LEAN SIX SIGMA

CPM

(Critical Path Method) Shows Costs, Time, Probabilities

PERT Chart

(Program Evaluation and Review Technique) Shows Time and Probabilities

What are quality costs?

-A quality cost is considered o be any cost that a company incurs in order to ensure that the quality of the product or service is perfect. -Quality costs are the portion of the operating costs brought about by providing a product or service that does not conform to performance standards. -Quality costs are also the costs associated with the prevention of poor quality.

Operational Value Added

-An activity adds operational value if it is not a customer value-added activity and is: •Required to sustain the workplace ability to perform customer value-added activities •Required by contract or other laws and regulation •Required for health, safety, environmental or personnel development reasons •Done right the first time

Why Use SIPOC?

-Aside from managers, process improvement and audit teams also rely on SIPOC for a quick summary of a process. -The diagram also shows the flow of the process, making the determination of a failure easier to pinpoint. -SIPOC is best accomplished in team work and brainstorming sessions.

Project Management Plans Include

-Mission and The Deliverables -scope and objectives -What Will The Final Outcome Be? -WHAT ARE THE DESIRED RESULTSASSOCISTED WITH THE PROJECT?

Eight essential tools typically used within DMAIC process

-Process Maps -Cause and Effect Diagrams -Failure Modes and Effects Analysis -Measurement System Analysis -Process Capability Studies -Multi-variate studies -Design of Experiments -Process Control Plans

Identify a non-value added activity that would be considered a form of processing muda:

1. Any and all forms of transportation 2. Reworking a product due to poor, initial work. 3. An ergonomically unsound workplace

Input, process, and output indicators measure what?

1. The performance of either the input(s), process, or output(s) 2. Potential sources of variation that ultimately may result in customer dissatisfaction. 3. Measures of what the LSS could focus on in the next (i.e. Measure) phase.

Lean thinking generates process improvement by following five key steps. What are they?

1. Study the process by directly observing the work activities, their connections and flow. 2. Study the process to systematically eliminate wasteful activities, their connections and flow. 3. Establish agreement among those affected by the process in terms of what the process needs to accomplish and how the process will accomplish it. 4. Attack and solve problems using a systematic method. 5. Integrate the above approach throughout the organization

We Determine What to Measure by Listening to the Customer By:

1.) Listening To The VOC 2.) Translating VOC To KPIs/CCRs 3.) Developing Measures and Indicatorsx

How Do We Determine What to Measure by Listening to Our Customers?

1.Gather information about the current process 2.Define and measure key process steps and inputs 3.Refine the problem statement and goals

Work Breakdown Structure

1.Project 2. Major tasks in the project 3. Subtasks in the major tasks 4. Activities (or work packages) to be completed

Kano Rankings

5 = Must Be 3 = Primary 1 = Delighter

Resistance to change resulting from an improvement project can cause failures. The team might consider development of a plan to handle stakeholders. This might be: a. A communications plan b. A project charter c. A PERT chart d. A Gantt chart

A communications plan

A histogram displays what type of information?

A graphical display of the distribution of data.

The Affinity Diagram

A group creativity technique that allows large numbers of ideas to be classified into groups for review and analysis.

A commonly reported problem associated with six sigma projects deals with a. A failure to complete any project charter documentation b. A desire to complete projects on time c. A requirement that projects must be at least $100,000 in value d. A lack of business impact for the company

A lack of business impact for the company

Six sigma may be defined as:

A method of analysis. A philosophy for managing an organization A set of statistical techniques.

Statistical Process Control

A statistical method of separating special-cause variation from natural variation to eliminate the special causes and establish and maintain consistency in the process, enabling process improvement

Qualitative Review of the Process Includes

Activity, Customer Value-Added, Operational Value-Added, Non Value-Added

Customer Value-Added

An activity can be described as adding value for the customer only if: •The customer recognizes the value •It changes the product toward something the customer expects •It is done right the first time

Stratification Data Collecting

Any time you collect data Collect information that will help you pinpoint the patterns/causes of problems Brainstorm/Fishbone diagram

Appraisal Costs

Are the costs associated with measuring, evaluating, or auditing products or services to make sure that they conform to specifications or requirements

Prevention Costs

Are those costs that occur when a company is performing activities designed to prevent poor quality in products or services.

Binomial Distributions

Are usually associated with recording the number of defective items out of the total number sampled.

When constructing a Pareto diagram where should the 'others' category be placed? a. At the beginning as the first category b. Directly in the center of the chart c. At the end as the last category d. Where it falls accordingly to indicated frequency

At the end as the last category

Which of the following is not a goal of TOC? a. Increase through put b. Reduce inventory c. Reduce operating expenses d. Balance capacity with demand

Balance capacity with demand

Why is Six Sigma considered scientific?

Because of the system of questioning, data collection, observation and testing.

Why is the normality assumption essential to the interpretation of the capability index?

Because only normal distributions are capable of statistical control

From an upper management perspective, what has been the principal motivating factor in embracing six sigma? a. Bottom line results b. Market share growth c. Defect reductions d. Customer focus

Bottom Line Results

A LSS proposal is typically written as a

Business Case

Elements of a Project Charter

Business Case Goal Statement Project Plan Opportunity Statement Project Scope Team Selection

If an improvement team is moving from general customer pronouncements to specific customer needs, what technique would be employed? a. Pareto chart b. Kano modeling c. CCR diagram d. Affinity diagram

CCR diagram

The C in SIPOC stands for

CUSTOMER Recipient of the outputs

What Are Control Limits?

Calculated to show the extent by which the subgroup averages and ranges would vary if ONLY common causes of variation were present. They are based on the subgroup sample size and rational subgrouping

A project charter describes the teams: a. Leader, facilitator, recorder, and time keeper b. Meeting dates, milestones, and targets, problems c. Case, scope, objectives, roles, timeline d. Roles, scope, meeting times, company strategy

Case, Scope, Objectives, Roles, Timeline

You do well in this class by:

Coming to lecture regularly, Doing assigned work, Participation in in-class/out of class work

A six sigma team may be required to analyze customer data in order to define a project or results of an improvement. Which of the following would be least valuable? a. Conflict resolution b. Statistical analysis c. Matrix diagram d. Pareto chart

Conflict resolution

X-Bar and S Chart

Continuous Data Sample Size Greater Than Or Equal To 6

X-Bar and R Charts

Continuous Data Sample Size Less Than 6 Charts used for high volume processes with subgroups.

Which of the following items is the least likely candidate to assist the problem definition state of a six sigma project? a. CCR diagram/CTQ tree b. Pareto chart c. Product yield data/baseline d. Control charts

Control Charts

Discrete Data

Count or Categories Objective -Count Defects -# approved -# of errors -Type of document Subjective -Yes/No -Categories -Service performance rating -Satisfaction -Agreement

When a process is not centered relative to specifications, which of the following statements is true?

Cpk is the smallest value of either Cp upper or Cp lower

A project proposal

Creates a general understanding of what is needed

CCR Diagram

Critical Customer Requirement A resource that is not a constraint but will become a constraint unless scheduled carefully.

Six Sigma Methodology focuses on

Customer Knowledge, Core Processes, Accurate performance measures of both.

On surveys from customers, what do high customer satisfaction numbers not indicate? a. Customer satisfaction b. Customerservice c. Customer loyalty d. Product quality satisfaction

Customer Loyalty

One would say that, from an overall perspective, the activities of a company are tied together by:

Customers

An organized and disciplined approach to problem solving in most six sigma organizations is called: a. SIPOC b. DMAIC c. PDCA d. DPMO

DMAIC

DMAIC

Define, Measure, Analyze, Improve, Control

Project Scope

Defines the boundaries of the business opportunity.

Control Phase Of DMAIC

Describe the implementation plan? How will the plan be monitored to ensure its success? Who is accountable? What controls are in place to assure that the problem does not reoccur? Who is the process owner?

Opportunity Statement

Describes the "why" of undertaking the improvement initiative.

Business Case

Describes the benefit for undertaking a project.

A voice of the customer analysis does what for a LSS team?

Describes the customers' needs of the organization's product/service

C Chart

Discrete Data Count of Defects* Constant Sample Size

U Chart

Discrete Data Count of Defects* Variable Sample Size

NP Chart

Discrete Data Proportion Defective* Constant Sample Size

P Chart

Discrete Data Proportion Defective* Variable Sample Size

Identify the data conversion that would be MOST difficult to accomplish:

Discrete data converted to variables data

Random Sampling

Each sample has the same chance of being selected Helps to avoid favoritism (in statistics, known as bias) of some kind

Criteria for Defining an Improvement Opportunity as a Quick Win

Easy To Implement Fast To Implement Cheap To Implement Within The Team's Control

Lean

Eliminating the unnecessary

Six Sigma is a structured data driven methodology for

Eliminating waste from processes, products, and other business activities while having a positive impact on financial performance.

A GANTT chart has advantages including all of the following, except: a. It is easy to understand b. Changes can be made easily c. Each bar on the chart represents an activity d. Estimates of optimistic and pessimistic times are included

Estimates of optimistic and pessimistic times are included

Population Size

Example: All U.S. Voters All sufferers of a certain disease that might be given the new treatment All parts that your process could produce

Sample Size

Given a specific number greater then 25 to collect data

Improve Phase Of DMAIC

Have hand-off's to areas outside the project scope been identified? How have they been addressed?

Analyze Phase Of DMAIC

Have you made any revisions to the charter? How have you changed the objectives? How has the scope changed?

Measure Phase Of DMAIC

Have you made any revisions to the charter? How have you changed the objectives? How has the scope changed?

Indicators tell us

How well the process performance is meeting Critical Customer Requirements

The I in SIPOC stands for

INPUT Materials, information and other resources needed to complete a process

A SIPOC helps everyone in the company see the business from an overall process perspective. However, it does NOT:

Identify the few key business customers

A SIPOC map does not do the following: a. Provide a framework applicable to processes of all sizes b. Identify the few key business customers c. Display cross-function activities in simple terms d. Help maintain the big business picture

Identify the few key business customers.

Benefits of Six Sigma adoption for an organization include:

Improved ability to provide customer value

Six Sigma

Improving the necessary

Intangible Costs

Intangible costs are the hidden costs associated with providing a nonconforming product or service to a customer. They involve the company's image.

Operational Definition

Is a concept that helps guide the team's thinking on what they need to measure. It provides the foundation for the team to reach agreement and build consistency and reliability into data collection. This helps ensure any person using the agreed-on definition will be measuring the same thing.

A team sponsor or champion typically a. Is a liaison between the team and upper management b. Attend all team meetings c. Directs the team on implementing solutions d. Fulfills the facilitator role

Is a liaison between the team and upper management

Kanban Method

Is an approach to change management that is designed to meet minimal resistance. Therefore it encourages continuous small incremental and evolutionary changes to your current system. Sweeping changes are discouraged because they generally encounter increased resistance due to fear or uncertainty.

DPMO (defects per million opportunities)

Is the average number of defects per unit observed during an average production run divided by the number of opportunities to make a defect on the product under study during that run normalized to one million.

Identification of the external customer is important because

It helps identify the customer's needs

Stratified Random Sampling

It provides greater precision, a stratified sample often requires a smaller sample, which saves money N=100

Which of the following Japanese techniques is most clearly identified with small incremental change? a. Kaizen b. Kanban c. Poka-yoke d. 5S

Kaizen

The production of product in large lots has all of the following disadvantages except for: a. Maximization of machine efficiencies b. Longer customer delivery lead times c. Additional product transportation expenses d. Potential product damage or deterioration costs

Maximization of machine efficiencies

Continuous Data

Measured on a continuum Objective -Time -Money -Weight -Length Subjective -Satisfaction -Agreement -Extent -Type of error

Attribute Data

Measures qualitative dimensions or conditions

Output Indicators

Measures that evaluate dimensions of the output may focus on the performance of the business as well as that associated with the delivery of services and products to customers.

Input Indicators

Measures that evaluate the degree to which the inputs to a process, provided by suppliers, are consistent with what the process needs to effectively convert into customer satisfying outputs

Process Indicators

Measures that evaluate the effectiveness, efficiency and quality of the transformation processes, the steps and activities used to convert inputs into customer satisfying outputs

The O in SIPOC stands for

OUTPUTS Products or services resulting from the process

Points beyond control limits

Obvious but typically rare

Failure Costs

Occur when the completed product or service does not conform to customer requirements

Which of the following statements describes discrete data?

Of 225 people on the airplane, 85 had connective flights

Add Time for GANTT Duration

Optimistic time (a) - if everything goes according to plan Pessimistic time (b) - assuming very unfavorable conditions Most likely time (m) - most realistic estimate

DMAIC projects are main vehicle for

Organizational Change

Obvious nonrandom patterns

Other nonrandom, distinct, patterns that don't meet the above definitions but exhibit behavior that indicates non-control.

The P in SIPOC stands for

PROCESS Structured steps used to convert inputs into outputs

Which of the following quality improvement tools utilize the accumulation of ideas or data into categories? a. Control charts b. PDCA c. Pareto diagrams d. Flowcharts

Pareto Diagrams

Of the four classifications of quality costs, which will prove the greatest dollar savings vs. dollar spent? a. Appraisal costs b. Internal failure costs c. Prevention costs d. External costs

Prevention Costs

Types of Quality Costs

Prevention Costs Appraisal Costs Failure Costs Intangible Costs

Which technique does a LSS team use to make sure a potential project has clear expectations?

Project Charter

Work Breakdown structure deals with:

Project schedule

Sponsors should provide the interface between

Projects and Organization

A project charter will be useful in many ways, including: a. Providing a consistent target for the team b. Permitting the team leader to develop milestones from it c. Assuring the champion will assign responsible team members d. Ensuring team members will support the project

Providing a consistent target for the team

One of Dr. Deming's 14 pints for management states ,"Cease dependence upon inspection as a way to achieve quality." The underlying tenet of this statement is which of the following? a. Many American companies employ too many inspectors b. Quality should be built into the product c. In most cases, the worker should perform their own inspection d. Most manual inspection will mill defects under typical conditions

Quality should be built into the product

Process Capability

Quantifiable comparison of Voice of Customer (spec limits) to Voice of the Process (control limits)

An engineer wants to improve a process and measures the sigma. What does sigma represent?

Representing variation in the process

Identify a non-value added activity that would be considered a form of processing muda: a. Any and all forms of transportation b. An ergonomically unsound workplace c. Reshaping a product due to poor dies d. Producing more than needed by the customer

Reshaping a product due to poor dies

A methodology for evaluation is called

SMART

The S in SIPOC stands for

SUPPLIER The provider of inputs into a process

Systematic Sampling

Sampling from a particular step in the process each day (hour, week, month)

Team Selection

Select your team members and assign responsibilities

In a highly effective six sigma company, most employees receive some training. What group is most likely to receive sponsorship training? a. Senior management b. Master Black Belt candidates c. Black Belt candidates d. Leadership council

Senior Management

To effectively improve a process it is critical to:

Separate the non-value added activities from the value added activities.

Pallets of product are stated in a warehouse prior to shipment. There are indications that container damage is occurring disproportionately at aisle and row end locations. The best method of data collection to confirm this theory would be?

Sequential sampling

Which of the following is a valued added activity?

Signing up for college classes.

SMART

Specific, Measurable, Attainable, Realistic, Timely

Which six sigma role is most likely to define objectives for an improvement team? a. Leader b. Sponsor c. Black Belt d. GreenBelt

Sponsor

Consider the following definition: "The best combination of machines and people working together to produce a product or service at a particular point in time." What concept is being described? a. Standard work b. Future state map c. The value stream d. Ultimate cycle time

Standard Work

The acronym SIPOC stands for:

Suppliers, Inputs, Process, Outputs and Customer

The upper and lower specifications for a certain product are 7 lbs. and 7.3 lbs. Actual data indicates that the product is currently running at an average of 7.465 lbs., with a standard deviation of 0.030 lbs. The calculations indicate Cp = 1.645 and a Cpk= -1.81. What conclusions can be made about the process?

The Cp and Cpk values indicate that the process is not centered

Which of the new quality management tools is used to organize facts and data about an unfamiliar subject or problem? a. The affinity diagram b. The header technique c. The activity network diagram d. TheMatrix

The affinity diagram

For a normal probability distribution, the relationships among the median, mean, and mode are:

The are all equal to the same value

A KPI is defined by:

The customer's issues

An example of validating a project's financial results concerns the following:

The financial benefits of cost savings was confirmed by an outside expert.

During a team building phase, which of the following best describes the actions of the team? a. The group is uncertain of their duties b. Members prioritize and perform tasks c. Member cooperation is evident d. The team leader usually delegates duties

The group is uncertain of their duties

Goal Statement

The objective of the project, and is specific, measurable, attainable, relevant and time-bound.

Cp is defined as

The ratio of total variation allowed by the specification to the total variation actually measured from the process

An example of project feasibility would be the following:

The scope of the project is timely.

In order to calculate a process capability index, what two facts must be known about the process?

The specification limits and the standard deviation

Rational Subgroups

The units or outputs of processes are typically are done under similar conditions (same operator, tool, time of day).

If Cp = 1 then

The variability of the process exactly meets the specification limits

If Cp < 1 then

The variability of the process is greater than the specification limits

If Cp > 1 then

The variability of the process is tighter than the specification limits

Six Sigma seeks to reduce

The variability present in processes.

Six Sigma projects are selected based on

Their ability to contribute to and enhance an organization's financial performance

Defects per million opportunities is a measure of performance. What is the units of DPMO?

There are no units

Internal Failure Costs

Those costs associated with product non-conformities or service failures found before the product is shipped or the service is provided to the customer.

External Failure Costs

Those costs that occur when a nonconforming product or service reaches the customer.

Six Sigma Tools and Techniques Are used for what?

To attack the variation present in processes.

Document and Analyze Processes Objective

To understand the importance of defining a business in process terms and create top-down charts and functional deployment process maps for the team's target process.

A process map is used to accomplish which of the following? a. Display a dynamic picture of process performance b. Focus attention on process problems by priority order c. Diagram possible problem causes in a process d. Understand the process activities, sequence, and functions

Understand the process activities, sequence, and functions

Patterns or trends within control limits

Unusual patterns or trends can be evidence of 'non-control'or process change

A process map of activated and systems is most helpful in detecting: a. Ways to eliminate written procedures b. Deficiencies in the organizational structure c. Value vs. non-value added activities d. Improper use of statistical methods

Value vs. Non-value added activities

What is a good definition of varation?

Variation is the distribution of differences of measurement outputs.

Common Cause Variation

Variation that is random and inherent in the system. Many sources of variation w/in process that has a stable & repeatable distribution over time. Does NOT change distribution pattern

Special Cause Variation

Variation that is unpredictable, intermittent and usually related to only one element of the process. Any sources causing variation that are not always acting on the process. They affect the process in unpredicable ways. DOES change distribution pattern

VOC

Voice of the Customer i.e. used to describe customers' needs and their perceptions of your product or service.

What of the following is used to determine how to measure LSS peformance?

Voice of the customer analysis

Define Phase Of DMAIC

What is the business reason(s) for completing this project? How are they compelling? How are they tied to strategy?

The essence of Kanban concepts includes all of the following, except: a. Delivery of components and products only when needed b. Minimal storage in production areas c. Distress throughout the production system when a machine failure occurs d. Wide applicability to repetitive and non-repetitive production plants

Wide applicability to repetitive and non-repetitive production plants

Using a sample of data

You draw conclusions about the entire population of data. This is known as "statistical inference." Sampling saves costs and time. Sampling provides a good alternative to collecting all the data. Identifying a specific confidence level allows us to make reasonable business decisions.

Efficiency Measures

•Cost per transaction •Time per activity •Amount of rework •Turnaround time •Variability of an activity

Business Process Mapping (BPM)

•Like the SIPOC, a business process map displays the steps depicted in a process in sequential order. •Defines function (whom) and relationships (flow) of activities.

Why Measure Performance?

•Measure - a dimension such as size, quantity, duration, volume, or frequency. •Measurements imply a scale or comparison. •Measurement provides justification, rationale and guidance regarding the nature and scope of the allocation of investment in improvement.

Effectiveness Measures

•Percent defective •Number of errors •Total response time •Invoice/billing accuracy •Revenue

A project proposal should contain:

•scope •objectives •desired results of the project.