DMAIC, DMEDI and Process Management
Quick Reference For Project and Process Review
Purpose of this Guide The primary intent of this quick reference guide is to aid aid process process owners owners,, sponsors sponsors and stakeholders guide and mentor 6 Sigma project teams as they progress through the various phases of a DMAIC or DMEDI project. Please use this guide during all leadership review meetings (‘gateways’) as a base level of talki talking ng points points to ensure the project project teams are indeed adhering adhering to the proper proper methodology methodology.. Please pay special attention to the critical points listed for each phase, as these are the key points and milestones each project team should at a minimum be achieving prior to moving to subsequent phases. Additionally, the Process Management section secti on of this this guide off offers ers Process Process Owners Owners a frame framework work from from which to to organize, organize, schedule schedule and facilitate periodic process reviews. These rev review iews s will be critical critical to the assuranc assurance e that improved and/or created processes are being maintained according to the process control system and that benefits continue to ac acc cru rue e.
PURPOSE OF GUIDE
Purpose of Leadership Reviews • To monitor team progress • To reinforce priorities • To align and realign activities with business strategies • To provide guidance and direction • To check for consistent understanding • To share successful practices • To assist the team in identifying and providing resources needed to be successful, and in dealing with sensitive issues. • To gather data from the organization for improved coordination, management and planning. • To show visible support for improvement efforts • To provide ongoing coaching and instruction • To recognize and reward efforts
PURPOSE OF REVIEWS
LOGISTICS /SAMPLE AGENDA
LOGISTICS /SAMPLE AGENDA
Participants • Team leader and team members • Project Sponsor • Master Black Belt • Process Owner(s) • Other managers and stakeholders as appropriate
Frequency Minimally, reviews should be conducted at the end of each phase.
Guidelines • Formal or informal • Sponsor should schedule review • Minimize special preparation by the team • Team sends storyboard or presentation to reviewers 2-3 days before the review • Reviewers should not judge the team
Sample Agenda 1. Brief introduction by Sponsor 2. Presentation by the project team 3. Reviewers share the following: • Strengths in logic and data • Questions for clarification • Suggestions to consider 4. Questions and comments from project team 5. Brief closing by Sponsor
Team Success Purpose To ensure the team is properly outfitted for success in using the 6 Sigma DMAIC and/or DMEDI methodology.
Critical Points • Team has been assigned a leader and a Master Black Belt • Black Belt and team members trained in and following the DMAIC and/or DMEDI methodology • Team has scheduled and held frequent meetings • Team members regularly attend all meetings • Team members have the time necessary to complete assignments between meetings • Reviews are regularly conducted • Effective team collaboration • Team has a plan for completing the project • Team is documenting its work • Team has adequate resources • Team has engaged the process owner early in the project • Team has engaged the financial representative early in the project. • Black Belt understands the fundamental concepts of the 6 Sigma financial guidelines. • Team members clearly understand roles and responsibilities.
Relevant Tools & Skills • Facilitation • Project Plan/Gantt Chart • Training
ASSURING TEAM SUCCESS
QUESTIONS
QUESTIONS
Team Success Questions • Who are the assigned team leader and Master Black Belt for the team? • Have all team members been trained? Was it the proper content? • How much time does the Master Black Belt spend with your team? • How often does the team meet? • What is the attendance percentage at meetings? • How much time do members spend outside of meetings working on the project? • Are there barriers for collaboration within the team? If so, what plans are there to address them? • When did the project start? When is the planned completion date? Is the project on schedule? • How is the team tracking and documenting its accomplishments? • What other resources does the team need to assure success? • Who is the financial representative for the project and have they been engaged? • Who is the Process Owner and have they been engaged?
DMAIC Reviews
DMAIC REVIEWS
DMAIC OVERVIEW
DMAIC OVERVIEW
DMAIC Overview DMAIC is the acronym used to refer to the 6 Sig Sigma ma improv improvemen ementt process process.. The five-ph five-phase ase process of Define, Measure, Analyze, Improve and Control is used to improve existing processes, products and services to 6 Sigma quality. Data and statistics are used to reveal the root cause of the problem, thus optimizing the efforts to concept and test solutions.
Define Phase Purpose • To define the customers customers and their requirements requirements (VOB->CCRs) • To define Process Par artners tners and their business business requirements (VOB->CBR (VOB->CBRs) s) • To develop develop and refine refine a team charter • To map the business process to be improved improved
Critical Points • Cus Custom tomers ers/pro /proces cess s partner partners s identified/s identi fied/segmente egmented d as appropriate. appropriate. Data to verify ve rify customers’/ customers’/proces process s partners’ needs and requirements collected and plotted • Written team charter charter includes ratio rationale nale for for project, preliminary problem statement, scope, goals, milestones, and roles and responsibilities • Comple Completed ted and validated validated high-level high-level “as is” process and/or system map which identifies suppliers, inputs, five to seven process blocks of activities, outputs and customers
Relevant Tools/ Tools/Concep Concepts ts • Br Brain ainst stormi orming ng • CCR/ CCR/CBR CBR Tree • Cus Custom tomer er Surv Survey eys s • Prio Prioriti ritizat zation ion Mat Matrix rix • Pr Proc oces ess s Ma Map p
DEFINE
• Pro Projec jectt Plan Plan othe otherr VOC/VOB chart tools • Com Commun munica icatio tion n Plan Plan • Pr Proj ojec ectt Ris Risk k Assessment
QUESTIONS
QUESTIONS FOR DEFINE PHASE
Questions for Define Phase Customer • Who is the customer? • Who are the process partners? • How were the relevant customer/process partner segments determined? • Is there data to understand the customer/process partner requirements?
Charter • What are the compelling business reasons for completing this project? • What key business output measure will this project impact? How? • What is the problem being addressed? • What are the boundaries or scope of this project? • Who are the stakeholders that will be affected by this project? How will data be used to understand and address concerns? • Has this or a similar problem been solved before? • Can we learn from their effort? • What is the goal for the project? Is it reachable? • How will we know if the team is successful? • Are milestones established with dates?
Process/System Map • How was the map developed? • How was the map validated? • Is the process actually followed?
Measure Phase Purpose • Identify project Y=f(x) and performance standards • Collect data on Y, x and related process measures • Determine process/system capability (baseline performance) • Set the improvement goal for the project
Critical Points • Agreement upon the key measures • Identification and definition of critical defects in the process/system • Sound data collection plan and measurement systems analysis • Process variation displayed using appropriate charts and graphs • Baseline measurement of process capability and process sigma level
Relevant Tools/Concepts • Check sheets • Control Chart • Gage R&R • Histogram • Measurement Systems Analysis (MSA)
MEASURE
• Operational Definition • Opportunity • Process/system Map • Run Chart • Sampling Techniques • Yield
QUESTIONS
QUESTIONS FOR MEASURE PHASE
Questions for Measure Phase • Have any charter revisions been made? How has this changed the scope and objectives of the project? • What key output, process and input measures are critical to understanding the performance of this process/system? • What are the definitions of defect, unit and opportunity that you will use to calculate process sigma levels? • What is your data collection plan? • How much data did you collect? How did you sample? • What stratifying factors will you use in your data analysis? • What have you done to ensure the reliability and validity of the measurement process? • What display tools were used to assess the performance of your process? • What are the current process measures and goal for this project? • Have you found any “quick win” improvements? • How were they implemented? What barriers arose? How did you overcome? • Is the scope of the project manageable? • Has the financial baseline from which benefits will be measured been established? • Has the Process Owner been identified? • Is there enough improvement opportunity from the baseline to continue the project? • Is the project on schedule? • Have revised benefits been entered into eTracker?
Analyze Phase Purpose • Identify key sources of variation by analyzing data and process/system. • Quantify the financial opportunity for the project.
Critical Points • A prioritized list of all possible sources of variation for the process • A focused list of critical sources of variation that strongly impact the project Y • A sound, logical path that shows steps and/or tools used to narrow the list. This may include: ➣ A detailed and analyzed “as-is” process map. ➣ Use and display of data to identify, verify and quantify root causes and the key factors ➣ Designed experiments to identify key Factors • A refined problem statement resulting from the analysis. • Dollar estimates of the financial opportunity for the project • Process ownership must be established prior to moving to the Improve phase.
ANALYZE
QUESTIONS
ANALYZE (CONTINUED)
Relevant Tools/Concepts • Cause & Effect Diagram (Fishbone) • Check sheet • Cost/Benefit Analysis • Design of Experiments • Histogram • Hypothesis Tests (t-test, ANOVA, Chi Square)
• Non-value-Added Analysis • Pareto • Process Map • Regression • Scatter Diagram • Stratification
Questions for Analyze Phase • Have any charter revisions been made? How has this changed the scope and objectives of the project? • Which root cause analysis tool did you use to help you identify potential root causes? • What are the root causes of the problems? How did you draw those conclusions? • Show me your detailed process map. • Did you collect additional data? What was measured? What did you learn from the analysis? • What is the opportunity represented by addressing the problem? What are the quantifiable costs of our current process performance? What are the anticipated impacts on customer satisfaction, retention, and loyalty? • How could this increase our capacity? • How could this improve our ability to improve our process controls? • Have you found any “quick win” improvements? How were they implemented? What barriers arose? How did you overcome? • Have revised benefits been entered into eTracker? • Has the financial representative been notified of significant changes in facts or assumptions? Is the revised financial opportunity significantly different from the Project Sponsor’s initial estimate? • Is the project on schedule? • Who is the Process Owner and have they been engaged?
QUESTIONS FOR ANALYZE PHASE
Improve Phase Purpose • To generate and test possible solutions • To select the best solution(s) to address the most critical sources of variation for the process • To identify the required resources and plan for successful implementation
Critical Points • Potential solutions and alternatives to the problem tested • Best solution selected based on data collected during testing • “Should be” process/system map • Cost/benefit analysis of proposed solution • Impact assessment of project improvements developed • Full implementation plan including project and change management plans • Contingency Plan developed • Process Owner is actively involved with solution development
IMPROVE
QUESTIONS
IMPROVE (CONTINUED)
Relevant Tools/Concepts • Creativity • Brainstorming • Cost/Benefit Analysis • FMEA • Prioritization Matrix
• To-Be Process Map • Project Plan/Gantt Chart • Potential solutions
Questions for Improve Phase • How did you generate solution alternatives? What criteria did you use to evaluate potential solutions? • How does the evaluation criteria tie into business strategy and project objectives? • Show me your “should be” process map. • How does your preferred solution address the root cause of the problem? • Walk me through your cost/benefit analysis. What assumptions were made? Did you validate the cost/benefit analysis with a financial subject matter expert? • Have hand-off’s to areas outside the project scope been identified? Addressed? • Explain the compelling need for this change. What is your communication plan? What things have been considered to manage the cultural aspects of the change? • Has the financial representative been notified of any significant changes in the projected financial opportunity? Have those changes in benefits been entered into the appropriate systems? • Is the project on schedule? • Was the Process Owner engaged in developing the solutions?
QUESTIONS FOR IMPROVE PHASE
Control Phase Purpose • To implement the process improvement in all areas • To implement a plan for sustaining the improvement
Critical Checkpoints • Solution piloted on a small scale with data collected and analyzed • Process and financial control plans that assure the improvement gains are sustained long-term • New process documentation and other evidence to assure the solution becomes part of daily work • Response plans developed and deployed • Full implementation of the process improvement • Broader systems and structures changes to institutionalize the improvement • Confirmation of defect reduction and improved process capability • Results translated to other processes with similar improvement requirements • Financial impact of process improvement have been quantified by the Team Leader and validated by the financial representative • Process Owner has accepted full responsibility for controlling the process and reporting the financial impact
CONTROL
QUESTIONS
CONTROL (CONTINUED)
Relevant Tools/Concepts • Control Chart • Histogram • Pareto • Piloting • Procedures
• Process Sigma (Z st) Calculation • Response Plan • Training • Process control system
Questions for Control Phase • How was the solution tested on a small scale? What did you learn about full-scale implementation from the pilot? • What is the implementation plan? What training is required? • How will the implementation plan be monitored to ensure its success? Who is accountable? • What controls are in place to assure that the problem does not reoccur? Is a response plan in place for when the process measures indicate “out of control”? • Who is the process owner? How will responsibility for continued monitoring and improvement be transferred from the team to the owner? • What barriers to change remain that will prevent institutionalization of the improvement? Are actions contained in your plan to address these? • What did the team learn from the project? Are there others that can benefit from these lessons? How can they be effectively shared? • What did you, as a team, learn about the process of making improvements? • What is the next problem that should be addressed in this process?
QUESTIONS FOR CONTROL PHASE
DMEDI Reviews
DMEDI REVIEWS
DMEDI OVERVIEW
DMEDI OVERVIEW
DMEDI Overview DMEDI is the acronym used to refer to the 6 Sigma creation process. The five-phase process of Define, Measure, Explore, Develop and Implement is used to create new processes, products and services to 6 Sigma quality.
Define Phase Purpose • Understand business risk and project risk • To develop and refine a team charter • To identify a new product or service • To develop a project management plan
Critical Points • Written team charter includes rationale for project, scope, goals, milestones, and roles and responsibilities • Documented project plan includes controls, reviews, deliverables, and timeline. • Business risk and project risk examined and documented by team and sponsor • Project management plan includes change management, communications, and risk assessment.
Relevant Tools/Concepts • In and out of scope tool • eTracker • MGPP
DEFINE
• BRM and PRA • Project management plan • Communication plan
QUESTIONS
QUESTIONS FOR DEFINE
Questions for Define Phase Customer • Who are the customers and process partners? • Is there data to understand the requirements?
Charter • What are the compelling business reasons for completing this project? • What key business output measure will this project impact? How? • What are the boundaries or scope of this project? • Who are the stakeholders that will be affected by this project? How will data be used to understand and address concerns? • How will you communicate key project issues to these stakeholders? • Has this or something similar been designed before? Can we learn from their effort? • What is the goal for the project? Is it reachable? • How will we know if the team is successful? • Are milestones and timelines established? • Is this part of a multi-generational project/process plan? What are the generations? • Have risk management tools been used to help balance risk and control?
Measure Phase Purpose • Identify customers and or process partners • Identify and segment customers and/or process partners • Gather and analyze customer and/or process partner needs (VOC & VOB) • Translate the VOC/VOB into Critical Customer Requirements (CCRs & CBRs) with goals and targets
Critical Points • Agreement upon the key customer segments • Prioritization of customer/process partner segments • Selection of customer/process partner research methods • Build VOC/VOB data collection plan • Organize customer/process partner information • Prioritize customer/process partner needs • Develop specific, measurable CCRs/CBRs with targets and specs • Create project scorecards to be used throughout the project to compare design results to CCRs/CBRs
Relevant Tools/Concepts • Affinity diagram • Customer research methods • Customer/process partner surveys/ interviews
MEASURE
• Scorecards • Kano analysis • Performance benchmarking • QFD • Structure tree
QUESTIONS
QUESTIONS FOR MEASURE PHASE
Questions for Measure Phase • How were the relevant customer segments determined? • What is your data collection plan? • How much data did you collect? How did you sample? • What stratifying factors will you use in your data analysis? • What have you done to ensure the reliability and validity of the measurement process? • What are the results of the QFD analysis? • Has a scorecard with CCRs and sigma capability targets been developed? • Have you reviewed the MGPP? • Has the BRM and PRA checkpoint process been used to assess risk? • Have any charter revisions been made? How has this changed the scope and objectives of the project?
Explore Phase Purpose • Generate concepts • Synthesize and select design elements • High level process design complete
Critical Points • Product/Service functions have been defined • CCRs/CBRs have been deployed/allocated to functions • Alternative design concepts have been developed • Best performance products/processes have been benchmarked • Top concepts have been evaluated against appropriate criteria • Design elements have been developed along with requirements for processes, facilities, jobs, systems, etc • Functional/Process requirements have been transferred to design requirements • Completed capability assessment of high level design • A best-fit design has been selected and reviewed for customer and process partner feedback. • Critical design resources have been identified. • Design review conducted • Process ownership must be established prior to moving to Develop.
EXPLORE
QUESTIONS
EXPLORE (CONTINUED)
Relevant Tools/Concepts • Benchmarking • Design scorecards • FMEA • Functional analysis • Layout diagrams • Process maps • Process models • Creativity tools
• Design for manufacturability and assembly • Prototyping • Pugh matrix • Function tree analysis • Non-parametric statistics
Questions for Explore Phase • Did you collect additional data on the concept? What was measured? What did you learn from the analysis? • How did you generate these concepts? • Have all design elements been considered and appropriately developed, including process, information, facility, human, material and equipment? Should any others be considered? • What criteria were used to select the proposed concept? • Who was used for the benchmark best process or product? • Who were the customers that gave feedback on the concept? Why were they chosen? • What tool was used to perform the risk assessment? What did it show? • How were the concepts/designs developed? • What is the capability of the concept/design? • Have any charter or MGPP revisions been made? How has this changed the scope and objectives of the project? • Has the BRM and PRA checkpoint process been used to assess the risks of alternative concepts? • What is the opportunity represented by the completion of this project? • Who is the Process Owner and have they been engaged?
QUESTIONS FOR EXPLORE PHASE
Develop Phase Purpose • To generate and evaluate possible designs that are optimized to meet the CCRs/CBRs • To develop a product or process control strategy • To develop a product/process pilot plan developed • To assess project risks
Critical Points • Detailed products/processes for best design developed • Best design selected based on data collected during design capability analysis • Detailed process/system map • Cost/benefit analysis of proposed solution • Impact assessment of project design developed • Control strategy developed
DEVELOP
QUESTIONS
DEVELOP (CONTINUE)
Relevant Tools/Concepts • Control plan • Design scorecards • FMEA/EMEA • IT logical/physical design • Job Design • Pilot/Test plan • Process management charts • Process/system Map
• Design for manufacturability and assembly • Simulation software • Robust parameter design • Robust tolerance design • Specifications • Standards/ procedures • Design of experiment
Questions for Develop Phase • How did you generate design alternatives? What criteria did you use to evaluate potential designs? • How does the evaluation criteria tie into business strategy and project objectives? • Show me your detailed process/system map. • How does your preferred design address the CCRs/CBRs? • Walk me through your cost/benefit analysis. • What assumptions were made? Did you validate the cost/benefit analysis with a financial subject matter expert? • How was the design analyzed? • Have hand-off’s to areas outside the project scope been identified? Addressed? • What things have been considered to manage the cultural aspects of the implementation? • Has the performance and capability assessment been done? • Have hazards been identified and impacts assessed? • How was the simulation conducted? What was the process performance? • Have any other project risks been identified? • How was the technology/concept optimized? • How robust is the product/service? • How do you plan to pilot the product/service? • Has the financial representative been notified of any significant changes in financial opportunity? Have those changes been documented? • Have BRM and PRA processes been used to assess and mitigate risk? • Who is the Process Owner and have they been engaged?
QUESTIONS FOR DEVELOP PHASE
Implement Phase Purpose • To verify the design in pilot • To validate the product/process with full-scale results • To implement the design and transition to process management • To collect relevant project documents and lessons learned • To celebrate successful project completion
Critical Checkpoints • Design verification through pilot testing • New product/process documentation to assure the solution becomes part of daily work • Response plans developed and deployed • Full implementation of the process design • Process qualification through full-scale processes • Performance evaluation based on full-scale results • Training completed • Process control plans in place for turnover to process owner • Process Owner in full agreement to take responsibility of new product/process/service designed in project • MGPP reviewed • Project closure
IMPLEMENT
QUESTIONS
IMPLEMENT (CONTINUE)
Relevant Tools/Concepts • Capability analysis • Control charts • Control plans • Design scorecards • DMAIC • MGPP
• Process management charts • Project Planning • Standards and procedures
Questions for Implement Phase • What did you learn about full-scale implementation from the pilot? How did the product/service perform during the pilot? • What is the implementation plan? What training is required? • How will the implementation plan be monitored to ensure its success? Who is accountable? Has the project documentation been completed? • What controls are in place to assure that the process/product meets CCRs/CBRs? Is a response plan in place for when the process measures indicate “out of control”? • Who is the process owner? How will responsibility for continued monitoring and improvement be transferred from the team to the owner? • What barriers to change remain? Are actions contained in your plan to address these? • What did the team learn from the project? Are there others that can benefit from these lessons? Have they been documented? How can they be effectively shared? • What plans are there for further commercialization? • Has the multi-generational product/process plan been updated?
QUESTIONS FOR IMPLEMENT
Project: _______________________________ Review Meeting Date: ____________________ Phase in DMAIC/DMEDI completed:_________ • Brief status of the project:
• Key messages from the reviewers:
• Agreed-upon next steps:
• Suggestions for improving the next review:
• Issues/concerns.
DMAIC/DMEDI REVIEW PROJECT NOTE FORM
DMAIC/DMEDI REVIEW PROJECT NOTE FORM Date: _________________________________ • Business:_____________________________ • Process: _____________________________ • CCR: ________________________________ • Current Sigma: ________________________ • Target Sigma: _________________________ • Customer Benefit: ______________________ ____________________________________ • Estimated Financial Impact: ______________ • Financial Impact To Date: ________________ • Start Date:____________________________ • Estimated Completion Date: ______________ • Master Black Belt: ______________________ • Black Belt: ____________________________ Notes: (Issues/Challenges).
Process Management Reviews
PROCESS MANAGEMENT REVIEWS
PROCESS MANAGEMENT REVIEWS OVERVIEW
Process Management Overview Process Management is the means by which we ensure the improved/created outcomes of 6 Sigma projects continue year over year. Regularly scheduled process management reviews, after project completion and closure, should be scheduled and facilitated by the Process Owner. These reviews are intended to ensure improved/created processes and systems are being maintained and used according to the process control system and that benefits continue to accrue.
Process Management Purpose • To verify the process is being implemented according to the process control system. • To ensure consistency, especially when team members change jobs. • To help prevent leakage of savings resulting from process improvements. • To provide the opportunity for voices external to the team, including customers, to provide feedback on the process.
Critical Points • Process owners are accountable for completing process reviews and should critically evaluate the process and financial performance • There are several types of process reviews including: structured/formal review meetings, inclusion in other meetings, “managing by walking around”, and periodic (annual, monthly, etc.) • Participants in the reviews should include: Process Owner (leads the review), individuals who are responsible for collecting or reporting data, individuals responsible to respond to metrics, key stakeholders and possibly customers. • Outputs of the reviews may include: list of key issues raised, list of action items and who is responsible for each item, schedule of future meetings to assess completion of action items, schedule of future process review meetings, updated process control system including effectively dates and/or version tracking, validation in eTracker.
Relevant Tools/Concepts • Process review and turnover checklist • Process control system • eTracker
PROCESS MANAGEMENT REVIEWS OVERVIEW
QUESTIONS FOR PROCESS REVIEW
Questions for the Process Review • Has a process control system been developed, validated and approved by stakeholders and is it being adhered to? • Does the process description reflect a key process, job or group of work tasks using simple and general terms and do the owners, customers and users understand it? • Does the process purpose describe the process outcome in a measurable way and is the process outcome being measured? • How well are the customer’s requirements being met? • Is there a process map that shows the required activities, individual and cross-functional accountability, and the process roles and responsibilities of all involved? Is the process map accurate and being followed? • Is there a set of indicators that measure compliance of critical process activities to process specifications and provide upstream indication of the quality of the outcome of the process? Are the indicators being met? • Are there specification limits or targets that define acceptable levels of quality performance and are these being met? • Are checks being done at specified intervals and by the accountable individuals? • What are the key issues that were raised during the review? • Is there a list of action items, which includes responsible parties, and due dates? • Is there a schedule of future meetings to assess completion of action items? • Is there a schedule of future design review meetings, if needed? • Does the process control system need to be updated, and if so, who is responsible? • Is the eTracker information correct, and if not, when will it be updated and by whom? • Is the value created continuing to be measured and sustained?
GLOSSARY 3 Ps: Performance through 6 Sigma, Profitable Growth and People. AFFINITIZE: A term coined by the 6 Sigma community that describes the process of the categorizing or organizing of similar concepts, ideas, issues, etc into logical or similar groups. Often done after brainstorming sessions to create an ‘affinity’ chart/diagram. BENCHMARKING: The practice of assessing the performance or processes of another company and identifying best practices with the goal of improving internal process performance. BENEFITS: Level 1 benefits have a direct and certain impact on the enterprise bottom line and there is a clear cause and effect relationship between the project and resulting gain that can be quantified and measured on the income statement. Level 2 benefits result from the productive redeployment of human (whole salaried or management employees only) and capital resources to functions or areas with a demonstrated need. Level 3 benefits generally create potential opportunities for future savings and the impact to the bottom line is “more likely than not” (i.e. greater than 50% confidence level) or the baseline cost is not in our existing cost structure (i.e. cost avoidance.) BLACK BELT: A full-time resource trained in DMAIC and/or DMEDI whose role is to lead 6 Sigma projects.
GLOSSARY
GLOSSARY BOUNDARYLESS: The ability to think and act beyond your own business unit needs for the benefit of the enterprise. Boundaryless behavior is a requirement for successful 6 Sigma deployment. CHARTER: A document that outlines the purpose and plan for a project. It contains a statement of the problem, the scope of the project, an improvement goal, timeline, estimated financial benefits, and a list of team members and their roles. CHECK SHEET: A simple form for tracking events using tally marks to indicate the frequency of an occurrence. COMMON CAUSE VARIATION: (Also called random variation or noise) A steady but random distribution of change in a process measurement around the average value of the data caused by unknown factors. Common cause variation is a measure of the process’s potential, or how well the process can perform when special cause variation is removed. CONTAINMENT: Containment is a temporary intervention used to minimize a problem’s impact on the customer while the improvement team works to resolve the issue with a longterm solution. CONTINUOUS DATA: Information measured on a continuum or scale that can be meaningfully subdivided into infinitely small increments, depending upon the precision of the measurement system. Examples of continuous measurements are time, temperature, weight and currency.
CONTROL CHART: A time-ordered plot of data points that includes a center-line (average value) and specific control limits; used to identify changes in process performance. CBR (Critical Business Requirement): A key measurable characteristic of a product or a process whose performance standards are dictated by process partners. CCR (CRITICAL CUSTOMER REQUIREMENTS): A key measurable characteristic of a product or a process whose performance standards are dictated by the customer.
CUSTOMER: End user who pays green dollars for Caterpillar products and services DASHBOARD: A display tool used to summarize key process measurements that directly affect customer satisfaction. DISCRETE DATA: Information expressed on a scale that has a finite number of values or categories. Examples include location (Asia, Europe, US), credit source (A, B, C), and season (winter, spring, summer, fall). DMEDI: Data-driven methodology for designing products, processes and services. It is comprised of five phases: Define, Measure, Explore, Develop and Implement. DMAIC: Data-driven methodology for improving processes, comprised of five phases: Define, Measure, Analyze, Improve and Control.
GLOSSARY
GLOSSARY FMEA (FAILURE MODE AND EFFECTS ANALYSIS):
A disciplined approach used to identify possible failures of a product or service and determine the frequency and impact of the failure. Results of an FMEA are used to improve the solution to a problem and develop contingency plans in case of failures. ENTERPRISE FOCUS: The ability to make sound business decisions by optimizing cash flow for the global Caterpillar organization. GAGE R&R (GAGE REPEATABILITY AND REPRODUCIBILITY): A statistical tool used to measure the amount of variation in the measurement system arising from the measurement device and the people taking the measurement. GREEN BELT: An individual trained in the DMAIC and/or DMEDI methodology whose part-time role is to work 6 Sigma projects. HYPOTHESIS TESTS (t-TEST, F-TEST, ANOVA, CHI SQUARE): A set of statistical analysis tools used to determine whether the observed differences between two or more samples are due to random chance (as stated in the null hypothesis) or true differences in the samples (as stated in the alternate hypothesis). ISHIKAWA DIAGRAM: (Also called a “fishbone”) A tool used to organize possible causes for a specific problem or effect by graphically displaying them in increasing detail.
MASTER BLACK BELT (MBB): A full-time expert in the DMAIC and/or DMEDI and Process Management methodology, specifically trained to coach and mentor improvement teams and dedicated full time to 6 Sigma. The MBB participates in project reviews, helps the team obtain required resources, provides training for Black Belts and Green Belts, and ensures the rigor of the DMAIC and/or DMEDI and Process Management methodology is maintained. MEAN: The average value of a data set. MEASUREMENT SYSTEM ANALYSIS: A mathematical method of determining what fraction of the total process variation observed is contained in the measurement (data collection) process. MEDIAN: The middle or central value of a data set whose values are arranged in increasing order. MISTAKE PROOFING: A technique for eliminating errors that cause defects by: • Predicting when an error could occur and taking action to eliminate the possibility of occurrence, or • Predicting when a defect is about to occur by detecting that an error has occurred and taking the appropriate action. MINITAB: Caterpillar’s current statistical software application of choice. MOMENT OF TRUTH: Any instance in which the customer comes in contact with a product or service and can make a critical judgment on the business - positive or negative.
GLOSSARY
GLOSSARY MODE: The most frequently occurring value in a data set. MULTI-GENERATIONAL PRODUCT/ PROCESS PLAN(MGPP): Generations of a product or process used to reach a long-term vision. It contains concepts, platforms, and technologies needed for each stage. NOISE: Those items that can affect the output of the product/process, which the team cannot control or chooses not to control. NONVALUE-ADDED STEPS: Steps in the production and delivery of a product or service that are considered nonessential to meeting the customer’s needs and requirements (i.e., steps the customer would not be willing to pay for). OPERATIONAL DEFINITION: A detailed description of a process, measurement or activity written to ensure common understanding. OPPORTUNITY: Any characteristic of a unit that is inspected, measured, or tested and provides a chance of not meeting a customer requirement. OUTLIER: A data point located beyond a specific range and that represents a statistically unexpected event. Outliers may result from an unstable process, a specific process improvement, or a data collection or data entry error. OUTPUT MEASURE: An indicator of process performance captured at the end of a process, and links to the process’ ability to satisfy customer needs and requirements.
PARETO CHART: A graphing tool that prioritizes a list of variables or factors based on impact or frequency of occurrence. It is used to separate the potential vital few causes of a particular problem from the trivial many. PERFORMANCE STANDARD: (Also called a specification or Spec limit) A boundary that defines acceptable values for the measurement of a product or process as determined by customer needs. Depending upon the product or process, a performance standard may be one-sided (a single boundary) or two-sided (upper and lower boundaries). PILOT: A test of a proposed solution on a small scale in a real business environment to verify that the improvement goal has been met and to identify issues that must be addressed to ensure the successful full-scale implementation of the solution. PROCESS: A series of steps that transforms one or more inputs into an output (product or service) to meet a customer and/or process partner’s need. Every activity performed, whether or not it produces a tangible product, can be described as a process. PROCESS PARTNER: Internal customer who provides inputs or receives outputs of an internal process. PROCESS CAPABILITY: The ability of a process to produce a defect-free product or service. PROCESS MANAGEMENT: The means by which we ensure the improved/created outcomes of 6 Sigma projects continue year over year.
GLOSSARY
GLOSSARY PROCESS MAP: An illustration of the steps, events, and operations (in chronological order) that make up a process. PROCESS REVIEW: Required review facilitated by the Process Owner after completion and closure of a 6 Sigma project to ensure that the benefits are being sustained. QUALITY FUNCTION DEPLOYMENT (QFD): (Also called House of Quality) A structured methodology used to identify customers’ requirements and translate them into key process deliverables. RANDOM SAMPLE: Data collected in a manner such that each element of the population has an equal chance of being selected for measurement. Random sampling helps to avoid biases specific to the time and order of data collection, operator or data collector. REGRESSION ANALYSIS: A method of analysis that quantifies the relationship between a response (Y) variable and one or more predictors (Xs). The relationship is represented by a formula (the regression equation) that can be used to model process performance. REPLICATION: Replication of a process improvement occurs when the process improvement framework of a completed 6 Sigma project is used as a guide for a separate, but similar project. There must be a reasonable degree of uncertainty as to whether the proposed solution will work without significant modification. The elements of the DMAIC methodology will need to be completed, even if abbreviated somewhat.
ROBUST PROCESS: A process that operates at 6 Sigma and is therefore resistant to defects. The critical process elements usually have been designed to prevent or eliminate opportunities for defects. ROOT CAUSE: The underlying condition or factor that produces one or more problems or defects. RUN CHART: A graphing tool that shows data plotted in time order for a process. Patterns on the run chart can help identify the presence of special cause variation. SAMPLING: The practice of gathering a subset of the total data available from a process or a population, to draw conclusions about a population or process; this is known as statistical inference. SCATTER PLOT: (Also called a scatter diagram or a scattergram) A graphing tool that shows the relationship between two variables. The dots on the scatter plot represent data points. SCORECARD: An evaluation tool (usually in the form of a questionnaire) that is used by the customer to rate the business’ ability to satisfy their key requirements. SEGMENTATION: The division of a group into smaller, logical categories for analysis. Some commonly segmented entities are customers, data sets, or markets. SIGMA ( σ ): The statistical term for the standard deviation of a population. In 6 Sigma, Sigma is a measure of process performance based on customer requirements.
GLOSSARY
GLOSSARY SIPOC: A high-level process map that shows Suppliers, Inputs, Process steps, Output and Customers for a process. STRATEGIC IMPROVEMENT PROJECT (SIP): Enterprise-wide project that supports our global mission and critical success factors. Projects are led by Black Belts using 6 Sigma methodology and rigor to drive results supported by facts and data. SPECIAL CAUSE VARIATION: (Also nonrandom variation or controllable variation) Shifts in process output caused by a specific factor such as environmental conditions or process input parameters; special cause variation can be directly accounted for and potentially removed. SPECIFICATION LIMIT: A threshold value obtained from the customer that defines whether the performance of a product or process is acceptable. STANDARD DEVIATION: The statistical “spread” of data in relation to the mean that indicates variation in a data set. STANDARDIZATION: Standardization of a process improvement occurs when the improvement is implemented, subsequent to the completion of the original 6 Sigma project, broadly across business units or departments with little or no modification. STATISTICAL PROCESS CONTROL (SPC): The application of statistical methods (usually control charts) to analyze and control the variation of a process.
STRATIFYING FACTOR: (Also stratification or stratifier) A process characteristic used to divide data into subgroups to look for changes in process performance that might indicate the factor is a key driver of process performance. TREE DIAGRAM: A graphing tool used to subdivide a broad topic or goal into increasing levels of detailed items; tree diagrams are useful for organizing information into a logical hierarchy. UNIT: Any item that is produced or processed. VALUE-ADDED STEPS: The steps in the production and delivery of a product or service that are essential to meeting customers’ needs and requirements. Since they bring the product or service closer to completion, value-added steps are considered steps the customer is willing to pay for. VARIATION: (Also noise) The fluctuation in a process measurement quantified by standard deviation. VITAL FEW: The small number of variables (Xs) most likely responsible for the majority of the variation in a process, product or service. VOICE OF THE BUSINESS (VOB): Information from process partners and business stakeholders obtained from a variety of sources about the expected and/or actual requirements related to the performance of a product or process.
GLOSSARY
GLOSSARY VOICE OF THE CUSTOMER (VOC): Information from customers obtained from a variety of sources about the expected and/or actual requirements related to the performance of a product or process. Z ST : A statistical measure of process performance that is the basis for determining process capability (process sigma).
LongTerm Yield
Process Sigma
99.99966%
6.0
99.9995%
Defects Per 1,000,000
Defects Per 10,000
Defects Per 100
3.4
0.034
0.00034
5.9
5
0.05
0.0005
99.9992%
5.8
8
0.08
0.0008
99.9990%
5.7
10
0.10
0.001
99.9980%
5.6
20
0.2
0.002
99.9970%
5.5
30
0.3
0.003
99.9960%
5.4
40
0.4
0.004
99.9930%
5.3
70
0.7
0.007
99.9900%
5.2
100
1.0
0.001
99.9850%
5.1
150
1.5
0.015
99.9770%
5.0
230
2.3
0.023
99.9670%
4.9
330
3.3
0.033
99.9520%
4.8
480
4.8
0.048
99.9320%
4.7
680
6.8
0.068
99.9040%
4.6
960
9.6
0.096
99.8650%
4.5
1,350
13.5
0.135
99.8140%
4.4
1,860
18.6
0.186
99.7450%
4.3
2,550
25.5
0.255
99.6540%
4.2
3,460
34.6
0.346
99.5340%
4.1
4,660
46.6
0.466
99.3790%
4.0
6,210
62.1
0.621
99.1810%
3.9
8,190
81.9
0.819
98.930%
3.8
10,700
107
1.07
98.610%
3.7
13,900
139
1.39
98.220%
3.6
17,800
178
1.78
97.730%
3.5
22,700
227
2.27
97.130%
3.4
28,700
287
2.87
96.410%
3.3
35,900
359
3.59
95.540%
3.2
44,600
446
4.46
94.520%
3.1
54,800
548
5.48
93.320%
3.0
66,800
668
6.68
91.920%
2.9
80,800
808
8.08
90.320%
2.8
96,800
968
9.68
88.50%
2.7
115,000
1,150
11.5
86.50%
2.6
135,000
1,350
13.5
84.20%
2.5
158,000
1,580
15.8
81.60%
2.4
184,000
1,840
18.4
78.80%
2.3
212,000
2,120
21.2
75.80%
2.2
242,000
2,420
24.2
ABRIDGED SIGMA CONVERSION TABLE
ABRIDGED SIGMA CONVERSION TABLE
LongTerm Yield
Process Sigma
Defects Per 1,000,000
Defects Per 10,000
Defects Per 100
72.60%
2.1
274,000
2,740
27.4
69.20%
2.0
308,000
3,080
30.8
65.60%
1.9
344,000
3,440
34.4
61.80%
1.8
382,000
3,820
38.2
58.00%
1.7
420,000
4,200
42
54.00%
1.6
460,000
4,600
46
50%
1.5
500,000
5,000
50
46%
1.4
540,000
5,400
54
43%
1.3
570,000
5,700
57
39%
1.2
610,000
6,100
61
35%
1.1
650,000
6,500
65
31%
1.0
690,000
6,900
69
28%
0.9
720,000
7,200
72
25%
0.8
750,00
7,500
75
22%
0.7
780,000
7,800
78
19%
0.6
810,000
8,100
81
16%
0.5
840,000
8,400
84
14%
0.4
860,000
8,600
86
12%
0.3
880,000
8,800
88
10%
0.2
900,000
9,000
