comb for 6 sigma class, Six Sigma Green Belt

(Time in Use)/(Time Available)

Labor Utilization =

Characteristics of Lean Systems:

o Just-in-Time, Denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize inventory cost.

Efficiency = Actual Output / Standard Output

o Measures performance relative to standard

8 Characteristics of Organizational Culture

o Openness an humility form top to bottom o Environment of accountability o Freedom for risk taking o Fierce commitment to do it right o Willingness to tolerate and learn o Unquestioned integrity o Pursuit of collaborating Courage and persistence

5S

o Sort o Set in order o Shine o Standardize o Sustain

The Steps in Autonomation topics

o Stop the process o Error prevention Poka-Yoke Total Productive Maintenance (TPM

Capacity Planning

o The process of determining the production capacity needed by an organization to meet changing demands.

Precision/tolerance (P/T)

tells how well a given measurement can be reproduced. This is a standard deviation around a mean value. Tolerance may have two errors systematic and random

WIP=

waiting--Longer lead timesDelayed salesIncreased expenses= Less Profit

muda

waste

Occurrence

which assesses the chance of a failure happening with representing the lowest occurrence and 10 representing the highest occurrence

W.I.P.

work in progress

process capability study

A process capability study is performed to measure the ability of a process to meet customer requirements. It also provides a baseline for process improvement by clarifying whether a process is currently capable and how well it meets specifications. There are five key steps in performing a process capability study: Determine the specifications Verify assumptions Gather data Calculate capability Make recommendations

Process Map

A process map is a series of symbols and lines that show the flow of activities within a process. A process map shows certain types of information and relationships: Process boundaries scope the process from starts to end Responsibilities between different functions are defined Interactions between steps and how they're related are illustrated Disconnects within the process are also illustrated Nonvalue-added activities are identified Bottlenecks within the process are also identified Inputs and outputs are identified, whether it's information, or applications, or materials that are used within the process and what the outputs are

Utilization = Time a resource is used / Time a resource is available

A proportion of time a resource is actually used

SHOJINKA

A way of managing person-power on the line such that when demand decreases, workers can be re-deployed to areas where needed, or when demand increases, they can be deployed to areas requiring additional support. Preferred to the system of maximizing machine efficiency, which pays no attention to customer demand and TAKT time.

Activity Network Diagrams

An activity network diagram is a quality tool that's used to show the required order of specific tasks needed in a project or a process. By showing the sequential relationships of activities, it helps the team determine the critical path, and therefore the best schedule or time line. It can also show any potential scheduling or resource problems which lead to developing solutions.

What is process modelling?

An analytical representation or illustration of an organization's business processes

Kanban:

An inventory or production control system that uses a signaling device to regulate flows

Tools for Improve

Analysis, Brainstorming, Decision Matrix, Capability Study, pilot, Implementation Plan

Tools for Improve Phase

Analysis, brainstorming, Decision Matrix, Capability Study, Pilot, and Implementation Plan

Analytic

Analytic Studies take action on the process or system cause that produces the subject or data being studied and focuses on improving the system that created the results.

Activities involved in Analysis Phase

Analyze data, define performance objectives, identify value and non-value processes and determine the root cause

Quality problem signboard to alert mgmt.)

Andon

Customer Satisfaction

Another key measure which is the result of delivering a product of service that meets customer requirements

Stakeholder

Anyone who is actively involved in the project and has interests that may be positively or negatively affected by the performance or completion of the project.

F distributions

Are a continuous probability distribution formed from the ratios of two chi-squared variables. If X1 and X2 are independent chi-square variables.

c Control Charts

Are a control chart used to plot the number of nonconformities per unit when the sample size is constant. It is used in situations where each unit can have several nonconformities

Cp and Cpk

Are an index which measures how close a process is running to its specification limits, relative to the natural variablity of the process.

Risk Priority Number (RPN)

Are assigned to the severity and occurrence of each potential failure on a scale of 1-10, low to high. RPN = Severity X Occurrence RPN = # X #

Long-term capability

Are the process performance indices Pp and Ppk process capability measures. This is because the standard deviation used in their calculation is calculated using the Root Mean Square Error Method. Which is inflated by shifts in the process mean

u Control Charts

Are used to plot the number of nonconformities per unit when the sample size varies.

Simplify

Arrange items so that they are easily accessible. Use methods analysis tools Arrange items so they are visible Follow: "everything in its place and a place for everything Make it obvious where things belong Lines Labels Color coding Signs Toyota Tundra Plant in Texas V.S. GM Silverado in flint Michigan

Project Metrics

Assist with the evelopment of primary and consequential metrics (e.g. quality, cycle time, cost) and establish key project metrics that relate to the voice of the customer 3 Key input components of quality: Customer, the employee, and the process. Once you determine customers' requirements you need to determine what data is needed to make improvements.

Value Stream Mapping:Learning to See What is Value Stream Mapping

Common Language - All industry value stream use the same symbols Promotes Continuous Improvement - It shows you what you need to focus on Implementation Plan - Helps diagram visually an implementation plan Defines Flow - It diagram shows the flow Qualitative and Quantitative - The Qualitative is the symbols and the Quantitative is the VSM data

T-Test

Compare the mean against a specified value using a sample of 30 items or less

Z-Test

Compare the mean against a specified value when the sample has more than 30 items or the standard deviation is known.

Two sample T-Test

Compare the means of two samples of 30 items or less

Paired T-Test

Comparing the means of two samples of 30 items or less, when the items in the two samples can be paired

3 reasons for the regular Gemba walks

Conduct routine process audits to ensure standards are consistently followed Leaders ensure that actual practice (the reality of the process) matches process definitions Someone is assigned to ensure standard work is updated as needed

What does process modelling allow?

Consider changes in a system, current or planned, under different situations to optimize the outcome.

Seamless Shift Operations (Simplicity and Visual - Internet)

Continuity, consistency and communication are maintained across shifts. An effective 24-hour management system provides the necessary support for all shifts Shift schedule satisfies both operational and employee needs

Other types of Tree Structures

Convergent - The convergent diagram is the reverse of the tree diagram. It starts with detailed information and groups that into more general information and then even more general information. Essentially, it moves in the opposite way to converge on the higher-level area. Circular - A circular structure starts in the middle and breaks one idea down into two. Each of those ideas breaks down into two other ideas and so on as the branches form a circular shape around the center.

The Project Manager

Coordinates the project and team members who implement the project plan and charter

Analyze

Core activities include analyze data, determine root causes, determine correlations, mean, mode, median, variance, variation, and correlation as well as hypothesis testing and design of experiments

Improve

Core activities include determine 3-5 solutions, pilot solutions, and roll out solutions

Measure

Core activities include measurement systems analysis, benchmarking, return on investment calculations, failure mode and effects analysis, and Gauge R&R

Control

Core activities include the control plan and control chart

Define

Core activities include the project charter, scope, deliverables, process map, cost benefit analysis, and stakeholders analysis

ROI

Cost Savings/ Asset investment+ Labor Costs + Miscellaneous investment

Inspection Cost

Cost incurred to determine the degree of conformance to quality requirements such as inspection and testing

Cost of Poor Quality (COPQ)

Cost of poor quality is the cost of the product or service when it doesn't meet the customers'. In other words, these are costs that are associated with products or services that are of low quality, and which come from activities or processes that do not meet the expected outcomes in terms of the Voice of the Customer and customer expectations.

Categories or Organizational improvements for projects in Six Sigma

Cost reduction, Productivity, Cost avoidance, Customer Satisfaction, Simplification, Revenue growth, Measurement system development, Infrastructure development, New products

Defects

Counting defects works well with discrete data. Rather than needing an actual reading or a measurement on a particular aspect of your product or service, you can use information stating whether it's good or it's bad. You can then use this type of information to calculate your defects per unit, your defects per million opportunities, or your rolled throughput yield, and your sigma value. Measuring process variability The second way to measure process performance is to measure the variability of the process directly. Process variability compares the mean and standard deviation with specification limits. This requires that you have continuous data that has a normal distribution, as opposed to counting defects where you can have discrete information regardless of whether it's good or bad. Process variability uses continuous data to calculate process capability indices, your Cp and your Cpk. The Cp and Cpk values can then be converted into a process sigma value using a table.

Calculate Cp Index

Cp is a ratio of the specification spread to the process spread. It's calculated by subtracting the lower specification limit from the upper specification limit and then dividing by six times the standard deviation. The sigma value or standard deviation is an estimate of the population standard deviation that's calculated from a sample of process data. The formula for calculating Cp is (USL - LSL)/6 σ

Cp

Cp is the ratio of the specification spread to the actual process spread. Because it's a ratio, the higher the Cp value, the better the fit for the process within the specification limits.

6 Sigma: Cp, Cpk, DPMO

Cp>=2.0 Cpk>=1.5 DPMO<=3.4

Cpk

Cpk is the ratio of the same element, but unlike Cp, Cpk takes into adjustment whether or not the process is centered or not. You want to understand if you have a non-centered distribution of data. The higher the Cpk value, the better the fit for the process within the specification limits. A higher Cpk value also means that the process mean is closer to the middle of the specification limit, or closer to the target.

Cpk Form

Cpk= Min (Cpl, Cpu)

Cpl Form

Cpl= (Mean - LSL)/ 3 * STD

Cpu Form

Cpu= (USL - Mean)/ 3 * STD

Creating Interrelationship Diagrams

Creating an interrelationship digraph involves four steps: 1-Determining what the problem is and writing down the problem statement where it's clearly visible to all team members. 2-Putting ideas on cards or sticky notes. This is where the team can use tools such as brainstorming to make sure that they have a wide breadth of ideas. 3-Arranging the cards so they are spread out over a large area. 4-Analyzing the relationships between the various ideas and adding arrows from each idea to any other idea it causes or influences.

Tools for Measure

Data Collection plan CTQs Histogram, Pareto Chart, Scatter Diagram, Control Charts, Sigma Level, ROI, FMEA, Validate, Gauge R&R

Data Coding

Data coding is a useful tool in the data collection process. It's one of the best practices to help avoid errors in data collection and to make the process a little simpler. Data coding uses coded values rather than the actual data. This makes data collection simpler, easier, and more accurate, as it helps to avoid transcription errors. Using coded values rather than full values also helps to reduce sensitivity to rounding and helps to reduce error when the data collection involves operators handling large numbers - particularly in values with several decimal places. Data coding also helps to reduce the quantity of data.

Tools used in measure phase

Data collection plan, bench marking, CTQs, histogram, pareto chart, scatter diagram, control charts, sigma level, ROI, FMEA, and Gauge R&R

Discrete data

Data that can't be broken down into smaller units. Only a finite number of values are possible. Discrete data Has one of a set of discrete values such as pass or fail, yes or no.

Information Technologies for Automated Data Collection

Data warehousing Data warehousing typically starts with the source systems, which are on the production line or wherever you're collecting data. The data is collected as metadata. It's uploaded and can be used to provide operational feedback to the source or process to understand what's happening. OLAP Online Analytical Processing, or OLAP, is an important methodology for collecting data and being able to analyze it in multiple ways. OLAP uses a relational database that looks at the information from multiple aspects, and as a user, you can decipher it from several different aspects. Data mining goal definition - data selection - data preparation - pattern discovery - pattern deployment - pattern validity monitoring - alarm monitoring -

8 Wastes DownTime

Defects Over-production Waiting Not engaging people Transportation Inventories Motion Excess processing

Lean = Eliminating Waste by?

Defects Overproduction Waiting Non-Value Added Processing Transportation Inventory Motion Employees': KSAs Knowledge, Skills and Abilities)

Descriptive Statistics

Define, Compute, and interpret measures of dispersion and central tendency, and construct and interpret frequency distributions and cumulative frequency distributions.

DMADV

Define, Measure, Analyze, Design, Verify Used for New products or services requiring design and product verification

DMAIC

Define, Measure, Analyze, Improve, Control

DMADV

Define, Measure, analyze, design, verify Used for New products or services requiring design and product verification

Process Capability Indices

Define, Select, and Calculate Cp and Cpk, and assess process capability.

Process performance indices

Define, select, and calculate Pp, Ppk, Cpm, and assess process performance.

Taguchi

Defined what product specification means and how it can be translated into cost-effectiveness. Reduction in variation

Four Leadership Styles for team approach

Delegating Supporting Coaching Directing

Continuous Improvement (Kaizen by Tagichi Ohno

Employees are engaged in _______ or Kaizen Events on a regular basis. All teams meet to get goals, solve operating problems and implement corrective action Employees are empowered to engage in Continuous improvement Example is Samsung

Empowered Teams

Employees are multi-skilled members of motivated, capable work groups with clear roles, responsibilities, and performance standards

Examples of Internal Customers

Engineering, logistics, housekeeping, supervisors, purchasing

Enumerative

Enumerative Studies take action on the subject or data being studied and in a statistical study on the results of the studied material.

5 Principles of TOC

Every system has a bottleneck or constraint. 2. There is variance in every system. 3. Every organization must be managed as a system. 4. Performance measures are crucial to the organization's success. 5. Every system must continually improve.

Organizational Roles

Executive team and Champion - Starting at the highest level of the organization, there is the executive team and the Champion, who provide the vision for the organization. Master Black Belt and Black Belts - The Master Black Belt works with the Champion to select projects and mentors the Black Belts, who are actively involved in leading the Six Sigma projects. Green and Yellow Belts - The Green Belts implement the process improvements that occur within their own jobs, and the Yellow Belts are people participating on the team and who have a general understanding of Six Sigma.

Central limit theorem

Explains why many distributions tend to be close to the normal distribution. Describes the characteristics of the population of the means created from the means of an infinite number of population samples of size

FMEA

Failure Mode and Effects Analysis- Used in the Improve stage Process is graphically mapped out showing key inputs and outputs of each process step. Effects of potential failure modes are listed and then compared using: Severity, Occurrence, and Detection. Higher the score, more severe. RPN (Risk Priority Number) is found by multiplying each number of ranking. Tackle bigger numbers first.

Project Closure Report

Final Doc. produced for the project and is used by senior management to assess the success of the project, identify best practices for future projects, resolve all open issues, and formally close the project.

Carl Fredrick Gauss

First scientist to introduce the normal curve- DEVIATION

First Time Yield

First time yield is commonly referred to as first pass yield. A process resulting in 1,000 units out of which 100 are scrap would yield 900 viable units in the end. This results in a first time yield of 90%. In other words, 90% of the products that come into the process leave the process being defect free. First time yield is typically used for processes or subprocesses that are only made up of one single operation or step.

SIPOC (Suppliers, Inputs, Process, Outputs, Customers) diagram

Identifies key input and output variables for processes.

Types of Data and measurement scales

Identify and classify continuous (variables) and discrete (attributes) data. Describe and define nominal, ordinal, interval, and ratio measurement scales

Gemba

Japanese term meaning "the actual place" or "the real place". Japanese detectives call the crime scene In business, ____ refers to the place where value is created; in manufacturing the ____ is the factory floor. In lean manufacturing, the idea of ____ is that the problems are visible and the best improvement ideas will come from going to the _____. The ______ walk, much like MBWA or Management by Walking Around,

Automation with human touch; system to detect and fix quality issues during the process)

Jidoka

(Just in time "JIT" manu. supplies

Just In Time

Continuous Improvement)

Kaizen

Sustain

Keep it going in all of your areas.

Goal Deployment (KPI's

Key performance indicators and shop floor goals are in place for each area, developed at the operating level and tied directly to plant goals

Theory of Knowledge

Knowledge isn't possible without theory, experience doesn't establish knowledge.

Directing

Leadership is used for teams which are new or on time sensitive projects. The commanding style is classic model of military style leadership-probably the most often used, but the least often effective. Because it rarely involves praise and frequently employs criticism and it undercuts morale and job satisfaction

Supporting

Leadership style is used for teams that require continual support in terms of competencies and experience. Emphasizes the importance of team work and creates harmony

Deming

Most problems Systemic and management responsibility to improve system. Improvement in quality leads to lower costs Workers 20% -Management 80% 1. Theory of Optimization 2. Theory of Variation 3. Theory of Knowledge 4. Theory of Psychology

Cross-training & Multi-skilling (KM Knowledge Management and KW Knowledge Worker

Multi-skilling in each area provides the needed flexibility. Training of all personnel, including the plant leadership team, is a key priority

Project planning tools

Use project tools such as Gantt charts, critical path method (CPM), and program evaluation and review technique (PERT) Charts Project planning is important for establishing your project's timeline with realistic and attainable deadlines. Gantt, CPM, or PERT charts are used to visually display tasks, deliverables, milestones, and resource constraints in a continuum which is called the critical path is the minimum amount of time needed for the completion of the project.

Check

Observe effects of the change or test

Independent probability

Occurs if the occurrence of one of the events provides no information about whether or not the other event will occur meaning the events have no influence on each other

Non-response bias

Occurs when individuals chosen for the sample are unwilling or unavailable to participate in the survey

Bias Measurement

Occurs when information collected for use as a study variable is inaccurate

Voluntary Response Bias

Occurs when sample members are self selected volunteers, the resulting sample tends to over-represent individuals who have strong opinions

Social Desirability

Occurs when survey respondents are reluctant to admit to questions in the survey if the results are not confidential

A3 Report

One page reports used for documenting the necessary information needed for progress reporting and decision making

determine maximum output=

Operating time per day/ cycle time

Source Inspection

Operators must be certain that the product they are passing to the next workstation is of acceptable quality.

Theory of Optimization

Optimization of the total system, not just individual

Interval

Ordering with a constant scale but no natural zero.

Standardize

Organize the first 3 S's so they have a place

Sort

Organizing and separating needs from junk.

Mistake-proofing a process)

Poka-yoke

Pp Form

Pp = (USL - LSL)/ 6 * STD

Categories of COPQ

Prevention costs - Prevention costs are costs such as education and training before releasing a new product. Appraisal costs - Appraisal costs are the costs of inspecting a new service to make sure it meets the customers' requirements. Failure costs - There are two costs associated with failure cost: internal and external cost. Internal costs are scrap and rework that are internal to the organization, whereas an external cost could be something like a sales return.

4 Costs of Quality

Prevention costs - reducing the potential for defects Appraisal costs - evaluating products, parts, and services Internal failure - producing defective parts or service before delivery External costs - defects discovered after delivery

what does cost contain in the equation Price - Cost = Profit

Price - [VA + NVA + Waste] = Profit

Before Calculating Process Capability

Prior to calculating process capability, two conditions must be in place: Process is stable over time - The first is that the process must be stable over time. That means that the mean and the standard deviation are consistent over time. Data fits normal distribution - The second condition is that the data must fit a normal distribution.

Student's t

Probability distribution Function which gives the height of the distribution. The shape of the t distribution is similar to the normal distribution and converges on the normal distribution as the number of degrees of freedom increases

Conditional probability

Probability of an event given the information that an event B has occurred indicated by P(A/B)

Rolled Throughput Yield (RTY)

Probability that a product will pass through the entire production or service process without rework and defects

Nominal Group Technique Steps

Problem is presented. In the first step, the facilitator presents the problem or the topic to the group. It's useful for the facilitator to do this with an open-ended question such as "what are some of the ways we can improve this process?" Members write down ideas. During the second step of the process, team members work privately to write down their own ideas. Ideas are shared round-robin style. In the next step of the process, the facilitator asks each of the participants to read their responses one at a time. This is typically done in a round-robin fashion where one response per person is shared each time around the circle to make sure everybody presents their ideas equally and has heard each other's ideas. Members score or vote on ideas. Once all the ideas have been written down, each is designated with a letter or a number so that it can be identified. Ideas are discussed in the order they appear, but there is no prioritization at this point. Ideas are ranked based on score. In the next step of the process, each ranking is recorded. This is usually done on a series of cards. All of the scores for each idea are then added together, resulting in a total score for each idea.

Ppk Def

Process Performance Index. Adjustment of Pp for the effect of non-centered distribution

= (Throughput Time)/(Value-added time)

Process Velocity

Types of Teams

Process improvement - Process improvement teams focus on improving specific business processes, and their goal is to produce immediate results. Because of this focus, process improvement teams typically concentrate on solutions that are easy to implement Quality - Quality teams focus on improving internal efficiencies that impact output because this is what the customer is experiencing. Ad-hoc - Ad-hoc teams focus on completing projects within very defined or specific requirements. Because they have very specific requirements, ad-hoc teams typically have a limited lifespan as they're focusing on that key defined goal. Self-managed or agile - Self-managed or agile teams lead their own efforts and manage their own projects. These require a high degree of collaboration, and there's minimal direction from management.

Process v Specification Limits

Process limits help you understand the performance of your current process in terms of Six Sigma. Natural process limits are based on the natural variation that occurs in a process. You use the statistical data from a process to determine its natural process limits and natural process spread. Specification limits come from the voice of the customer. They have upper and lower limits, which don't necessarily match the process limits because these are derived from the performance of the process itself rather than from customer expectations.

Green belt develops what during Process Modeling?

Process maps, written procedures, work instructions, and visual aids to document project actions and improvement activities

Process Modeling

Process modeling is used to make sure that there is a thorough understanding of all the different steps, aspects, and individuals involved in a process. Process modeling involves making a visual model of the process. This is very useful in a Six Sigma project because it gets all of the various team members involved in understanding the process the same way.

Kanban

Process of manufacturing or work space organization that relies upon visual signals to control inventory

Short-Term capability

Process performance Indices Cp and Cpk process capability measures. The standard deviation used in their calculation is calculated using the Range Method which is not affected by changes to the process mean.

Pp and Ppk

Process performance indexes verify if the sample generated from the process is capable to mean Customer CTQs (requirements). It differs from Process Capability in that Process Performance only applies to a specific batch of material. Process Performance is only used when process control cannot be evaluated.

Process stability

Process stability means that a process is stable over time. In other words, it fits a normal distribution over time. An unstable process has points outside of the control limits, indicating the mean and variation don't stay consistent over time. A stable process has values that fall between the upper and lower control limits, indicating a consistent mean and consistent variation over time.

Time trap

Process step that causes delays

Components of Lead Time

Processing time Reduce number of items or improve efficiency Move time Reduce distances, simplify movements, standardize routings Waiting time Better scheduling, sufficient capacity Setup time Generally the biggest bottleneck

Process Flow

Produce - starts with a process that produces a product Review - the process is reviewed OK?- decisions within the process are made to determine if the product is good or bad Rework or Ship - based on the decision, a good product will be shipped, and a bad product will be reworked

In process Quality (Six Sigma

Product Quality is built in at the operating level Employees have the ability and the authority to make product quality decisions in process and quality management tools (SPC, error-proofing, etc.) are in place

JIT-Just In Time

Strategy that strives to reduce in process inventory costs and associated carrying cost

The Cost Principle

The

7 SMED Work Elements Procedures

Use time & motion study and methods improvement to minimize the sum of the internal work element times Use two workers rather than one to accomplish the changeover Eliminate adjustments in the setup Use quick-acting fasteners rather than bolts and nuts Use U-shaped washers instead of O-shaped washers Use Split thread bolts when ever possible Design modular fixtures consisting of a base plus insert tooling that can be quickly changed for each new part style Base part remains attached to production machine

Coaching

Used for those teams on the verge of being self directed. It focuses on developing individuals, showing them how to improve their performance, and helping to connect to the goals of the organization.

What's the purpose of the Voice of the Customer Survey?

Used to identify key business drivers of internal and external customer satisfaction. VOC is necessary to properly focus the project and develop the right measures. VOC asks what each customer desires specifically what is important to them and what do they perceive is a defect in a quality or service.

Control Charts

Used to monitor the output of a process. They are used to give timely warning of 'Special Causes' entering the process. They generally monitor either the process mean, the process variation or a combination of both.

Box Plots

Used to represent relatively small data sets. The outliers are points that are more than 1.5 times the interquartile range above the third quartile or below the first quartile. The whiskers extend to the largest and smallest data values that are not outliers

Common Process Performance Metrics

defects per unit (DPY) defects per million opportunities (DPMO) first time yield (FTY) rolled throughput yield (RTY) process capability indices such as Cp and Cpk cost of poor quality (COPQ)

Steps of Hypothesis Testing

define the business problem you are trying to solve establish your null and alternative hypotheses determine the test parameters calculate the test statistic, and interpret the results by comparing the test statistic to your alpha value

Future State Maps -

describe the ideal state based on applying Lean principles.

Process Performance Metrics 2

o Throughput Time = The average amount of time it takes for products to move through the system. o Process Velocity = Throughput time / Value Added Time o A measurement of wasted time in the System o Productivity =nput / Output o A measurement of how well a company uses its resources o Utilization = Time a resource is used / Time a resource is available o A proportion of time a resource is actually used o Efficiency = Actual Output / Standard Output

Utilization =

o Time a resource is used / Time a resource is available A proportion of time a resource is actually used

Cycle time

o is the maximum time allowed at each workstation to complete its set of tasks on a unit.

8 Dimensions of Quality that produce Customer Satisfaction

o performance o features o reliability o conformance o durability o serviceability o aesthetics o perceived quality

Studer Group

o works with healthcare organizations to help them achieve and sustain exceptional improvement in clinical outcomes and financial results.

Under-Coverage bias

occurs when some members of the population are inadequately represented in the sample

Bias

occurs when the survey sample does not accurately represent the population. The bias that results from an unrepresentative sample is called SELECTION BIAS

Cycle time=

operating time /desired output rate

Internal Customers

organizational division, sections, uits or employees who are the receiver of products, materials, services or information from other units in the organization.

LEAN is: "A systematic way to deliver the

highest quality, lowest cost products with the shortest lead-times through the relentless elimination of waste

Chi-Squared Parameters

mean or mu for chi-square distribution equals K or the degrees of freedom. Sigma squared or variance for chi-square distributions equals two times K or twice the degrees of freedom. Because both mu and Sigma depend on K, the degrees of freedom, it is the parameter that determines the shape of the chi-square distribution.

Ct

o = Cycle Time = OT/D

7 Forms of Waste

o Defects o Overproduction o Transportation o Waiting o Inventory o Motion o Processing

Improving Flows in a Process: 4. Basic Principles of Lean Operations

o Efficient 1. plant layout 2. fast/accurate flow of materials and 3. information o To increase process flexibility o Reducing 1. equipment changeover times & 2. cross-functional training o To decrease process variability o 1. Flow rates, 2. processing times, and 3. quality o To minimize processing costs o Eliminate non-value adding activities (1. transportation, 2. inspection, 3. rework)

Design Product Layouts:

o Line Balancing, Process of assigning task to workstations so that workstations have approximately equal time requirements. Minimize idle time- balance bottlenecks.

formula for the student's t-distribution

t = [x-µ]/[s/√n], where t is the t test statistic X bar is the sample mean µ (Mu) is the population mean s is the sample standard deviation - because a sample is being used the value of s is used to represent the population instead of Sigma n is the sample size and n is our sample size

Supplier Policies Keiretsu

o Locate near to the customer o Use small, side loaded trucks and ship mixed loads o Consider establishing small warehouses near to the customer or consolidating warehouses with other suppliers o Use standardized containers and make deliveries according to a precise delivery schedule (preferably reusable, standard size containers) o Become a certified supplier and accept payment at regular intervals rather than upon delivery

Paths to Cost Reduction the Traditional Approach verses the LEAN Six Sigma.

o The lean approach is to reduce variation, waste and boost efficiency.

Mura =

(Waste from uneven demand on people/machinery)

Genchi Genbutsu

(go to Gemba and "see for yourself")

Central Limit Theorem Predicts:

-The distribution of means will increasingly approximate a normal distribution as the size N of samples increases -The Standard Deviation of the population of means is always equal to the standard deviation of the parent population divided by the square root of the sample size (N) -The mean of the population of means is always equal to the mean of the parent population from which the population samples were drawn

Examples of Stakeholders

-The management, who provides the strategic objectives and alignment. -The projects sponsor, who transfers project and team members who implement the project plan and charter. -The project manager, who coordinates the project and team members who implement the project plan and charter. -The team, who is developed through the project charter and selection of the champion and executive management team

Storming

Begins at the team members become more comfortable and begin to express their differences in opinion

Lead Time Reduction

(Definition of FCST OP = LT * Usage) There is a plant-wide initiative to measure and continually reduce lead times Non-value-added steps in the mfg. process are gradually eliminated and dock to dock velocity is increased

Kanban

(Index Card inventory system

Streamline Flow

(POKA - YOKA by Shigeo Shingo with simplicity, fail safe, kitting) It includes such things as checklists or special tools that Prevents the worker from making an error Gives rapid feedback of abnormalities in the process to workers in time to correct them. Use of Kanban and demand flow techniques, to produce to order rather than to stock

Quick Changeover

(Single Minute Exchange of Dies (SMED) by Shigeo Shingo)

Muri =

(Waste from stress/overburden from management)

Efficiency =

1 - Percent Idle Time

Creating Process Map

1. Define process boundaries. Start developing the process map by defining process boundaries. You need to know what steps fall within the process scope, where the process starts, and where the process ends. 2. List steps in order. Once you've determined all the steps that are involved, you'll list the steps in order. This is typically done by consulting with those involved. To do this, start at the high level and define what the major tasks are and any decision points within the process. Once the high level tasks have been defined, they can be further broken down. This is commonly done using sticky notes, so you can move processes around and add in finer detail. 3. Create map with symbols. Using the information from Step 2, you can create a process map. This could be done with flow charting software, or it can be done by hand. 4. Verify the map. The map is verified by showing it to the stakeholders. These are the people that need to understand it and those that need to carry out the steps. You would take your process map into a meeting with the stakeholders and go over the process map to discover places where the map may not be clear, or where additional information is needed. Once the map has been verified and corrected, then it can be completed.

Team development stages

1. Forming 2. Storming 3. Norming 4. Performing

3 m's of lean

1. muda 2. mura 3. muri

The 7 S philoshy

1. sort 2. straighten 3. Shine 4. Standardize 5. Sustain 6. Safety 7. Support/Maintenance

S5 DMPO

233

Walter Shewart

3 Standard deviations where correction is needed

S6 DMPO

3.4

S2 DMPO

308,537

how many laws of 6 sigma

5

Common Lean Tools

5S, Kaizen, Value stream maps, Pareto charts, Process Flow Charts, Kamban, Poka yoke, JIT, Counter measures, Visual controls

S4 DMPO

6,210

S3 DMPO

66,807

S1 DMPO

690,000

Curiousity

: a penchant for seeking out new experiences, knowledge, and candid feedback and an openness to learning and change

Muda

= (Waste from Non-value-added activities)

Output Capacity

= OT/CT o OT = Operating time per day D = Desired Output Rate Ct = Cycle Time = OT/D

Cycle time of workstation

= total processing time in of tasks.

Cpk Def

=Process Capability Index. Adjustment of Cp for the effect of non-centered distribution. Measures how close you are to your target and how consistent you are to around your average performance. You must have Cpk of 1.334 sigma or higher to satisfy most customers

Cp Def

=Process Capability. A simple and straightforward indicator of process capability

Pp Def

=Process Performance. A simple and straightforward indicator of process performance

Calculate Percent Idle Time

=Total time they should be working/time spent idle.

acronym AIDET (The StuderGroup )

Acknowledge Introduce Duration Explanation Thank You

p Control Charts

Attribute Charts used to plot units non conforming when the samples are not of equal size.

Do

Carry out change or test, preferably on small scale

Key players identified on project Charter

Champion, Project Leadership, and Project team

maximum theoretical output of system a system is designed for ideal Conditions

Design Capacity =

Ishikawa

Fish-Bone diagram gets to root problem

the place where value is created"; shop floor )

Gemba

Capacity

Maximum output that can be produced

Nominal Group Technique

Nominal group technique is a methodology that uses a more structured format than brainstorming. The term nominal is used because the individuals involved in this team have minimal interactions.

also called PDSA Plan, Do, Study, Act

PDSA

POUS

Production parts and/or Materials are stored exactly where they are used. Items that are used frequently should be placed closest to the process. Lower frequently items should be placed further away. POUS works hand in hand with 5S.

Price - Cost = Price - [VA + NVA + Waste] =

Profit

Tools for Define

Project Charter Template Brainstorming Graphs Stakeholder analysis Historical data Voice of the customer

The Management

Provides strategic objectives and alignment

Triple Constraint of Management

Quality Time and Money

Juran

Quality trilogy- Emphasis on: Quality planning, Quality control, Quality improvement

RPIW

Rapid Process Improvement Workshop -Used for projects only requiring a few weeks or months to complete using short burst sessions

The 5 S:

Schedule Simplify Simulate Showroom Shop floor Shop floor

Examples of External Customers

Shippers, part suppliers, or buyers

Scatter Diagrams

Show correlations between variables.

Process Capability Metric

Specification limits - Specification limits come from the Voice of the Customer; they should be based on your customers' requirements. Process spread - Process spread - or process variation - is basically the voice of your process that provides your process limits.

Forming

State of project team is marked by uncertainty and tentativeness, there may be anticipation by some team members. Team members are getting used to eachother

Straighten

Straighten up and arrange items so they can be easily identified

two levels of kaizen

System or flow focusing on individual processes

what the rate of production needs to be to match customer demand

Takt Time to determine

Performing

Team members begin to see tangible results and have a high level of interaction.

Analysis of Variance (ANOVA)

Technique for analyzing experimental data.

Throughput Time =

The average amount of time it takes for products to move through the system

Other stake holders

The management The project sponsor The project manager The team A Yellow Belt A Green Belt A Black Belt A Master Black Belt

Supplier Partnerships (SRM Supplier Relations Management and CPFR Collaborative Planning Forecasting and Replenishment)

The organization collaborates with a few key certified suppliers to continuously improve material cost, quality & delivery, benefiting all involved

Standard Operating Procedures (ISO 9000

The plant is _______. Operating procedures and quality standards are consistent and formalized process is used to ensure sustainability

Total cycle time / TAKT time =

Theoretical # of operators needed

Process Performance

There are two ways to measure process performance, both of which result in a sigma value: measuring variability counting defects

Total cycle time

Time for one item to get through the entire process

Cpk Specifications

Traditionally, a Cpk of 1.0 or greater has been considered capable, signifying that the process limits lie within specification limits. However, quality requirements have tightened up, and many organizations require Cpk values of 1.33, 1.67, or even 2.0, based on customer requirements. These values are equivalent to 4, 5, and 6 sigma, respectively.

The Project Sponsor

Transferes project budget authority

Lean = Eliminating Waste

Transportation Inventory Motion Waiting Overproduction Over-Processing Defects

Capacity constraint

Unable to perform at customer demand

Pp Ppk

Unlike capability indices, Cp and Cpk, which focus on within-group variation, Pp and Ppk take into account overall variation. Because they include all kinds of variation, the performance indices are more reliable for assessing long-term, as well as actual, process performance.

Design For Six Sigma (DFSS)

Used for designing a completely new product. Approach based methodology rather than a standalone optimization methodology.

Histograms

Used to show improvements over time

Waste (Muda)

Value Added Work (VA) - Only the steps or activities that add value to the product/service received by the customer. Non-Value Added Work (NVA) - Pure Waste (Muda). Steps that add no value to the Product or Service. Operationally Value Added Work (OVA) - Steps that are NVA for customer, but required to produce a Product or Service

Process efficiency=

Value add time/total cycle time

Tools for Analyze

Value-Stream, Historical Data, 5 Whys, Fishbone, Hypothesis testing, DOE, Histogram, Pareto Chart, Scatter Diagram, Control Charts, Statistical Analysis

Simple random sampling

With simple random sampling, each unit in a population has an equal probability of being selected in the sample. Random sampling is useful because it helps protect against bias being introduced to the sampling process, and it helps to make sure you're obtaining a representative sample.

Leading Questions

Wording of the question may be loaded in some way to favor one response over another

Average throughput

Work in process/average cycle time

HEIJUNKA

] is a technique for reducing the mura waste and vital to the development of production efficiency in the Toyota Production System The general idea is to produce intermediate goods at a constant rate, to allow further processing to be carried out at a constant and predictable rate.

Nominal Data

examines whether data are equivalent to a particular value.

starts (demand) =

exits

Productivity

nput / Output A measurement of how well a company uses its resources

What is J.I.T's biggest set back?

setup time

Design Capacity

≥ Effective Capacity ≥ Actual Output

Reproducibility

Variation from the individuals using the instrument

Repeatability

Variation from the measurement instrument

Control Phase Activities

Verify VOC being met, Check ROI, implement control plan, verify improvement processes, document procedures, update standard operating procedures and policies, build a transition plan, and close out the project

Value-Stream Mapping

Visual tool used to document the flow of products or services through a system from Order to Delivery

Center

What is the most common value for the variable?

Typical questions When working collectively on a problem

What they are doing on a project? What are the deliverables? What information do they need? What is the end result?

Value Chain -

a tool for identifying ways to create more customer value. The value chain identifies relevant support and primary activities that create value.

A B C

items: 20% of SKUs, 80% of dollars items: 30 % of SKUs, 15% of dollars items: 50 % of SKUs, 5% of dollars

Central Tendency

Shows the locality or centrality of the data. The most common measures are the average, mean, median, and mode

Value Stream

All activities ( Value added + Non value added) that are needed to bring a product from raw material state to completion.

High performance Leadership

All levels of plant leadership provides coaching, training & monitoring to subordinates, encouraging peak performance and employee indolent

Advantages of Activity Network Diagram

- Communicates information at a glance - By showing all the required steps, an activity network diagram communicates a lot of information at once. Because the diagram displays the start and finish time for critical tasks, the team can comprehend the entire project or process timeline. - Displays the sequence of tasks - This allows everyone to understand what each step is and what has to be accomplished before it can start. - Shows concurrent tasks - The diagram shows concurrent tasks, so the team can understand what's happening at the same time and any steps that are interdependent. - Shows interdependencies - The diagram displays interdependencies between tasks through the use of boxes and arrows. - Determines the critical path - The activity network diagram shows the duration and activity required at each step. Analyzing the diagram for the critical path helps the teams comprehend the specific activity sequences that drive time requirements.

Tips for Creating Matrix Diagram

- Consider what does and doesn't need to be known - You want to focus on the key important relationships you're trying to solve to help determine the appropriate matrix to use. - Clearly define the symbols - In some cases, you may want to make up your own. Using the symbols helps you relate back on how you can quantify where we should focus your efforts and then use this information for prioritization. - Focus on key issues only - Linking this back to the symbols and the rankings helps you focus on where your team's highest priorities should be. - Investigate any interesting findings - You can use rankings to understand the patterns and the relationships, then as a team further investigate any of the interesting findings from your matrix diagram.

Effective Tree Diagramming

- Define the process - The person leading the event should have a short training session on what a tree diagram is and how the tree diagram process works. - Define criteria for completion - It's important for the team to define the criteria for determining when the lowest level has been reached and the tree diagram is complete. The goal is not to get down to the lowest level of detail possible, but to break the problem statement down into the factors the team can work on to create process improvement. - No more than four items at any level - More than four items at any level indicates too much detail and the need to add another category. - Don't let groups or levels merge - Merging levels breaks down the structure of the diagram. Branches need to be refined so the direct relationships are clear. - Review the completed diagram - Once the tree diagram is completed, it's important that the team go back and review it. Branched paths should make sense from the higher levels through to the lower levels, and also in reverse. The team should also check the diagram for consistency and for anything that's missing or is unclear.

Tips for Effective PDPC

- Encourage a respectful, collaborative brainstorming session - It's important to make sure everyone on the team is comfortable contributing to the exercise. The working environment of the brainstorming session should be respectful and collaborative. - Use "what if" questions - As activities are being considered, the team needs to keep asking "what if" questions to predict potential risks and form strategies for mitigating those risks. - Use dashed lines for insignificant risks - If there are risks that are less significant than others, you can incorporate dashed lines to indicate that relationship. - Use symbols for rating countermeasures - If there are multiple countermeasures, symbols can be used to prioritize those as well. - Use good evaluation criteria - The team should define and specify relevant evaluation criteria, such as time and cost, for analysis of ideas and options.

Current State Maps

- describe the process as it is Today.

Six Sigma claims

- that focusing on reduction of variation will solve process and business problems

Value Stream Mapping (VSM)

- the name (Icons) used to describe the activity of creating these drawings.

Project Sponsor is responsible for ?

-Approve the requirements, time tables and resources -Approve the provision of funds and resources -Authorize acceptance of the final solutions delivered by the project

Activities involved in in the measure phase

-Collecting data -Taking measurements -Developing process maps -Developing a measuring system

Project Closure Report accomplishes what goals

-Confirm outstanding issues, risks, and recommendations -Improve on project activities and team communication -Review and validate the milestones and success of the project -Outline tasks and activities required to close the project -Identify project highlights and best practices for future projects -Determine if the original goals were met -Determine project highlights and best practices -Ensure all of the project deliverable were met -Determine who will measure continuing progress -Review post-project tasks -Develop metrics for performance recommendations -Training Requirments

Common Roadblocks to quality improvement

-Conflict among team members -Knowledge which is not available -Communication -Motivation -Change -Lack of Creative Thinking -Lack of Critical Thinking -Lack of Project Management

Project Manager is responsible and accountable to

-Deliver the project on time, within establish fiscal parameters and to specification -Manage and direct project staff, suppliers, and project stakeholders -Undertake the activities required to initiate, plan, execute and close the project successfully.

Process Management Steps to manage six sigma

-Develop the project name and purpose -Complete the project charter -Develop a high level process map -Identify the process owner, champion, and team -Define the customers and requirements critical to quality -Align goals with the business initiatives -Determine the projected Return on Investment

Six Stages of Team Evolution

-Forming - The first stage involves forming. When Six Sigma teams form, they start to formulate roles and responsibilities. This is where the team leader needs to provide very specific direction and delegate the roles and responsibilities. -Storming - This stage is where members start testing their boundaries and learning how they're going to communicate given their diverse backgrounds. -Norming - The next stage of team evolution is norming. Once the team starts to understand what the problem is, they start learning how to communicate with each other. In this stage, relationships start to gel. -Performing - Once the team starts working together, it can move on to the performing stage. This is the most productive stage within the team's evolution as team members are now unified. -Adjourning - The adjourning stage is the end of the project. This is where the team is dissolved because they've accomplished the project goals. -Recognition - The final stage is recognition. Once the team has worked together and they've accomplished their goals, it's important to recognize the team. In this stage, team leaders give feedback and celebrate the accomplishments of the team.

Brainstorming Process

-Identification and information - The first two steps try to identify the problem or the opportunity. You also want to set the goal for the session. -Speculation and suspension - The next two steps start developing a pool of ideas. During the speculation stage, which is stage three, the bulk of the transforming occurs. After the main brainstorming session, the team should break for a time during the suspension stage. -Evaluation - During the evaluation stage, the team moves from quantity - from a large number of ideas - to focusing on those vital few to drive the quality of the ideas. -Analysis - During the analysis stage, the team reviews the top few solutions and can check them to validate them against the project data and requirements. -Presentation - Then during the presentation, the seventh step, the final report is prepared and is presented to the customer, or the principal stakeholder, or any other relevant decision maker for final approval.

Questions does Data analysis ask?

-Is the distribution stable? -Does this variable change over time? -Are there other factors that influence the behavior of this variable? -What is the relationship of this variable with other variables?

Responsibilities of Executive Sponser

-Lead the Project Steering Committee as Chairperson -Approve the vision, purpose and objectives of the project. -Ensure the project remains tightly aligned with the overall mission, vision, and funding

What does the green belt perform during Measure Stage

-Select the characteristics in processes that are Critical to Quality -Define what the process outputs should be -Define the defects for the process -Determine the inputs to the process that contribute to defects -Define the ROI for eliminating defects in terms of increased profitability or cost savings -Measure the defects that affect CTQ's -Perform a Measurement Systems Analysis to ensure defects are properly measured.

Other Roles on Six Sigma Team

-Sponsor - There are both executive sponsors and sponsors. Executive sponsors are typically responsible for the strategic direction of the projects. A sponsor may be a functional manager or an external customer but is typically the recipient of the benefit of the project -Process owner -The process owner is typically a functional manager who works directly with the team to provide functional expertise. As the project team works to improve a process, the process owner helps them to understand the current situation and the current baseline. -Coach - The coach ensures the team understands the tools and methodologies. In some organizations, this could be the Master Black Belt. The coach is the Six Sigma expert that's assigned to help with any queries or help to solve any problems. -Facilitator -The facilitator acts as a quality advisor to ensure project requirements are met. This person helps to keep team members focused on the task at hand and helps facilitate discussions and meetings to ensure everyone stays focused on the core problem that they're trying to solve. -Team member - The team member is anyone directly involved with the team that helps to carry out the work of the project. Each team member fulfills a different function within the team.

Affinity Diagram Team

-Use a cross-functional team - A cross-functional team with members from various areas will make sure there's a good balance of ideas during the exercise. -Have four to seven team members - The team should have about four to seven members to ensure the problem will be considered from multiple perspectives. -Make sure team members share an understanding - Each team member must have a basic understanding of the problem, to develop subsequent groupings that will help to solve that problem. -Encourage team members to think outside the box - A solid brainstorming session should produce a comprehensive list of possible ideas and encouraging team members to think outside of the box will help make sure the affinity diagram is created in a way that's going to be helpful to the team and to the project.

Non Value Added Activities

-Waiting for materials to be brought to production -Time spent searching for materials, tools, supplies, or information not in their proper location -Multiple trips to get the right repair parts and tools -Equipment failures causing idle time -Bottlenecks that create dead time -Waiting for approvals or direction from leadership

Green belt determines what during the measure phase?

-What to measure -Review processa and systems to determine key steps in the process -Determine the tools to us (Process flow charts) -Determine how to gather data -Develop the data Collection plan

Creating Activity Network Diagram

1. Gather information. You must determine the scope and the start and finish times of the project. 2. Identify the activities involved in the project and the time needed to complete each of them. 3. Sequence activities as a team, so the diagram clearly shows step by step how the project will occur. The diagram should depict the steps of each activity, their order, and how long each step takes. 4. Stack activities. Activities that can be done simultaneously can be placed on parallel paths. 5. Add arrows to network the activities and show the sequence of events and how each step relates to each other.

Quality Function Deployment (QFD)

1. Product planning to translate customer requirement into the product technical requirements to meet them 2. Product design transferring technical requirements to key product characteristics 3. Process planning to identify process operations necessary to achieve the characteristics in step 2 4. Process Control to control operations

Affinity Diagram Problem Statement

1.The first step in creating the affinity diagram is to create the problem statement. There are two qualities of a good problem statement: it clearly defines the problem it is specific, but not leading or confining In this step, the team should be able to consider the problem, but also be able to think freely about what they're trying to solve. 2.In the second step, the team generates ideas and these are written on sticky notes. The ideas are placed on a board or wall in no particular order. 3.The third step in the process is to sort the ideas into groups. This is done by team members placing ideas into groups. This is a silent exercise where team members group sticky notes to start developing natural relationships between the ideas. 4.The fourth step is to finish the diagram by developing the common theme of each group and then labeling each group with a heading. The finished affinity diagram will have the ideas in groups under different headings with the problem statement located at the top of the diagram.

ERA 1

1800's - early 1900's Quality was "inspection" Goal: detect problems and sort good items from bad Result: products may fail and the customer complains

ERA 2

1920's - 1950's Quality Control Uses stats, math, process control charts Goal: Control problems by efficiently sorting good items from bad Result: Fewer failing products are distributed but design problems may arise. Manufacturer= Rejects + Waste Customer= complains

ERA 3

1950's-1960's Quality Assurance & Good Manufacturing Practices instituted Tools: cost of Quality, Total quality control, reliability engineering, zero defects programs. Products are designed, quality is built into manufacturing steps. Result: Fewer product rejects, design problems may still arise, customer complains

ERA 4

1960's-Present Quality is built into design and manufacturing. Manufacture is controlled, tested, rejects discarded. Results: Better designed products with satisfy customers. Fewer rejects and fewer customer complaints

lean six sigma

A combination of lean methods and six sigma; draws on the philosophies, principles, and tools of both approaches. Goal is growth and not just cost-cutting.

Defects Per Unit (DPU)

A defect in a service's nonfufillment of an intended requirment or reasonable expectation for use. These are items that do not meet the customers expectations and may be in forms of: -Blemishes -Imperfections -Nonconformity.

Control Plan

A document that lists what is monitored in a product, service, or process as far as characteristics of quality.

Process Reliability (Cpk by Tagichi Ohno)

A formalized system is in place to maximize equipment uptime and reduce variation in product quality. Overall Equipment Effectiveness (OEE) measures are at world class levels

Hierarchy of Scales

A hierarchy of scales, called NOIR, contains four levels of measurement: Nominal Ordinal Interval, and Ratio

Comparing Cp and Cpk

A high Cp and a high Cpk indicate a process that's centered with little variation. A high Cp and a low Cpk indicate a process with a narrow distribution that is not centered. A low Cp and a low Cpk indicate a process that's centered but has too much variation.

Productivity = Input / Output

A measurement of how well a company uses its resources

Throughput time / Value Added Time

A measurement of wasted time in the System

Act

Act on what was learned

Utilization =

Actual Output / Design Capacity

Efficiency =

Actual Output / Effective Capacity

A proportion of time a resource is actually used-Efficiency =

Actual Output / Standard Output

Efficiency =

Actual Output / Standard Output

Efficiency =

Actual Output / Standard Output Measures performance relative to standard

Manual Data Collection

Advantages It's simple to do - It is very simple to do because the operators write down the information, so it does not require a considerable amount of expensive equipment. It uses simple tools - It uses very simple tools, so it could be put in place very quickly. Typically it's a spreadsheet where the operators or employees write down a value in a specific location, or it's a check sheet where they write down the information. Disadvantages It's subject to human error - Because people write down values, they are subject to human error. People could transpose different numbers, or they could write it in such a way that it is difficult to read. It can be labor intensive - When the data is being recorded, the operator or employee is not doing other work. So it could be very labor intensive and time consuming.

Automated Data Collection

Automated data collection With automated data collection, the information is automatically uploaded to a system or capture. There are several key advantages: It's more accurate - It's more accurate and typically free of bias because you don't have the opportunity for human error. It handles complex data - It's very useful for large, complex data, because it's automatically uploaded. So it's less time consuming and the system is able to handle that information, in comparison to a simple spreadsheet, which would not capture all the complex data. It's fast - It's very fast because you're not relying on people to input the information. It's objective - It provides very objective information, because it's automatically uploaded, and you don't rely on an individual to provide the reading. It's repeatable - This type of information is very repeatable because it's set up to automatically upload. It's accessible by multiple sources Tools for automated data collection include video recording, self-recording test equipment, computers with verifications and crosschecking, scanning devices, Radio Frequency Identification or RFID, bar codes, and magnetic error proofing - Provide error proofing on your measurement process so that you get repeatable results. sorting - You should be able to sort what your units are based on - acceptable and defective. detecting flaws - Your measurement system should be capable of capturing the right information, so that you can detect flaws or surface defects that might be fairly minor changes or defects. You need to be able to capture that information with an automated process because you're taking the person out of the process. faster process - The process should be faster. Make sure that the data collection measurement system is able to perform high-speed inspections. other characteristics - Take into account not only the specific measurements within the process, but also other characteristics, such as verifying and inspecting packaging and assessing the physical properties of the products or services.

Takt time

Available work time/customer demand Maximum time allowed to produce a product in order to meet demand

Check Sheets

Basic check sheet A basic check sheet is used to capture instances of a problem over time by counting those instances. Frequency plot check sheet A frequency plot check sheet is used to detect unusual patterns and provide some sense of average and range without too much analysis, although it can be used for further analysis. Traveler check sheet A traveler check sheet typically accompanies a part or a batch of parts from one step in the process to another step in the process. Location check sheet A location check sheet usually provides a schematic in the form of an image, drawing, or diagram of a part or step of the process that's under investigation. Confirmation check sheet A confirmation check sheet is used to make sure that each step of the process is occurring.

Information for creating process map

Before starting to create a process map there are several elements that are required, to make sure you have the information that you'll need: Who is involved? You need to understand who is involved within the process because those are potential people that you will interview and work with, to fully understand how the process operates. What are the steps and activities involved within the process? When the sequence of steps occur. Once you have the steps and activities, you'll need to sequence those steps and activities based on the proper order of how the process operates. Where. You need to know where things happen where inputs come from, and where outputs go

Response Bias

Bias that results from problems in the measurement process.

7 Uses of Kanban

Bin Kanban -when bin is empty replenish Production kanban-authorizes production of goods Withdrawal kanban authorizes movement of goods Kanban square-a marked area designated to hold items Signal kanban-a triangular kanban used to signal production at the previous workstation Material kanban-used to order material in advance of a process Supplier kanban-rotates between the factory and suppliers

Lean Principles

Business Philosophy of relentlessy eliminating waste to improve and identify value added activities. Ensures they are done efficiently and effectively.

Defects Per Million Opportunities (DPMO)

Calculated using the number of defects, opprotunities, and units produced

Calculating Pp

Calculating Pp To calculate Pp, subtract the lower specification limit from the upper specification limit and divide the difference by six times the sigma long term, which is the standard deviation in the long term. The formula for Pp is expressed as Pp = USL - LSL / 6 sigma. To determine sigma long term, you calculate population standard deviation using the usual formula: take the square root of the sum of the squared differences of the observed values from the mean, divided by the number of samples minus one. This value is then multiplied by six to produce the denominator of the Pp calculation.

Calculate Linearity

Calculating linearity To calculate linearity, you first have to calculate the bias of your measurement device. To find the bias, you find the average of all your readings and subtract the reference value. The next step is to plot the bias on the Y-axis of a graph and the reference values on the X-axis of the graph. Once this is done, you draw the best-fit line representing the linearity of the scatter plot. Then you use a software application to calculate slope of the plotted line and multiply the slope by process variation. Establishing statistical significance Using this information, you can check the statistical significance of the slope to determine whether there is linearity. To do this, you set up a hypothesis test with the following considerations: null hypothesis: the slope = 0 alternate hypothesis: slope is not equal to 0 if p-value > 0.05, linearity is not statistically significant

Continuous variables

Can have an infinite number of different values between two given points. Numeric values that can be ordered sequentially and do not fall into discrete ranges. (weight and time)

Trend analyses

Can show if the improvements implemented in your project are improving from the baseline or benchmarks

Kaizen

Change for the Good Continuous improvement Aims at to eliminate waste by getting rid of non-value added work

Improve Phase Activities

Choose solutions, pilots the solution, performs mistake proofing, roll out the improvement and evaluate the results. List potential solutions, rank solutions, select solutions to trial, check results, roll out and evaluate improvement.

Shine

Clean up your area and set it up where you can keep it clean

Queuing Theory

Collection of math models of various queuing systems.

External Customers

Customers who are not employed by the organization but are users or purchasers of the products or services.

Plant Safety, Loss Prevention & Housekeeping

Effective training and awareness, through incident investigations and a 5S organization program ensures an orderly, efficient and safe workplace

Project Risk Analysis

Describe the purpose and benefit of project risk analysis, including resources, financials, impact on customers and other stakeholders. Helps determine risk for an organization in relation to project. Risk breakdown structure is often used and it lists all potential risks identified as being possible, an estimate of the likelihood of occurrence, an outline of how to reduce the risk's likelihood, and strategies for minimizing the consequences. Risks typically fall under 4 categories: -Management -Implementation -External -Operational

Process Modeling Results

Descriptive results trace what actually happened. This is where the team is getting baseline information to understand what the current process "as is". Prescriptive results define how the process should run. The team is looking at the future, to understand ideally how the process should run, to get an idea of the "should be" state. Explanatory results illustrate who, when, where, and why. These are the details of the process that can be used to further improve the process and how it operates.

Sigma Levels

Determine the rate of defects and are standardized measure of the error rate of a process, based on DPMO estimate.

The Team

Developed through the project charter and selection of the champion and executive management team

Binomial distribution

Discrete probability distribution shows the probability of getting X successes in a sample of N from an 'Infinite' Population where the probability of a success is Y

Value Stream Mapping / Learning To See

Drawing your Current State Shows how the current process works Identifying your Opportunities Pinpoint ways to change the process to reduce waste Drawing your Future State Improved Process Making your Implementation Plan

Design Capacity expected in current operation. That is Design capacity minus allowances such as Personal time, Maintenance, Environment and Scrap Often lower than Design Capacity

Effective Capacity =

Effective Meetings

Floundering The first type of issue is when the team is floundering. As a Six Sigma team facilitator it's important to recognize when this is happening. Typically floundering occurs when the team is struggling to make progress and move forward. Digression Digression is when a team starts discussing subjects in team meetings that aren't on the agenda. Tangents Another common issue is tangents, sometimes called "off sides" or "off tangent." This typically happens when the meeting lacks a clear purpose.

Lean manufacturing

Focuses on identifying and eliminating waste and non-value-added activities

Reasons for Excessive Cohesion

Groupthink - In groupthink there is a desire within the team for cohesion that dominates over the individual will and the creativity of the team members. Acceptance of opinion as fact - You need to be careful of accepting opinions as facts. Rush to accomplishment - When working on Lean Six Sigma projects, you're typically working with very aggressive goals and have Attribution - Attribution is when conclusions are formed based on inference rather than on facts.

8 Waists in the Hospital

Halting - Waiting Over Producing Over production Slips - Over producing Processing non-value added Rework Inventory Inventories Transportation Transpiration Actions Motion Motion Lack of employee Engagement Under Utilized Skills

A Yellow Belt

Has basic knowledge of Six Sigma but does not lead project teams

Ordinal data

Has ordering but values differences are not important. Likert scale. Differences between each number can't be quantified

Demand Leveling or Production Leveling))

Heijunka

visual tool to smooth production workload)

Heijunka Box

Pareto Diagrams

Help ensure a balance between effort and resources.

Theory of Psychology

Helps understand people, interactions, and systems and how they intermingle.

Best Practices for Sampling

Here are a few sampling best practices: Samples must be free from bias - Ensure the samples are free from bias. If there is bias with a reading, it impacts how you make inferences from that sample towards the full population. Samples must be large enough to detect trends - The samples should be large enough that you can detect trends within your products and services. If the sample is too small, you may not be able to detect the trends occurring. Samples must be representative of the population - Ensure the sample represents the entire population that you're studying. Create a sampling plan - Create a sampling plan ahead of time in order to plan and make sure you're getting a representative sample. A sampling plan also helps you to avoid bias in your sampling practices and obtain a sufficient number of samples to detect trends.

Data collection plan

Houses information relative to the process or service which needs to be measured to improve. Includes parameters such as the conditions to be measured, definitions, and collection methods.

Spread

How much variation is present?

5 Steps of the (TOC)

Identify the System Constraint The part of the system that is the weakest link 2. Decide How to Exploit the Constraint Obtain as much capability as possible without undergoing expensive changes or upgrades. Reduce or eliminate downtime. 3. Subordinate Everything Else The non-constraint (or non-bottleneck) resources should be adjusted to help the constraint operate at maximum effectiveness. 4. Elevate the Constraint Consider major changes to eliminate the constraint. 5. Return to Step 1 The constraint has shifted to another component or policy.

Process Decision Program Charts (PDPC)

Identify what may go wrong in a plan under development. After possible issues are identified, prevention controls and countermeasures can be developed to prevent the problems. PDPC charts are used in these situations: -When the price of failure is high -Identifying alternatives -Before implementing a plan -When the plan must be completed on schedule

IDOV

Identify, Design, Optimize, Verify Popular for designing services to meet six sigma standards Identify-identify customer needs Design-determines functional requirements and available options Optimize- assesses the tolerance level of a business process to predict the performance capability of a business process developing alternative design elements Validate -tests and validates the selected design

Theory of Variation

Improving product and service uncertainty and variability in design and manufacturing process.

Descriptive vs. inferential statistics

In comparison to inferential statistics, the approach for descriptive statistics is more inductive. So you're trying to induce information instead of deduce it, as you do with inferential statistics. The goal of descriptive statistics is to summarize data to make decisions about the current process. Common tools and techniques used to summarize the data are histograms, relationship diagraphs, process maps, and fishbone diagrams. These are fairly straightforward techniques. The goal of inferential statistics is to infer population characteristics from the sample data points to predict future outcomes. Since you're trying to predict future outcomes, you're typically using more complex statistical tools, such as chi-square, binomial, Poisson distributions, hypothesis testing, confidence intervals, correlations or regression analysis. Descriptive statistics describe the process in terms of statistics, as opposed to predicting future outcomes with inferential statistics.

Productivity =

Input / Output A measurement of how well a company uses its resources

Poisson Distribution

Is a Discrete probability distribution. Used when the sample size is not restricted and it is not possible to specify the number of occurrences but you do know the average number of occurrences

Population Parameter

Is a number describing something about a whole population such as the population mean or mode.

Shape

Is ditribution symmetric?

Accuracy

Is how close a measured value is to the true value. To determine the accuracy of the measurement requires calibration of the analytical method with known standard

A stable process

Is in statistical control and shows variation due to common causes and it produces predictable results consistently

An Unstable Process

Is out of Statistical Control and shows variation due to special cause. An unstable out of control condition can be a point, set of points or trend in data. Sigma levels 1, 2, 3, are used to determine unstable conditions

Project leadership

Is provided by six sigma black belt or green belt, they provide team mentorship

The Champion

Is responsible for program oversight, project selection, project evaluation, and project advocacy.

Mutually Exclusive

Is statistical term used to describe a situation where the occurrence of one event is not influenced or caused by another event

Variability

Is the measure of the dispersion of a data set and includes these measures: range standard deviation, standard error, variance, and coefficient of variation

Linerality

Is the variation between a known standard across the low and high end of a gauge. It is the differene between an individual measurements and the known standard

Project Scope

Is to coordinate and conduct regular proect team conference calls, identify and manage project milestones, and assign required resources at the appropriate stages of the project including: -Deliverables -Project Charter -Communication and status reporting processes -Applicable training -Responsibilities -Executive Sponsor

Percent agreement

Is used in a Measurement Systems Analysis and it the percentage of the total number of units inspected where there is agreement. It can be used to compare one appraiser or tester to another

Jidoka

It may mean "automation with human intelligence," the practice of stopping a manual line or process when something goes amiss. Production Preparation Process (3P) focuses on eliminating waste through Product and Process Design.

Work in process (WIP)

Items that have entered but not exited the process

Specification limits

Limits required by the customer which the supplier must ensure the process can produce to the required process capability value or specification.

Linearity

Linearity is one of the indicators of the capability of a measurement system. If you find there is linearity in your system, it means there is a change in the bias over the operating range of a measurement device. Your system should be equally accurate for all measuring levels. One guideline for measuring linearity is to measure 10 parts five times each to see if there is a difference in the readings. A gauge that's nonlinear may require calibration or replacement. Determining linearity There are five key steps in performing a linearity study. Step 1: Choose the variable of interest As you choose the part or variable that you want to study, make sure the measurements cover the entire operating range - low, medium, and high. Step 2: Choose the operator Choose an operator or an appraiser who is experienced with the measurement instrument and trained in the standard operating procedure for measuring the part. Step 3: Monitor and record Monitor the study and record the measurements. The measurements must be random and the operator should measure the parts a minimum of 10 to 12 times. Step 4: Calculate bias Once you have all the readings, calculate bias for each part. Take the average measurement minus the reference value to calculate the bias value. Step 5: Perform linear regression A linear regression graph is used to measure how much linearity is within a process. The bias for each part is plotted on the Y-axis against reference values at different levels on the X-axis. To interpret linearity you need to assess the slope of the resulting regression line. The two most common patterns are a sloped line, which indicates inconsistency and the presence of linearity, or a horizontal straight line which indicates the absence of linearity in your process.

Balanced Scorecard

Management system that provides feedback on both internal business processes and external outcomes to continuously improve strategic performance and results. Kaplan and Norton

Natural Process Limits

Measure varaiation in a process. The atural process limits are positioned at plus and minus 3 Standard deviations from the darget. Thus, if the process is stable, about 99.7% of the process output will be within the natural process liimts.

Measurement Correlation

Measures the strength of a linear relationship between two variables

Multivoting

Multivoting Another tool that's also a convergent thinking tool to help prioritize options is multivoting. Multivoting helps the team to rank or narrow down a list of ideas, options, or solutions. What's beneficial about Multivoting and Nominal Group Technique is that you are driving towards consensus because each team member is participating in the process. Multivoting starts with generating a list of ideas. Similar ideas then are grouped by affinity, and these should be natural. Each group is then assigned a number so that it can be identified. Based on these groups, each participant then gets to choose one-third of the items that they determine to be the most important. Each participant then casts votes for each item.

Risk Priority

Number which calculates the RPN = Severity * Occurrence * detection. Any RPN value exceeding 80 requires a corrective action.

output capacity= OT/CT

OT=operating time per day D=desired output rate CT=Cycle time=OT/D

Process Map Symbol

Oval - The oval represents the start or the stop of a process. Rectangle - Each step in the process is represented by a rectangle. Typically each rectangle includes text that describes what's happening within that step or operation. Diamond - The diamond is used to describe a decision that has to be made. Circle - A circle is used to describe a step where an inspection occurs. D-shape - Delays within the process are indicated by the D-shape. Parallelogram - An input or output within the process is represented by a parallelogram. Flow line - Flow lines are arrows placed between each step of the process, to indicate the direction of the flow of the process. Arrow - An arrow can be used to indicate transportation or handling. Jagged arrow - An arrow with a jagged line represents transmission. Rounded rectangle - A rectangle with rounded edges indicates an alternative process. Square - If there's a measurement within the process, it's represented by a square. Inverted triangle - An upside-down triangle represents storage Manual operation - The symbol for a manual operation or sub-processes looks like an inverted trapezoid.

the worst waist is?

Over Production=Producing more information or product than the ultimate customer requires This is the worst waist because every thing must move around the excess product and creates confusion and added time

Interpersonal Issues

Overbearing team members Overbearing team members are team members with a disproportionate amount of influence or authority. They typically discount the contributions or the suggestions of others, which leads to other members not necessarily wanting to participate because their suggestions are put down. Dominant team members Dominant team members take up an excessive amount of time. They talk too much during discussions and try to control discussions typically by focusing on very trivial issues. Reluctant team members Reluctant team members may be intimidated, insecure, resentful, or even hostile. As such, they hold back necessary information needed for the project that the team is working on. Feuding Feuding is a conflict that arises when there is a disagreement or a clash between two strong, unbending personalities. Discounting Discounting occurs when one team member dismisses the contribution of another.

Process Performance Metrics

Performance metrics are used initially in the Define phase. They enable the team to determine the goal of the process improvement effort and isolate the metric that is to be improved. This is critical for the team's understanding of their objective in relation to the problem they're trying to solve. In addition, as they move throughout the rest of the DMAIC methodology, process performance metrics are how they're going to track the project and whether or not they are making improvements in the right direction. This also helps drive their project decisions.

World-Class Performance Measures (Best of Breed)

Performance metrics measure performance against world-class standards, are generated and controlled by shop floor personnel and are successful in rallying the entire organization toward higher performance levels

Customer

Person or group who drives the project and is the focus of a project Customers define requirements, needs or wants. They have a vested interest in the project. they also, pay for project, support resource needs, and evaluate and use the results of the project. They provide the "Voice of the Project" and are considered the "Voice of the customer"

A Green Belt

Person trained in Six Sigma Methodology who is a team member of Six Sigma process improvement action teams

A Master Black Belt

Person trained in the six sigma methodology who acts as the organizational Six Sigma director or a program manager.

A Black Belt

Person who is part of the leadership structure for process improvement teams.

Plan

Plan a change or test

PDCA (Deming Cycle)

Plan, Do, Check, Act

Matrix Diagrams

Planning tool for displaying the relationships among various data sets. This is a scoring or ranking system and can be used as a tool for the VOC. During the Champion Phase or initial charter phase, or the Define stage organizations often use a prioritization matrix to rank competing priorities. The matrix diagram is an easy to create quality tool that the shows relationships between two or more items or types of information. You can use symbols, numbers, or letters to show the relationships between the categories you're trying to analyze, and indicate what factors are contributing most to the problem.

Visual Management Systems (Common Goals and Scorebooks

Plant and team scoreboards and other visual means of controlling and improving operations are used through the plant. Operational status information is available quickly and accurately to any one who needs it

Approaches to Stratified Sampling

Proportionate allocation With proportionate allocation, it's important to understand what each of the groups in the population is. Based on these groups, you can understand how many are in each category, and can allocate sampling that's proportional to how each group is represented in the total population. Disproportionate allocation With disproportionate allocation, you take larger samples from the strata with the greatest variability. That way you capture information on the strata that have a key factor that you're looking for, which is variability. Doing this allows you to get higher precision in your results. Disproportionate allocation is typically used when sampling costs vary across the strata. Each stratum may have a different cost for sampling it. So you want to capture the strata that have the highest variation and sample more from them to help reduce your cost and get higher precision in your results.

Data Collection Best Practices

Protecting the accuracy of the data avoid unnecessary rounding avoid discounting outliers Recording information during data collection record the order of data capture - record before and after measurements - record the classification information - Protecting against sampling errors provide training - maintain tools - screen for entry errors - use an error correction system -

Project Documentation

Provide input and select the proper vehicle for presenting project documentation. Information used to develop the presentation should be included in the project plan or project dashboard.

Characteristics of Lean Systems: Just-in-Time

Pull method of materials flow Consistently high quality Small lot sizes Uniform workstation loads Standardized components and work methods Close supplier ties Flexible workforce Line flows Automated production Preventive maintenance

Q x A = E

Q = Qualitative/Technical Solution A = Acceptance/Engagement E = Overall Effectiveness

RACI Chart / Responsibility Matrix

RACI chart or Responsibility Matrix One of the highest level types of process maps is the Responsibility matrix. It's used to analyze a process by looking at what steps are within the process, and who owns those processes. There are four key levels of responsibility within a Responsibility matrix. These levels define who is Responsible Accountable Consulted, and Informed A RACI chart is used to show various individuals that are involved in a process.

Tools for Control

Sigma, ROI, Balance Scorecard, Control Chart

Tools for Control Phase

Sigma, ROI, Balanced Scorecard, Control Chart, Control Plan Document, Control Plan Form, Transition Plan and Project Management Methods for Closing.

Rational sampling

Rational sampling is used when you're able to put measurements into different groups and you want to understand the sources of variation. Similar to systematic sampling, rational sampling is also commonly used to collect data real time, during process operations. Because you're gathering data on two or more subgroups, you're able to better understand the sources of variation within each group and between the groups. Rational subgroups are helpful with calculating estimates for standard deviation, and they can also be very useful as a basis for effective control charts.

Point of Use Storage (POUS)

Raw material, components used, and information is present at workstation where used Works best if vendor relationship permits frequent, on-time replenishment and small shipments Simplifies physical inventory tracking, storage, and handling

LEAN Six Sigma will?

Remove roadblocks so your employees can produce Assign resources to bottlenecks Maximize internal capabilities Focus on what the customer wants to buy

Standardize

Remove variations from processes. Set and maintain standards Create the rules and guidelines by which the first 3 S's are implemented and maintained Make the standards and 5S guidelines visual Maintain and monitor those conditions.

Repeatability and Reproducibility

Repeatability is also typically called equipment variation because you're using the same operator, the same part, and the same device that you're measuring multiple times. You should be able to perform a measurement using the same operator, part, and device and get the same results. You should be able to repeat the same results with that same operator. Reproducibility is also known as appraiser variation. You've got the same part and the same device that is being measured multiple times. The key difference is that you're using different operators.

Project team

Responsible for data collection, data analysis, and implementation strategy.

Sort

Review the workplace and for each item, ask: when in doubt, throw it out Is it needed? How many are needed? Where should it/they be located? Remove anything that isn't needed for the current job. Leave only the bare essentials. When in doubt, move it out Red Tag program

Sustain

Review work and recognize progress Sustain the 1st 4 S's. Continuous Improvement Total employee involvement Coaching Education

Risk Category: Operational

Risks are caused by the project itself such as being over budget or behind schedule.

Risk Category: Management

Risks which are those factors resulting from shortages of resources, changing priorities or conflicts between the project and current procedures

Risk Category: Implementation

Risks which occur when deelopment of new tehniques or processes is part of the project

Risk Category: External

Risks which result from changes outside of the organization such as government regulations, economic conditions, or competition.

Visual Controls

Simple signals that provide an immediate understanding of a situation or condition. They are efficient, self-regulating, and worker-managed. Examples: Kanban (stock signal) Cards Color-coded dies, tools, pallets Lines on the floor to delineate storage areas, walkways, work areas etc.

Random sampling

Sampling from a population in which the selection of a sample unit is based on chance and every element of the populations has a known nonzero probability of being selected. Random sampling helps produce representative samples by eliminating voluntary response bias and guarding against under coverage bias.

Reengineering

Searching for and implementing radical change in business processes to achieve breakthroughs in costs, speed, productivity, and service.

Maslows pyramid

Self Actualization Esteem Level Social Need Safety Basic Needs

Value Chain

Series of activities that create and build value at every step of a process or service. These are the inputs into the customer's desires

Associate Involvement & Commitment

Shop Floor employees routinely solve problems, suggest and implement improvements and are committed to world class performance

Process capability studies

Short-term studies conducted to collect information on the performance of new or revised processes related to customer requirements. This occurs when proceses, employees, or equipment change and as many possible measurements should be used to get an accurate reflection.

Process capability indices

Show the value of the tolerance specified for the characteristic divided by the process capability. -Cpk -Cp -Pp -Ppk

What does a trend analysis show?

Shows data over an extended time frame to determine if quality or production is improving or worsening.

Tree diagrams

Shows the hierarchy of tasks and subtasks needed to complete an objective. When the drawing is complete it resembles a tree. Used to break down broad categories into finer and finer levels of detail. It aids in developing logical steps to achieve an objective.

Lean VS Six Sigma

Six sigma is considered Quality tool Lean is an improvement to a process

Slow Down

Slow Down Non-bottleneck is what happens when capacity is greater than demand placed on resource Build up

Sample Statistic

Something that describes a sample such as the sample mean.

5S Method

Sort, Straighten, Shine, Standardize, and Sustain. Improves safety, communication, process flow, compliance, reduces space requirements, boosts morale, reduces non-value added steps, and reduces wasted time looking for items

law 3

The Law of Velocity - The velocity of any process is inversely proportional to the amount of WIP. This is also called "Little's Law".

Stratified sampling

Stratified sampling is typically used with a population that has different groups, also called strata. Each group should be represented equally within a sample. So you should take independent samples from each group in the population, with the size of each sample proportional to the relative size of each group. That way the team can make sure they're getting representative samples from each group, also based on the representation of each group within the total population.

Total Quality Management (TQM)

Studer Group

Pull

System replaces items as they are withdrawn to avoid push. Such as signalling replenishment.

Systematic sampling

Systematic sampling is typically used when the Six Sigma team is collecting data real time, during a process operation. With systematic sampling, the Six Sigma team takes samples according to a systematic rule, that is, what every nth item would be. It's very useful when you're running full production or your processes in operation to have a sampling frequency set up ahead of time

TIMWOODS

T-transportation I- Inventory M- Motion W- Waiting O-Overprocessing O- overproduction D- Defects S- Skills

To run properly Cycle Time must be less than_____ To Meet Customer Demand If Cycle time is close to____ any deviation in the time will cause the system to crash. How often an item needs to be produced-

TAKT Time

Norming

Team rallies around their ability to meet the team objective. They communicate well and trust one another

law 0

The Law of the Market - Customer Critical to Quality defines quality and is the highest priority for improvement, followed by ROIC (Return On Invested Capital) and Net Present value. It is called the Zeroth law as it is the base on which others are built.

Cpk Calculation

The Cpk index is a ratio of the same elements but it makes an adjustment for a noncentered distribution of data. In other words, it takes into account the mean of the process, or the centering of the process. Calculating Cpk To determine Cpk, you calculate two different values, and then compare them: Subtract the mean (Xbar) from the upper specification limit and divide the result by three times the estimated standard deviation (3 sigma). Subtract the lower specification limit from the mean and divide that result by three times the estimated standard deviation. The lower result in the two calculations is Cpk.

Cpm

The Cpm index, also called the Taguchi Loss Function, is used to assess the ability of a process to center around a target rather than around the process average. It demonstrates why you should strive to continually improve conformance to target, as opposed to conformance to specification. Because this index is more sensitive to target, when the process is not on target and the target is not in the middle of the specification limits, Cpm will be less than the capability index Cpk, which itself is less than Cp.

F Distribution

The F-distribution is typically used for testing the hypothesis of equality of variances from two normal populations when the data is continuous data. It can also be used to model the ratio of variances. The F-distribution is often used in hypothesis tests, particularly to test for equality of variances from two populations that are normally distributed, and in Design of Experiments using ANOVA. The F-distribution formula is F = [S₁² /σ₁²] / [S₂² /σ₂²]. Where S₁ and S₂ are standard deviations of sample 1 and 2, and σ₁ and σ₂ are population standard deviations from which samples 1 and 2 are drawn.

Functional Deployment Map

The Functional Deployment map, also known as a Swimlane diagram, shows a lot of the information from the Responsibility matrix and the Top-down chart, in addition to capturing the functional information by department. Steps within the process are mapped at each step of the process, showing any changes. Any time the process crosses one of the swim lanes or functional barriers, this indicates where hand-offs occur between departments. This tool is useful because it captures those hand-offs and helps show some of the complexity within the process, that occurs because of potential loss of information and miscommunication due to the functional barriers and hand-offs.

law 1

The Law of Flexibility - The velocity of any process is proportional to the flexibility of the process.

law 2

The Law of Focus - 20% of the activities in a process cause 80% of the delay. (Related to Pareto Principle)

Student's t-Distribution

The Student's t-test or Student's t-distribution is typically used to determine if two sets of data are significantly different from each other and commonly used when the test statistic follows a normal distribution. The Student's t-distribution is similar to the chi-square distribution in that the shape of the distribution is affected by the degrees of freedom. A specific t-distribution is defined by its degrees of freedom. The shape of the t-distribution is similar to that of the standard normal distribution, but it has a greater spread due to the uncertainty about the standard deviation. As the degrees of freedom, n-1, increases the t-distribution gets closer and closer to a normal distribution, which is explained by the central limit theorem. While a z-distribution, or the standard normal distribution, can be used to construct confidence intervals in situations where a sample size is large, when the sample size is small, usually less than 30 samples, the Student's t-distribution is used.

Workflow Diagram

The Workflow diagram is used to depict the various movement of individuals involved within the process. Sometimes this is called a Spaghetti diagram because the process follows each step, capturing the movement related to the process in each department. The workflow diagram adds another dimension to the process map, rather than showing that the process looks like a nice clean linear process, this captures all the additional movement that's required. Using these different charts and maps helps to provide dimension and develop understanding as you work through the process mapping stage.

Throughput Time

The average amount of time it takes for products to move through the system.

Capability Ratio Cr

The capability ratio, or Cr, is another way to express process capability. Cr is the reciprocal of the capability index Cp. It's calculated by dividing one by the Cp value, or multiplying six times the standard deviation and then dividing that value by the upper specification limit minus the lower specification limit (6 sigma/ USL - LSL). Interpreting Cr There are several rules of thumb for how to interpret the capability ratio: Cr of less than 0.75 indicates the process is capable. Cr between 0.75 and 1 indicates the process is capable with tight control, meaning that the process bears watching. Cr greater than 1.0 means the process is not capable.

Overall Gauge R&R

The combined effect of Repeatability and Reproducibility

law 4

The complexity of the service or product offering adds more non-value, costs and WIP than either poor quality (low Sigma) or slow speed (un-Lean) process problems.

Cellular Mfg. (Focused Factories)

The facility is structured into product-or customer-focused work groups housing all operations to manufacture a family of products. Office operations are similarly structured to increase accountability, response time and quality while reducing inventories and backlogs

Calculate Cpm

The formula for determining Cpm is somewhat similar to that used for the capability indices Cp and Cpk in that for the numerator, you subtract the lower specification limit from the upper specification limit. However, because the focus is on the difference between the process mean and target value, the denominator differs from that used for Cp and Cpk. In the denominator for Cpm, you take the mean minus the target value, square that difference, and add the process standard deviation value, which is also squared. Then, you take the square root of that summation and multiply it by six. The formula is USL - LSL/6 √(µ - T)² + sigma² Capable processes have a Cpm value of 1.0 to 1.5.

Flow

The movement from unfinished to finished product along the value stream

Know Total Quality Management (TQM)

The practice of companies creating a culture where they deliver the least deviated products possible

Prioritization Matricies

The prioritization matrix is a useful Six Sigma project tool. It allows the team to compare and rank a diverse set of items, so priorities can be determined based on specific criteria. Using these criteria, the team ranks each item and then determines the total value to rank and prioritize each item. The team then adds up the total for each possibility and chooses the highest-ranking design as the first priority.

TOC

Theory of Constraints -focuses on system improvement

Steps to Create a Prioritization Matrix

There are five key steps in creating a prioritization matrix: 1. Identify items and criteria - Make sure the team has a mutually agreed upon criteria for how you're going to measure each of the projects or procedures, and prioritize them. 2. List items on vertical axis - These are the items you're going to be evaluating against the criteria and prioritizing. 3. List criteria on horizontal axis - The criteria are what you're going to be evaluating each of the different items against. 4. Score each item per criteria, adding weight associated to the importance of each criterion - The scoring is the base value, and is multiplied by the weight to give the weighted value. Total the scores for each item - This will allow the comparison of each possible choice with every other possible choice.

Steps to Create Matrix Diagram

There are five steps in creating a matrix diagram: - Define the objective and the items to be related - You want to make sure the team clearly understands the purpose of creating the matrix diagram and what information, as well as how many types of information, you're trying to relate to each other. - Choose the matrix type - The type of matrix depends on contributing factors such as what type of information and how many types of information you're relating to each other. Determine how relationships will be depicted - This is where you can use symbols or different ratings. - Complete the matrix diagram as a team - This helps to document the different relationships. Analyze the matrix diagram - Each relationship should be considered in turn and the presence and strength noted.

Interpreting Cp

There are some handy rules of thumb for interpreting Cp values: >1.33 - Although there is no standard for a good Cp value, a Cp value of 1.33 or greater signifies that the process comfortably meets the specification limits. Most organizations require a Cp value of 1.33 or above, which corresponds to 0.0064% or 64 parts per million out of specification. 1 to 1.33 - A Cp between 1.0 and 1.33 is capable with tight control. When a process has a spread that's about equal to the specification width, any slight movement of the mean off center means that a significant portion of products will be outside a specification limit. Such a process must be closely monitored. < 1 - A process with a Cp less than 1 is not capable of producing a product or service that meets customer specifications. It means the process width is greater than the specification width.

Creating A Tree Diagram

There are three basic steps involved in creating a tree diagram: 1. Define the problem statement at the top level so everyone on the team understands the purpose of the exercise and is focused on working toward that common goal. 2. Break the problem statement down into key issues or causes at the second level. This is where branches of the diagram are started and the diagram begins to show cause-and effect relationships. 3. Break the second level items down into sub-causes. Here the team can start to identify the sub-causes or factors influencing the key issues.

Steps used to Develop PDPC chart

There are three main steps in creating a process decision program chart: - Identify and outline the objective and its main activities - This is what you're trying to accomplish. Then, based on what you're trying to accomplish, high level key activities necessary to reach the objective must be identified. Typically, the objective is the first level of the chart. The main activities required to reach the objective are the second level. The risks are the third level, and the countermeasures are the fourth level. - Identify potential problems or risks associated with each activity - You must consider what could go wrong and "what if" type questions to identify potential risks associated with each main activity. - Determine countermeasures or contingencies for each problem or risk - During this step the team should examine each action and determine the practicality of each countermeasure so they could eliminate or replace countermeasures and contingencies that aren't feasible.

Types of Matrix Diagrams

There are three other types of matrix diagrams: a T-shaped matrix is used to compare two unrelated groups of items to a third group a Y-shaped matrix diagram is used to compare groups of related items to each other a C-shaped matrix is used to graphically display the connection between groups of items at a convergence point in 3D format

Cross-Functional Teamwork (Not Boring)

There is a high level of teamwork and coordination between organizational units and strong internal customer-supplier relationships.

Incentives, Rewards & Recognition

There is an effective and recognition system that promotes continuous improvement and rewards outstanding individuals, team and plant performance

External Failure Costs

Those associated with defects found after the customer receives the product or service such as customer complaints

Internal Failure Costs

Those associated with defects found before the customer receives the product or services such as scrap or rework

Prevention Cost

Those incurred to prevent poor quality such as quality improvement teams

Process Capability

Three main components are used to determine process capability: process limits, which represent natural process variation process spread, which shows the extent of process variation resulting from both special and common cause variation specification limits, which are derived from customer expectations or business design expectations

The average amount of time it takes for products to move through the system.

Throughput Time =

Process Velocity

Throughput time / Value Added Time A measurement of wasted time in the System

Process Velocity =

Throughput time / Value Added Time A measurement of wasted time in the System

6 sigma Cp and Cpk

To achieve Six Sigma quality, you must have a Cp value that's equal to or greater than 2, a Cpk value greater than or equal to 1.5, and defects per million opportunities that are less than or equal to 3.4.

Top Down Chart

Top-down chart The Top-down chart is very similar to the RACI matrix but it provides a little bit more information about a process. A top-down chart is a linear sequence of stages in the process and the steps performed in each stage, along with their substeps.

Benefits of Tree Diagrams

Tree diagrams are used mainly during the Define stage of the DMAIC process. They have several key benefits for the Six Sigma project: -Tree diagrams are easy to use, read, and interpret. This helps get everybody in the team on the same page by showing the relationships in the linkages between different parts of the diagram. -A tree diagram provides an effective way of checking details going through each step of the process to understand how the process works and the detailed relationships between those. -A tree diagram promotes step-by-step thinking. The branching steps of a tree diagram show what happens at each step or branch, moving from the general to the specific in a systematic way. -A tree diagram highlights complexity by showing the number of branches and how and where everything relates.

Interrelationship digraphs

Used to show the relationship among factors in a complex situation. Shows the relationship of multiple factors in a map like diagram or relations diagram Explore root causes - The relationships portrayed in the digraph can help show cause and effect and can help determine the main causes of a problem. Discover influencing factors - A digraph also helps the team discover influencing factors - the factors that cause effects to happen. Evaluate relationships between ideas - Looking at how many arrows are coming into each idea and how many are going out can help determine the influential relationships in a process. Consider multiple cause-and-effect relationships - Studying the pattern of arrows going between boxes in the digraph helps delineate key factors and influential relationships happening within the process.

Chi Squared

Used to test whether a sample is drawn from a population that conforms to a specified distribution. Chi square is also called goodness of fit and calculated by summing the chi square contributions from each category in the hypothesis. H0 the sample conforms to the specified distribution H1 the sample does not conform to the distribution

Design of Experiments

Used when a process is affected by several different factors.

Affinity Diagrams

Used when issues seem to large and complex to grasp and when group consensus is necessary. Affinity diagram organizes a large number of ideas into their natural relationships using team creativity and is often used during brainstorming

Delegating

Useful for teams which are empowered and self directing. This democratic style, draws on people's knowleddge and skills, and creates a group commitment to the resulting goals.

Design FMEA

Uses application of Failure Mode and Effects Analysis method specifically to design a product to determine ways that a product design might fail in real-world use.

Short to Long Term sigma adjustment

Using 1.5 sigma as a standard correction allows for products and services to be reasonably strong against natural, unavoidable sources of variation in the process. As an adjustment, offsetting the normal distribution by 1.5 sigma takes into account what happens to normal processes over time. It's a way to allow for unexpected errors or shifts as time goes on.

=VA Time/ Total Time

VA%

VA- o NVA- o OVA-

Value Added Non Value Added Over Value Added

What to look for in a process map

When reviewing a process map, there are four characteristics you should look for: Good flow Opportunities for improvement Delays Rework loops

Rolled Throughput Yield

When you are considering multiple steps, you want to look at rolled throughput yield. In order to calculate rolled throughput yield, you need to know the total number of process steps and the first time yield for each process step in order to multiply those by each other. Thus were you to have a process with three steps, each step would have its own first time yield. If the first time yield for each is over 90%, you would expect to have a good rolled throughput yield. However, based on how the figures work together, you will see that the rolled throughput yield is much worse than it appears.

Detection

Which assesses the chance of a failure being detected with representing the highest chance of detection and 0 representing the lowest chance of detection

Severity

Which assesses the impact of the failure mode with representing the least safety concern and 10 representing the most dangerous safety concern

Single-piece flow is the concept of ideally using batch sizes of one.

______ allows companies to better match production to customer demand, avoid large inventory buildups, and ensure uninterrupted movement of WIP. To utilize single-piece flow, a company must be able to change between products quickly and inexpensively by reducing setup times (SMED) or have Work Cells (stations in close proximity to one another) which allow single pieces flow

Engagement:

a knack for using emotion and logic to communicate a persuasive vision and connect with people

A system is defined as

a series of interdependent processes, constraints, and links.

Random Sampling Considerations

accuracy of the database - Simple random samplings works the best when you have an accurate database of the population, because you can use that information to understand your system. Ensure you're selecting an accurate random number table to get a representative sample. avoiding sampling error - It's important to make sure that you're avoiding sampling error. Make sure you have a homogeneous sample. gathering the sample - You can use systems like a random number function or a random number table. There are also several software packages available that can be used to generate the sample list and help ensure you're getting a representative sample that is truly random.

Quick changeover methods

are employed to increase equipment availability and respond quickly and economically to changing schedules and customer needs

QFD - Quality Function Deployment

characteristics of a new or existing product or service from the viewpoints of 1. market segments, 2. company, or 3. technology-development needs

Chi-squared Distribution

chi-square distribution is mainly used to compare different distributions. You can use the information to make inferences about a larger population. Distributions such as the chi-square distribution, the F distribution, and the Student's t-test address a sample and find a cumulative probability of that observed data. This is used to help make decisions, test hypotheses, and construct confidence intervals. The chi-square distribution is used commonly for goodness of fit and hypothesis tests, and to determine confidence intervals.

Six sigma

claims that focusing on reduction of variation will solve process and business problems.

Value Stream Maps -

drawings that make the flow of material and information visible.

gauge repeatability and reproducibility study, GR&R Goals

gauge repeatability and reproducibility study, or GR&R study, has three main goals: to assess the precision of the measurement system to determine the percentage of variation that's caused by the measurement system in the overall variation that's been observed, and to determine the focus for minimizing the measurement system variation

Genchi Genbutsu

go and see for yourself" and it is an integral part of the Toyota Production System. It refers to the fact that any information about a process will be simplified and abstracted from its context when reported. ________ tells us to go out there and see the world for ourselves and not to rely on reports that distance us from reality

Calculate Percent Idle Time

idle time per cycle/(N)(CT) n= number of workstations

mura

inconsistency

Probability Concepts

inferential statistics - used to make inferences from sampled data about a population during the Measure stage confidence intervals - used during the Measure and Analyze stages to understand processes quantitatively Design of Experiments (DOE) - DOE is used during the Improve stage estimations and predictions - used while making decisions in the Analyze and Improve stages control charts - tools such as control charts, which are based off of probability concepts, are used in the Control stage

Guanxi

is a culture which is supportive, mutually beneficial connection between two people. or The system of social networks and influential relationships that facilitate business and other dealings

Capacity-constrained resource (CCR)

is a resource where the capacity is close to demand

Process FMEA

is a structured Analystical tool used to identify and evaluate the potential failures of a process for existing products or service. The FMEA evaluates each process step and assigns a score on a scale of 1-10 for the following variables: Severity, Occurrence, Detection, Risk Priority.

Value Stream Mapping

is all the steps needed to take a product from the supplier to the customer

Total Quality Management (TQM)

is based on the premise that the quality of products and processes is the responsibility of everyone involved requiring the involvement of management, workforce, suppliers, and customers, to meet or exceed customer expectations. is an integrative philosophy of management for continuously improving the quality of products and processes

Ratio

is ordered with a constant scale and has a natural zero. (weight, age, etc,.)

second approach to Lean Manufacturing

is promoted by Toyota, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating Mura ("unevenness")

Line Balancing

is the process of assigning tasks to workstations so they have approximately equal time requirements.

Throughput

is the time for an item to complete the entire process, which includes: Waiting time Transport time Actual processing time

Time Cycle time

is the time to accomplish a task in the system

Bottleneck

is what happens if capacity is less than demand placed on resource

Value added work

is what the customer is willing to pay for... all else is a form of waste (cost).

What is A3

it is 1. Reason for Action 2. Initial State 3. Target State 4. Gap Analysis 5. Solution Approach 6. Rapid Experiments 7. Completion Plan 8. Confirmed State 9. Insights on one piece of paper

The competition in the future is not between firms

it is between the Supply Chains

price-cost=

profit cost is (va+NVA+waste)

Data Collection Plan

purpose and goals - data sources - data formats - tools and teams - collecting the right data -

Actual output:

rate of output actually achieved cannot exceed Effective Capacity

Probability Key Terms

sample space (S) - the set of all possible outcomes of an experiment event - a set of outcomes in the experiment simple event - a single outcome of the performed experiment, or an event which cannot be broken down anymore compound events - events that use a more sophisticated probability including mutually exclusive events, dependent events, and independent events

Stratified Sampling Considerations

selecting correct strata - It's important that the team selects the correct strata, so they need to make sure they're picking the correct group. ensuring mutual exclusivity - The groups must be mutually exclusive and exhaustive to make sure the subgroups are homogeneous. There should be no overlap between the subgroups. capturing maximum difference - It's also important to capture the maximum difference between each stratum, so you can ensure there is no confusion between the groups.

Perfection

state of quality where a product or process is complete and customer has no additional wants for improvement for product or service.

1-10-100 Rule

states that as a product or service moves through the production system, the cost of correcting An error multiplies by 10.

gauge repeatability and reproducibility study, GR&R steps

tep 1: Prepare Prepare for the study by ensuring the gauge or device is correctly calibrated or standardized. You want to duplicate production conditions as closely as possible. Step 2: Collect resources The next step involves gathering all the resources that are needed for the study, including the number of operators, the number of parts to test, and the number of repeated readings to take (known as trials). Step 3: Collect data When collecting data, it's important to ensure consistency and avoid any bias among the operators and recorders. Operators record the following calculations in a table: average measure per part per trial range per part and average range per trial Rbar, which is the average of all of the ranges per operator, and Xdouble bar, which is the grand average of all of the averages Step 4: Calculate repeatability and reproducibility In the fourth and final step you calculate the repeatability and reproducibility. The larger of the two values indicates the larger source of variation. This is where you should focus your improvement efforts. Calculations can be done manually or by using computer software.

Insight:

the ability to gather and make sense of information that suggests new possibilities

Value Stream -

the flow of all activities, value added and others, needed to fulfill a request.

Any company's most valuable assets are

the knowledge and creativity of its workers

System cycle time is equal to

the longest task cycle time in the system—the rate at which customers or products exit the system, or "drip time."

When not to use random sampling

the population is highly varied - If the population is highly varied, the random sample may not take into account that variation within the process. you don't have a list of the entire population - If you don't have a list of the entire population, it may be hard to determine what the appropriate sampling should be when using a random number table or random number generator. interviews are required - If interviews are required, the sample isn't truly random, because you'd have to target who your interviews would be with, and they would have to agree to conduct the interview with you. the process changes over time - If the process changes over time, random sampling would pull values from within those. It may be difficult to distinguish when the process changes have occurred, which may impact your results. the process is well understood - If the process is well understood, there may not be a need to perform random sampling, as you may already have enough data for your process.

2nd approach to lean

the thinking production system

Determination:

the wherewithal to fight for difficult goals despite challenges and to bounce back from adversity

muri

unreasonableness

Waste (Muda)-

• Futility, Uslessness

Lean Cost Principle

• The cost principle is based that in a competitive market, the customer sets the price o Price - Cost = Profit o Price - [VA + NVA + Waste] = Profit