Lean Six Sigma Green Belt Program

NIT Jalandhar
07-09 April 2017

B N JHA
Confederation of Indian Industry
Institute of Quality
Bangalore
bnj6@Hotmail.com

1
Content

1. Overview of the session

2. LSS project Identification
3. LSS Project Steps
4. Project Charter and SIPOC
5. Measurement System Analysis (MSA)
6. Data Collection – sampling, descriptive statistics and probability distribution
7. Process Stability , capability and performance
8. process mapping & Funnelling
9. Value Stream Mapping
10. Simple Graphical tools
11. Failure Mode and Effect Analysis (FMEA)T
12. Test of Hypothesis (TOH)
13. Analysis of Variance (ANOVA)
14. Correlation and Regression
15. Improvement Plan
16. Process Standardization
17. Control Plan and Process Control
18. Mistake Proofing
19. Change Management

2
1. Overview of the session

3
Foundation for Operational Strategy:

Quality Productivity

4
 Lean Thinking
 Lean Thinking provides a way to specify value, line-up
value creating actions in best sequence, conduct these
activities without interruption and perform them more
and more effectively.

 It provides a way to do more and more with less and less

– less human effort, less equipment, less time, and less
space and provide customer exactly what they want.

5
 Evolution of Productivity Management

• Craftsman to mass production

• Time and motion study
• High speed automated machines
• Shop Floor Management:
 5S
 Continuous Improvement (Kaizen)
 TPM
 Daily Management
• Toyota Production System
• Lean Manufacturing / Lean Enterprise

6
Toyota 3M Model : Muda, Mura and Muri
Toyota has developed its production system around eliminating
three enemies of Lean:
Mura (unevenness):
can be found in fluctuation in customer demand, process times per product or
variation of cycle times for different operators

Muri(overburden)
When operators or machines are utilized for more than 100% to finish their task,
they are overburdened

Muda (waste)
Defects, Overproduction, Waiting, Non-used Talent, Transport, Inventories, Motion
and Excess processing (DOWNTIME)

7
There are typically 8 types of waste

Overproduction
Producing too much,
or producing too soon
Transportation
Non-used Talent Any nonessential trans-
Any failure to fully port/handling is waste
utilize the time and
talents of people

Inventory
Any more than the mini-mum
Motion to get the job done
Any motion that does
not add value

Waiting
Waiting on information
Defect paperwork, or decision
Correction of an error or an making
incomplete activity

Excess processing
Doing things that the customer
doesn’t need you to do
8
 Evolution of Quality Management:
Inspection
Quality Control
Quality Assurance
Total Quality Management / Six Sigma
Systems Standard for Quality (ISO 9000, TS 16949,etc)
Business Excellence Models (Deming, Malcolm Baldrige,
EFQM)

9
Six Sigma

Originally developed in 1986 by Motorola, the business management strategy is now

used in many different industries in an effort to improve the quality of products or
services produced by the business through the removal of defects.

The strategy involves creating groups of people within the business or organization
who have expert status in various methods, and then each project is carried out
according to a set of steps in an effort to reach specific financial milestones.

10
Meaning of Six Sigma

Lower Upper
Specification Limit Mean / Target Specification Limit

High
Probability
of Failure
1

3 3

Much Lower
Probability
1 of Failure

6 6
11
 Sigma Level and Level of Defect

SIGMA LEVEL WITHOUT SHIFT WITH SHIFT

1 3,17,400 6,97,700
2 45,400 3,08,537
3 2,700 66,807
4 63 6,201
5 0.57 233
6 0.002 3.4

12
2. LSS Project Identification

13
Approach to Project Selection

Identify Opportunities

Prioritise – Impact v/s Feasibility

Identify Team

Stakeholder Buy-In

Charter

14
How to identify LSS Project Opportunities?

• Business Value Driver Analysis

• Balanced Score Card

• Quality Function Deployment

• Value Stream Map

• Stakeholder Perception Analysis

• Deviations from set targets , and so on

15
Key business Value Drivers

16
 Project Prioritization

 Impact

 Critical to customer
Critical to business
Just Do It?

High
 Boiling the Ocean
(or is additional discovery &
 The problem must be solved (appropriate if scoped)
validation required?)

 Feasibility

 Solution unknown or unproven Target Zone

Moderate
Impact
 Additional analysis & validation (well scoped, impactful,
required additional discovery
required)

 Success Elements
Why Bother?
 Dedicated resource that possesses process / Just Do It

Low
(no critical importance &
product expertise requires extensive effort to
(known & proven issues,
little risk involved)
 Project meets expectations understand)
 Completed in a short timeframe 3-6 months
 Clear sponsorship and process ownership Low Moderate High
 Adhering to a structured, well communicated Feasibility
improvement plan

17
Project Drill Down

Product/Process/Service

Product A Product B
/Service A /Service B

Project-1 Project-2 Project-3 Project-4 Project-5 Project-6 Project-7

Process 1

Process 2

Process 3

Process 4

18
3. LSS Project Steps

19
Lean Six Sigma Roles

• Learn Six Sigma methodology and tools

Green Belt
• Apply Six Sigma to projects in current job scope
(GB) • Lead improvement projects with some mentoring

• Lead multiple Six Sigma projects

Black Belt
• Apply Six Sigma to individual projects working independently
(BB)
• Mentor Green Belts
• Cultural change agent for Six Sigma

• Ensure Six Sigma rigor (Project Reviews)

Master • Train others in Six Sigma
Black Belt • Mentor Black Belts and Green Belts
(MBB) • Cultural change agent for Six Sigma

• Business strategist
Quality • Oversee project selection & resource allocation
Leader • Manage/Mentor BB and Master Black Belts
(QL) • Ensure cross-functional execution
• Cultural change agent for Six Sigma

20
LSS Project Steps

Define Where is the Gap and How Much is the Gap

Measure What are the Current Performance

Analyse What are the potential root causes of & improvement opportunities?

Improve What are the solutions and how do we implement them?

Control How do we maintain the gains?

21
DMAIC v/s DFSS

DMAIC DFSS
Define Define

Understanding the
characterisation

Requirement
Process

Y’s Measure Measure

Analyse Analyse

Design
optimisation

Optimisation
Improve
Process

Optimise

Design
X’s
Control Validate

22
DMAIC

Define Measure Analyse Improve Control

4. Validate
1. Project Charter 7. Identify Sources 10. Generate 13. Implement
Measurement
of Variation Solution Ideas Solution
System

11. Select Best Fit 14. Monitor Process

2. Stakeholder 5. Collect Data 8. Funnel Causes
Solution & Results
Analysis

12. Test Solution 15. Replicate and

3. Process 6. Establish 9. Validate Root
and Confirm Share Best
Mapping Baseline Causes
Results Practice

23
Define

1. Project Charter

Define 2. Stakeholder Analysis

3. Process Mapping

Key Deliverables :
 Develop Team Charter (Business case, Goal Statements, Scope, Milestone, Team..)
 Stakeholder Analysis
 Detailed Process Map

Applicable Tools :
 Charter , RACI, ARMI
 Stakeholder Analysis, Kano Model
 Process Mapping – SIPOC, VSM

24
Measure

4. Validate Measurement System

Measure 5. Collect Data

6. Establish Baseline

Key Deliverables :
 Measurement system for Ys and Xs
 Data Collection Plan & Compilation of Past Data
 Quantification of current performance level

Applicable Tools :
 Measurement System Analysis – Attribute and Variable
 Types of Data, Sampling, Simple Seven Tools
 Descriptive Statistics, Run Chart, Process Capability Analysis, Normality Plot

25
Analyse

7. Identify Sources of Variation

Analyse 8. Funnel Cause

9. Validate Root Cause

Key Deliverables :
 List of all potential causes
 Classification of causes by impact
 Validated root cause

Applicable Tools :
 Simple Seven Tools, Process Maps
 FMEA, Gemba Investigation
 Box Plot, Run Charts, Test of Hypothesis, ANOVA, Regression, DOE

26
Improve

10. Generate Solution Ideas

Improve 11. Select Best Fit Solution

12. Test Solution & Confirm Results

Key Deliverables :
 Potential Solutions
 Best Fit solution based on feasibility and impact
 Validation of results

Applicable Tools :
 Seven Management Tools
 PAUG Matrix
 TOH, ANOVA, Regression

27
Control

13. Implement Solutions

Control 14. Monitor Process & Results

15. Replicate and Share Best Practices

Key Deliverables :
 Work Instructions and SOPs
 Control Plans
 Required communication and training

Applicable Tools :
 Control Plans, SOPs
 Control Charts
 Poka Yoke

28
4. Project Charter and SIPOC

29
Project charter – Example

Business problem Risk

The bank currently is ramping up its Credit Operations at the rate of 15- • In-ability to make changes in the system
20% per year. At this stage it is essential to improve the Turn Around • Getting full support from field staff
Time to the Benchmark Levels in industry and ensure Right the First
Time.
Project milestones & schedule
Goals
Phase Milestone Target Review Remark
completion dates
•Reduce of TAT from current level of 1-7 Days to 75% within 1 Day by
Define Project Charter
Dec 2015 Stakeholder Analysis
•Establish the measurement for First Time Right/Rolled throughput Yield Process Mapping

by Sep 2015 and reduce the gap between current level and 100% by Measure Validate Measurement System
Collect Data
one third Establish Baseline

Analysis Identify Sources of Variation

Scope (IN & OUT bonds) Team Members Funnel Causes
Home Loans to Salaried • Team Leader: AS, Validate Root Cause

Customers in southern region • Team Members: VP, MSA, AYS, Improve Generate Solution Ideas
excluding Chennai Circle Select Best Fit Solution
Test Solution & Confirm Results

Customers/Stakeholders Constraints & Assumptions Control Implement Solution

Regional Heads, Branch Managers •Availability of system data Monitor Process & Results
Replicate & Share Best
•Ability to change over the forms Practices

Financial benefits
• Opportunity gain by early on-boarding (To be estimated)
• Achieve benchmark level to enable increase in market share
Resources
•Field and branch staff
•IT

30
Project charter – Example

Business problem Risk

The service incident rates of ‘ABC’ washing machine models indicate • Timer component inventory
that machine timer failures and subsequently replacement rate is high • Server voltage fluctuation in southern region of the
during 2013 fiscal year and contributes to 40 % of overall service country
incident rate. The most of problem is observed in eastern and southern • Model obsolesce
region of the country.
Project milestones & schedule

Goals Phase Milestone Target Review Remark

completion dates

•Reduce the timer field failure for ‘ABC’ washing machine model by 80 Define Project Charter
Stakeholder Analysis
% by 20th Mar 2014 Process Mapping
•Reduce overall filed failure cost by 30 % by Q1 2014 Measure Validate Measurement System
•Customer satisfaction improvement by 60 % for ABC washing model Collect Data
Establish Baseline
for Q1 2014 survey
Analysis Identify Sources of Variation
Funnel Causes
Validate Root Cause
Scope (IN & OUT bonds) Team Members
Semi automatic machines model • Team Leader: AB, Improve Generate Solution Ideas
Select Best Fit Solution
ABAC • Team Members: RS, MS, YS, Test Solution & Confirm Results
• Supply chain Head Control Implement Solution
Monitor Process & Results
Customers/Stakeholders Constraints & Assumptions Replicate & Share Best
Service Head, Sales Head •Field technicians availability Practices

Financial benefits
• Incoming ABC Timer inventory reduction by 25 % leading to $ X save Resources
of overall inventory cost •External resources for filed tests
• Field ‘rework & part replacement’ reduction by 30 % leading to save •Reliability test labs from-5 platforms from 25th Jan to 25th
of $..Y Mar 2015

31
SIPOC Defined

SIPOC is an acronym standing for

1. S = Supplier(s)
2. I = Input(s) & key requirements
3. P = Process
4. O = Output(s) & key requirements
5. C = Customer(s)

32
SIPOC Diagram Defined

• A SIPOC Diagram is a visual representation of a high-level process map; including suppliers &
inputs into the process and outputs & customers of the process

• Visually communicates the scope of a project

How can SIPOC be used?

• SIPOC Diagrams help a team and its sponsor(s) agree on project boundaries and scope

• A SIPOC helps teams verify that

• Inputs match outputs of upstream processes
• Outputs match inputs of downstream processes

33
Step 3: Identify the customers receiving the outputs

Suppliers Inputs Process Outputs Customers

Step 1

Examples Examples
Services Internal
Step 2
Products External
Reports Vendors
Metrics End users
Step 3 Raw data Management
Downstream Process

Step 4

34
Step 5: Identify the suppliers of the process inputs

Suppliers Inputs Process Outputs Customers

Step 1
Examples Examples Examples Examples
Internal Data Services Internal
External Parts Products External
Vendors Application Step 2 Reports Vendors
Producers Raw materials Metrics End users
Management Raw data Management
Upstream Process Downstream Process
Step 3

Step 4

35
Project charter – Fill for Your Project

Business problem Risk

Project milestones & schedule

Goals
Phase Milestone Target Review Remark
completion dates

Define Project Charter

Stakeholder Analysis
Process Mapping

Measure Validate Measurement System

Collect Data
Establish Baseline

Analysis Identify Sources of Variation

Scope (IN & OUT bonds) Team Members Funnel Causes
Validate Root Cause

Improve Generate Solution Ideas

Customers/Stakeholders Constraints & Assumptions Control
Select Best Fit Solution
Test Solution & Confirm Results
Implement Solution
Monitor Process & Results
Replicate & Share Best
Practices

Financial benefits

Resources

36
5. Measurement System Analysis (MSA)

37
Reality Test……

Why not just inspect /test our defects?

No test or inspection is 100 % effective in finding defects within a product.
If you doubt this, then try this experiment:

1. Count the number of times the letter "e" appears on this page.
2. Once you have counted the number of times that "e" has been used,
write your answer on the sheet of paper provided to you by your
instructor.
3. These will be collected, and the instructor will tally the number for the
class and will show you the results.

What could be simplier? Let´s do it now.

38
Gauge R & R

Gage R&R (Gage Repeatability and Reproducibility) is the amount of measurement variation
introduced by a measurement system, which consists of the measuring instrument itself and the
individuals using the instrument.

Purpose:

• Determine how much variability is due to the gage or instrument

• Isolate the components of variability of the measurement system
• Assess whether the instrument or gage is capable (suitable for intended application)

39
What is Measurement System Error

Total variability decomposition

2total  2product  gage

2

2measuremen t _ error  gage

2
 2repeatability  2reproducibility
inherent precision of gage

different operators or conditions

40
Key Concepts

 Accuracy and Precision

 Repeatability
 Reproducibility
 Stability
 Linearity
 Measurement System Analysis – Variable Data
 Case Study 1 : Run Out – Crossed – ANOVA & X-Bar R Method
 Case Study 2 : pH – Nested Data
 Measurement System Analysis – Attribute

41
Accuracy & Precision

Accuracy refers to the closeness of a measured value to a standard or known value

Precision refers to the closeness of two or more measurements to each other.

High

Accuracy
Low
High Precision Low

42
Repeatability

Repeatability is the variation in measurements

obtained with one measurement instrument
when used several times by one appraiser
while measuring the identical characteristic on
the same part.

Repeatability

43
Reproducibility

Reproducibility is the variation in the average of the

measurements made by different appraisers using Operator B
the same measuring instrument when measuring
the identical characteristic on the same part.

Operator C

Operator A

Reproducibility

44
Stability

Stability (or drift) is the total variation in the

measurements obtained with a measurement system Stability
on the same master or parts when measuring a single
characteristic over an extended time period.
Time 2

Time 1

45
Linearity

Linearity is the difference in the bias values through the expected operating range of the
gauge.

Reference Value Reference Value

Smaller Larger
BIAS BIAS

Observed Average Value Observed Average Value

Lower part of range Higher part of range

46
Linearity (Varying Linear BIAS)

Observed Value

(No BIAS)

Reference
value

47
Acceptance Criteria

R&R DECISION

Under 10% Very Good System

10% - 30% May be Acceptable

Over 30% Not Acceptable

48
Gage R&R for Attribute Variables

Some quality inspection systems rely on human judgment – “good/bad” or “best/good/poor”

Examples
1. Invoice checking
2. Color matching
3. Contact Lens appraisal
4. Delaminating (printing)
5. Packing parameters

How can we test whether the measurement system is working accurately?

49
Gage R&R for Attribute Variables

Gage R&R Study set up steps

 Select 20-30 product samples (include mix of “good” and “bad” parts)

 Identify # of parts, # of inspectors and # of trials

 Have a master appraiser (expert) rate each part

 Inspectors rate each part an ‘x’ number of trials, at random, without knowing the master
results

50
Gage R&R for Attribute Variables (cont.)

General Guideline: 90% effectiveness is acceptable

Next steps:

 Identify best measurement system procedure

 Document standardized work

 Train all operators in new system

 Periodically check gage R&R of system

51
Action for Improvement

A. If repeatability is high compared to reproducibility

 The instrument needs maintenance.

 The gauge should be redesigned to be more rigid

 The clamping or location for gauging needs to be improved.

 There is excessive within-part variation.

 Review consistency of measurement method

B. If reproducibility is high compared to repeatability :

 The appraiser needs to be better trained in how to use and read the gauge instrument.

 Calibrations on the gauge dial are not clear.

 A fixture of some sort may be needed to help the appraiser use the gauge more
consistently

52
6. Data Collection –
• sampling,
• descriptive statistics and
• probability distribution

53
Sampling Bias

1. Selection Bias

2. Environmental Bias

3. Measurement Bias

4. Non Response Bias

54
Types of Sampling

Probability Samples

Simple Systematic
Random Random Stratified Cluster

Non-probability Samples

Quota Convenient Judgmental Snowball

55
Random Sampling

xxxx x x
xxxx x x
xxx x

Population Sample
N=2000 N=50

56
Systematic Sampling

• Systematic sampling is the selection of samples from a population according to a set

schedule or plan

Every second item is being systematically picked

57
Stratified Sampling

• When the population consists of mixture of more than one characteristics, each
forming a homogeneous group, Stratified sampling can assure that sample represents
the population adequately

M M M M F F
M M M F
M F
M M F

M M M M F F
M M M F
M F
M M F

A sample of size 6 - 4 males & 2 females

58
Clustered Sampling

• When the population consists of clusters, each having heterogeneous elements,

Clustered sampling can assure that sample represents the population adequately

East West South

M M M M M M F
F F F M
M M F M F
F F M

M M M M M M F
F F F M
M M F M F
F F M

59
Sampling Exercise 1 (a)

We want to estimate the percentage of customers who get their complaints resolved
within one call.

A customer survey will be used to gather the data.

A random sample will be used to select potential survey respondents.

1. Are there any potential problem with the approach described?

2. What other approaches might be used in this sampling situation?
3. What other information is required?

60
Sampling Exercise – 2 (a)

We are interested in improving billing accuracy and have decided to collect a sub group sample of
30 bills processed during the day for the next four days.

1. What sampling scheme(s) is planned?

2. Is there a potential to introduce bias using the plan described? If yes, how would the bias be
introduced?

3. What other approaches might be used in this sampling situation?

61
Sampling Exercise – 2 (b)

We are interested in estimating the process potential and the process performance of a batch
process.

The two important product characteristics are Potency and Impurity.

The process depends upon 5 critical process parameters and three raw material components
which are procured from various reliable suppliers.

Prepare a Data Collection Plan for the above situation

62
Sampling Exercise – 3 (a)

We want to estimate the total cycle time for order fulfillment.

There are three types of activities (large, medium, small) and four regions (North, South, East and
West).

The business randomly selected samples from Region West where data was readily available.

1. Are there any potential problems with the approach described?

2. What other approaches might be used in this sampling situation?

3. What other information is required?

63
Sample Size

Data

Variable / Continuous Attribute / Discrete

2 2
1.96s 1.96
n= n= [p(1-p)]
d d

n = sample size
s = standard deviation
d = precision
p = proportion defective
1.96 implies 95% Confidence
64
 Types of Data

Continuous / Variable Discrete / Attribute

•They are real numbers. •They are whole numbers.

•Normally, they are •Normally, they are counted

measured values. values.

•They can take any •They can take only ‘Zero’ or

value. non-fractional positive values.
•They are in steps of ‘1’.
•They are continuous.

65
 Exercise
Which of the following Data are Attribute?
1. No of customer complaints
2. Time to resolve Customer complaints
3. Fabric whiteness
4. Viscosity
5. Height of a Man
6. On Time Delivery
7. Quality Defect
8. No of breakdown

66
 Two Measures of a Process
•Central Tendency
 Mean
 Median
 Mode

•Dispersion
• Range
• Standard Deviation
• Percentile
• IQR (Q3-Q1)
• Standard Deviation

67
 Exercise

You have been asked to compare performance of A B

two suppliers based on their on-time delivery 21 21
performance over last six month. 20 20
19 19
Both suppliers have been given lead time of 20+/-
22 23
5 Days. The actual lead time of 16 orders delivered
18 22
by Supplier A and B is given in data table. 20 18
Company would like to retain them (both or one of 17 25
them) depending on your recommendation for a 20 17
long term contract. 23 20
What do you recommend? 21 15
22 18
18 23
19 22
20 17
21 16
19 24

68
Standard Deviation - Sample


N
s  (X
i 1
i  X - Bar ) 2

n -1

Xi – Individual Observations
X-Bar – Average of the Sample
n – Sample Size

Variance is Square of Standard deviation

69
 Central Tendency & dispersion in large data

60 Histogram

50

40
Frequency

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Thickness of output in mm
70
 Normal curve
Normal Curve is a smooth symmetrical bell shaped curve as shown below.

60

50

40
Frequency

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Thickness of output in mm
71
Normal Distribution
A random variable X with probability density function
( x )2
1
f ( x)  e 2 2
for    x  
2 
has a normal distribution with parameters , and  > 0.

Probabilities associated with normal distribution

f(x)

 - 3  - 1.96  -  -  - 1.96  - 3 x

68.28%
95%
99.73%

72
Standard Normal Distribution

Most of the variable data that we come across in the industry follows
normal distribution with certain mean and standard deviation.
A variate ‘Z’( standardized normal variate ) is defined which has a
mean value 0 and standard deviation 1 to interpret properties of
normal distribution.

Z = (X – X ) / SD
Z is zero at mean, positive on right side of mean and negative on left side of
mean

73
Weibull Distribution

The random variable X with probability density function

 1
  x ( x /  ) 
f ( x)    e , for x  0
  
has a Weibull distribution with scale parameters  > 0 and shape parameter  > 0

Applications:
• Time to failure for mechanical systems
• Time to complete a task.

74
Versatility of Weibull Model

Constant Failure Rate

b >1
Hazard Rate

Region

0   1

Early Life Wear-Out

Region
 1 Region

0 Time t

75
Binomial Distribution

The binomial random variable ‘X’ is the number of successes (failures) in ‘n’ trials.

n
P ( X  r )    p r q n  r ; r  0, 1, 2, ...., n
 
r
where, p  probability of a success ( failure) on a sin gle trial
q  1- p
n  number of trials
r  number of successes (failures) in ' n' trials
n n!
  
 r  r!(n  r )!
Mean  np
Variance  npq

76
Poisson Distribution

The Poisson random variable ‘X’ is the number of events that occur in specified period of time.

e   r

P( X  r )  ; r  0, 1, 2, ....
r!
where,   Mean number of events during a given time
Mean  
Variance  

77
7. Process Stability, Capability and Performance

78
Types Of Variation

Special cause: Something different happening at a certain time or place

Common cause: Always present to some degree in the process

79
Causes of Variation

Common Causes
- Many small sources
- Stable
- Relatively predictable
- Permanent -unless action taken.

Special Causes
- One or few major sources
- May be irregular
- Unpredictable
- May reappear unless action taken

80
 Stability

 A process is said to be stable for a period of

time when it operates under the influence of
chance causes alone

 Process output from a stable process follows a

defined statistical distribution (most of
continuous characteristics follow normal
distribution)

81
81
 Process capability

 Process capability is the ability of the process to

meet the customer requirement in the form of
specification for the characteristic under study

Process capability Index :

Cp = Tolerance / 6*SD

82
Process Capability Index Cpk

Cpk is lower of two indices Cpu and Cpl

USL - X-Bar
Process Capability (Cpu) =
3s

X-Bar - LSL
Process Capability (Cpl) =
3s

83
Sigma Level of a Process

The Sigma Level is Z-value that indicates how well that process is performing.

USL - X-Bar
SIGMA LEVEL (ZU) =
s

OR

X-Bar - LSL
SIGMA LEVEL (ZL) =
s

Sigma Level is 3 times Cpk

84
Example

L = 600
U = 650
Average = 625
S.D. = 10
Sigma Level (Z) =
Process Capability Ratio (Cp) =

L Mean U

85
Example

L = 600
U = 650
Average = 625
S.D. = 5
Sigma Level (Z) =
Process Capability Ratio (Cp) =

L Mean U

86
Example

L = 620
U = 630
Average = 625
S.D. = 5
Sigma Level (Z) =
Process Capability Ratio (Cp) =

L U
Mean
87
Example

L = 600
U = 650
Average = 640
S.D. = 5
Sigma Level (Z) =
Process Capability Ratio (Cp) =

L U
Mean

88
Consequence of Process Shift

1.5 
A
B

A = 0.002 ppm

B = 3.4 ppm

LSL Target USL

Value
4.5 
6

89
1.5 Sigma Process Shift

-1,5  +1,5 

The ± 1,5  shift

Defects Defects
aggregates the dynamic
variation of the mean.
It represents the average
shift in a typical process
occurring over many
cycles of this process.
Defects Defects

LSL Target USL

Value

90
Defects per Million Opportunities  Sigma

SIGMA LEVEL WITHOUT SHIFT WITH SHIFT

1 3,17,400 6,97,700
2 45,400 3,08,537
3 2,700 66,807
4 63 6,201
5 0.57 233
6 0.002 3.4

91
Critical to Quality – Examples (Sigma Level of Attribute Characteristics)

Ticket booking example

• Unit: Each ticket received by customer
• Defect definition: a ticket with wrong booking
a ticket not legible enough
a ticket given after 30 minutes

Pizza delivery example Defective ticket

• Unit: each order placed
• Defect definition: an order delivered after 20 minutes
an order not delivered hot
an order not delivered with salt & pepper
an order not delivered at all

92
Develop Operational Definition

An Operational Definition is a precise description of the value for the parameter we

are trying to measure.

It includes what parameter is, how to measure it and Source of data

Purpose:
 Removes ambiguity
 Identifies what to Measure
 Identifies how to measure it
 Identify Source of data

93
Operational Definition - Example

On time departure

 An airline wants to measure its on-time-departure efficiency. They have chosen the
unit of measurement as ’each flight’

 Before they go any further, they want to arrive at the operation definition of on-
time-departure

 An on-time departure is one in which the plane leaves the parking on scheduled
departure time

 Any flight not leaving the parking on scheduled departure time would be a ‘defect’

 Is there anything missed out?

94
Definitions

Defect (D)
Anything that results in customer dissatisfaction.
Anything that results in a non-conformance,

In the figure below, four products are made; filled dot indicates a defect.

95
Formula

Defects per Unit

DPU = D/U
9/4 = 2.25
Defects per Opportunity
DPO = DPU/Opportunities per unit
2.25/5 = 0.45
Defect per Million Opportunities
DPMO = DPO*1,000,000
0.45*1,000,000 = 450, 000

96
Defects per Million Opportunities  Sigma

DPMO
1,000,000 DPMO Z  Level *

66.810 3,00
100,000
38.950 3,25
22.750 3,50
10,000 11.870 3,75
6.210 4,00
1,000 2.890 4,25
1.350 4,50
560 4,75
100 5,00
233
86 5,25
10 32 5,50
10,5 5,75
3,4 6,00
1
2.5 3 3.5 4 4.5 5 5.5 6 6.5
Sigma

* +/- 1,5Sigma shifted process

97
8. Process Mapping and Funneling

98
Process Mapping

 Should describe :

 Major activities / tasks

 Sub processes
 Process boundaries
 Inputs
 Outputs
 Process & Product Parameters
 Customers & Suppliers
 Process owners

 Should be reviewed frequently.

 Should document how the process actually operates, not how it is supposed to operate. (“As is”,
not “To Be”)
 Should identify opportunities for quality improvements

99
Process Mapping Steps

1. IDENTIFY INPUTS AND OUTPUTS

 Identify Inputs (raw material, equipment, energy, 5M’s, etc.)

 Identify Outputs (end product parameters that are measurable or assessable)

2. SHOW ALL STEPS

 Value adding
 Non value adding
 Value adding steps:
• Something the customer would be willing to pay for
• Transforms the product or service
• Done right the first time and all the time

3. SHOW OUTPUTS OF EACH STEP

 Show after each process step that changes a characteristic of the product, the measurable parameters
that are affected and things that could impact the following step(s) that could be measured.

4. SHOW ALL PROCESS PARAMETERS AT EACH STEP

 List under each step the parameters that can change a product characteristic at that step. (i.e.,
parameters that can be controlled at that step).

100
Process Map – key components

Inputs Process Steps

• Flow through the process. • Sequential steps that convert inputs into
• Are Added value to. outputs.
• Get converted into outputs. • Special attention to value adding steps.

Resources Outputs

• Are used during processing. • Results of the process.

• May or may not get consumed. • Desired effect.
• Are not processed themselves.

101
Identifying Product and Process Parameters

The following may be helpful to identify process parameters that have a

potential effect on the product parameters and process output:

 Brainstorming
 Literature review Remember the 5 M’s
 Operators manuals  Man (People)
 Work Instructions
 Machine (Equipment)
 Operator experience
 Method (Procedures)
 Customer / supplier input
 Material
 Engineering knowledge
 Scientific theory  Measurement

102
Process Flow

103
Process Mapping – Example - Manufacturing

104
Understand and Manage the Inputs & good outputs will follow!

Maintain
Correct in Specifications
KPIV
KPIV
PROCESS KPOV CTQ
KPIV

KPIV As per the Expectation

105
What Are We Measuring?

Measure the x’s, not the Y’s !

X’s _________
Inputs ?
x’s _________ ?
Process Parameters

Process Step Outputs

y’s _________ ?
Y’s Process Outputs
_________ ?

We cannot control what we don’t measure!

106
Funneling

All ‘X’ s 30

Categorisation

25 Data Available Data Not Available 5

Data Gemba Significance

Analysis Investigation Test

5 Real ‘X’ s Real ‘X’ s 3

Counter Measures/Actions 8

107
Funneling (Application of Tools)

Data Characterization
Brainstorming &
Partitioning

FMEA
x1 x7 = 38%
x2 x6 = 27% Vital X’s
x3 x2 = 12%
x4
x5 Exploration x9 = 4%
x6 of the y-x x10= 4%
x7 relationship x5 = 2%
x8 x1
x9 x3
Trivial X’s σ error
x10 x4
x11 x8 = 13%
x12 x11
x12
Fishbone

108
Key to Selection of Tools (X & Y Relationship)

Input Data (X)

Variable Discrete

Scatter Plot Graphical Techniques

Variable

Regression Box Plot

Multivariate Analysis Test of Hypothesis
Output Data (Y)

DOE & ANOVA DOE & ANOVA

Discrete

Graphical Techniques Graphical Techniques

Logistic Regression Chi Square Test

109
9. Value Stream Mapping

110
Lean Principles

A. Specify Value B. Identify Value Stream

Define value in from the Map all of the steps…value added
customers perspective and & non-value added…that bring a
express value in terms of a product of service to the customer
specific product

C. Establish Flow
The continuous movement
E. Work to Perfection
of products, services and
The complete elimination of information from end to end
waste so all activities create through the process
value for the customer

D. Implement Pull
Nothing is done by the
upstream process until
the downstream customer
signals the need

111
Future State Planning

Vision
Process

High Level Quantification

Major changes needed
Major barriers Should
1st Level Should Be Mapping Be Process

2nd Level mapping (activities)

Measurements built in
Existing Measurement targets defined
Processes Action plan established
– prioritization
– description
Data gathering – potential
Data analysis – responsibility
Process selection – due date
Process mapping – resources needed
Measurements (Baselines established)

112
SECAR

Minimize required work effort, Standardization of GME derivatives docs to

ensure consistency across drafters and key
S Simplify processing or touch time to execute a
function attributes required from Trade Capture and
delivery to Marketing for review

Eliminate duplicate escalation / research

Removal of entire work procedures,
E Eliminate functions and /or hand-offs
procedure for dividend payment / receivable
open items between JAX and Mumbai

Dividend break processing in Mumbai is

Consolidate process steps and / currently split between 3 groups .Combine all
C Combine functions into a singular work task 3 functions into a singular utility to create end-
to-end processor ownership on each break

Project may often suggest longer -term

Removal of manual work effort and changes associated with technical platforms or
A Automate utilize technology to perform key tasks provide a base of information, helping to
effectively prioritize a book of work

Migration of deal origination function from NJ

Movement of tasks / functions to
R Relocate alternative processing locations
to JAX to create end-to-end ‘on-site’ workflow
(e.g. single utility)

113
 SCAMPER

 Can I replace or change any parts?

 Can the rules be changed?
S Substitute  Can I use other ingredients or materials?
 Can I use other processes or procedures?

 What ideas or parts can be combined?

 What can be combined to maximize the number of uses?
C Combine  What materials could be combined?
 Can I combine different talents to improve it?

 Is there something similar to it, but in a different context?

 Does the past offer any lessons with similar ideas?
A Adapt  What processes can be adapted?
 What ideas outside my field can I incorporate?

 What can be magnified or made larger?

 What can be exaggerated or overstated?
M Magnify / Modify  Can I increase its frequency?
 What can be duplicated? Can I make multiple copies?

 Can it be used by people other than those it was originally intended for?
 How would people with different disabilities use it?
P Put to Other Uses  Are there new ways to use it in its current shape or form?
 Can I use this idea in other markets or industries?

 How can I simplify it?

 What parts can be removed without altering its function?
E Eliminate  What’s non-essential or unnecessary?
 Can the rules be eliminated?

 Can I interchange components?

Rearrange /  Are there other patterns, layouts or sequences I can use?
R Reverse  Can I change pace or change the schedule of delivery?
 What if I try doing the exact opposite of what I originally intended?

114
Why - Value Stream Mapping

• To understand the current situation

– View the big picture - end to end process
– Identify process steps, physical flow, information flow and data
– Know all activities across functions required to satisfy customer needs

• Shows the linkage between information flow and processing flow

• Expose the sources of waste

– Determine work content for each step
– Identify Non-value added steps

• Improve the end to end process

(and not just optimise parts)

115
Create Value Stream - Commonly Used Symbols

Symbol Represents Symbol Represents

Manual Information flow
ABC
Outside Sources
COMPANY (Customers, suppliers..) Information flow-
electronic
Indexing
Process
PUSH Processing
(process steps performed
ahead of customer
PT=120 sec.
C/O=22 min.
Process Data Box requirements)
3 SHIFTS
W/T=20 hrs
3% Rej
PULL Processing
(process steps performed
Queuing as per customer
Q
(Note the Count & time) requirements)
225 applications
1.5 days

Kaizen lightning burst

Tuesday
+ Thurs Despatch (Highlights critical
Claims
(Note the frequency) Processing improvement needs.
May be used to plan action
work out sessions)

116
Value Stream Map – As Is

Process Control
Customer

Customer
240000 applications pa
Weekly Schedule TaKt time =
9/900 hrs
= 36 sec

240000 per
year Weekly download 10% applications Mail to
on Monday for QC customer
90% applications 4600 per wk

Front Office Indexing and Processing Quality Control Front Office

sorting
Receives Q Downloads Q Reviews and Q Checks 10% Q Generates
applications applications takes sample clears and prints the
and enters into 2300 every Monday 2300 underwriting 2300 batch every 4600 policies
computer decision Friday

PT =120 sec PT = 0.13sec PT = 60 secs PT = 6 sec Require 3

4600 Staff = 10 days to issue
applications Available time policy
per week =200 hrs/mth

Lead time =15.5 days

2.5 day 2.5 days 2.5 days 5 days 3 days

120 sec 0.13 sec 60 sec 6 sec Process time ~186 sec

Lead time =15.5 days , Process cycle efficiency = 186 sec/15.5 days = 0.04%

117
Types of Activities in The Process

Examples:
Value-added work
• Originating a Policy
Steps that are essential because they
• Servicing a Customer
physically change the product/service, the
• Effecting a Payment on-time
customer is willing to pay for them and
are done right the first time

• Documenting a transaction
Value Enabling work • Moving files from one place to another
Steps that are not essential to the customer, • Waiting in queue
but allow the value-adding tasks to be done
better/faster or are regulatory required

Examples: Non value-added work

• Indexing, sorting Steps that are considered
• Quality control non-essential to produce and deliver the product or service
to meet the customer’s needs
and requirements. Customer is not willing to pay for step

118
Analyse the Process

Use the VSM to direct your improvement efforts. Some questions you might ask as you
examine the map include:

• Where are the longest cycle times? Are they value-added steps? If not, can you eliminate or
moderate them to save time?

• What type of non-value added steps dominate your process? Inspection? Signature
loops? Delays? How much time in your process do they account for? Can you eliminate or
moderate them to save time?

• What amount of time in your process comes from value-enabling steps? Challenge the
value – enabling aspect of these steps. Ask yourself if there is any value to eliminating these
steps if you could. If the answer is yes, then look for ways to persuade others to eliminate this
step without causing problems in the process

119
 Value Stream Map Analysis (Cont’d)

Takt time
Time (in min)

Value add time

Bus. enabling VA time

Non-value add time

1 2 3 4 5 6 7 8
Task

120
Value Stream Map – Future State

Process Control
Customer
Customer
240000 applications pa
TaKT time = 9/900 hrs
= 36 sec

240000 per Volumes,

year 10% applications
priority on a real Mail to
for QC customer 920
time basis
per day
90% applications

Front Office Gatekeeper Processing Quality Control Front Office

Receives Routes Reviews and Checks 10% Generates and

applications and
enters into
computer
applications based
on work type &
customer priority
takes
underwriting
decision
Q sample clears
batch every
hour
Q prints the
policies daily
60 460

PT = 120 sec PT = 0.13 sec PT = 60 sec PT = 6 sec Daily

4600 Staff = 10 operation
applications Available time
per week = 200hrs/mthh

30 mins 0.5 days 1 day

Lead time ~1.5 days

120 sec 0.13 sec 60 sec 6 sec Process time ~186 sec

Lead time =1.5 days , Process cycle efficiency = 186 sec/1.5days = 0.43%

121
Implement the Future State through Action Workout

What?

• Focused intense Team effort to accelerate Process improvements using Lean Principles

How and Why?

• Short Duration Exercise : Up to 1 wk, Follow-up may be required

• Get all Stake holder’s participation. Get buy-in before the AWO

• Full time Action at the Floor. Turn ON your “Out of Office message “

• No disruption to the Process; Plan your timing

• Rapid Iterative approach. Do it Now

122
Summary

• Value Stream Maps

– Outline the actions that bring a product of service to the customer
– Identify value added and non-value added tasks
– Provide a tool to design the “future state”
– Highlight opportunities for improvement
– Tie AWOs together to make significant improvements
• Value added steps are those that physically change the product/service, the customer is willing to
pay for them and are done right the first time
• Value enabling steps are not essential to the customer, but allow the value-adding tasks to be
done better/faster or are regulatory required
• Non value added steps are considered non-essential to produce and deliver the product or service
to meet the customer’s needs and requirements. The customer is not willing to pay for step
• Look for the “re” to help identify non value added work and hidden factories
• Our objective is to minimise or eliminate non value added and value enabling work

123
10. Simple Graphical tools

124
Overview on 7 QC tools

The term “7 tools for QC” is named after the 7 tools of the famous warrior, Benkei. Benkei owned 7
weapons, which he used to win all his battles. Similarly, from my own experience, you will find that
you will be able to solve 95% of the problems around you if you wisely use the 7 tools of QC.”
- Ishikawa

The 7 QC Tools are proven scientific management tools, which are basic and easy to understand.
They form the fundamental foundation for all problem solving and quality control activities.

Benefits-
• Provide Training in Thinking
• Raise People’s problems Solving Confidence
• Increase People’s ability to predict future Events

125
What is 7 QC Tools

The Seven Basic Tools of Quality is a designation given to a fixed set of graphical techniques
identified as being most helpful in troubleshooting issues related to quality.

They are called basic because they are suitable for people with little formal training in statistics and
because they can be used to solve the vast majority of quality-related issues

7 Basic Tools

1. Check sheet
2. Pareto Chart
3. Cause & Effect Diagram
4. Control Chart
5. Histogram
6. Scatter Diagram
7. Stratification or Flow chart

126
Check Sheet

The function of a check sheet is to present information in an efficient, graphical format. This may be
accomplished with a simple listing of items. However, the utility of the check sheet may be significantly
enhanced, in some instances, by incorporating a depiction of the system under analysis into the form.

Production Process Distribution Check Sheet

Checks
Deviation 5 10 15 Frequency
- 10
Specification -9
-8
-7
-6
-5 X
-4 X X
-3 X X X X
-2 X X X X X X
-1 X X X X X X XXX
8.300 0 X X X X X X XXXXX
1 X X X X X X XX
2 X X X X X X X
3 X X X
4 X X
5 X
6 X
Specification 7
8
9
127
Pareto Charts

• Pareto charts are extremely useful because they can be used to identify those factors that have
the greatest cumulative effect on the system, and thus screen out the less significant factors in an
analysis. Ideally, this allows the user to focus attention on a few important factors in a process.

• The Pareto Principal is generally used to prioritize quality improvement projects to get most
returns for the resources invested.

• It is one of the most powerful tools and is widely used as means of attacking bulk of the
problems with the optimal utilization of resources

• The basic principle of Pareto is “80% of any effect are due to 20% of causes & vice versa”

128
 Example for Pareto Diagram
97 100
87
100
140 90
120 70 80
70
No. of complaints

100

Cum. percentage
50 60 Pareto Analysis of Passenger
80 50 Complaints at an Airport
60 40
26
40 30
20
20 10
0 0
s e e d s s
m g ic un re er
b le g ga er
v
ef F a
ot
h
o a S R
t Pr B
h
F lig 94.6 100 100
87.5
50 90
76.8
80
40 70
No. of complaints 60.7
Pareto Analysis of

Cum Percentage
60

Customer Complaints
30
41.7 50

40
20
30

10 20

10

0 0
Fish not Vegetable Bread Cashier Meat not Eggs
fresh wilted Stale Rude Fresh rotten

129
 Example for Pareto Diagram
200 93 98 100 100
180 85 90
160 75 80
140 70
60 Pareto Analysis of Complaints at
No. of complaints

120 60
a Laundry
100 50
80 35 40
60 30
40 20
20 10
0 0
Late Missing Fading Stains Creased Buttons Stretched
delivery or wrong colours Missing or torn
250 92.8 95.2 100 100
items 89.2
84 90
77.2
200 80

No. of Defectives 63.2 70

150 60

Pareto Analysis for 38.4

50

inspection of product ABC 100 40

30

50 20

10

0 0
Bubbles Rough finish Scratches Damaged Weak Cracks Stains Others
packaging corners

130
Cause & effect diagram

This diagram, also called an Ishikawa diagram (or fish bone diagram), is used to associate multiple
possible causes with a single effect. Thus, given a particular effect, the diagram is constructed to
identify and organize possible causes for it.

Measurements Machines Man

Variable Variable Variable

Statement of
Problem

Variable Variable Variable

Environment Methods Materials

131
Example for Cause & Effect Diagram

Procedure Driver Vehicle

Spark plugs
Impatience Heavy Contacts
Poor Bad Life
Craze
anticipation attitude
Body Technical
Wrong Poor details
skill Shap
Always gears Fuel mix
e
late Lack of Inexperience High H.P Carburetor
awareness Wrong
Riding on culture Engine
clutch
Cylinders High Petrol
Spurious Consumption
Crossings
Spares Impurities
Restrictions Traffic Incorrect
One way
No turn Tyres Inferior Octane no.
Frequen Petrol
Faulty
Circuitous t Negligence pressure
Road Speed Breakers
stops Additives
Ignorance
Potholes Irregular Incorrect viscosity
Low pressure
Poor servicing
Clogged
conditio Oil
False filters
n
Stee econom Not changed
p y Low level
Road Maintenance Materials

132
Control Charts

The control chart is the fundamental tool of statistical process control, as it indicates the range of
variability that is built into a system (known as common cause variation). Thus, it helps determine
whether or not a process is operating consistently or if a special cause has occurred to change the
process mean or variance. The bounds of the control chart are marked by upper and lower control
limits

133
Histograms

In Statistics, a histogram is a graphical representation showing a visual impression of the distribution

of data .
Histograms provide a simple, graphical view of data, including its dispersion and central tendency. In
addition to the ease with which they can be constructed, histograms provide the easiest way to
evaluate the distribution of data

134
Shapes of Histogram

Shape Centre (Central Tendency) Spread ( Variation)

Normal Mean Standard deviation

Quartile IQR = ( Q3-Q1)

Skewed
Q1 or Q3 SF = ( Q1/Q3)

Long -Tailed Median Span or Range

Must stratify into distinct processes Before calculating central

Bi- Modal
tendency and variation

135
Scatter Diagrams

Scatter diagrams are graphical tools that attempt to depict the influence that one variable has on
another. A common diagram of this type usually displays points representing the observed value of
one variable corresponding to the value of another variable.

Positive Correlation Negative Correlation No Correlation

For an increase in ’’X” there is For an increase in ’’X” there For an increase in ’’X” there is
a corresponding increase in is a corresponding decrease no corresponding decrease in
‘‘Y” in ‘‘Y” ‘‘Y”

136
Flow Charts

• Flowcharts are pictorial representations of a process. By breaking the process down into its
constituent steps, flowcharts can be useful in identifying where errors are likely to be found in the
system.

• Here is an example of a simple flowchart illustrating the process of going to school.

137
 Multi-vari Chart

A team is interested in evaluating the effects of sintering

time on the compressive strength of three different
metals. Compressive strength was measured for five
specimens for each metal type at each of the sintering
times: 100 minutes, 150 minutes, and 200 minutes.

Before you engage in a full data analysis, you want to

view the data to see if there are any visible trends or
interactions by creating a multi-vari chart

138
139
 Box Plot
Outlier  an unusually large
or small observation. Values
beyond the whiskers are
outliers.
By default, the top of the box
is the third quartile (Q3) 
75% of the data values are
less than or equal to this
value.
By default, the bottom of the
box is the first quartile (Q1) 
25% of the data values are
less than or equal to this
value.
140
* By default, the upper
* whisker extends to the
highest data value within
the upper limit.
Upper limit = Q3 + 1.5 (Q3
- Q1)
Median - the middle of
the data. Half of the
observations are less than
or equal to it.
By default, the lower
whisker extends to the
lowest value within the
lower limit.
Lower limit = Q1- 1.5 (Q3 -
Q1)
 Box Plot - Example

You are interested in studying Boxplot of Durability

durability of four types of
22.5
carpet after 60 days use. Each
type of carpet is put for use in 20.0 19.75

many houses and data is

17.5
collected.

Durability
The Box Plot of the data 15.0
13.52
shown here. What do we 12.5
12.895

conclude?
10.0
8.625
7.5

5.0
1 2 3 4
Carpet

141
11. Failure Mode and Effect Analysis

142
Failure Mode and Effect Analysis

Window of Consideration
Loss Loss Loss Loss Loss
of of of of of
Nail Shoe Horse Rider Battle
Cause Failure Mode Effect

143
Failure Mode Effect Analysis

Definition of FMEA

FMEA is systematized and analytical technique intended to:

 Identify and evaluate potential failure modes and causes associated with product and
process design

 Identify actions that will eliminate or minimize the Risk associated with potential
product and process design failures

 Document the processes of due care and problem closure to positively define what the
design must do to satisfy the customer

 Be a tool for building and refining - not simply completed then tossed

144
Risk Priority Number (RPN)

 SEVERITY ( Of Effect) - Importance of effect on customer requirement - Could

also be concerned with safety and other risks if failure occurs.

 OCCURRENCE ( Of Cause ) - Frequency with which a given cause occurs and

creates failure mode.

 DETECTION (Capability of Current Controls) - Ability of current control scheme to

detect:

 All three use a scale of 1- 10 ,with 1 being Best or lowest risk,

 10 being worst or highest risk

RPN = Severity X Occurrence X Detection

Effects Causes Controls

145
Current Control and Recommend

CURRENT CONTROLS :
The mechanisms that prevent or detect the failure mode before it reaches the customer. Current
controls include SPC, Inspections, Monitoring, Training, Preventive Maintenance.

RECOMMENDED ACTION :
Corrective actions to reduce occurrence, and / or Detection rankings. Directed at the highest RPN
and critical severity items.

146
FMEA through Cause & Effect Diagram

147
FMEA worksheet

Using your Process Map, enter the process steps in the Process Function (Step) column

Process function Potential failure Potential failure S Potential causes of O Current process D R
(step) modes (process effects (Y’s) E failure (X’s) C control E P
defects) V C T N

148
The Rating Scale

Use the following guide line for assigning ratings to Severity, Occurrence and Detection
Scores. Occurrence scores can be assigned based on probability or time period.

Ratin Severity Scale Occurrence Scale Detection Scale

g Definition Time Period Probability Definition
Defect caused by failure is not
10 Injure a customer or employee More than once per day > 30% detectable

9 Be illegal Once every 3-4 days  30% Occasional units are checked for defect
Units are systematically sampled and
8 Render product or service unfit for use Once per week  5% inspected
Cause extreme customer
7 dissatisfaction Once per month  1% All units are manually inspected
Units are manually inspected with
6 Result in partial malfunction Once every 3 months  .03% mistake-proofing modifications
Cause a loss of performance which is Process is monitored (SPC) and
5 likely to result in a complaint Once every 6 months  1 Per 10,000 manually inspected
SPC is used with an immediate reaction
4 Cause minor performance loss Once per year  6 Per 100,000 to out-of-control conditions
Cause a minor nuisance, but can be SPC as above with 100% inspection
3 overcome with no performance loss Once every 1-3 years  6 Per Million surrounding out -of-control conditions
Be unnoticed and have only minor
2 effect on performance Once every 3-6 years  3 Per 10 Million All units are automatically inspected
Be unnoticed and not affect the Defect is obvious and can be kept from
1 performance Once every 6-100 years  2 Per Billion affecting the customer

149
FMEA Action Guide

 Take actions on the items having high RPN scores

 Besides the high RPN score items use the following guide to identify the items which
needs attention

Sev Occ Det Result Action

1 1 1 Ideal Situation No Action
1 1 10 Assured Mastery No Action
10 1 1 Failure does not reach user No Action
10 1 10 Failure reaches user Address Controls
1 10 1 Frequent failures, detectable, Process Improvement
costly
1 10 10 Frequent failures, reaches user Improve Detection first, then
Process Improvement
10 10 1 Frequent failures with major Immediate Process
impact Improvement
10 10 10 Big Trouble! All hands on Deck!!

150
11. Test of Hypothesis (TOH)

151
Hypothesis Testing

Hypothesis testing Aims determining if the observed differences between two or more data
samples are due to random chance or is true differences in the samples

152
Hypothesis Testing Terms?

 Hypothesis – Null and Alternative

 Population

 Random sample

 Statistical Significance

 Degrees of Freedom

 Calculated Value of Statistic

 Tabulated Value

 Probability (p-Value)

153
Concept Of Hypothesis

1. All processes have 2. Samples from one given

variation. process may vary.
A

Collected After
Collected in Before

B
3. How can we differentiate
between sample–based
“chance” variation and
a true process
difference?

154
Concept Of Hypothesis

 The justice system can be used to illustrate the concept of hypothesis testing

 We assume innocence until proven guilty - This corresponds to the null hypothesis

 It requires strong evidence “beyond a reasonable doubt” to convict the defendant.

This corresponds to rejecting the null hypothesis and accepting the alternate hypothesis

Ho: Person is innocent

Ha: Person is guilty

155
Errors And Correct Decision In Hypothesis Testing

Truth is

Defendant is not guilty (HO) Defendant is guilty (Ha)

Verdict is:
“Not Guilty”(HO) Type 2 Error (or)  error :
Good Decision
Guilty is declared innocent

Type 1 Error (or)  error :

Verdict is: Innocent is convicted. Good Decision
“Guilty” (Ha)

156
The P Value

 P is the probability of getting the observed difference or greater when the Ho is true.

 The convention is to use the P value of 0.05, which represent 5% Error in rejecting
Ho when it is true

 If p ≥ 0.05, then we accept Null Hypothesis

 The is also known as significance level

P<a : Reject Ho
P>a : Accept Ho

157
Types Of Change Options

Desired goal Direction of improvement Typical examples Hypothesis Statements

Smaller or H0: Mean Target 

Smallest value
lower is Loan cycle HA: Mean < Target
better Fastest processing
Time H0: Mean A  Mean B
(One-sided) Lowest variability HA: Mean A < Mean B

Cross-selling
Bigger or H0: Mean Target 
higher is Highest amount Profitability HA: Mean > Target
better H0: Mean A  Mean B
Biggest payback Customer
(One-sided) HA: Mean A > Mean B
retention

H0: Mean = Target

Midpoint of range or HA: Mean  Target
Target is best
Maximum  return at Deal pricing
(Two-sided)
H0: Mean A = Mean B
specific zone HA: Mean A Mean B

158
Pitfalls In Hypothesis Testing

 Failure to write down the decision alternatives (hypotheses)

 Insufficient sample size results in large error

 Wrong p-value used (left-, right-, two-sided)

 Distribution is highly asymmetric

159
Steps In Conducting A Hypothesis Test

Step 1:
Problem question
Alternative Hypothesis
Specify the improvement
goals. And direction (>, <, ≠)

Step 2: Baseline
Specify the standard of comparison, Null Hypothesis
benchmarks, means/Std Dev.

Step 3: Conduct test

Results and interpretation Choose the correct test, Specify a=0.05,
Get p- value.
If p < 0.05 reject null hypothesis.

160
Types Of Hypothesis

Type Of Hypothesis Null and alternate Graphical Test

Hypothesis
C
One Sample Hypothesis Ho :  = C Ho :  ≥ C
Ha :   C Ha :   C

Two Sample Hypothesis Ho : 1  2 Ho : 1  2
Ha : 1 2 Ha : 1 > 2
1 2
Multi Sample Hypothesis Ho : 1  2  . . .  n
Ha :at least 1 not equal

Multi Sample Hypothesis Ho : 12  22  . . .  n2

Ha : at least one not equal

161
Exercise - Test on means of Normal Distribution

A petroleum company will soon have to switch a large proportion of its production from
a formulation containing tetra-ethyl lead to a lead-free formulation. An important quality
characteristic of gasoline is the road octane number. If gasoline with a road octane
number that is too low for the engine compression is used, excessive knocking will
result. The company has formulated the lead-free product so that its road octane
number should be identical to that of the older, lead-containing product. An experiment
is performed in which 10 observations on road octane number are obtained for each
product formulation. These data are given in the following table. Do these data prove
that lead-free formulation is superior to that of formulation containing tetra-ethyl lead?

162
 Formulation-1
(containing tetra-ethyl Formulation-2
lead) (containing no lead)
89.5 92.5
90 91.5
91 91
91.5 91
92.5 91.5
91 92
89 92
89.5 90.5
91 90
92 91

163
Two-Sample T-Test and CI: F1, F2

Two-sample T for F1 vs F2

N Mean StDev SE Mean

F1 10 90.70 1.16 0.37
F2 10 91.300 0.753 0.24

Difference = μ (F1) - μ (F2)

Estimate for difference: -0.600
95% upper bound for difference: 0.166
T-Test of difference = 0 (vs <): T-Value = -1.37 P-Value = 0.095 DF = 15

164
Chi Square Test Of Independence

 A bank has introduced a new product.

 Respondents are classified into men, women, children 10 to 18 years.
 Each respondents having received a detailed explanation of the features as either “like” or
“dislike”.
 Is there a significant effect of the type of respondent on the preference for the new product?

Row
Count Dislike Like
totals
Ho : No difference between respondent groups Men 17 24 41
Ha : One of the respondent groups likes/dislikes
the new product Women 19 63 82

Children 37 68 105
Column
73 155 228
total

165
Chi Square Test Of Independence

A company wants to
understand if customer Monsoon SummerRow
Zone Season Season Total
complaints from various
South
zones have any zone 17 24 41
association with the West
extreme wet and dry Zone 19 63 82
season of the year. N&E
Analyze the data given in zone 37 68 105
table and draw Column
Total 73 155 228
conclusions?

166
Chi-Square Pitfalls

 Large data sets often result in significant Chi-Square tests, even though practically there is
little difference between the proportions.

 Similarly use of the chi-square test should be questioned if 20% or more of the cells have an
expected count less than five, especially if these cells give a large contribution to the total chi-
square value.

 Simple Chi-Square does only two variables at a time. More variables can be added, but the
interpretation becomes more advanced (Need to use Fit Model)

 Stratification is a method to break up the table. But there may not be sufficient data for some
of the categories

167
12. Analysis of Variance (ANOVA)

168
Analysis Of Variance ( ANOVA)

Analysis of Variance (ANOVA) is extension of TOH when there are more than two
levels for X OR Impact of multiple Xs is to be studied simultaneously on a given Y

Ho : 1  2  . . .  n
Ha : at least one not equal

169
Example:

Comparing More than Two Groups

• Twenty-four animals were fed using one of four diets.

• Diet is the input variable (factor); blood clotting time is the output variable (response).

• The diets were assigned to the animals randomly. Blood samples were taken and tested in a random

sequence. Why?

DIET A DIET B DIET C DIET D

62 63 68 56
60 67 66 62
63 71 71 60
59 64 67 61
65 68 63
66 68 64
63
59

170
Performing ANOVA in Minitab

One-way Analysis of Variance

Analysis of Variance for Coagtime
Source DF SS MS F P
Diet 3 228.00 76.00 13.57 0.000
Error 20 112.00 5.60
Total 23 340.00
Individual 95% CIs For Mean
Based on Pooled StDev
Level N Mean StDev ---+---------+---------+---------+---
1 4 61.000 1.826 (------*------)
2 6 66.000 2.828 (-----*----)
3 6 68.000 1.673 (----*-----)
4 8 61.000 2.619 (----*----)
---+---------+---------+---------+---
Pooled StDev = 2.366 59.5 63.0 66.5 70.0

171
ANOVA Table

The ANOVA table is an important result of ANOVA If the p-value is less than 5%,
there is a difference in the
One-Way Analysis of Variance mean value of at least one
group. In this case we reject
Analysis of Variance on Coag Time the null hypothesis indicating
that the mean values of all
Source DF SS MS F P groups are equal. The mean
Diet 3 228.00 76.00 13.57 0.000 value of at least one diet is
different from the others.
Error 20 112.00 5.60
An F-test of this magnitude
Total 23 340.00 may also occur randomly, but
only at a frequency of 1 per
10,000 occasions.
The F-test is near 1.00 when the
group mean values are similar.
In this case the F-test is much
higher.

172
Main Effects Plots

We use the main effect plot to display our results. It is displayed only if there is a significant
difference.
Minitab: Stat > ANOVA > Main Effects Plot...

Main Effects Plot - Data Means for Coagtime

Caution:
68
line is without
67
warranty
66
Coagtime

65

64

63

62

61

1 2 3 4

Diet

173
TWO WAY ANOVA

LIFE OF LINING(
SUPPLIER AVG. LOAD Hrs)
Company has identified
A H 270
two factors i.e. supplier
and average load on A H 240
furnace to study their A L 250
impact on life of brick A L 260
lining. Data is given in B H 180
Table.
B H 230

What conclusion can be B L 270

drawn from this analysis? B L 290

C H 190
C H 200
C L 300
C L 280
174
TWO WAY ANOVA

Two-way ANOVA: LIFE OF LINING versus AVG. LOAD, SUPPLIER

Analysis of Variance for LIFE OF LINING
Source DF SS MS F P
AVG. LOA 1 9633 9633 26.27 0.002
SUPPLIER 2 417 208 0.57 0.594
Interaction 2 5017 2508 6.84 0.028
Error 6 2200 367
Total 11 17267

175
 TWO WAY ANOVA
Interaction Plot - Data Means for LIFE OF LINI

SUPPLIER
A
B
280
C

260
Mean

240

220

200

H L
AVG. LOAD

176
13. Correlation and Regression

177
Correlation and Regression - Objective

 To see how the performance variable is influenced or related to an input variable

 To ascertain how changes in the input variable affect the performance variable

 To predict performance using input values

 To understand the relationship between performance and input. Is it linear, curvilinear, S-

shaped? Does it have saturation levels?

178
Correlation and Regression

 Correlation describes the strength of a linear relationship between two variables

 Linear means “straight line”

 Regression tells us how to draw the straight line described by the correlation

179
Correlation (r): The Strength of the Relationship

Note: If the slope b1 = 0, then r = 0. Otherwise there is no relationship between the slope value b1 and
the correlation value, r.

Y Y Y

X X X
Strong Positive Correlation Moderate Positive Correlation No Correlation
r = .95 r = .70 r = .006
R2 = 90% R2 = 49% R2 = .0036%

Y Y Y

X X X
Strong Negative Correlation Moderate Negative Correlation Other Pattern -
r = -.90 r = -.73 No Linear Correlation
R2 = 81% R2 = 53% r = -.29
R2 = 8%

180
Simple correlation coefficient (r)

• The value of r ranges between ( -1) and ( +1)

• The value of r denotes the strength of the association as illustrated

by the following diagram.

strong intermediate weak weak intermediate strong

-1 -0.75 -0.25 0 0.25 0.75 1

perfect correlation perfect correlation

no relation

181
Application of Regression Analysis

Three objectives in using regression

1. Summarize Data
2. Rate of Change

Y 3. Predict Y from X

1
Change
in Y

Change in X 2
Y0

Predict
3 Y0 at X0

X0 x x+1 x
Observations

182
How Would You Approach This Situation?

You work for a company that produces premium ice cream. You are participating on a team that is
trying to reduce the number of under-filled pint cartons. The filling machine has a weigh cell which
keeps track of the amount of ice cream flowing through the barrel. If the computer controller
determines the amount is too low, a command is sent to the feed screw motor to increase the rpm of
the feed screw. If the amount is too high, a command is sent to reduce the rpm of the feed screw. You
suspect that the computer controller is not targeted appropriately and is the source of the under-filled
cartons. If you could discover the relationship between the feed screw rpm and the weight of the filled
cartons, you could use it to change the controller program and reduce the number of under-filled
cartons.

1.What data do you need?

2.How would you display it?
3.How could you use the display to predict the weight of filled cartons?

183
Practice: Use the Regression Equation

Y (output)
Question 1:
What is the value of intercept ?
Question 2:
What is the value of Slope?
8

7
Question 3:
What is the meaning of Intercept?
6
Question 4:
What is the meaning of Slope?
5 Question 5:
What is the predicted weight when
4
X is 27, 23 and 33 rpm
3
Question 6: How comfortable are you with predictions?

0 1 2 3 4 5 6 7 8 9 10

X (input)

Regression Equation Y = 182 + 4X

184
Multiple regression

Multiple regression is to compare the relationship between a continuous dependent (Y) variable and several

continuous independent (X1, X2, …) variables e.g. relationship between production cycle time (Y) with Number of

equipment setups (X1), booking price (X2) , number of custom features (X3) and number of unique labels (X4)

The general model is:

k
Yi      j X ij   i
j 1

185
Multi-Collinearity

• One of the assumption of model accuracy is that X’s are not correlated.

• Multi-Collinearity: High correlation exists between two independent variables

• This means the two variables contribute redundant information to the multiple regression model
• Can lead to unstable coefficients (large standard error and low t-values) and Coefficient signs may not
match prior expectations

Some Indications of Strong Collinearity

• Incorrect signs on the coefficients

• Large change in the value of a previous coefficient when a new variable is added to the model
• A previously significant variable becomes insignificant when a new independent variable is added
• The estimate of the standard deviation of the model increases when a variable is added to the model

186
Dealing with multi-collinearity - Example

VIF > 5

VIF is greater than 5, means that the regression coefficients are poorly estimated. We should consider the options
to break up the multi-collinearity: collecting additional data, deleting predictors, using different predictors, or an
alternative to least square regression

187
Dealing with multi-collinearity –Corrective Action

Correlation between Film Density & tensile strength is 0.914 and p value is 0.000 and between Air pressure and Vacuum
pressure is - 0.921 and p value is 0.000 .
It is easier to control Film density and Air pressure. Hence we remove Tensile Strength and Vacuum pressure form predictor an
carried out the analysis. The result is shown below.

VIF is lesser than 5, means that the regression coefficients are properly estimated. We now say the model is okay with respec
to multi-collinearity. Here also p value of Airbubble, MoldTemp & DwelTime is high. We can do further analysis by removing
them from the model.

188
14. Improvement Planning

189
Improvement cycle

Select solutions

Analyze result

• Risk evaluation and mitigation

• Cost benefit analysis

• Communication matrix

190
Selection techniques

• Brainstorming

• Ranking method

• Rating method

• Decision Matrix

191
Idea Selection

192
Criteria based solution selection

Define criteria and assign weighted average to each criteria

Each team member to tick the best criteria for each solution

Sum up number of tick, multiply by respective weights and cal the score for each criteria
for each solution

Sum up the numbers for each solution

Highest number becomes most favorable choice

193
Pugh matrix

• Define criteria and assign weighted average

to each criteria

• Each team member to tick the best criteria

for each solution

• Sum up number of tick, multiply by

respective weights and cal the score for
each criteria for each solution

• Sum up the numbers for each solution

• Highest number becomes most favorable

choice

194
Risk Impact Matrix

195
Approaches to Avoid Pitfalls

196
15. Process Standardization

197
Why should we standardize a process ?

Standardization is baseline for continuous improvement

• Establishing standard process and procedure is key to consistent performance

• Standardization ensures process stability and only when process is stable can you begin the
creative progression of Continuous improvement

• Standardization is an ongoing activity ensuring that problems are identified, effective solutions
are devised and processes are streamlined using best possible method agreed by all
stakeholders

• Standards establish the cause and effect relationship

• Standardization creates a foundation for a learning organization ( unless you standardize the
processes are too random and chaotic. It is difficult to measure improvement of a chaotic
process)

198
Why should we standardize a process ?

Input
Output
People Work Task Quality
Machine
Cost
Material
Delivery
Method

Standard operation reduces variability

“Standardization means using the process that’s safest, easiest , most Cost-effective and
productive for the company to assure quality for the Customer”

The secret of single-piece flow is to reduce the variation in the working cycle. The Reduction in working cycle
variation can be achieved by standardizing work. Always Perform the operations in the same sequence

199
Standard Work

• When normal and abnormal work activities 1. Each person understands his / her task.
are undifferentiated, waste almost inevitably 2. All tools and equipment are at arms length
occurs. 3. Standard work has been practiced to perfection
4. Observation and analysis drives continuous
• Standard Work provides an efficient
improvement
framework in which to determine when an
abnormality has occurred so that it can be Types of Waste Eliminated
addressed. 1. Searching
2. Finding
• Elements of Standard work 3. Selecting
4. Transporting
 Takt Time processing 5. Waiting
 Standard work sequence

 Standard Work In Process

 Standard Handoffs

200
Process standardization in a unit-cost focused organization

Product unit at lowest

cost

Measure used are cost per By improving individual

unit, man hr cost ,/c Hr Cost efficiency

To calculate standard
hours and cost

Tools used are stop watch

By time studies and
MRP systems and std reports
work standards

To compare employee
performance per std

Controls exerted are

mgmt. reviews, Leading to behaviors Increase waste and total
adjusting stds etc that increase NVA cost increases

201
Process standardization in a Lean Organization

Eliminate Waste

Measure used are QCD By eliminating variability

in process

To improve Process
capability

Tools used are stop watch By creating standardized

MRP systems and std reports work

To detect abnormalities

Controls exerted are

visual Controls and Leading to creation of Reduced waste and
audits ,process best method by reduced system cost
confirmation reducing abnormalities

202
Standardized Work and Work Standards

Standardized work
Work Standards
• Safety standards
Use analysis tools to • Quality standards
study current process • Environment standards

Process Standards
Identify waste and • Cycle time
eliminate waste
• Temperature/Pressure
• Specification of product
Arrive at the basic
method Procedures
• Kanban rules
• SWIP
Work (job) instruction • TPS methods
training

Skilled employees

203
16. Control Plan & Control Chart

204
Objectives

 Articulate the need for standardization.

 Carry out an approach to standardization.

 Recognize barriers to standardization.

 See how standardization fits into the strategy for process improvement.

 Understand that standardization must be balanced with creativity, empowerment, ownership,

and leadership.

205
Different ways to implement time-monitored changes

Coolant concentration & contamination affects product performance

HUMAN PARTIAL FULL

INTERVENTION AUTOMATION AUTOMATION

SOP + audit Automatic Automatic

warning corrective
+ audit action

SPC of results Dual automatic

warning

SPC of Automatic warning +

process automatic shut down
variables

206
Establish Permanency of Actions

Option 1: Standard Operating Procedure

Option 2: SPC of Output Variable

Option 3: SPC of Input Variables

Option 4: Automated alarm

Option 5: Multiple automated alarms

Option 6: System shutdown

Option 7: Error-proofed action

207
Control Plan

208
Control Plan

Date : 15/04/2015

209
Control Charts

 A Control chart is a time ordered plot of the data with control limits.
 Control limits identify the expected range of variation of the data.
 Control charts identify the presence of special cause of variation within a process.

210
Use of Control Chart

 As we have learned there are Two types of variation in the process

 Special Cause
 Common Cause
 Control Chart helps in identifying the Special Causes in the Process by identifying out of
control points

211
 A Process is Said to be Out of Control if…

212
Source : Pocket Guide
Specification Vs Control Limits

 Specification limits
 Set by the customer, management, or regulators
 Describe what you want a process to achieve
 Control limits
 Calculated from the data : +/- 3 standard deviation from mean.
 Describe what the process is capable of achieving

213
Capability Vs Stability

214
 Advantages and Disadvantages of Control Charts

• Advantages
 Is a proven technique for improving productivity
 Is effective in defect prevention
 Prevents unnecessary process adjustments
 Provides diagnostic information
 Provides information about process capability
 Can be used for both attribute and variable data types

• Disadvantages
 Everyone must be WELL trained and periodically retrained
 Data must be gathered correctly
 Mean and range/standard deviation must be calculated correctly
 Data must be charted correctly
 Charts must be analysed correctly
 Reactions to patterns in charts must be appropriate— Treating a Special cause as a Common
cause and treating a common cause of variation as a special cause of variation.

215
Select Appropriate Control Chart

Select Measurement

Variable/Continuous Attribute/Discrete
Data Type?

Yes Subgrou No
p size =1 Defectives Defective Defects
? s or
Defects ?
Constan Constant
t sample sample
Subgrou Yes size? size?
p size Yes
<10?
Yes
No No

IR Chart x R Chart x s Chart np Chart p Chart c Chart u Chart

216
17. Mistake Proofing

217
Objectives of Training

• What is “Mistake Proofing”

• What are Errors and how do we detect them
• Mistake Proofing Techniques
• Mistake Proofing Examples

218
How do I change the process and keep it in control forever?

Operational Method
Written Instructions
Verbal Instructions

(Mistake Proofing)
Sheets (OMS)

Poka - Yoke

DFSS
SPC
AMOUNT OF CONTROL

Amount of Effort Expended by the Process

219
What is Mistake Proofing?

 Make it impossible to produce mistakes

 In Japan: Poka - Yoke

Yokeru (to avoid) Poka (inadvertent errors)

 A technique for eliminating errors

220
Principles for Mistake Proofing

 Respect the intelligence of workers (shop, engineers, clerks)

 Take over repetitive tasks or actions that depend on constantly being alert (vigilance)
or memory

 Free a worker’s time and mind to pursue more creative and value-added activities

 It is not acceptable to produce even a small number of defects or defective products

 The objective is zero defects

221
Why do Errors Occur?

 Incorrect procedures

 Excessive variation in the process

 Excessive variation in the raw materials

 Inaccurate measuring devices

 Unclear or undocumented processes

 Unclear or incomplete specifications

 Human error

 Inadequate Skill

222
Categories of Errors

ERRORS

Intended Unintended
Action Action
Basic Error Types

Violation Mistake Lapse Slip

Attention failures
Rule-based mistakes • Intrusion
• Misapplication of good rule • Omission
• Application of bad rule • Reversal
Knowledge-based mistakes • Mis-ordering
• Many variable forms • Mis-timing
Routine violations Memory failures
Exceptional violations • Omitting planned items
Acts of sabotage • Place-losing
• Forgetting intentions

223
Detecting Errors

Traditional approach . . .
FEEDBACK

Step 1 Step 2 Step 3 Step 4 Inspection

Mistake Proofing provides immediate feedback so that action can

be taken

FEEDBACK FEEDBACK FEEDBACK

Step 1 Step 2 Step 3 Step 4

224
Mistake Proofing Techniques

When can we find mistakes?

• Before they occur PREVENTION or PREDICTION

• After they occur DETECTION

Technique Prevention / Prediction Detection

SHUTDOWN When a mistake is about to be When a mistake or defect has

made already been made

CONTROL Errors are impossible Defective items can’t move on to

the next step

WARNING That something is about to go Immediately when something

wrong goes wrong

225
Types of Sensors

226
Shutdown: Prevention & Detection

Prevention:
Some cameras will not function when there isn’t enough light to take a picture

Detection:
Some laundry dryers have a device that shuts them down when overheating is detected.

Prediction:
Many cars have warning systems to alert the driver that not all seatbelts have been fastened.

Detection:
Smoke detectors provide a warning that smoke has been detected and that there’s a possible fire.

227
Error Proofing Process

Perform a Process Identify Design

FMEA for Manufacture Identify all potential features that could
and Assembly errors eliminate the error(s)

1
Redesign to eliminate
the possibility of error

or
2
Redesign to make it Review design for error
obvious that an error potential with
will occur Manufacturing and
or Assembly
3
Redesign to make it
obvious that an error
has occurred

228
Error Proofing Process

Perform a Process Identify Design

FMEA for Manufacture Identify all potential features that could
and Assembly errors eliminate the error(s)

1
Redesign to eliminate
the possibility of error

or
2
Redesign to make it Review design for error
obvious that an error potential with
will occur Manufacturing and
or Assembly
3
Redesign to make it
obvious that an error
has occurred

229
18. Managing Change

230
Stages of Change

Contentment Renewal
Provide a Vision Leverage Enthusiasm
Paint a Picture Keep Them Involved
Raise Awareness

Denial Confusion
Listen to Views Provide a Plan
Focus on Process Pilot and Deploy
Gather Data Follow Methodology

231
Finally,
Do you believe that LSS can make you smarter
in addressing changes you will be expected to
bring in your area of responsibility?

Either way you are right, because you can’t

succeed or fail without your consent.

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 Wish You All The Best

Thank You

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