Introduction to

Lean Six Sigma and

DMAIC

What is DMAIC and why is

it so powerful?

Learning Objectives

Understand the power of Lean Six Sigma

Realize the importance of each of the five Phases of the

DMAIC process

Understand the Lean Six Sigma problem solving approach

INTRODUCTION TO DMAIC

2006 ALCAN

Slide 2

Every Company Is Driven to Quality,

Cost, and Lead Time Reduction Goals

Quality is now a given in the marketplace

Customers demand shorter lead times

Customer loyalty and retention is critical

Downward price pressure lower costs

Lower invested capital get more output with less

Lean Six Sigma optimizes capacity, reduces process

lead time performance and eliminates variability in
all processes
INTRODUCTION TO DMAIC

2006 ALCAN

Slide 3

Integrating Lean and Six Sigma

Initiatives

Lean and Six Sigma can co-exist independently, but the benefits of integration are tremendous...

Single channel for employing limited resources

One improvement strategy for the organization

Highly productive and profitable synergy

Avoid re-inventing Lean tools

while the pitfalls of not integrating them are formidable

Divided focus of the organization

Separate and unequal messages for improvement

Destructive competition for resources and projects

Re-inventing the wheel

INTRODUCTION TO DMAIC

2006 ALCAN

Slide 4

Lean Six Sigma

Combines the time-based strategy and solution sets inherent in Lean with the cultural,
organizational process, and analytical tools of Six Sigma.

With the result that we

Respond to our customers better, faster with less waste

Six Sigma
Improve quality
INTRODUCTION TO DMAIC

Lean
Eliminate waste
2006 ALCAN

Slide 5

An Implementation Perspective
The three most important things in a
Lean Six Sigma implementation are

Focus

Focus

Focus
Its hard to be aggressive when you dont know who
to hit.
Vince Lombardi to a tackle who hadnt learned the playbook

INTRODUCTION TO DMAIC

2006 ALCAN

Slide 6

Focus Questions

Who are our customers?

What are their most important requirements?

What are our business priorities?

What is our process lead time?

Where is the Time Trap in our process?

What projects should we work on first?

What improvement tools should we use?

INTRODUCTION TO DMAIC

2006 ALCAN

Slide 7

DMAIC

Methodology that relates problems to statistical solutions

Define: who are the customers and what are their problems?
Measure: How is the process performing and how is it measured?
Analyze: What are the most important causes of the problem?
Improve: How do we remove those causes?
Control: How san we maintain the improvements?

INTRODUCTION TO DMAIC

2006 ALCAN

Slide 8

Lean Six Sigma

DMAIC Improvement Process Road Map

Activities

Review Project Charter

Validate Problem Statement

and Goals
Validate Voice of the Customer

& Voice of the Business

Validate Financial Benefits
Validate High-Level Value

Stream Map and Scope

Create Communication Plan
Select and Launch Team
Develop Project Schedule
Complete Define Gate

Tools

Value Stream Map for Deeper

Identify Potential Root

Understanding and Focus

Identify Key Input, Process and
Output Metrics
Develop Operational Definitions
Develop Data Collection Plan
Validate Measurement System
Collect Baseline Data
Determine Process Capability
Complete Measure Gate

Causes
Reduce List of Potential
Root Causes
Confirm Root Cause to
Output Relationship
Estimate Impact of Root
Causes on Key Outputs
Prioritize Root Causes
Complete Analyze Gate

Develop Potential Solutions

Evaluate, Select, and Optimize

Best Solutions
Develop To-Be Value Stream

Map(s)
Develop and Implement Pilot

Solution
Confirm Attainment of Project

Goals
Develop Full Scale

Implementation Plan

Implement Mistake Proofing

Develop SOPs, Training Plan

& Process Controls

Implement Solution and

Ongoing Process
Measurements
Identify Project Replication
Opportunities
Complete Control Gate
Transition Project to Process
Owner

Complete Improve Gate

Identify and Implement Quick Improvements with Kaizen

Project Charter
Voice of the Customer and

Value Stream Mapping

Value of Speed (Process Cycle

Kano Analysis
SIPOC Map
Project Valuation / EVA
Analysis Tools
RACI and Quad Charts
Stakeholder Analysis
Communication Plan
Effective Meeting Tools
Inquiry and Advocacy Skills
Time Lines, Milestones,
and Gantt Charting
Pareto Analysis
Belbin Analysis

Efficiency / Littles Law)

Operational Definitions
Data Collection Plan
Statistical Sampling
Measurement System Analysis
(MSA)
Gage R&R
Kappa Studies
Control Charts
Histograms
Normality Test
Process Capability Analysis

INTRODUCTION TO DMAIC

Process Constraint ID and Takt

Time Analysis
Cause & Effect Analysis
FMEA
Hypothesis Tests/Conf. Intervals
Simple & Multiple Regression
ANOVA
Components of Variation
Conquering Product and
Process Complexity
Queuing Theory

2006 ALCAN

Kaizen, 5S, NVA Analysis,

Generic Pull Systems,
Four Step Rapid Setup Method
Replenishment Pull/Kanban
Stocking Strategy
Process Flow Improvement
Process Balancing
Analytical Batch Sizing
Maintenance Excellence
Design of Experiments (DOE)
Solution Selection Matrix
Piloting and Simulation

Mistake-Proofing/

Zero Defects
Standard Operating

Procedures (SOPs)
Process Control Plans
Visual Process Control Tools
Statistical Process Controls

(SPC)
Solution Replication
Project Transition Model
Team Feedback Session

Slide 9

Define Phase
Voice of the
Customer
(VOC)

Quality

Focus Areas
Time
Cost

Growth

Voice of the
Business
(VOB)

Project Charter: Scope, Goals, Metrics

Define

Determine VOC
Determine VOB
Determine Focus Areas
Develop Project Charter S
Scope
Goals
Key metrics
Map the process

INTRODUCTION TO DMAIC

PROCESS MAP

2006 ALCAN

Slide 10

Measure Phase
Measure

Value Stream Map

Identify the key process output variable

- Y
Calculate total Process Lead Time
Develop Data Collection Plan
Perform Measurement System Analysis
Develop Control Charts
Determine Process Capability
Establish Measurement Baseline
Identify Quick Improvement
opportunities
Data Collection Plan

Forecast, 6 Month, Fax

PURCHASING

MACHINING
& ASSEMBLY

CUSTOMER
SERVICE

MRP

MRP

MRP

Forecast, 90/60/30 Day, Fax

Customer

SUPPLIER

1/Week

Order, Weekly (5-day), Fax

20,000 pcs/mo

Order, Daily, Fax

Module=100

Work Orders, Daily Release, Paper

Receiving/Warehouse
2/Day

100 pcs

100 pcs
Forged material

Raw castings
Daily schedule

Daily schedule

Forge

Machine

1000 pcs

Assy 1, o-ring, bearing, snap ring

Assy 2

Daily schedule

Daily schedule

Daily schedule

Assembly 1

Assembly 2

23.7 hours

C/T = 60 Sec
P/T = 50 Sec
C/O = 5 Min
Uptime 95%
Batch Size 100

200 pcs

C/T = 50 Sec
P/T = 40 Sec
C/O = 10 Min
Uptime 95%
Batch Size 100

3 hours

1.6 hours

Production lead time

= 122.3 hrs
Processing time
= 145 seconds

40 sec

50 sec

35 sec

Distribution
1

100 pcs

92.1 hours

20 sec

Quick
Improvement
I

5000 pcs

C/T = 45 Sec
P/T = 35 Sec
C/O = 60 Min
Uptime 80%
Batch Size 100

C/T = 30 Sec
P/T = 20 Sec
C/O = 30 Min
Uptime 95%
Batch Size 100
1.8 hours

100 pcs
Forgings, bolts, nuts, washers

Total Process Lead Time

Measurement
System Analysis

Process Capability

Control Charts
Xbar/R Chart for bore

Sam ple Mean

6.5

LSL

Process Data
Mean=5.965

5.5
Subgroup

Sam ple R ange

Process Capability Analysis for Baseline

UCL=6.435

6.0

LCL=5.494
1

UCL=3.039

R=1.770

1
LCL=0.5012
0

USL

700.000

Target
LSL

*
600.000

Mean

603.158

Sample N
StDev (Within)

19
17.9494

StDev (Overall)

17.3738

Cp

0.93

CPU

1.80

CPL

0.06
0.06

Cpm

*
Overall Capability

2006 ALCAN

Within
Overall

Potential (Within) Capability

Cpk

INTRODUCTION TO DMAIC

USL

550

570

590

610

Observed Performance

Pp

0.96

PPM < LSL

PPU

1.86

PPM > USL

PPL
Ppk

0.06
0.06

PPM Total

630

PPM < LSL

0.00

PPM > USL

368421.05

650

670

Exp. "Within" Performance

368421.05

PPM Total

690

PPM < LSL

0.03

PPM > USL

430173.30

710

Exp. "Overall" Performance

430173.27

PPM Total

Slide 11

427884.92
0.01
427884.93

Analyze Phase
Y f (x1, x2 ,..., xk )

Analyze

Identify the key process

input variables - x
Use Lean Six Sigma tools
to perform root cause
analysis to identify critical
xs

Cause & Effect Matrix

Arrive at
scheduled
time

Arrive with
proper
equipment

Dressed
properly

Delivered via
correct
mode

Take back to
room
promptly

Process Outputs

Importance

Process Steps

Cause & Effect matrix

Failure Modes and Effect
Analysis - FMEA
Analysis of Variance ANOVA
Main Effects charts
Regression
Trivial many
analysis

Process I nputs

Correlation of Input to Output

FMEA
Process Step/
Potential
Input
Failure Mode
What is the
process step
and input
under
investigation?

Total

Patient Scheduled

63

Attendant Assigned

45

Attendant Arrives

45

Obtains Equipment

27

Transport Patient

45

Provide Therapy

Notifies of Return

45

Attendant Assigned

45

Attendant Arrives

45

Patient Returned

45

Potential
Failure Effects

S
Potential
E
Causes
V
In what ways What is the impact E What causes
does the Key on the Key Output
the Key Input
R
Input go
Variables
to go wrong?
I
wrong?
(Customer
T
Requirements)? Y

O
Current Controls
C
C
U What are the existing
controls and
R
procedures
A
(inspection and test)
N
C that prevent either the
E cause or the Failure
Mode?

D
E
T
E
C
T
I
O
N

R
P
N

Actions
Recommended

Resp.

What are the

actions for
reducing the
occurrence of the
cause, or
improving
detection?

Actions
S O
Taken
E C
V C
What are the
E U
completed actions
R R
taken with the
I A
recalculated RPN?
T N
Y C
E

D
E
T
E
C
T
I
O
N

R
P
N

24

Fill carafe with Wrong amount Coffee too strong or 8

water
of water
too weak

Faded level
marks on
carafe

Visual inspection

4 128

Replace carafe

Mel

Carafe replaced

Water spilled
from carafe

None

9 360

Train employees

Flo

Employees trained

7 112

Faucet not
8
allowed to run
and cool

Finger

4 256

Train employees

Flo

Employees trained

Water too
warm

Coffee too strong

96

ANOVA
Analysis of Variance for production
Source
DF
SS
MS
F
P
plan
4
105530
26382
24.14
0.000
Error
35
38244
1093
Total
39
143774
Individual 95% CIs For Mean
Based on Pooled StDev
Level
N
Mean
StDev ---+---------+---------+---------+--A
8
1104.4
46.2
(----*----)
B
8
1162.6
33.4
(----*---)
C
8
1059.0
33.7 (----*----)
D
8
1073.9
25.7
(----*----)
E
8
1192.8
20.2
(----*---)
---+---------+---------+---------+--Pooled StDev =
33.1
1050
1100
1150
1200
Main Effects Plot - Data Means for Impurity

Main Effects Charts

Day

Shift

Regression Analysis
R egres s ion P lot

Time

Y = de m an d = -4 08 .07 2 + 6.60 80 1 X =te m pera tu

0.038

S = 10 .4 16 3

R -S q = 9 3.6 %

R -S q(a d j) = 9 2.9 %

190

0.033

Critical few

150

Y = demand

Im p u rity

170

0.028

0.023

0.018

130
110
90
70

INTRODUCTION TO DMAIC

50

2006 ALCAN

70

80

X =te m p e ra tu

90

Slide 12

Improve Phase
Forecast, 6 Month, Fax

PURCHASING

MACHINING
& ASSEMBLY

Production
Control

SUPPLIER

LSL
700.00

Target
LSL

*
600.00

Mean

646.85

Sample N

20,000 pcs/mo

Order, Daily, Fax

Module=100

Kanban
Receiving
2/Day

Warehouse

Kanban
Kanban

Kanban
Machine

Kanban

TPM
1

C/T = 30 Sec

200 pcs

1
DOE

C/T = 45 Sec

500 pcs

C/O = 10 Min
Uptime 95%
Batch Size 100
3.0 hours

USL

Assembly

Machine

1
Set-up Reduction

C/O = 30 Min
Uptime 95%
Batch Size 100

Process Capability Analysis for New Process

Process Data

MRP

Daily

Critical xs confirmed
Develop potential
solutions
Select solution
Optimize solution
Pilot solution
Develop new process
capability
USL

Forecast, 90/60/30 Day, Fax

Customer

MRP

Order, Weekly (5-day), Fax

Improve

CUSTOMER
SERVICE

20 sec

C/T = 60 Sec

Max 100
pcs

FIFO

C/T = 50 Sec

C/O = 5 Min
Uptime 95%

C/O = 10 Min
Uptime 95%

Module Size100

Module Size 100

50 sec

Distribution

Max 200
pcs

3.0 hours

1.6 hours

9.2 hours
35 sec

Within

Assembly

FIFO

50 sec

Production lead time

= 16.9 hours
Processing time
= 145 seconds

Overall

20

StDev (Within)

6.14290

StDev (Overall)

6.84277

Solutions:
1. Setup Reduction
2. Maintenance Excellence
3. Replenishment Pull System
4. Design of Experiment

Potential (Within) Capability

Cp

2.71

CPU

2.88

CPL

2.54

Cpk

2.54

Cpm

*
Overall Capability

600

620

640

660

680

700

Pp

2.44

Observed Performance
PPM < LSL
0.00

Exp. "Within" Performance

PPM < LSL
0.00

Exp. "Overall" Performance

PPM < LSL
0.00

PPU

2.59

PPM > USL

0.00

PPM > USL

0.00

PPM > USL

0.00

PPL

2.28

PPM Total

0.00

PPM Total

0.00

PPM Total

0.00

Ppk

2.28

INTRODUCTION TO DMAIC

2006 ALCAN

Slide 13

Control Phase
Forecast, 6 Month, Fax

MACHINING
& ASSEMBLY

Production
Control

SUPPLIER

MRP

20,000 pcs/mo

Order, Daily, Fax

Module=100

1) Set-up reduction
Kanban
Receiving

2) Pull Systems
3) TPM

Warehouse

Kanban
Kanban

Kanban
Machine

C/T = 30 Sec

Assembly

Machine

Kanban

200 pcs

C/O = 30 Min
Uptime 95%
Batch Size 100

C/T = 45 Sec

1
500 pcs

C/O = 10 Min
Uptime 95%
Batch Size 100
3.0 hours

Control Plan

Customer

MRP

Order, Weekly (5-day), Fax

Forecast, 90/60/30 Day, Fax

Daily

Eliminate defects
Write Control Plan
Calculate final
financial/process metrics
Document project for
future implementation
Transition project to
future owners

CUSTOMER
SERVICE

2/Day

Control

PURCHASING

20 sec

Assembly

FIFO

C/T = 60 Sec

Max 100
pcs

FIFO

C/T = 50 Sec

C/O = 5 Min
Uptime 95%

C/O = 10 Min
Uptime 95%

Module Size100

Module Size 100

35 sec

Control Plan

50 sec

50 sec

Max 200
pcs

3.0 hours

1.6 hours

9.2 hours

Distribution

Production lead time

= 16.9 hours
Processing time
= 145 seconds

Quality Checklist

First/Last Piece

Xbar/R Chart for bore

Sample Mean

6.5

UCL=6.435

6.0

Mean=5.965

5.5
Subgroup

P/M Checklist

Mistake Proofing

3
Sample R ange

Yearly Layout

LCL=5.494
1

Mistake-Proofing
100% Defect Prevention

Visual Tools for

Fast feedback

UCL=3.039

R=1.770

1
LCL=0.5012
0

INTRODUCTION TO DMAIC

2006 ALCAN

Slide 14