Thomas A. Little, Ph.D.

President, Thomas A. Little Consulting

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Audience

Presentation is designed for those Executives

and Managers who are considering
implementing Six Sigma and want to
understand its core concepts and benefits.
Provides an overview and orientation of six
sigma methodologies and organizational
requirements. The Executive Overview is
presented prior to six sigma implementation,
Champion and Black Belt training.

382 Stanwick Street

Brentwood, CA 94513
1-925-285-1847
drlittle@dr-tom.com
www.dr-tom.com
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Objectives

As a result of attending this course the participant will

be able to:

• Describe the Six Sigma Breakthrough strategy

• Understand the Champion’s role in the Six Sigma Initiative
• Relate the roles and responsibilities of the Champion, Black Belt,
Green Belt and Team Members
• Identify projects with high probability for success
• Understand the DMAIC methodology and how it applies to
improvement projects
• Establish and utilize dashboard metrics
• Assist in project management and project goal completion

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Presentation Outline

Section I Six Sigma Introduction

Section II Management and Organizational Infrastructure
for Six Sigma
Section III DMAIC Breakthrough Methodology
Section IV Implementation Strategy

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Section I

Section I Six Sigma Introduction

What is Six Sigma?
Three elements of Six Sigma
DMAIC roadmap
Expected benefits of Six Sigma
Corporate results of Six Sigma

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Technical Definition of Six Sigma

Technical Definition (Motorola)

75%
LSL USL
±1.5 σ
12.5% 12.5%

Cp=2 Cpk=1.5 Cp=2 Cpk=1.5

3.4 DPMO 3.4 DPMO
Cp=Cpk = 2

- 6σ −5σ −4σ -3 σ −2σ −1σ 0 +1σ +2σ +3σ +4σ +5σ +6σ

6σ to LSL 6σ to USL
Evolution to:
A Management driven, scientific methodology for product and
process improvement which creates breakthroughs in financial
performance and Customer satisfaction

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What is Six-Sigma?

• Management mandated and directed improvement

program focused on breakthroughs in financial
performance and customer satisfaction
• Uses Champions, Black Belts and Green Belts to
facilitate change
• Focused on core business and Customer needs
• A systematic method for process and product
improvement
• A Greek symbol for measuring performance
variation
• A metric for evaluating performance quality
• A standard of excellence (3.4 defects per million
opportunities)

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Customer Satisfaction + Efficient Systems =
Improved Profitability

Two types of projects to improve financial performance:

Increase Revenue “Grow the Business”
Improve Customer satisfaction, sales, capacity and market position
Decrease the Cost of Goods Sold
Reduce variation and defects
Improve yields
Understand root cause of issues and eliminate the source of problems
Automate process “workflow”
Improve process performance and reduce waste using lean principles
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Reduce Process Variation & Defect Rates

Off-Target Too Much Variation

Centered
On-Target
Center Reduce
Process Spread

The objective is to understand customer

requirements and reduce
process variation and defects 9
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Breakthrough and Continuous Improvement

Breakthrough Strategy

1 2 3 4 5

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Three Emphasis Areas for Six Sigma

Focused on product design excellence, design for manufacturability,

Customer satisfaction and cost reduction within all components of
the development and new product introduction process.

Focused on operational excellence, Customer satisfaction and cost

reduction within all components of the operation. Areas of focus
include Sales, HR, Finance, Materials, etc.

Focused on product production excellence, variation and defect

reduction, lean production techniques, Customer satisfaction and
cost reduction within all components of the production and delivery
process.

Six Sigma touches on all aspects

of the Business Enterprise
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Past Improvement Activity Failure Modes

Unsuccessful Projects
No clear Management mandate
No roadmap for the project…
not sure where we are going
No dedicated resources
No Management and performance review
No ability to measure performance and
examine effectiveness… not sure if we
accomplished anything
No financial ROI during project definition
and measurement at completion
No clear answer as to “why are we doing
this project?”
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What Makes Six Sigma Work?

• Select and work on the most important

problems and projects to the business
and Customer
• Assure those projects impact customer
satisfaction and financial performance
• Allocate the time to get the work done
• Have your best people work on them
• Provide those individuals with all the
training, tools, and resources they need
to make the performance breakthrough
• Provide Management direction, support
and routine review of performance
• Require a well thought out, objective and
data driven solution
• Verify the dollar savings of your efforts
• Sustain the benefits of the solution over
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Six Sigma 3 Critical Elements

Defining and using business objectives and metrics that

focus our attention on performance and defects that are most
important to the customer and have the greatest potential for
impacting the bottom line

Dedicated Systematic
resources and Approach to
focused improving
infrastructure, performance
trained in the and reducing
use of the 6 defects which
Sigma problem are important to
solving and the customer
process (qualitative &
improvement statistical)
methodology

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Strategic Business and Quality Metrics

CSI, Sales, delivery times, cost per

unit, Yield, DPU, DPMO, customer
response times, Web hit rates,
Rework/scrap rates, etc.
(Critical Business Elements)

Management objectives
and dashboard forms the
core of the strategic
Business & Quality
Metrics and is flowed
down to other
departments and process
areas to provide leading
and lagging indicators of
performance 15
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Hierarchy of Operational Dashboards

Can we see measurable

Executive
Dashboard
progress in our key
business critical metrics?

Level 1
Processes
Director
Level

Level 2
Processes
Manager
Level

Level 3
Processes
Engineering
Level

Level 4
Processes
Operator
Level 16
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Six Sigma DMAIC Road Map

Define
Identify Project, Champion and Project Owner Key Analytical Tools
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis Process Mapping and
Map the Process
Develop Project Plan
Modeling
Measure
Determine Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Measurement Systems
Develop Data Collection and Sampling Plan
Validate the Measurements
Analysis & Process
Measurement Systems Analysis Capability
Determine Process Capability and Baseline

Analyze
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Statistical Tests, Modeling
Determine Root Cause(s) Using Data & Root Cause Analysis
Improve
Design of Experiments
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Brainstorming
Implement Solution
Determine Solution Effectiveness using Data
Design of Experiments,
Control FMEA, & Validation
Statistical Process Control
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Statistical Process Control
Close Project and Communicate Results 17
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 Process Flow for achieving 70%+ Improvement

Champion
Select project that is Review
Review and Authorize Communicate
considered critical to performance
operational success
approve process and celebrate
and assure
solutions change results
results

Black Belt
Develop alternative
Form team and Determine
solutions and
follow DMAIC for financial
complete benefit
project management benefit
and risk assessment
Process or
Product
Implement and
Understand root Validate
standardize
cause of problem Solution
process changes

For a breakthrough to occur… everything is on the table 18

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Six Sigma Results

Improved Customer satisfaction

• Assure products and services meet customer
requirements
Improved quality, efficiency and cost of goods sold
• Waste, defect and variation reduction
• Financial savings (hard and soft)
Self-sustaining infrastructure
• Defined roles and responsibilities
• Empower Champions, Black Belts and all employees to
make meaningful improvements in performance
• Communication
Commonality
• Language, training materials, tools & software
• Methodology
• Expectations
• Solutions
• Financial tracking (establish, maintain metrics)
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Honeywell & DOW Results

"We achieved $600 million in Six Sigma cost savings in 1999, but
cost savings are only one part of the story. Delighting customers and
accelerating growth completes the picture. When we are more
efficient and improve work flow throughout every function in the
company, we provide tremendous added value to our customers–
through higher quality solutions that are more competitively priced,
delivered on time and invoiced correctly. That makes us a more
desirable business partner."
- Honeywell 1999 Annual Report http://www-a.honeywell.com/investor/ar99_intro_smarter.html

"We expect Six Sigma to elevate our company to an entirely new

level of operational performance, delivering $1.5 billion in EBIT
cumulatively by 2003 from the combined impact of revenue growth,
cost reductions and asset utilization."
- Dow 1999 Annual Report http://www.dow.com/financial/99ann/letter03.htm
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GE & DuPont Results

"The Six Sigma initiative is in its fifth year — its fifth trip through the
operating system. From a standing start in 1996, with no financial
benefit to the Company, it has flourished to the point where it
produced more than $2 billion in benefits in 1999, with much more to
come this decade."
- GE 1999 Annual Report http://www.ge.com/annual99/letter/letter_three.html

"Six Sigma implementation continues to gain momentum. At the end

of the year 2000, there were about 1,100 trained Black Belts and
over 3,400 active projects. The potential pretax benefit from active
projects was $700 million."
- DuPont Fourth Quarter and Full Year 2000 Earnings Report http://www.dupont.com/corp/whats-new/releases/01/010124.html

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Section II

Section II Management Infrastructure for Six Sigma

Site Champion and Executive Staff
Hands on Champions
Master Black Belt
Black Belts / Green Belts
All Employees

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Interrelationship Digraph of Six Sigma Infrastructure

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Site Champion and Executive Staff

Functions
Set the vision
Create the mandate for improvement
Initiate and fund the activity
Establish and maintain the reporting structure
Responsibilities (10%+ of time)
Identify Champions in each functional area
Monthly review of projects by Champion
Measure Champion results
Training
4 hour Executive Overview
2 day Champion Training
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Hands-On Champion

Functions
Communicate the vision
Create the mandate for improvement
Provide direction and remove barriers
Achieve financial results and communicate
success
Responsibilities (10%+ of time)
Identify Black Belts and Green Belts
Identify and approve all Six Sigma projects
Biweekly review of all projects
Measure Black Belt performance
Training
2 day Champion Training 25
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Master Black Belt

Functions
Provide technical expertise on Six Sigma and
Lean methodology to Black Belts and Green Belts
Work in support of the Black Belt and Champion
Assist in education and training activities
Responsibilities (100% of time)
Work daily with team members, Black Belts and
Champions
Participate in the review of projects
Monitor all Six Sigma projects
Training
15 day Black Belt Training, 2 years minimum as a
Black Belt and a Masters Degree in a related field

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Black Belts and Green Belts

Functions
Black Belts 100% dedicated for 2 years to process
improvement, Green Belts 20%
Work on improvement projects with other Green
Belts and Team Members
Achieve financial results for each project Goal of
$350K+
Responsibilities (100 – 20%+ of time)
Use the DMAIC methodology to create
breakthroughs in performance
Report progress to the Champion
Hold team meetings and provide excellent project
management
Work with the Master Black Belt
Training
15 day Black Belt Training
5 day Green Belt Training
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All Employees

Functions
Work to achieve excellence in daily work
Participate in Six Sigma projects
Support team activities
Identify opportunities for improvement
Responsibilities (5-10%+ of time)
Participate in Six Sigma activities as
requested
Complete action items as assigned by the
team
Attend team meetings
Training
1 day Six Sigma Employee training
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Section III

Section III DMAIC Breakthrough Methodology

Define
Measure
Analyze
Improve
Control

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DMAIC Process Improvement Methodology

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DMAIC Process

Establish Controls on the critical Xs so

the improvements will be maintained

Identify ways Metrics (Ys) linked

to improve to CTQs
the process X1
Y1 Define the Problem
and validate X2 PROCESS Y2 Project Objective
X3
the solution X4
Y3
Project Goal
Measure and Analyze
data and process
performance to determine
the critical variables and
root cause of the problem
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Six Sigma DMAIC Define

Define Activities
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan

Define Quality Tools

Project Charter and Plan
Effort/Impact Analysis
Process Mapping
Tree Diagram

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“Define” Flow

VOC,
Effort/Impact
Examine Analysis
Candidate
Projects Resource Requirements
Project No:
Project Name:
SIX SIGMA
Project Charter
Location:
Business
General Information Review Schedule
Activity
Start
Date
Effort / Impact Analysis
GB Projects BB Projects
Project Leader: Segment: D 10
GB/BB: Business M
Master BB: Objective: A 9
H/O Champion: Customer I
Team Members: Name Function % Time Initials CTQ(s): C 8
Current Close
7
Process
Capability: Sigma, Cpk, DPMO, Cycle-time, etc. 6

Impa ct
Date:
5 Impact
4
Project Definition 3
Proje ct Problem Statement:
2

Develop and 1
0
0 2 4 6
Effort
8 10 12

Approve Project
Proje ct Obje ctive Statement:

Charter
Proje ct Scope/Limitations:

Define Customer Proje ct Goals and Targets:

CTQs Proje ct Plan:

See page 2 of the project c harter. Project Plan and Gantt Chart
Expected Benefits:
Hard Dollar Savings:
Soft Dollar Savings:
Time frame:

Strategic:

Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Signature: Signature:
Other: Other:
Name: Name:
Signature: Signature:

Date:

Response
Response
(Y)
(Y) What is the most
appropriate end point Who are the customers for
What must my for the process? What our product or service?
Who are the suppliers for our product suppliers provide to Determine the start and end points of the process product or service does What are their
or service? How capable are they in my process to meet associated with the problem and the major steps the process deliver to requirements for
meeting our process requirements? my needs? in the process. the customer? performance
Operational
Operational
Definition

Complete
Definition Suppliers Input Process (High Level) Output Customers
1 1 Start Point: 1 1
CTQ(s) 2 2
3 2 1

SIPOC and
2 1 2
Voice
Voice of
of Product
Product Target
Target 2 Operation or Activity 3 1
The
The Customer
Customer arrives
arrives on-
on-time
on-time 3 1 2
3 1 2 4 1

Process Map
2 3 2
3 4 5 1
4 1 5 2
Specification
Specification 2 6 6 1
Limit(s)
Limit(s) 3 7 2
Add additional rows where needed 8
9
10
11
End Point:
Error
Error Rate
Rate
© Thomas A. Little Consulting 2002

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Voice of the Customer DMAIC
Methodology
Define

(VOC)

• Why don’t you guys learn how to

meet a schedule?
• Your service quality to poor
• When will you learn how to provide
service and a Customer first attitude?
• Why don’t you tell us when there is a
problem?
VOC is often full of emotions.
• I sent out e-mail after e-mail with no
We need to restate customer
response!
statements into fact based,
• Why do you try and make your performance requirements
customers responsible for your that we need to focus on
quality problems?
Of course… Customers
• Your RMA frequency is unacceptable
expect perfection

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 DMAIC
Critical to Quality (CTQ) Methodology
Define

Characteristics
Detailed
Specifications
Use the tree diagram to
define Customer CTQs Response Performance to
(Y) Schedule

Deviation from schedule in

Measure
Customer completed units
Requirement
100% of committed ships
Customer Product
Target prior to 5:00 pm as received
Needs arrives on-time on Customer receiving dock

Specification LSL = 0 hours late

Limit(s) USL = 6 hours early

Allowable
defect < 3.4 DPMO
Rate
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 DMAIC
Moving to Specific Candidate Projects Methodology
Define

Champions drive the project selection as they own the

business objectives aligned to the Executive Staff

Interview Complete
Determine
Customers CTQ gap
Critically the effort
(Internal and analysis and
examine required for
External), on prioritization
Business each project
core business Candidate
Determine a
Objectives issues and Conduct effort to Six Sigma
candidate
and select opportunities impact analysis and Project(s)
project list
projects for prioritize the project
aligned to improvement Estimate list With financial
project impact!!!
them with Use Voice of Select the top
benefits in
financial the Customer projects and
financial and
impact and when determine the
measurable
benefits collecting and Champion
terms & rank
analyzing data and Owner
projects by
their impact

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 DMAIC
Potential Projects Methodology
Define

Determine a
Conduct
candidate
effort to Candidate Six
project list and
impact Sigma Project(s)
potential
analysis and
benefits:
prioritize the Project
Manufacturing project list Champion and
Materials Project Effort Impact
Owner
Management 1
2
6
3
1
3 Effort / Impact Analysis
3 4 3
NPI 4 7 3
10
5 10 3
6 2 6 9
Finance 7 5 6 8
8 8 6 7
Design 9 1 9
Impact
6
10 9 9 Impact
5
HR 4
3
2
1

Projects with high impact are 0

0 2 4 6 8 10 12

preferred Effort

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 DMAIC
Detailed Project Selection Criteria Methodology
Define

• Achieving breakthroughs requires prioritization of opportunities.

There are many more opportunities than there is time and
resources to work on them.
• When selecting a process, we are trying to prioritize exactly which
problem to solve. If the problem is clear we move on to define the
problem.
• In selecting a project, consider these issues:

a. Financial and strategic benefits

b. Improved customer satisfaction, CSI
c. Compatible with current goals and objectives
d. Translatable to other areas of the business
e. Probability of success
f. Level of effort, amount of resources needed to
complete project

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 DMAIC
Example: Prioritizing Projects Methodology
Define

Are your projects the things you like to do, easy to do or important to do?

Benefits Business Goals Risk

Rank Potential Projects Champion Financial Translatability Defined Supports Clear Complexity p(S) Total
2 Reduce lead time HC 9 9 9 9 6 6 3 80%
3 Receiving process MP 6 9 6 3 9 6 9 77%
4 Customer complaints DS 6 6 6 9 9 6 6 73%
5 MRO material reduction LC 6 3 6 9 9 6 6 70%
6 Change control system JM 6 9 0 6 6 6 6 63%
1 Inventory reduction AB 9 9 9 9 9 9 6 93%
7 Chip test yields JF 6 3 0 0 9 6 6 53%
0%
0%
0%

Complexity is a
Supports function of time to
Solutions are likely Currently Clear problem
Manager immediate complete and the
Hard dollar to be applicable defined definition with Probability
Project name responsible goals and difficulty of the
savings across the site and business clear project of success
for results objectives problem. Scope
the corporation objective boundaries
for the org. (target for BB
project is 7-8)

3 < $100k 3 = local

6 = $300k 6 = some external 3 = <3 months
9> $1M 9 = all locations 6= 4-5 months
9= 6+ months

© TLC, 2002

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 DMAIC
Develop Charter Methodology
Define

SIX SIGMA
Project Charter
Resource Requirements General Information Review Schedule

step you will establish Project No:

Project Name:
Project Leader:
Location:
Business
Segment:
Activity
Start
D
Date

ion for the project

GB/BB: Business M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function

cumenting
% Time Initials CTQ(s): C
Current Close
Process
Capability: Sigma, Cpk , DPMO, Cycle-time, etc.
Date:

• Problem Project Definition

Project Problem Statement:

• Objective & Scope

• Goal/target
Project Objective Statement:

• Resource requirements Project Scope/Limitations:

• Financial benefits Project Goals and Targets:

Project Plan:

• Strategic benefits See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits:
Hard Dollar Savings:
Time frame:

Soft Dollar Savings:

Strategic:

• Team resources Other Benefits:

Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:

• Project approval Functional Manager:

Name:
Signature:
Black / Green Belt:
Name:
Signature:
Other: Other:
Name: Name:
Signature: Signature:

Date:
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 DMAIC
Develop Charter – Problem Statement Methodology
Define

A clear description of the problem to

communicate to other people in the process
and rally support to improve it

• A description of the issue or problem

• What, when, where and how the problem occurs

• What is critical to quality (CTQ) from the customer

perspective? What is nonconforming to
specifications? Description of
the “Pain”
• Define the boundaries of the problem, how big is the
problem?

• What are the consequences of the problem to the

Company and or Customer?

• Do not state a solution when describing a problem 41

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 DMAIC
State Objective and Scope Methodology
Define

Project Objective and Scope

• What process will the team focus on?

• What are the boundaries of the process we are to improve?
Where does the process begin? Where does it end?
• Which customers will be affected / included
• What is outside of scope for the team?
• What constraints or timelines must the team work under?

Customer or Suppliers Site or Line Process

Process 1

Process 2

Process 3
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Goal Statement DMAIC
Methodology
Define

 Describe, in measurable terms, what success will look like when

you’ve solved the problem

 Include a statement of the performance level that will satisfy your

CTQ and the time frame in which you plan to implement the
improvement. State targets and tolerances where appropriate.

Goal Statement:
Reduce late shipment costs (Express Mail) to all
customers by 70% from $1.5M to $45K by January 200x.

Where When How Much

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 DMAIC
Determine Resources Methodology
Define

Determine the Stakeholders

Who will need to be involved and at what
level for this project to be successful?
Determine Team Members
Who will need to be on the team and at
what % of their time?
Determine any Capital, Test or HR
Requirements
What materials, testing, software
programming, outside services or
equipment will be needed? Are those
costs acceptable to management?
Other Support to be Successful

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Project Plan DMAIC
Methodology
Define

SIX SIGMA Project Plan Project Name & Number:

Site: Location: Revision Date:
Problem Statement:

Improvement Objective and Scope:

Goal and Targets

Metric(s)
Project
Benefits
plan
Baseline Goal Improvement Goals
Date remains
Date
Date through
Date
the life of
Phases
Tasks and Timelines
Activity Assigned to: Start Date: End Date: Status:
Project
Review Date
the project
Define
Project's Customer CTQ
Project Charter
SIPOC
Financial analysis of project's benefits
Detailed process map
Measure

Analyze

Improve

Control

Team Members
Team Leader: On Plan/On Schedule
Team BB: Behind Plan, with effort can return to schedule
Team Members: Behind Plan
Task Completed
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Champion: © TLC, SSEO 1.5 22002
Benefits DMAIC
Methodology
Define

Benefits may include any of the following:

• Hard dollar savings (cost reduction)
• Soft dollar savings (cost avoidance)
• Improved Customer satisfaction
• Improvement in the performance metrics (cycle time, yield,
defects, etc.)
• Improved job satisfaction (reduction in frustration)
• When considering benefits… what must change for the savings to
occur?
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Financial Benefits Example DMAIC
Methodology
Define

Cost Improvements Quantified:

Curr Cost
($1, 000's
Process per w eek) New Cost Improvement
Touch-up & Handsolder $ 73 $ 70 95% $ 3.7
Wash $ 24 $ 23 95% $ 1.2
QA/ Final Inspection $ 58 $ 45 78% $ 12.5
Rework $ 20 $ 16 78% $ 4.4
QA (QA E ngineers) $ 5 $ 4 78% $ 1.0
Production Control/Expediting $ 27 $ 26 95% $ 1.4

Total per week for costs elements above $ 207 $ 183 per Week $ 24.2

Total per Year $ 10,782 k $ 9,525 k per Year $ 1,257 k

Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.

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Begin Mapping the Process with a SIPOC DMAIC
Methodology
Define

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Move to a detailed Process Map DMAIC
Methodology
Define

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Model and Automate Workflow

Discrete Transactions
Performance Monitoring and Improvement

JMP for analysis

and root cause
determination

Workflow
Automation

Database

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Begin Management/Champion Reviews DMAIC
Methodology
Define

Once the project charter has

been approved and the team
formed around the project it is
essential to begin periodic
management reviews of project
performance.
Black Belts and Green Belts
meet with Management to
report performance.
Champions report to executive
staff on project performance.
Where possible integrate
reviews into current
management forums.

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Six Sigma DMAIC Measure DMAIC
Methodology
Measure

Measure Activities
Determine Project Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline

Measure Quality Tools

Quality Function Deployment (QFD)
Measurement Systems Analysis (MSA)
Check sheet
Process Capability
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“Measure” Flow

Data Collection Plan

List Of & Sample Size
Measures
(Xs and Ys) Data Collection Plan
Define What to Measure Define How to Measure Who will
Do it?
Sample Plan

Type of Operational Measurement Data Tags Needed Data Collection Person(s) What? Where? When? How Many?
Measure Measure Definition or Test Method to Stratify the Data Method Assigned

Name of X or Y Clear definition of Visual Data tags are Manual? State What Location How The number
parameter attribute or the measurement inspection defined for the Spreadsheet? who has measure is for often of data
or condition discrete defined in such a or automated measure. Such Computer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility? collected collection data collected
measured product or repeatable results Test instruments location, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.

MSA, GR&R,
Data Collection,
Process Baseline Inspector
and Capability Effectiveness
Determination

Goal
Restate
Add Baseline Improvement
Specifications Goals
and Compute
Sigma and
Capability
53
© TLC, SSEO 1.5 22002
Determining Critical Xs and Ys
(Xs) Leading Process --> Product --> Lagging (Ys)

XZY errors DPU/Yield

Temperature
Offset Scrap Manufacturing
Viscosity Cost of Quality
Pressure Rework, RMA

Supplier, Processing time

Receiving
and Process Transaction Cycle
Times
Wait time Time
Delivery time

Transactional Accuracy of transaction

and product
defects and
errors by Transaction time Customer
operation satisfaction
Product or service quality

T&Cs,
planning
systems, Inventory levels
production
Materials management Materials costs
systems
54
© TLC, SSEO 1.5 22002
Using QFD to Prioritize and Select DMAIC
Methodology
Project Ys and Xs Measure

Product or Process: Current Measures Needed Measures

Deviation from target on delivery time

Unit Delivery Deviation from Commit

Time to Schedule Confirmation

Customer Satisfaction

First Pass Yield

Units delivered
Delivery Time

Defect Rate
Importance

Cum Yield
RMAs
Customer Wants
Rapid schedule confirmation 4 3 0 3 0 3 0 3 3 0 9
Total
24
Translate
On time performance
Defect free products
1
2
9
0
0
9
6
6
0
9
3
0
3
3
3
0
9
0
3
6
3
0
39
33
customer
Routine cost reduction
Routine WIP reduction
5
7
3
3
3
0
6
3
6
3
3
0
0
0
0
0
0
0
9
3
0
0
30
12 requirements
Minimum lead times 6 0 0 3 0 3 0 6 0 0 9 21
into objective
Total 18 12 27 18 12 6 12 12 21 21 0 0 0 measures
Unit of Measure
Raw data available?
Min.
Y
#
Y
CSI
Y
PPM
Y Y
# %
Y Y
# Min.
Y
%
Y
Hrs.
N
and prioritize
Std. report available?
Reliable data source?
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
N
N
Y
N
Y
N
N
project
Frequency of the report?
Needed frequecy?
Daily
Daily
Wk
Wk
Wk
Wk
Wk
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Shift
n/a
Daily
metrics
Target 5:00 0 5 0 Plan 100% 0 0 100% 1 hr.
Lower Limit 4:45 n/a 4.5 n/a 5% 95% 1 -0:15 50% n/a
Upper Limit 5:15 1 n/a 100 5% n/a 1 0:15 n/a 2 hr.
Measurement capability
Measurement validated?
Competitive comparison
Ranking 5 9 6 8 7 10 2 1 4 3

Relationship key: 9 Strong relationship

6 Moderate relationship
55
3 Weak relationship
0 No relationship © TLC, SSEO 1.5 22002
 DMAIC
Performance Standards for Each Y Methodology
Measure

All Processes Need Clear Specifications

Larger is Better Smaller is Better Target is Best

One-sided - lower specification limit only Target zero and upper specification limit Two-sided specifications

LSL USL LSL USL

Unacceptable Good Unacceptable

Unacceptable Good Good Unacceptable

56
© TLC, SSEO 1.5 22002
Develop Data Collection Plan DMAIC
Methodology
Measure

Elements for a data collection plan

Data Collection Plan

Define What to Measure Define How to Measure Who will Sample Plan
Do it?
Type of Operational Measurement Data Tags Needed Data Collection Person(s) What? Where? When? How Many?
Measure Measure Definition or Test Method to Stratify the Data Method Assigned

Name of X or Y Clear definition of Visual Data tags are Manual? State What Location How The number
parameter attribute or the measurement inspection defined for the Spreadsheet? who has measure is for often of data
or condition discrete defined in such a or automated measure. Such Computer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility? collected collection data collected
measured product or repeatable results Test instruments location, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.

Data means nothing… without an understanding of what the

data is, how it was collected, and the conditions under which it
was measured
Data properly collected and analyzed will help us to understand the
root cause(s) of the problem

57
© TLC, SSEO 1.5 22002
Collect Visual Data to See the Problem DMAIC
Methodology
Measure

Where possible use a Digital or Video Camera and

capture the defect or process problem. “A picture is
worth a thousand words in” understanding and
communication of the origin and nature of problems. 58
© TLC, SSEO 1.5 22002
MSA for Validated Measurement DMAIC
Methodology
Measure

Short Term Long Term

Capability Capability
True Value

xA Accuracy
xB
xC Reproducibility xA
xB Stability
Repeatability xC

First period of time Second period of time

Useful for characterization of variable gages

and inspection capability
The data is only as good as the quality of the
measurements 59
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map DMAIC
Methodology
Analyze

Analyze Activities
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data

Analyze Quality Tools

Statistical analysis of data
Cause and effect or event diagram
Histogram
Pareto diagram
Run chart
Scatter graph

60
© TLC, SSEO 1.5 22002
Analyze Flow

Project Data
Xs and Ys
Measure
Responses or Outputs (Ys) Factors (Xs)
Dependent Variable USL LSL Target Independent Variable(s) USL LSL Target

© Thomas A. Little Consulting 2002

Analysis and
Stratification of Data

Root Cause Root Cause

Analysis Validation
Summary

% Explained and % Unexplained 61

© TLC, SSEO 1.5 22002
Benchmarking DMAIC
Methodology
Analyze

No company is the best at all it does. Typically

there are some core competencies that make a
company great. There is much to be learned
by benchmarking other companies who are the
best at what they do.
Benchmarking begins with identification of
the process or business area we wish to
examine. This should be clear from our
problem statement and objective.
Knowledge that there are other ways of doing
things can be obtained from benchmarking.
Benchmarking often speeds up the solution
generation process.

62
© TLC, SSEO 1.5 22002
Root Cause Analogy DMAIC
Methodology
Analyze

Like pulling weeds… unless we address

the root that causes the problem, poor
results will keep coming back.
Addressing the results or symptoms of a
problem will never provide lasting
solutions - given a little time… the
problem will come back
We need to understand the Root
Cause of the problem from our
problem statement

63
© TLC, SSEO 1.5 22002
Forward Problem Solving Versus Backwards DMAIC
Methodology
Analyze

Define Problem
Collect Problem Related Data

Forward Analyze Data

Problem Solving Determine Root Cause(s)
Validate
No Idea of Root Cause Determine what is unexplained

Define Problem
List Probable Root Causes
Backwards
Collect Supporting Data
Problem Solving
Validate
Determine what is unexplained
Strong Idea of Root Cause
64
© TLC, SSEO 1.5 22002
Evaluate Data to Determine Root Cause DMAIC
Methodology
Analyze

Goal is to
determine cause &
effect relationships

65
© TLC, SSEO 1.5 22002
Stratify Data to Understand Root Cause DMAIC
Methodology
Analyze

Data Vendor Purch. Order Mat. Week in

Collection Agent Date Type Quarter ordered

Late 1
Deliveries 2
100

# Late Items
3 80
60
40
20
0
ASICs Connectors Flex c. SMT partsSolder
25 Material Type
# Late Items

20
15
10
5
0
Tom Shauna Kris Adam John
25
20 Purchasing Agent
# Late Items

15
10
5
Stratification: Analysis of the same
0 data grouped and classified by the
IBM DEC HP NEC MOT
data tags to examine frequencies at
Vendor
different logical levels 66
© TLC, SSEO 1.5 22002
List Of Vital Few Xs and Critical Ys DMAIC
Methodology
Analyze

Collected X and Y data

Hypothesis testing
t-test
F-test
ANOVA
Chi-square
Logistical regression
Regression analysis and Model fitting

List Of Probable Root Causes and key process sensitivities

67
© TLC, SSEO 1.5 22002
Analysis of Data DMAIC
Methodology
Analyze

Provides the ability to visualize the

relationship between process
variables and to understand the
source and fundamental behavior of
problems

68
© TLC, SSEO 1.5 22002
Analyze the Process Map for Waste DMAIC
Methodology
Analyze

When Mapping the Process Consider the Following:

What you think it is... What it actually is... What it could be...

69
© TLC, SSEO 1.5 22002
Check List for Root Cause Determination DMAIC
Methodology
Analyze

Check and investigate all those that apply to the problem under consideration
Measurement Materials
 Poor repeatability  Defective
 Poor reproducibility  Off-specification
 Poor accuracy  Contaminated
 Poor stability  Improper storage conditions
 Poor linearity  Labeling or identification
 Invalid measurement or test method  Incorrect amount or quantity
 Excessive test or measurement  Improper transportation or handling
 Expiration date exceeded or unknown
Methods  Problem with product design
 Incorrect definition  Wrong materials


Incorrect sequence
Missing definitions, implicit rules Environment
 Poor process controls  Physical environment (temperature, lighting, ESD)
 Poor measurement controls  Security or safety systems
 Lack of critical information  Distractions in the environment
 Incorrect information  Particulates
 Excessive queues or out-time  Contamination
 Handling


Orientation People
Poor management of change  Level of staffing
 Incorrect revision  Training
 Competency or experience
 Supervision
Machine (process & test) 

Conflicting goals
Compliance with procedures
 Machine maintenance or calibration  Personality issues
 Machine controls or lack of controls  Physical ability or function
 Machine fault or defect  Cognitive ability and function
 Software or network fault  Knowledge deficit
 Machine related contamination  Communication with peers or supervisor
 Machine tooling or fixtures
 Incorrect machine or tester
70
© TLC, SSEO 1.5 22002
5 Whys Example DMAIC
Methodology
Analyze

State the problem, then ask why did this problem occur
until you reach root cause.

Missing Parts on the Board During NPI WHAT?

Improper cassette loading Missing cassette Machine Malfunction
Why?
Failed to locate cassette Part not available
Why?
Supplier problem Order incorrect Lack of lead time
Why?
Design change Customer schedule Why?
Design error Performance improvement Why?

71
© TLC, SSEO 1.5 22002
Root Cause(s) Determination DMAIC
Methodology
Analyze

Root Cause is achieved when we have identified the source of

the problem (use the 5+ Why approach)
For any problem there are typically many Roots. They vary in
frequency of occurrence. We need to know each root and their
associated frequency and or % of impact.
Proper Root Cause identification requires some explanation
of the failure mechanism based on understanding the process,
the physics, mechanics or chemistry. We must be able to
explain how changes in X cause changes in Y (otherwise we
don’t understand it!)
Root Cause is verified when we can recreate or manipulate
the problem
To fix the Root Cause it must be controllable
Knowing Root Cause does not assure we know the solution to
the problem. Solutions can be formulated once we know the
root of the problem
72
© TLC, SSEO 1.5 22002
List of Potential Root Causes DMAIC
Methodology
Analyze

Final investigation needs to be made to determine if the

factors identified are actually the root cause of the problem

73
© TLC, SSEO 1.5 22002
Summarize All Root Cause Analysis DMAIC
Methodology
Analyze

For each possible root cause, determine those you will verify.
Summarize each possible root cause with the following codes:

Non Contributor (NC) Does not contribute to the problem

Possible Contributor (PC)
Insufficient Data (ID)
Data not available (IDX)
Root Cause (RC)
Non Controllable Root Cause (RCX)
A factor which may have an effect on
the response
Not enough data to determine the
effect of the factor (may require additional effort)
Data not available concerning the
factor
Determined to be a root cause of
the problem
A root cause; however, outside the
control of the company, individual or
team
74
© TLC, SSEO 1.5 22002
Root Cause(s) Validation and Summary DMAIC
Methodology
Analyze

• List all probable Root Cause(s)

• Rank them in terms of effect size
• Determine the additional tests
and or manipulation you plan to
use to validate the factors (X)
which have the greatest effect on
the response (Y)
• Identify potential methods for
controlling the factors which
create the problem
• When validation is complete
summarize all selected Root
Cause(s) and their effect size
75
© TLC, SSEO 1.5 22002
 Root Cause Analysis Example DMAIC
Methodology
Analyze

Root Cause(s) Analysis Summary

Analysis Method Completed Investigation % Validation Validation

Process Review Potential Factor Review Date Who? Method Result Effect Method Date
Priority 1 Residual Material in Bulk Fill 15-Mar Tien Review use logs for PK RC 100% Test for residual material 28-Mar
Process Map
Priority 3 Wrong Materials 9-Mar Tien Review inventory use for PK NC 0%
Visual Analysis
Priority 4 Improper use of SOP 12-Mar Kris Review SOP use on the line NC 0%
Cause and Effect (Event) Analysis
Priority 2 Invalid Assay 12-Mar Anna Verify Test Procedure NC 0%

NC - Non Contributor IDX - Data not available % Unexplained 0%

PC - Partial Contributor RC - Root Cause

ID - Insufficient Data RCX - Root Cause Not Controllable

76
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Improve DMAIC
Methodology
Improve

Improve Activities
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data

Improve Quality Tools

Design of Experiments
Brainstorming
FMEA
Risk assessment

77
© TLC, SSEO 1.5 22002
Improve Flow DMAIC
Methodology
Improve

Design Experiments
Based on RCA
where appropriate
Brainstorm Potential
Solutions, Costs,
Risks and Benefits

Test and Validate Review and approve

solutions solutions with
Management
Installed
New
Process
Equipment

DPU

N
Implement changes Examine
and determine Reach opportunities for
improved process Goals? standardization
capability. Y and translation
78
© TLC, SSEO 1.5 22002
Brainstorm Potential Solutions DMAIC
Methodology
Improve

Use general brainstorming techniques to generate

process and design change ideas which will eliminate the
root cause of the problem.
Separate ideas into short term and long term. Long term
with take 3 months or more to implement, short term is less
than 3 months.
Use voting and management involvement to generate
consensus on direction of approach
A single solution is not required at this point in the
improvement process. 2 - 3 short term solutions should be
selected and ranked. 1 to 2 long term solutions should also
be selected for evaluation and experimentation.

79
© TLC, SSEO 1.5 22002
Consider Solutions That Remove Process Waste DMAIC
Methodology
Improve

Seven muda:
1. Over production ahead of demand
2. Waiting for the next process step or information
3. Transporting materials unnecessarily
4. Over processing
5. Inventory that is more than bare minimum
6. Motion by employees that is unnecessarily
7. Producing non-conforming parts

For each area of waste, examine each process step to determine if

waste occurs in the operation and how to remove the waste from the
production system

80
© TLC, SSEO 1.5 22002
Solutions Centered on Lean Methods DMAIC
Methodology
Improve

Production
Control

Material
Flow

Machine
Management

Reduce Workplace
inventories and Management
production
costs while
improving
quality Process
Management

81
© TLC, SSEO 1.5 22002
Consider Solutions that Automate the Workflow DMAIC
Methodology
Improve

Discrete Transactions
Performance Monitoring and Improvement

JMP for Analysis

Periodic Management
Reports

Workflow
Automation

Database

82
© TLC, SSEO 1.5 22002
DOE to Characterize, Improve the Process or DMAIC
Methodology
Product and Get Ready to Control Improve

Design experiments which improve the

robustness of the process. Improve process
parameter design, tolerance design and
reduce the source of defects.

Once experiments are

complete critical process
parameter sensitivities can
be modeled and determined
how to be targeted and
controlled.
83
© TLC, SSEO 1.5 22002
Evaluate Cost, Complexity, Impact, DMAIC
Methodology
Benefit and Risk for Each Solution Improve

• Assure solution costs and timelines are acceptable to

management
• Determine the complexity of each solution in terms of
time and ease of completion
• Identify potential impact (change to the baseline) of
each solution. Explain how each solution will address
the root cause and impact real change in performance.
• Financial benefit = benefit of solution – cost to
implement
• Assess the risks associated with each solution and the
likelihood of occurrence
• Determine need to involve/notify customer concerning
any product or process changes
• Make sure that proper validation occurs associated with
the solution prior to across the board implementation
84
© TLC, SSEO 1.5 22002
 Solution Evaluation Form DMAIC
Methodology
Improve

Solution Evaluation Form

List Root Cause(s) List Solutions % Effect Estimated Cost Complexity Estimated Benefit Risk* Priority Validation?
Root Cause 1 Solutions 1
% of cost time or savings High Order Need
effect of effort to due to Medium of potential to
solution solution implement solution or solution verify
will have implementation short term? or Low implmentation effectiveness
on the long term? improvement 1st, 2nd, 3rd of solution
root cause in customer
satisfaction

Root Cause 2

* Use Risk Assessment Form

Evaluate solution alternatives to assure

the best solution has been selected

85
© TLC, SSEO 1.5 22002
 Evaluating Risk DMAIC
Methodology
Improve

Risk Assessment Form

List the Solution or Failure Mode Severity Probability Score Action Owner Due
Major Elements of (What can go wrong) (1-10) (10 is (High scores Plan Date
Your Solution List each failure mode 10 is Worst very probable) need attention)

1. New Software a) Software does not link 10 6 60 Need to test database link Fred 15-Feb
correctly to database early during implementation James
b) Software is not available on 6 7 42
time Need to review progress Bill 25-Feb
c) Software needs revisions 3 9 27 during weekly meeting Watson
prior to deployment

2. Solution a)

b)

c)

3. Solution a)

b)

Evaluate failure modes and probability

to minimize any negative effects of
changes to the product or process
86
© TLC, SSEO 1.5 22002
 DMAIC
Involve the Champion, Discuss with Management Methodology
Improve

Once the team has completed

their work it is now time to review
solutions with Management.
Allow the team to benefit from a
fresh perspective and add
Management’s insight and
experience to the priorities.
This step improves the alignment
of Management to the Teams
efforts

87
© TLC, SSEO 1.5 22002
 DMAIC
Evaluate Improvements in Series Methodology
Improve

Installed
Retrained the New
Workforce on Process
the Process Equipment

DPU

(miss, no change) (hit, improvement)

Implement one solution at a time. Allow for sufficient time

to determine effect, then move to next solution.

88
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map DMAIC
Methodology
Control

Control Activities
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results

Control Quality Tools

Statistical Process Control
Out of Control Action Plan (OCAP)
Design Changes to eliminate the defect

89
© TLC, SSEO 1.5 22002
“Control” Flow

Select SPC controls

Based on Solution,
where appropriate
Brainstorm
appropriate controls
to sustain the gains

Implement and Review and approve

validate controls control plan with
Management

Cost Improvements Quantified:

Realize savings and

Curr Cost
($1, 000's

Determine long
Process per w eek) New Cost Improvement
Touch-up & Handsolder $ 73 $ 70 95% $ 3.7

determine final
Wash $ 24 $ 23 95% $ 1.2
QA/ Final Inspection $ 58 $ 45 78% $ 12.5
Rework $ 20 $ 16 78% $ 4.4

term owner and

QA (QA Engineers) $ 5 $ 4 78% $ 1.0
Production Control/Expediting $ 27 $ 26 95% $ 1.4

Total per week for costs elements above $ 207 $ 183 per Week $ 24.2

financial benefits
close the project
Total per Year $ 10,782 k $ 9,525 k per Year $ 1,257 k

Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
and ROI
90
© TLC, SSEO 1.5 22002
Benefits Of Control Phase DMAIC
Methodology
Control

25 Process
Process
Process Improvement Improvement
Improvement
20

15
No Controls
Improvement

10

0
17
25
33

49

65
73
81
89
97
105
113
121
41

57
1
9

Time

91
© TLC, SSEO 1.5 22002
Process Controls
TYPES of CONTROLS
Measurement Based Control
Management Dashboards & Review
Statistical Process Control
Documentation
Process Flow Diagrams
Product Drawings, Schematics
Process Management Plans
Written Procedures
Training
Design
Design out Product Problems
Mistake Proofing
Robust Design Concepts
DMAIC
Methodology
Control
Test & Inspection
Test (error prone)
Inspection (poor effectiveness and costly)
Periodic Checks
Scheduled Maintenance
Scheduled Calibration
Training and Operator Certification
Audits
Periodic Management Reviews
Incentives
Measures which are associated with a bonus
Measures which are associated with a penalty
92
© TLC, SSEO 1.5 22002
Elements of a Control System DMAIC
Methodology
Control

Sensor (measurement technology & control chart)

Allows the system to monitor the
current process performance
Alarm (control limits and trend rules)
Establish limit(s) and run rules
which require attention
Control Logic (OCAP)
A predefined set of actions to
follow that are alarm specific
Validate (next sample)
Assure the action was effective

Add alarms where needed and assure we do not ignore valid

alarms. SPC methods should be used to establish alarms.
93
© TLC, SSEO 1.5 22002
Define Sustaining Requirements DMAIC
Methodology
Control

What Vacuum will be

created when you leave?

Now that the solution is known and you are ready to finish the project….
• Determine the activities that need to continue after the team is dissolved
• Define who is doing them now… who should be the long term owner?
• Determine who needs to do them in a sustaining long term mode
• Define the set of tasks or systems that must be installed prior to
completing the project and backing out of the work
• What else will be needed to make the solution effective and sustainable?
• From the above issues, develop a transfer plan
94
© TLC, SSEO 1.5 22002
Realize the Benefits of Improvement DMAIC
Methodology
Control

How did you justify the cost savings for the project?
What changes will have to occur to create the
savings?
Based on the impact of the benefits of the solution
have you made changes to the process to realize the
benefits?
Possible Actions:
Re-deploy personnel
Reorganize the floor
Reduce inventory levels in Planning System
Eliminate inspection or test operations
Modify Vendor/Customer contracts
Other cost saving changes to the operation
95
© TLC, SSEO 1.5 22002
Close the Project or Improvement Team DMAIC
Methodology
Control

• The goals have been met and the team has been successful
• The solutions have all been implemented and demonstrated to be
effective
• Assure all documentation is complete
• Determine what standardization opportunities are available
• Make sure the accomplishments of the individual or team are
appropriately recognized personally and publicly
• Measure and communicate results of the project (benefits and savings)
• Celebrate! We did it!
96
© TLC, SSEO 1.5 22002
Section IV

Section IV Implementation Strategy

97
© TLC, SSEO 1.5 22002
How Do We Do It?

Define
Goal alignment
Roles and responsibilities
Develop 6σ
Assemble materials
Identify people
Select software
Select training/consulting resources
Deploy
Executive Overview
Champion training / black belt & project selection
Black Belt training / project execution
Management review of progress
Realize results

98
© TLC, SSEO 1.5 22002
Typical Six Sigma Implementation Timeline

Start 1st Wave March-August, 2002

1st Month
Six Sigma Executive Overview Training ½ day
Champion Selection
Champion Training 2 days
Select software (JMP) and schedule the training resource (ASQ-SVC)
Black Belt Selection and 1st Wave Six Sigma Projects
2nd Month
100% Commitment of Black Belts to Process Improvement
Begin Black Belt, Green Belt Training
2 days Define, 3 days Measure, 3 days Analyze, 3 days Improve, 3 days
Control, scheduled every three-four weeks for 5 sessions
Begin Management Review of Six Sigma projects
Select Master Black Belt (Hire or Contract)
6 + Months
Realize savings from 1st Wave, savings fund second wave etc.
Establish key metrics and dashboards if not present
Register in September for ASQ Certified Black Belt
99
2nd Wave – September 2002 © TLC, SSEO 1.5 22002
Expected Cost/Benefits of One Wave of Training

Cost/Benefit Analysis of One Wave of Six Sigma

Costs
Training and Consulting Days Training Costs % of ROI
Executive Overview 0.5 $ 1,475 0.0%
Champion Training 2 $ 5,900 0.2%
Black Belt Training
Define 3 $ 8,850 0.2%
Measure 3 $ 8,850 0.2%
Analyze 3 $ 8,850 0.2%
Improve 3 $ 8,850 0.2%
Control 3 $ 8,850 0.2%
Master Black Belt 50 $ 60,000 1.7%
Total Training and Consulting Costs $ 111,625 3.1%
Employee Costs Number Days Labor Costs
Champions 5 60 $ 60,000 1.7%
Black Belts 8 1056 $ 844,800 23.4%
Green Belts 12 312 $ 249,600 6.9%
$ 1,154,400 32.0%
Benefits
Activity Number Savings Total Benefits
Completed Projects 15 $ 325,000 $ 4,875,000
ROI (annualized) $ 3,608,975
100
© TLC, SSEO 1.5 22002
Implementation Case Study

Six Sigma Financial Analysis

3Q 4Q YTD

Total Department Expense $ 25,281.00 $ 187,156.00 $ 212,43

Six Sigma Project Benefits

Alta $ - $ - $
Quote on Hold Process $ - $ (5,074.13) $ (5,07
PN Reduction $ - $ - $
Lost Units $ - $ (187.60) $ (18
Defective from Stock $ - $ - $
FTF $ - $ 25,740.00 $ 25,74
Fed Ex Sweep $ - $ 71,867.04 $ 71,86
NEC RMA Optimization $ - $ 562,328.94 $ 562,32
CSP Warranty $ - $ 542,729.99 $ 542,72
Total Six Sigma Project Benefits $ - $ 1,197,404.24 $ 1,197,40

Results from one wave of training as verified by the Finance

department

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ASQ-SVC & TLC Team Up for Training Excellence

Six Sigma Improvement

Programs for West
Coast Industries
Certified Black Belt
Exam Date: Registration:
October 19, 2002 August 23, 2002

The Statistical Discovery Software TM

Workflow Modeling and Automation

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JMP and Ultimus Software Support

All ASQ-SVC Participants receive software use for six

months during their Six Sigma training

JMP Software for

Windows and Macintosh
links statistics with
graphics, helping you
explore your data, make
discoveries and gain
knowledge for better
decision-making. See
why so may professional
choose JMP as their
quality-improvement tool
of choice for Six Sigma
and quality improvement.
Ultimus software allows for
effective process modeling,
analysis and automation.
Transactional modeling and
full workflow automation
tools are available using
Ultimus®.
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Low Cost, High Quality, Local Six Sigma Training

Public and On-site Training

Champion Training
Six Sigma for Champions 16 hrs. $975 Mar/21-22/02

Black Belt Training and ASQ National Black Belt Certification

BB Six Sigma “Define” 16 hrs. $975 Apr/4-5/02
BB Six Sigma “Measure” 24 hrs. $1475 May/1-3/02
BB Six Sigma “Analyze” 24 hrs. $1475 Jun/5-7/02
BB Six Sigma “Improve” 24 hrs. $1475 Jul/10-12/02
BB Six Sigma “Control” 24 hrs. $1475 Aug/7-9/02

Green Belt Training

GB Six Sigma “Define” 8 hrs. $475 Apr/12/02
GB Six Sigma “Measure” 8 hrs. $475 May/10/02
GB Six Sigma “Analyze” 8 hrs. $475 Jun/14/02
GB Six Sigma “Improve” 8 hrs. $475 Jul/19/02
GB Six Sigma “Control” 8 hrs. $475 Aug/16/02

Location
Harmonic, Inc. 2nd Wave begins in September
549 Baltic Way, Sunnyvale, CA. 104
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Six Sigma for Champions

Six Sigma for Champions

Dates: March 21-22, 2002
Audience & Prerequisites:
Executive officers, Directors and Managers who will define and
manage Six Sigma Projects
Content:
Section I Six Sigma Introduction
Section II Management Infrastructure for Six Sigma, Roles and Responsibilities
Section III Managing the DMAIC process
Section IV Project Selection and Charter
Section V Implementation Issues, timelines and Black Belt, Green Belt selection
Section VI Measures of Success

Location: Harmonic, Inc.

549 Baltic Way
Sunnyvale, CA
Bring your own laptop

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Black Belt Six Sigma “Define”

Black Belt Six Sigma “Define”

Dates: April 4-5, 2002
Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
PRIMARY focus of their work activities. All individuals are required to
have a project to work on and an identified Champion for the project.

Content:
Section I Six Sigma Introduction
Section II Identify Project, Champion and Owner
Section III Determine Customer Requirements and CTQs
Section IV Define Project Statement, Objectives, Goals and Benefits
Section V Define Resource/Stakeholder Analysis
Section VI Develop Project Plan
Section VII Map the Process
Section VIII Project Leadership

Location: Harmonic, Inc.

549 Baltic Way Bring your own laptop 106
Sunnyvale, CA.
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Green Belt Six Sigma “Define”

Green Belt Six Sigma “Define”

Date: April 12, 2002

Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
SECONDARY focus of their work activities. All individuals are required
to have a project to work on and an identified Champion for the project.
Content:
Section I Six Sigma Introduction
Section II Determine Customer Requirements and CTQs
Section III Define Project Statement, Objectives, Goals and Benefits
Section IV Define Resource/Stakeholder Analysis
Section V Develop Project Plan
Section VI Map the Process

Location: Harmonic, Inc.

549 Baltic Way Bring your own laptop
Sunnyvale, CA.

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Project Based and Value Oriented

All training is Hands On and applied to your company’s

projects. All training is done with computer applications.
Complete the training and complete a project.
Seating is limited! ~20 seats per class.

Registration Information
You can register on-line using www.asq-svc.org or www.dr-tom.com.
Or register for the Six Sigma public courses by contacting Tom Little
at (925)-285-1847 or by e-mail drlittle@dr-tom.com.

www.asq-svc.org

www.dr-tom.com
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Six Sigma Executive Overview Summary

• There are tremendous improvement and savings available to

companies in their operations if they will mobilize their
resources toward reduction of waste and improvement of
quality
• Six Sigma requires Leadership from the Executive Staff
• The roadmap is clear and the methods for improvement are
well defined
• Software tools make the data collection and analysis clear
• Development of an implementation and training plan is the
next step

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References & Resources

Books:
E.L. Grant & R.S. Leavenworth, Statistical Quality Control (New York: NY, McGraw Hill, 1996).
D.C. Montgomery, Design and Analysis of Experiments. (New York: NY, John Wiley & Sons,
1996).
G.E. Box, J.S. Hunter & W.G. Hunter, Statistics for Experimenters: An Introduction to Design,
Data Analysis, and Model Building (New York: NY, John Wiley & Sons 1978).
Damelio, Robert. (1996). The Basics of Process Mapping. Productivity Press, Portland, OR.
Web Sites:
Thomas A. Little Consulting at www.dr-tom.com
ASQ Silicon Valley Section at www.asq-svc.org
Software: SAS JMP contact SAS Institute at www.jmpdiscovery.com

382 Stanwick Street

Brentwood, CA 94513
1-925-285-1847
drlittle@dr-tom.com
www.dr-tom.com

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