involves comparing an organizations processes with the best practices to be found. Benchmarking is used for: 1. comparing an organizations processes with the best organizations processes
• 2. comparing an organization's products and services with those of other organizations.
• 3. Identifying the best practices to emulate
• 4. Projecting trends in order to be able to respond proactively to future challenges and opportunities.

• Quality Function Deployment
• Part of the Define Phase of DMAIC, QFD:
• -Powerful tool for helping translate customer requirements into process capabilities that are customer desirable and fulfillable by the company.

• 1. Customer Requirements
• 2. Technical Requirements
• 3. Component Requirements
• 4. Process Deployment Requirements

• 1. Defects per Million Opportunities (DPMO) (3.4 DPMO)
• Assumed the mean could shift +/- 1.5 std dev over time

2. Process Sigma

1. Brainstorming

2. Cause & Effect Diagrams

3. Process Capability Analysis

• 1. Do not criticize ideas druing the session
• 2. Express all ideas no matter how radical or unconventional
• 3. Generate as many ideas as possible
• 4. Combine, extend and/or improve on on another's ideas

• 1. Location of the process mean
• 2. Natural variability inherent in the process
• 3. Stability of the process
• 4. Product's design requirements

• Master Black Belt
• Black Belt
• Green Belt

The art and science of predicting future events

• -An inference of what is likely to happen in the future
• -Provides a basis for coordination of the plans of various functions (Finance: capital, Personnel:workforce, Purchasing: materials)

• 1. Technological
• 2. Economic
• 3. Demand

• 1. When data is not available
• 2. When data is not representative of the future (new products/techology)

• 1. Jury of Executive opinion
• 2. Sales Force
• 3. Delphi Method
• 4. Consumer Market Survey

• A small group of managers in various functions may meet and collectively develop a forecast
• Advantage: Considerable knowledge & talent
• Risk: Bandwagon effect
• Ex: Bristol Myers Squibb/Cancer treatment

• Managers and staff complete a series of questionaires each developed from the previous one to achieve a consensus forecast.
• Advantage: Anonymity encourages honest responses, useful for remote participants, avoids bandwagon effect.
• Disadvantage: Lack of expertise, Ambiguity possible in questionaire, no accountability.
• Ex: Rand Corp/Atomic Bomb impact

• Sales persons estimate sdales in their respective regions, aggregated at the district and national levels.
• Advantage: Sales staff aware of customer plans, direct contact to customers
• Risk: Hard to distinguish between customer intentions and actuality, overly influenced by recent experiences.

• Solicit input directly from a sample of customers
• Advantage: Tap information not available elsewhere
• Risk: Requires considerable knowledge and skill to handle surveys, expensive and time consuming, low response rates possible

• 1. Mean Forecast Error (MFE)
• 2. Mean Absolute Deviation (MAD)
• 3. Mean Squared Error (MSE)
• 4. Tracking Signal

MFE helps to determine if your method is biased or unbiased

MAD tells you the magnitude of how much you are off, the lower the better.

The penalty exponentially increases for higher deviation.

Recalculates the cumulative errors, tracks bias AND magnitude