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Table of Contents
1. Introduction .................................................................................................................. 4
2. The Nature of Six Sigma .......................................................................................... 6
3. Six Sigma Organization ............................................................................................ 7
4. Six Sigma – CMM ........................................................................................................ 8
4.1. Indicators of Maturity ..................................................................................... 9
4.2. Reactive Projects Percentage ...................................................................... 9
4.3. Projects ‘Hit Rate’ ............................................................................................. 9
4.4. Cost of Quality ................................................................................................. 11
5. Six Sigma - A Gateway to process capability improvement .................... 11
5.1. What is Six Sigma? ........................................................................................ 12
5.2. Need six times more ..................................................................................... 12
6. What Makes Six Sigma So Powerful?................................................................ 13
6.1. Mathematics for six sigma .......................................................................... 14
7. Six Sigma Application ............................................................................................. 15
7.1. Define and measure ...................................................................................... 16
7.2. Measurement ................................................................................................... 16
7.3. Analysis .............................................................................................................. 17
7.4. Improve .............................................................................................................. 17
7.5. Control ................................................................................................................ 18
8. Basic Tools for Six Sigma ...................................................................................... 19
9. Seven Principles of six sigma............................................................................... 20
9.1. Principle No 1 ................................................................................................... 20
9.2. Principle No 2 ................................................................................................... 20
9.3. Principle No. 3.................................................................................................. 21
9.4. Principle No. 4.................................................................................................. 22
9.5. Principle No. 5.................................................................................................. 23
9.6. Principle No.6 ................................................................................................... 23
9.7. Principle No 7 ................................................................................................... 24
10. Six Sigma .................................................................................................................. 24
11. Concept significance ............................................................................................. 25
12. Statistical significance.......................................................................................... 28
13. Concept of 1.5 sigma shift ................................................................................. 30
14. Quality significance of six sigma...................................................................... 31
15. Key Concepts of Six Sigma ................................................................................ 31
16. Six sigma methodology ....................................................................................... 32
16.1. DMAIC versus DMADV .................................................................................. 32
16.2. The Similarities of DMAIC and DMADV .................................................. 32
16.3. The Differences of DMAIC and DMADV .................................................. 33
17. Six Sigma Organisation ....................................................................................... 35
17.1. Champions ........................................................................................................ 35
17.2. Master Black Belt ............................................................................................ 36
17.3. Black Belt ........................................................................................................... 36
17.4. Green Belt ......................................................................................................... 36
Confidential | Six Sigma 1/87
Understanding Six Sigma
March, 2010
Purpose ................................................................................................................................. 59
22.10. CONTROL CONTROL CHART – TALLY EXAMPLE .............................. 60
22.11. CONTROL CHART FOR ATTRIBUTES .................................................... 63
22.12. PROCESS CAPABILITY............................................................................... 64
22.13. PARETO DIAGRAM ...................................................................................... 65
Purpose ................................................................................................................................. 65
Procedure ............................................................................................................................. 65
22.14. Brainstorming ............................................................................................... 67
Purpose ................................................................................................................................. 68
Procedure ............................................................................................................................. 68
22.15. CAUSE AND EFFECT DIAGRAM .............................................................. 70
Purpose ................................................................................................................................. 70
Procedure ............................................................................................................................. 70
22.16. FLOW CHART ................................................................................................ 72
Procedure ............................................................................................................................. 72
22.17. ARROW DIAGRAM ....................................................................................... 73
Purpose ................................................................................................................................. 73
Procedure ............................................................................................................................. 73
Acquire .................................................................................................................................. 75
22.18. RELATIONS DIAGRAM ............................................................................... 76
Procedure Preparation of Relations Diagram consists of the following steps
– .............................................................................................................................................. 76
22.19. TREE DIAGRAM ............................................................................................ 77
Purpose ................................................................................................................................. 77
Procedure ............................................................................................................................. 77
22.20. AFFINITY DIAGRAM ................................................................................... 78
Purpose ................................................................................................................................. 79
Procedure ............................................................................................................................. 79
22.21. COST-BENEFIT ANALYSIS ....................................................................... 80
22.22. CUSTOMER - SUPPLIER RELATIONSHIP CHECKLIST .................... 81
22.23. SELECTION OF RIGHT COMBINATION ............................................... 83
1. Introduction
Six sigma points out the total number of the defects that has come across
in an organizational performance. Any type of defects, apart from the
customer specification, is considered as the defect, according to Six
Sigma. With the help of the statistical representation of the Six Sigma, it
is easy to find out how a process is performing on quantitatively aspects.
A Defect according to Six Sigma is nonconformity of the product or the
service of an organization.
Since the fundamental aim of the Six Sigma is the application of the
improvement on the specified process, through a measurement-based
strategy, Six Sigma is considered as a registered service mark or the
trade mark. Six Sigma has its own rules and methodologies to be applied.
In order to achieve this service mark, the process should not
produce defects more than 3.4. These numbers ofdefects are considered
as “the rate of the defects in a process should not exceed beyond
the rate 3.4 per million opportunities”. Through the Six
Sigma calculation the number of defects can be calculated. For this there
is a sigma calculator, which helps in the calculation.
In order to attain the fundamental objectives of Six Sigma, there are Six
Sigma methodologies to be implemented. This is done through the
application of Six Sigma improvement projects, which is accomplished
through the two Six Sigma sub-methodologies. Under the improvement
projects came the identification, selection and ranking things according to
the importance. The major two sub-divisions of the improvement projects
are the Six Sigma DMAIC and the Six Sigma DMADV. These sub-divisions
are considered as the processes and the execution of these processes are
done through three certifications. The three types of certifications used
for the execution of the Six SigmaDMAIC and Six sigma DMADV are:
“Six Sigma Green Belts and Six Sigma Black Belts, which is
overseen by Six SigmaMaster Black Belts”.
The Six Sigma ensures the quality control, total quality management and
zero defects. Through the implementation of the Six Sigma it is made
sure that the goals are set on the improvement of all processes to reach
the level of better quality. “The Six Sigma” shows the organization’s
ability of highly capable processing in producing the outputs within the
limited specifications. Therefore it can be said that the processes that
operates with the Six Sigma quality, is able to produce a quality products
at a low rate of defects.
This definition also does not give complete picture of six sigma. In a
recent article Harry (2001) suggests that, all defects or errors represent
risk but not all forms of risk can be characterized in terms of defects. He
further says that six sigma is about the abatement of risk in everything a
business does or delivers. Thus Harry is suggesting that elimination of
defects is not the ultimate of six sigma and proactively reducing the
business risk is the real goal of six sigma.
Further, achieving the six sigma performance (3.4 DPMO) once is NOT
going to last forever, as changes in the customer requirements will
change the sigma level back to three sigma overnight. Today, customer
requirements, competition, technology are changing dynamically and
even we may not have sufficient time to achieve six sigma performance
levels. For example, a CD manufacturing company is working on
perfecting a process which is designed for 24 X speed and within 6-8
months time the CD drive manufactures have come out with faster drive
not leaving room for achieving the higher levels of performance in the
current process.
Another, important aspect of six sigma is, one many not try to achieve six
sigma performance in each and every process, it may not be required or
may not be economical. In the so-called six sigma companies also, six
sigma performance is achieved in a couple of processes. In large number
of processes 4 to 4.5 sigma performance may be more than justified in
very few critical processes only. In case of airlines, the fatality rate is
more than six sigma level and baggage handling process is still at three
sigma level.
One need not wait till we achieve the six sigma performance (3.4 DPMO)
to call an organization ‘six sigma organization’, Pande et. Al (2000)
suggests the following definition:
In the initial stages of six sigma deployment all or most of the projects
are of reactive type – reducing defects, errors, complaints etc. In this
stage the savings are very large and can be measured easily.
As the maturity level improves across the company, reactive projects will
reduce drastically, and eventually the number of proactive type projects
will increase. These proactive projects will ultimately reduce the business
risk.
Cost of quality is again not new in six sigma. Traditional concepts suggest
that beyond an optimal defect level, improving quality will increase the
cost of quality instead of reducing it. This happens because the cost of
preventing defects will be very high when compared to damage cost.
Such force flows from a simple, but stunningly sharp objective of 6 sigma
design, operate, and control every one of the processes in any company
in such a way that none of them yields more than 3.4 defects out of every
1 million units of output. With breath taking clarity, 6 sigma is telling
companies in clear, accurate, mathematical terms how good - or, more
likely bad-their quality levels are, how much they can improve, and what
progress they are making on that journey. And the Sigma strategists are
leveraging this knowledge to consummate improvements in quality not
just on the shop floor, but also all over their organization.
You've got it. For six sigma at its most powerful is tools that can quality
levels in every single process in your company not just on the shop floor.
In fact, that's precisely where its versatility steams. From your accounts
But, using the sigma scale from 1 to 6, you can study competing levels of
capability and, then, raise yours to those standards. What six sigma does
is to allow you an efficient way of finding out where your greatest need is
and what your softest point is, and of addressing them in a measurable,
analytical, and objective way.
Consider, for instances, a process which, every hour, produces 100 units
of a particular component which should measure 100mm in length.
Measurements may show that while 95 out of the 100 units produced are,
indeed, 100mm long, the remaining 5 deviate from that ideal, each to a
different extent. This data can be used to calculate the standard
deviation, or sigma- the likelihood and extent of deviations from the norm
of the process. Assume that the value of sigma for this process turns out
to be 0.01.
7.2. Measurement
7.3. Analysis
This is the stage at which new goals are set, and the route maps created
for closing the gap between current and target performance levels. It
begins the benchmarking key product performance against the best in
class so that the sigma levels attained by comparable process can be
ascertained as the basis for new targets. Then , as a GAP analysis is
conducted to identify the factors that distinguish the best in class
processes from those being analysed so that areas of change can be
analysed so that areas of change can be identified.
7.4. Improve
The objective of this phrase is to confirm, the key process variables, and
qualify their effect on the CTQs; identify the maximum ranges of the
specifications: and then, tackle the capability of the process on the two
fonts required by six sigma: enlarging the design width to accommodate
the greater variability in the output, and the use the findings of the
7.5. Control
In the fourth and final stage of six sigma implementation, the new
process conditions are documented, and frozen into systems sit hat gains
are permanent. The process is assessed once more after settling in period
in order to check whether the improvements are sustained or not: "If a
quality programmed has to achieve meaningful results, the changes have
to be put into a formal structure. Otherwise, workers may go back to the
earlier process"
* Control plans
* Mistake proofing
* Special applications: discrete parts, continuous processes,
administration and design
* Final exercise
One of the key themes of six sigma is to make decisions on data. This
data is reflected by such popular six sigma saying as, “We don't what we
don't know (or don't measure)" and "In God we trust - all else being
data!”
9.1. Principle No 1
9.2. Principle No 2
How does one determine these requirements? First, the company must
have a closed-loop process in place to gather customer and market
intelligence data. Then, it must translate the date into hard
measurements that can analyse regularly and compared to business
process outputs
Six sigma projects must produce real savings or revenues. "This six sigma
thing has to pay its own way!”. This is cry of most business leaders when
they first hear about six sigma. The reaction is appropriate. Over the
years improvement initiate have promised a lot, but often delivered little.
Consequently, any six sigma programme a company implements should
be design to pay its way, at least from second year of implementation
onwards
Six sigma efforts are led in the trenches by thorough trained core of full
time team leaders. Because six sigma is such an intense approach to
quality improvements, it requires the disciplined training and commitment
of dedicated practitioners
9.7. Principle No 7
Six sigma was adopted in 1987 by Motorola Inc. through the efforts of
CEO Robert Galvin. Six Sigma quality is deemed necessary to survive in
the high technology industries. Six Sigma quality is not just product
quality it also means getting everything right throughout the corporation.
Everything from the invoices through internal and external
communications, information systems, sales support and down to the
level of janitorial services must adhere to the quality standards of Six
Sigma
Sigma Significance
Sigma numbers Defects per million
1.5σ 500,000
2.0σ 308,300
2.5σ 158,650
3.0σ 67,000
3.5σ 22,700
4.0σ 6,220
4.5σ 1,350
5.0σ 233
5.5σ 32
6.0σ 3.4
Six Sigma isn't twice as good as three Sigma, it's
almost 20,000 times better.
the specification or tolerance limit. That means that the edge of the
process distribution should end at ±4σ from the center. The value of 4.5
comes from the value of 6 less the 1.σ shift.
As the process sigma value increases from zero to six, the variation of the
process around the mean value decreases. With a high enough value of
process sigma, the process approaches zero variation and is known as
“zero defects.”
Using the table we will find that 6 sigma actually translates to about 2
defects per billion opportunities, and 3.4 defects per million
opportunities, which we normally define as 6 sigma, really corresponds to
a sigma value of 4.5. Where does this 1.5 sigma difference come from?
Motorola has determined, through years of process and data collection,
that every process varies and drifts over time - what they call the Long-
Term Dynamic Mean Variation. This variation typically falls between 1.4
and 1.6.
After a process has been improved using the Six Sigma DMAIC
methodology, we calculate the process standard deviation and sigma
value. These are considered to be short-term values because the data
only contains common cause variation -- DMAIC projects and the
associated collection of process data occur over a period of months,
rather than years. Long-term data, on the other hand, contains common
cause variation and special (or assignable) cause variation. Because
short-term data does not contain this special cause variation, it will
typically be of a higher process capability than the long-term data. This
difference is the 1.5 sigma shift. Given adequate process data, you can
determine the factor most appropriate for your process.
Let's first look at the DMAIC and DMADV methodologies and talk about
how they're alike. DMAIC and DMADV are both:
• Six Sigma methodologies used to drive defects to less than 3.4 per
million opportunities.
• Data intensive solution approaches. Intuition has no place in Six
Sigma -- only cold, hard facts.
• Implemented by Green Belts, Black Belts and Master Black Belts.
• Ways to help meet the business/financial bottom-line numbers.
• Implemented with the support of a champion and process owner.
DMAIC and DMADV sound very similar,. The acronyms even share the
first three letters. But that's about where the similarities stop.
Pick yourself up, dust yourself off and re-craft your define piece of the
project so you can begin with a fresh look at the project and solutions.
You never know what insights you'll have now that you may not have
been aware of before.
•Helps Implementation
•Works with Black Belt on
TEAM project
•Indicate barriers to
function Leaders
17.1. Champions
Six Sigma champions are high-level individuals who understand Six
Sigma and are committed to its success. In larger organizations Six
Sigma will be lead by a full time, high-level champion, such as an
Executive Vice-President. In all organizations, champions also include
informal leaders who use Six Sigma in their day-to-day work and
communicate the Six Sigma message at every opportunity. Sponsors
are owners of processes and systems who help initiate and co-ordinate
Six Sigma improvement activities in their areas of responsibilities.
Candidates for Black Belt status are technically oriented individuals held
in high regard by their peers. They should be actively involved in the
process of organizational change and development. Candidates may
come from a wide range of disciplines and need not be formally trained
statisticians or engineers. Black Belts receive 160 hours of classroom
instruction, plus one-on-one project coaching from Master Black Belts
or consultants.
Green Belts are Six Sigma project leaders capable of forming and
facilitating Six Sigma teams and managing Six Sigma projects from
concept to completion. Green Belt training consists of five days of
classroom training and is conducted in conjunction with Six Sigma
projects. Six Sigma Black Belts help Green Belts define their projects prior
to the training, attend training with their Green Belts, and assist them
with their projects after the training.
We all work and perform responsibilities for a paycheck, right? Just as you
expect your factory to produce Y widgets per hour and your bank to
process Z deposits per day, you should expect projects to be contributed
to and successfully completed in a prescribed time period. And employees
executing well should be compensated well. The quickest way to initiative
success is to tie results to the business bottom line, create performance
goals, and compensate employees appropriately.
The right project can have a tremendous effect on your business. If done
properly, processes will function more efficiently in 3 to 6 months,
employees will feel satisfied and appreciated for making business
improvements and ultimately shareholders will see the benefit.
business productivity. All of this, of course, is based on the fact that these
processes are driving financial benefits.
The key issue here is employee time. As mentioned above, time is money
for both employees that are partially assigned to teams and project
leaders. BUT -- we must remember to see the forest through the trees.
Any time dedicated to process improvement will be recouped in process
productivity going forward for all time. But it again boils down to the
potential savings that are available in your business.
The right project can have a tremendous effect on your business. If done
properly, processes will function more efficiently in 3 to 6 months,
employees will feel satisfied and appreciated for making business
improvements and ultimately shareholders will see the benefit. If done
improperly, a project may be selected that doesn't have the full business
buy-in, project roadblocks may not be removed due to other business
priorities, the team may feel ineffective and the end result may be less
than ideal. No one wins in this situation, especially the quality manager
who may look to these same people the next time a need arises. So how
do we make sure we select projects in-line with business priorities?
Here are five guidelines to keep handy the next time we are evaluating
potential quality improvement projects:
• Ask business leader for the three greatest issues facing the
business. Make sure project is one of the issues or is directly
related. This will ensure that your management team is giving the
project the proper attention and quickly removing roadblocks.
• What are the three greatest issues as seen from the eyes of your
customers? Look through customer complaint logs, listen to call
center telephone conversations and call customers that have
stopped your company service. Create a Pareto Chart to prioritize
issues.
• Is the project manageable? Can the project realistically be
completed by a team within six months? If longer, you may lose
members as they move to other jobs or the team may feel
frustrated that they're not making a difference.
• Will the team have a measurable impact on the business processes
or financial bottom line? Don't embark on a project without knowing
what the benefits are to the business. This will keep team motivated
along the way.
• What is process capability? If you haven't been measuring your
process, how do you know it needs improvement? Make sure you
know what amount of defects the process is currently producing and
define your project desired outcome.
Every business is different and you should ensure that your specific
priorities are taken into account when evaluating potential projects.
Spreadsheets or databases can help you organize potential projects by
assigning evaluation categories, values and weightings to create a
consistent selection process.
Many businesses have found the successful recipe for Quality. When
employees are allowed to exit from the intellectual vacuum where they
are deprived of business and financial information, they then can see the
whole picture. They understand how their actions do make a difference
and how they are needed to make business processes successful. You
don't need "Six Sigma" necessarily, but you do need to tie process
improvements to financial results in order to be successful. There are six
fundamental steps that must be achieved before Six Sigma can become a
reality within any organization:
Step-1: Successful performance improvement must begin with senior
leadership. Start by providing senior leadership with training in the
principles and tools they need to prepare their organization for success.
Using their newly acquired knowledge, senior leaders direct the
development of a management infrastructure to support Six Sigma.
Step-2: Systems are developed for establishing close communication with
customers, employees, and suppliers. This includes developing rigorous
methods of obtaining and evaluating customer, employee and supplier
input.
Step-3: Training needs are rigorously assessed. Remedial basic skills
education Is provided to assure that adequate levels of literacy is
possessed by all employees.
Step-4: A framework for continuous process improvement is developed,
along with a system of indicators for monitoring progress and success. Six
Sigma metrics focus on the organization's strategic goals, drivers, and
key business processes.
Step-5: Business processes to be improved are chosen by management,
and by people with intimate process knowledge at all levels of the
organization. Six Sigma projects are conducted to improve business
performance linked to measurable financial results.
Step-6: Six Sigma projects are conducted by individual employees and
teams lead by Green Belts and assisted by Black Belts.
The above table compares the GE criteria with four traditional Balanced
Score Criteria.
Six Sigma Quality at GE starts and ends with the goal of total customer
satisfaction. To understand the needs of the customers, GE stresses five
"CTQ’s" –
1) Get the customers what they want
2) When they want it
3) On time
4) Undamaged
5) Working.
These five CTQ’s were identified in the early stages of GE's efforts and are
continually assessed through the use of "Scorecards". Scorecards allow
rapid focus on products and processes that do not meet customer's
desires and track implemented solutions until the discrepancy is erased.
Step 2: Measure
• Measure the performance of the Core Business Process involved.
• Develop a data collection plan for the process.
• Collect data from many sources to determine types of defects and
metrics.
• Compare to customer survey results to determine shortfall.
Step 3: Analyze
• Analyze the data collected and process map to determine root
causes of defects and opportunities for improvement.
• Identify gaps between current performance and goal performance
• Prioritize opportunities to improve.
• Identify sources of variation.
Step 4: Improve
• Improve the target process by designing creative solutions to fix
and prevent problems.
• Create innovative solutions using technology and discipline.
• Develop and deploy implementation plan
Step 5: Control
• Control the improvements to keep the process on the new course.
• Prevent reverting back to the "old way".
• Require the development, documentation and implementation of an
ongoing monitoring plan
• Institutionalize the improvements through the modification of
systems and structures (staffing, training, and incentives).
The result of this training push is impressive as there are now nearly
4000 full-time quality 'Black Belts' (BB) and 'Master Black Belts'
(MBB). Additionally, there are more than 60,000 'Green Belt' (GB)
"part-time" project leaders who have completed at least one Six Sigma
project. All GB, BB and MBB projects must show a 90% reduction in dpm
to be called successful.
To become a GE certified Green Belt (GB), the following criteria must
be met.
• Complete 2 weeks of DMAIC training within a one year period
• Complete a total of two (2) Six Sigma Green Belt Projects within
each one year period.
To become a GE certified Black Belt (BB), the following criteria must
be met:
• Complete 2 full weeks of DMAIC training.
• Complete a total of eight (8) Six Sigma BB Projects in each one-
year period.
21.7. Conclusion
Such a training program is the result of nothing less than full dedication
from the entire leadership structure, starting at the top.
GE's increasing operating margins are the final proof that the combination
of inspired leadership and intensive training are the critical aspects of a
successful Six Sigma Quality program.
There are certain simple tools and techniques which can naturally be
positioned within the TQM philosophy. Many of these tools can easily be
utilized for everyday problem solving or for realizing opportunities, and
can thus be effectively used to support the implementation of the
methodology for quality management and improvement.
Tally Sheets are forms for recording data in a simple manner. There are
three main types of tally sheets;
a) Recording Tally Sheets
b) Inspection Tally Sheets, and
c) Check Lists
Purpose
Problem Month
Clerk 1 Clerk 2
Punctuation IIII III 07
Wrong Page
III IIII 07
Numbers
Spelling IIII III 08
Missed
III IIII 07
Paragraph
Centering IIII IIII 09
TOTAL 20 18 38
22.3. Graph
Purpose
To present numerical data in an easy-to-spot visual form. Line graphs are
used to depict change or variation over time. Bar charts are used for
comparing quantities between persons, regions, time intervals etc. Pie
charts are used to show percentages or proportions of different
components of a specific item.
Procedure
1. Select the type of chart or graph most suitable for the type of data
to be depicted.
95
90
85 Average
Marks
Obt. 80
75
70
1 2 3 4 5
6
Subject : Maths Phy Chem. Eng. Drawing Mechanics
A bar chart is frequently used to emphasize a point; this will dictate the
way in which the chart is drawn. The chart is normally used to emphasize
the variation and unevenness in data. Using this information, further
investigation could follow to determine why the variation was occurring.
The items are usually ranked from high to low, with the lengths of the
bars indicating the value or frequency that a bar represents.
A special version of the bar chart is the 100% bar chart which has all its
bars of equal lengths; each bar (representing 1000% of the item) is
When the data are spread across a continuous range of values, a bar
chart is equivalent to a histogram.
33
31`
29
27
25
October November December January
TRIAL RUN
PRESENTATION EVALUATIO ACTION PLAN
PREVENTIVE REVIEW
FOLLOW-UP ACTION
22.6. Histogram
22.7. STRATIFICATION
Stratification is a technique to present data into different groups or
categories to bring out the differences between groups and explain the
‘abnormality’ of histograms. The classification may be based on machines,
operators, shifts or any other source of variation.
Purpose
Purpose
Purpose
The purpose of all control charts is to track a process with a view to take
timely corrective action as soon as the process goes out of control.
The steps involved in setting up control chart for variables - X & R charts
are
1. Determine the size of sample group.
2. Design a suitable Tally sheet.
3. Collect data under standard operating conditions (without
adjustments)
4. Calculate the average (X) and range (R, the difference between the
largest and the smallest value in the group).
5. Calculate the average of averages – X.
6. Calculate the average range - R.
7. Calculate the control limits for X chart using the formula
UCL = X + A2* × R
LCL = X – A2* × R
* Values of A2 for more common group sizes are given in table 1.
8. Calculate the control limits for the R chart using
UCL = D*4 × R
LCL = D*3 × R
* Values of D3 & D4 for common sample group sizes are given in the Table
1 for other group sizes refer to any standard book on SQC or SPC.
9. Divide the graph into two portions for (1) X Chart and (2) R Chart.
10. Periodic observations are taken on X-axis and X & R on Y-
axis.
11. Select appropriate scales and draw central lines and control
limits.
12. Plot the observations and look out for indications of the
process going out of control or other trends.
STEP 1 :
Week
1 2 3 4 5 6 7 8 9 10
55 90 100 70 55 75 120 65 70 100
75 95 75 110 65 85 110 65 85 80
65 60 75 65 95 65 65 90 60 65
80 60 65 60 70 65 85 90 65 60
80 55 65 60 70 65 70 60 75 80
X= 72 76 73 71 71 90 74 71 77
71
R=25 40 35 50 40 20 55 30 25 40
STEP 2 :
Xavg = 74.6
Ravg = 36.0
n=5
STEP 3 :
UCL8 = Xavg + A2 Ravg
= 74.6 + (58) (36.0)
= 74.6 + 20.88
= 95.48
X Chart
100
95
90
85
80
Xavg = 85.48
75
70
65
60
55 LCL = 53.72
50
1 2 3 4 5 6 7 8 9 10
Fig 6: X CHART
80 R Chart
UCL = 75.86
75
70
65
60
55
50
45
40
Ravg = 36.0
35
30
25
20
15
10
5
LCL = 0
0
1 2 3 4 5 6 7 8 9
Fig 7. R CHART
7. Plot the observations and join the points to get a line graph.
8. Look for signs of process going out of control or other trends to take
timely action.
Some occurrences that can give indications of the process going out of
control or show trends are:
1. A single observation out of control limits.
2. A series of seven consecutive observations on the same side of the
average.
3. A series of seven consecutive readings showing an increasing or
decreasing trend.
4. A cyclic, periodic or recurring wavy pattern. Cause must be
investigated.
5. Consecutive very high and very low readings may indicate
unnecessary adjustments
The data collected for control charts can also be used to ascertain process
capability. One way to check if the process is capable or not is to draw
lines for specification limits on the control chart. If the difference between
UCL and LCL is less than specification tolerance, the process is capable of
meeting the specification; otherwise it is not capable. From the data one
can also directly assess process capability without drawing control charts.
The steps involved in this are:
1. Calculate standard deviation (σ) by using the applicable formula
Purpose
To identify high priority items by separating the ‘vital few’ from the ‘trivial
many’ or as they are now known ‘useful many’.
Procedure
Preparation of a Pareto Diagram has the following steps:
1. Design a suitable Tally Sheet to collect data. :
2. Collect required data.
3. Calculate the contribution of each item.
4. Arrange the items in descending order of their contributions. If there
are too many small items, combine them under ‘others’.
5. Draw X and Y axes. Different items (in descending order) are on X-
axis and the frequency of their occurrence on Y-axis. An additional Y-
axis is drawn on the right to indicate percentages. Select appropriate
scales.
6. Draw bars representing the frequency of the items.
7. Draw bars from the second item onwards at a level where the bar of
the previous item ends. This is an optional step not always
recommended, but it makes the next step easier.
8. Draw a line graph connecting the diagonals of the new bars drawn as
instructed in step 7.
9. Title the diagram suitably.
Make a pareto diagram for this company and select the most important problem
to solve.
100 100%
90
80
70
60 Most Important
Problem to solve
50 wrong print
40
30
20
10
D C B F A G E
22.14. Brainstorming
feels free to express themselves. The production of random ‘off the top of
the head’ ideas is encouraged; the emphasis is on quantity rather than
quality. No criticism, expression of doubt or hasty judgment of the ideas
is allowed until after the brainstorming session; this is crucial if the
barriers to creative thinking (such as the fear of seeming foolish or
impractical) are to be overcome.
All ideas, without exception, are recorded and made visible to all the
participants. Each input and contribution is recognized as important, and
the output of the whole session is seen in context. The continuing
involvement of each participant is assured and the group's future is
reinforced by mapping out the exact follow up actions (analysis and
evaluation of the ideas) and the future progress of the project.
Purpose
Procedure
Do’s Don’ts
a. Encourage everyone to a. Lei some persons dominate
participate, others.
b. Stress quantity rather b. Criticise or ridicule an
than quality of ideas, idea however wild or silly.
c. Encourage humour, c. Permit interruptions.
d. Keep all ideas posted in a d. Tape record proceedings.
manner all members can see. e. Restrict ideas.
Once the session on idea generation is complete, the group can take up
prioritising and selecting ideas for immediate follow-up. The steps
involved in this part of Brainstorming are -
1. Check if apparently identical ideas are really same or there is some
different angle.
2. Identify and group together related ideas.
3. Have a brief discussion in support of ideas (surely not against any
ideas) if desired.
4. Shortlist ideas for follow-up action by consensus or voting.
5. If voting is used every member gets the same number of votes, say
five or 10. One can give all votes to one idea or distribute his votes
one each to as many ideas or any other combination. The total votes
polled by each idea are counted and a priority list finalised.
Purpose
3. Enter them in rectangles and connect them to the spine by the ‘middle
bones’.
4. Brainstorm to collect as many ‘causes’ in each category as possible
and enter them as sub-categories.
5. Discuss the relative importance of the causes.
Employers
Materials
Motivate & empower all Safety &
Standardization Concern Ownership & Involvement
Vendor Development
Variety Reduction
Suggestion Schemes
Communication
Optimize Materials
Reward & Recognition
Value Engineering
How to Achieve
Company
Objective
Skill Building Customer feedback
Simplified Information Flows
Systems Price
Improve customer
Succession Planning Training Needs Accurate & timely Contact
Identification Integrated information
business
systems
User friendly After sales Benchmark
Training & Development Product training service
Train & Develop All Develop an effective Build Database of market &
employees to their company Business
customer Requirements
full potential Systems
Purpose
To document clearly the flow of a process as a series of operational
steps as carried out at a given time. The Flow Charts are then used to
identify duplication of efforts or missing steps with a view to make the
process more efficient.
Procedure
Purpose
To plan and schedule projects or processes, monitor their progress.
Procedure
The steps in the preparation of an Arrow Diagram are
1. Identify all the steps or activities in the process or project.
2. Determine the order of activities and alternate routes.
3. Prepare a flow chart of the process or project.
4. Check the time required to perform each step or activity.
Electrification
6 9
Procure Electric
Material
Purpose
To generate a diagram showing the relations between cause and effect as
well the interrelations between various causes.
Procedure
Preparation of Relations Diagram consists of the following steps –
1. Decide the problem or the ‘effect’ for which causes are to be found. Write
it in the big rectangle in the centre of the board or flip chart paper.
2. Brainstorm to generate primary causes and write them in different
rectangles around the central rectangle with effect. Connect each of the
causes to the effect with lines with arrows pointing towards the effect. It
would be convenient if causes likely to be related are written adjacent to
one another.
3. Keep asking 'why?' to generate secondary and tertiary causes for each of
the primary causes. Keep asking 'Why' till a root cause is reached. Follow
the same procedure for all the primary causes.
4. Connect secondary, tertiary and root causes to the effect through a
series of lines with the arrows always pointing towards the effect.
5. If the primary causes are also related as cause and effect, connect them.
Connect the other related causes to show as many interrelations as
possible.
6. Identify the root causes to which the effect is connected by a large
number of routes. Such root causes are likely to be the causes
contributing maximum to the effect.
Purpose
Procedure
Identify work
Develop a list
Education
Empowerment Involvement
Transport
Better Facilities
Housing
This is an organizing tool, useful, for example, in sorting out ideas generated
through a brainstorming session. It is particularly necessary when a large
amount of information, ideas, opinions or issues have been collected in
situations when a process needs defining, or customer requirements need
identifying, or when a problem needs solving.
Purpose
Procedure
Technical Details
• Floor Plan
BUILD UP AREA
• No. Of Rooms
• Details of Material
used
Location Amenities
• Central Gardens • Water Park
• Near to school &
• Cafeteria
Offices
• Good Transport, • Club
Telegraph, Postal,
educational facilities • Library
Nearby
Features Economy
• Air conditioned • Reasonable Pavia
• Mosaic designer tiles • Easy installment
• Kitchen Garden Lift • Loan facility
• High quality fittings
A necessary first step should be to decide on the period over which the cost-
benefit analysis will be performed. All the potential costs in setting up the
action or solution should be considered at this stage. The next step is to
consider all the factors involved which will either incur costs or provide
benefits. Consideration should be given to hidden cost factors such as
training, maintenance costs and so on. Costs and benefits should be
estimated conservatively.
The final analysis should be based on the calculation of the benefit to cost
ratio, and the net benefit, perhaps in conjunction with non-financial aspects.
The results can be used to evaluate a number of options.
1.4. How satisfied are your customers with your product or service? How do
you measure their satisfaction?
Group 2. Questions about issues concerning the process performance:
2.1 What are the characteristics of your process output that can be
measured to determine whether it meets your customer's
requirements?
2.2 What major quality problems prevent you from meeting your
customer's requirements?
2.3 What are the obstacles standing in the way of resolving these quality
problems, and what would it take to remove these obstacles?
Group 3. Questions about issues concerning the relationship with the
supplier:
3.1 Which suppliers or subcontractors affect your capability to meet your
customer’s requirements? How do you select them?
3.2 What are your primary supplies and what are your requirements for
these supplies?
3.3 How do you communicate your requirements to your suppliers and
subcontractors? Do you help them to meet these requirements?
3.4 How satisfied are you with your suppliers or subcontractors? Do you
provide feedback to them about their performance?
Most statistical tools start with collection of data, for which an appropriate
Tally Sheet has to be designed as the first step. In most judgmental tools,
generating a large number of ideas or alternatives is very important. The
technique of Brainstorming will be used for idea generation. This too has
been usually mentioned among the steps in the procedure for the tool.
Besides this, for solving a problem, a series of tools may have to be used.
For instance, one may use a Cause-and-Effect Diagram to find the causes for
a problem, collect data (Tally Sheet), study the relative contributions of
various causes and prioritise (Pareto Diagram), analyse the data (using
Scatter Diagram of Stratification) and after solving the problem, may
monitor the process by using an appropriate Control Chart.
If the problem is more complex, one may use a Relations Diagram to study
the causes of the problem and then use a Tree Diagram to search for
solutions. For developing a new product, one may use an Affinity Diagram to
group customer requirements in convenient categories and then use a Matrix
Diagram or Matrix Data Analysis Diagram to assist in designing the new
product to meet those requirements.
Experience and practice of tools will be the best guides in the selection of the
right tool or combination of tools for a given purpose. As mentioned in the
introduction, the tools are easy to understand but difficult to master. Only
practice will make you perfect. So, make frequent use of the tools and
techniques and develop expertise in their use.
2. Data − Assess Quality Define specific reason for At all times Universal.
collection & Control collecting data. Decide on
Analysis − Control a mes. criteria Attribute vs.
product Variable vs. Rank; assure
− Regulate a accuracy of measuring
process equipment ( min. 5 times
− Accept / greater than produced
Reject a requirement ) ; randomise,
product stratify data collection ( time
− Interpret , material, machine,
observations operator, type & location of
defects ) analyse data using
several S.P.C. D.O.E. tools.
5. Translate data Convert tally sheet data into For process Universal
Histogram into a picture of bar graph (Histogram) or capability tool for
Frequency the average & line graphs (Frequency studies in pre prioritizatio
Distribution spread of a Distribution) showing the production or n in mfg. Or
quality relationship between various production white collar
characteristics values of a quality work.
characteristics & the number
of observations (or
percentage of the total) in
each value.
8. Control Maintain the Select the control parameter • Not for Engineers,
Charts parameter with product characteristics study problem technicians,
minimum process capability. Set solving workers
variation after control limits – Monitoring • Production
major cause process control
causes have
been captured &
reduced.