Lean Six Sigma: DMAIC Process

Lean Six Sigma Overview

• Lean Six Sigma combines "Lean" for reducing waste and "Six Sigma" for minimizing defects and variations
• The combined approach streamlines operations, enhances quality, and boosts organizational efficiency
• Motorola was one of the earliest adopters of Lean Six Sigma in the 1980s.
• Motorola's efforts resulted in savings of over $16 billion through defect reduction

Six Sigma Methodology: DMAIC Process

• DMAIC (Define, Measure, Analyze, Improve, Control) is essential for structured problem-solving and continuous improvement
• DMAIC systematically identifies issues, analyzes root causes, implements solutions, and maintains long-term process control
• DMAIC promotes data-driven decision-making, reduces errors, and maximizes efficiency

DMAIC Phases Explained

• Define: Clearly define the problem statement and delimit the project scope
• Measure: Collect relevant data, ensure accuracy, apply statistical tools to quantify performance, identify variations, and prioritize improvements
• Analyze: Analyze root causes using techniques like Fishbone diagrams and the "5 Whys" to address underlying issues
• Improve: Pilot test solutions on a small scale before organization-wide implementation to minimize risks and allow adjustments
• Control: Use change management strategies involving key stakeholders and communicating benefits sustain results
• Develop control plans and KPIs to monitor performance over time, conducting regular data reviews and audits
• Include employees from different departments to apply diverse perspectives for better problem-solving

Additional Elements

• Training team members with Lean Six Sigma principles, relevant tools, and methodologies ensures skills for each DMAIC phase
• Detailed records and documentation aids knowledge sharing and future reference
• Recognizing and celebrating team achievements promotes continuous improvement

Historical Context

• Lean manufacturing principles originate from the early 20th century, with the Toyota Production System (TPS) pioneered by Taiichi Ohno in Japan
• TPS focused on reducing waste, improving efficiency, and enhancing overall quality
• Motorola developed Six Sigma in the 1980s to reduce product defects with Bill Smith as the engineer who spearheaded the methodology
• The goal of Six Sigma aimed at achieving a process with minimal variability, falling within six standard deviations from the mean
• Lean and Six Sigma integrated in the late 1990s and early 2000s to address both quality and efficiency
• Lean focuses on reducing waste and improving process flow

Key Principles

• Lean emphasizes eliminating waste and improving process flow
• Six Sigma focuses on reducing defects and variations
• Integrated principles optimize efficiency and quality, resulting in streamlined, high-performing processes
• Essential to focus on customer needs by actively listening to feedback, identifying requirements, and aligning improvements

Process Improvement Focus

• Systematic elimination of non-value-added activities ensures smooth and efficient workflow
• Reducing unnecessary steps, delays, and resources optimizes operations, reduces costs
• Reducing and controlling process variations enhances consistency and quality
• Lean Six Sigma provides a structured and data-driven approach using DMAIC for systematic change

Enabling Active Participation

• Empowering employees with skills, knowledge, and tools ensures active participation in process improvement efforts
• Accurately understanding work processes is crucial

DMAIC & Transformation

• DMAIC improvement cycle is a fundamental framework
• DMAIC software helps structure work

DMAIC Phases Described

• Define: Objectives are clearly defined, including project scope, goals, resources, and team
• Project Charter summarizes scope, goals, team, and stakeholders
• Voice of the Customer (VOC) Analysis captures customer needs and expectations
• Measure: Current state assessed via data and process maps to visualize workflow and determine process capability
• Analyze: Aim to pinpoint reason of issues, address factors for improvement
• Improve: The focus lies on implementing changes to resolve root causes
• Control: Standard Operating Procedures (SOPs) used

Six Sigma Belt Levels

• A "belt" system designates expertise and responsibilities
• Levels include: White, Yellow, Green, Black, and Master Black Belt

Belt Types

• White Belt: Entry-level with basic understanding, assists in local problem-solving teams
• Yellow Belt: Foundational knowledge, supports process improvements, assists with data collection and analysis, implements solutions
• Green Belt: Leads smaller projects, conducts data analysis, works with Black Belts, has full-time job duties outside of Six Sigma
• Black Belt: Leads projects, trains Green Belts, facilitates teams, responsible for process improvements
• Master Black Belt: Provides leadership, mentoring, and implements Six Sigma across departments

Benefits of Lean Six Sigma

• Offers continuous improvement with benefits
• Increases operational efficiency by eliminating waste and defects
• Improves performance via error and defect removal
• Empowers employees by including them in problem-solving
• Reduces operational expenses by eliminating waste
• Increases customer satisfaction by improving product quality and consistency

Top Level Management Commitment

• Top level commitment is crucial for success
• Secures resources for training
• Removes organizational roadblocks
• Data-driven decision making leads to quality
• Shows that quality is a top priority for the organization.

Management Demonstrated Commitment

• Management demonstrated commitment with visible support
• Set Clear Expectations
• Recognise and reward success
• Hold leaders accountable.

Stakeholders in Six Sigma

• Includes team members, process owners, subject matter experts, and support staff.
• Includes Customers, Suppliers, and Regulators
• Identify relevant stakeholders, manage expectations and communication

The Six Sigma Training Scheme

• Follows a tiered structure
• Includes White Belt to Master Black Belt

Belt Specific Training

• White Belt: Focus on Six Sigma concepts and basic quality tools
• Yellow Belt: Deeper dive into Six Sigma tools, participation in improvement projects
• Green Belt: Training on aspects of the DMAIC cycle
• Black Belt: Mastery of everything from Six Sigma tools, coaching practitioners
• Master Black Belt: Highest level of expertise, focusing on strategic deployment of Six Sigma

Training Components

• Classroom Instruction
• On-the-Job Training
• Mentorship
• Coaching

Measurement System Analysis

• Measurement is crucial
• Aspects include accuracy, precision, stability, linearity, bias
• Techniques include Gauge R&R, Attribute Agreement Analysis, and Bias Studies

Benefits of Strong Measurement System

• Improved Data Quality for informed decisions
• Reduced Variation for control process variability
• Increased Customer Satisfaction via quality
• Enhanced Process Capability for accurate assessment

The DMAIC Process Breakdown

• Define: Scope and Customer Needs are clearly defined with Project Charter,
• Measure: Performance based on KPIs are collected with Process Mapping,
• Analyze: Tools (Ishikawa), techniques (5 Whys) and Data are used to identify potential root causes
• Prioritization: Determine the most effect root cause
• Improve: Solutions then Pilot Tested and analyzed
• Control: Standardized with Monitoring and Sustainment

Key DMAIC Takeaways

• Data-Driven with Customer-Centric focus based on Continuous Improvement.

Design for Six Sigma (DFSS)

• High level of and quality and reliability
• Phases allow practitioners to eliminate defects and improve efficiency.

Key DFSS Concepts

• Focus on Prevention by preventing defects and Customer-Centricity,
• Data-Driven with Cross-Functional Teams.

Common Methodologies

• DMADV: Define goals, Measure risk, Analyze parameters, Design, Verify
• IDOV: Identify, Design, Optimize, Verify based on rapid prototyping and iterative design.

Benefits of DFSS

• Reduces cost by preventing defects upfront
• Increases speed to market
• Creates customer satisfaction
• Increases innovation.

Notable Companies and their roles

• Motorola: Developed the methodology for reducing defects
• General Electric (GE): Popularized Six Sigma driving implementation and improving profitability
• Asea Brown Boveri (ABB): Early adopter of Six Sigma for various business processes
• Samsung SDI and LG Electronics: Helped maintain focus on improvement. In all, strong leadership was essential for Six Sigma implementation

Techniques

• Flow charts for process or sequence of events
• Process maps for detailed understanding and optimization.
• Quality Function Deployment (QFD) ensures customer product development.

Quality Function Deployment (QFD)

• It's a structured approach used with matrices like "House of Quality."
• QFD Provides customer focus, reduces time, improves quality, enhances communications.

Core aspects to the House of Quality (HOQ)

• Includes Customer Needs
• Prioritized Needs
• Translation Needs
• Technical Requirements
• Benchmark Against Competitors

The QFD Process is implemented in four phases

• Product Planning: (HOQ) based on the customer needs in technical requirements
• Product Design: Technical requirements translated into specific product features.
• Process Planning: Ensures the product that meets quality.
• Production Planning: Production delivery is developed for quality control.

The Benefits of QFD

• Increased satisfaction,
• Reduced development time and costs
• Enhanced communication
• An overall better understanding of customer needs.

Some Limitations of QFD

• Can be complex or requires teamwork

QFD in Technical Activities

• Helpful in Software, Engineers, Service
• By using QFD, focus product on customer requirements and expectations

Minitab: A tool for data analysis

• User friendly software used in a multitude of applications.
• Can import data from data sources like excel.
• Can manipulation the data through sorting and recoding.
• Worksheet that is organized into columns.

Descriptive Statistics

• Used to get summary measures like means for different variables.
• Graphical summaries like Histograms

Hypothesis Testing

• One-Sample t-test: Test if the mean is significantly different
• Two-Sample t-test: Test for 2 independent sample means.
• Paired t-test: Test for related samples means.
• ANOVA: Test more than two group means.
• Chi-Square Test: For independent variables.

Regression Analysis

• Simple Linear Regression is modeling relationships between variables
• Multiple Regression is modelling the relationship from independent variables.
• Nonlinear Regression is for situations when the relationship is not linear.

Correlation Analysis

• Calculates the correlation between variables.
• Time series focuses analysis and data patterns.
• Experiment design is used for analyzing experiments
• Quality control charting data

Macros and Automation

• Automate repetitive data, making analysis efficient.

Workflow in Minitab

• Data is imported with descriptive analysis, leading to appropriate analysis and interpretation and reports.