Sunday, September 14, 2008

Six Sigma Fundamentals—A Complete Guide to the System, Methods and Tools


Core Competencies for the Six Sigma Methodology

Customer and organizational
? Provide a definition of the term customer satisfaction.
? Understand the need-do interaction and how it relates to customer satisfaction and business success.
? Provide examples of the Y and X terms in the expression y = f(x) and or y = f(x,n).
? Interpret the expression Y = f(x) and or Y = f(x,n).
? Define the nature of a performance metric.
? Identify the driving need for performance metrics.
? Explain the benefit of plotting performance metrics on a log scale.
? Provide a listing of several key performance metrics.
? Identify the fundamental contents of a performance metrics manual.
? Recognize the benefits of a metrics manual.
? Understand the purpose and benefits of improvement curves.
? Explain how a performance metric improvement curve is used.
? Explain what is meant by the phrase six sigma rate of improvement.
? Explain why a six sigma improvement curve can create a level playing field across an organization.
? State some problems (or severe limitations) inherent to the current cost of quality theory. Identify and define the principle categories associated with quality costs.
? Compute the cost of quality (COQ), given the necessary background data. Provide a detailed explanation of how a defect can impact the classical cost of quality categories.

Six sigma fundamentals
? Recognize the need for change and the role of values in a business.
? Recognize the need for measurement and its role in business success.
? Understand the role of questions in the context of management leadership.
? Provide a brief history of six sigma and its evolution.
? Understand the need for measuring those things which are critical to the customer, business and process.
? Define the various facets of six sigma and why six sigma is important to a business.
? Identify the parts-per-million defect goal of six sigma.
? Define the magnitude of difference between three, four, five and six sigma.
? Recognize that defects that arise from variation.
? Define the three primary sources of variation in a product.
? Describe the general methodologies that are required to progress through the hierarchy of quality improvement.
? Define the phases of breakthrough in quality improvement.
? Identify the values of a six sigma organization as compared to a four sigma business.
? Understand the key success factors related to the attainment of six sigma.
? Understand why inspection and test is non-value-added to a business and serves as a roadblock for achieving six sigma.
? Understand the difference between the terms process precision and process accuracy.
? Provide a very general description of how a process capability study is conducted and interpreted.
? Understand the basic elements of a sigma benchmarking chart.
? Interpret a data point plotted on a sigma benchmarking chart.
? Understand the difference between the idea of benchmark, baseline and entitlement cycle time.
? Provide a brief description for the outcome 1 - Y.rt.
? Recognize that the quantity 1 + (1 - Y.rt) represents the number of units that must be produced to extract one good unit from a process.
? Describe how every occurrence of a defect requires time to verify, analyze, repair and re-verify.
? Understand that work-in-process (WIP) is highly correlated to the rate of defects.
? Describe what is meant by the term mean time between failure (MTBF).
? Interpret the temporal failure pattern of a product using the classical bathtub reliability curve.
? Explain how process capability impacts the pattern of failure inherent to the infant mortality rate.
? Provide a rational definition of the term latent defect and how such defects can impact product reliability.
? Explain how defects produced during manufacture influence product reliability which, in turn, influence customer satisfaction.
? Rationalize the statement: The highest quality producer is the lowest cost producer.
? Understand the fundamental nature of quantitative benchmarking on a sigma scale of measure.
? Recognize that the sigma scale of measure is at the opportunity level, not at the system level.
? Interpret an array of sigma benchmarking charts.
? Understand that global benchmarking has consistently revealed four sigma as average, while best-in-class is near the six sigma region.
? Draw first-order conclusions when given a global bench-marking chart.
? Provide a brief description of the five sigma wall—what it is, why it exists and how to get over it.
? State the general findings that tend to characterize or profile a four sigma organization.
? Explain how the sigma scale of measure could be employed for purposes of strategic planning.
? Recognize the cycle time, reliability and cost implications when interpreting a sigma benchmarking chart.
? Understand how a six sigma product without a market will fail, while a six sigma product in a viable market is virtually certain to succeed.
? Provide a qualitative definition and graphical interpretation of the standard deviation.
? Understand the driving need for breakthrough improvement versus continual improvement.
? Define the two primary components of process breakthrough.
? Provide a brief description of the four phases of process breakthrough (i.e., measure, analyze, improve, control).
? Provide a synopsis of what a statistically designed experiment is and what role it plays during the improvement phase of breakthrough.
? Understand the basic nature of statistical process control charts and the role they play during the control phase of breakthrough.
? Explain the interrelationship between the terms process capability, process precision and process accuracy.
? Explain how statistically designed experiments can be used to achieve the major aims of six sigma from a quality, cost, and cycle time point of view.
? Understand that the term sigma is a performance metric that only applies at the opportunity level.


Case Study: Development Flow for an Automotive Organization

a) Concept development
Program start: Basic business plan objectives and constraints are identified and incorporated into the corporate strategic planning.
Deliverables/Requirements
1. Brand vision/marketing plans
a. Proposed marketing strategy complete
b. Brand identity model/concept direction alignment complete
c. Preliminary service readiness plan
2. Program definition
a. Stable and balanced long-range product plan published
b. Initial top-down vehicle level targets established
c. Vision paper complete
d. Manufacturing and assembly plant alternatives identified business planning and approvals
3. Business planning and approvals
a. Initial long-lead projects and early funding approval complete
4. Program planning and resource management
a. Up-front study team established
b. Resource requirements identified
5. Design and development
a. Potential product alternatives and concept direction
6. Production preparation
a. Preliminary part installations assessment
7. Program and process assessment
a. Program assessment (function, product cost program cost, timing and process conformance)
b. Lessons learned, documented and shared

Confirm program vision: Basic business plan objectives and constraints confirmed to a elect strategic corporate direction. Strategic plan may be reviewed, modified and/or abandoned at this point.
Deliverables/Requirements
1. Brand vision/marketing plans
a. Product/process/service customer requirements identified
b. Unique must-haves for brand differentiation consensed
c. Service tool requirements identified
2. Program definition
a. Product/process/service product plan usage and configurations
b. Initial program vision document
c. Preliminary product/service functional objectives
d. Major system initial cost targets derived
e. Strategy for cost-setting and management documented
f. If a manufactured product, manufacturing and assembly plants selected
3. Business planning and approvals
a. Preliminary business requirements and objectives
b. Program business rules and procedures defined
4. Program planning and resource management
a. Product/process/service product assurance team established
b. Initial product/process/service; product assurance plan
c. Preliminary resource allocation plan
5. Design and development
a. Preliminary package
b. Process alternatives
c. Interchangeability of parts and/or part-sharing across primary brands identified
6. Production preparation
a. Initial strategy complete
7. Sourcing and logistics
a. Preliminary sourcing plan for product and process
8. Build and test
a. Initial product/process/service test strategy and plan
9. Program and process assessment
a. Program assessment (function, product cost, program cost, timing and process conformance)
b. Lessons learned, documented and shared

Preliminary program specifications: General product proportion and hard-points, concept direction and preliminary program objectives approved. If necessary, begin multiple theme development.
Deliverables/Requirements
1. Brand vision/marketing plans
a. Customer requirements updated and component and system customer requirements defined
b. Product theme research complete
c. Content trade-off pricing complete
d. Service parts delivery plan complete
2. Program definition
a. Preliminary system and component functional objectives and performance standards, and product functional objectives and performance standards complete
b. Balanced, top-down program targets established
c. If applicable, product and process technology availability and applicability identified
3. Business planning and approvals
a. Long lead projects approved for design complete
b. Program planning and resource management
c. System and key component product assurance teams established
d. Initial system and key component product assurance plans
e. Resource allocation plan complete
4. Design and development
a. Packaging reviewed and/or updated and basic package hard-points complete
b. List of new or modified systems and key components
c. Carryover parts, subsystems from other programs under primary brand complete
d. Preliminary system and component design FMEAs and key characteristics
e. Preliminary system and component designs and technical descriptions
f. If manufacturing, initial manufacturing and assembly process design and analytical studies
5. Production preparation
a. Manufacturing and assembly systems requirements identified
6. Sourcing and logistics
a. Preselect packages completed
b. Material handling strategy
c. If necessary, material control systems requirements identified
d. Supplier sourcing plan complete and key suppliers selected
e. If union representation, program overview and directional sourcing review scheduled
7. Build and test
a. System and component test plans complete
b. Preliminary product, system and component engineering design (ED) testing, simulation and analysis results
c. If applicable, dimensional control plans
d. If applicable, preliminary product build plans and appropriate tool plan
e. If applicable, preliminary quality measurement plan
8. Program and process assessment
a. Program assessment (function, product cost, program cost, timing and process conformance)
b. Lessons learned, documented and shared

b) Design
Final specifications: All specifications completed. Comprehensively feasible product and process defined. All verification, validation and production plans defined. Action plans in place to meet corporate milestones of development cycle.
Deliverables/Requirements
1. Brand vision/marketing plans
a. Series line-up and mix price walk finalized
b. Public relations plan complete
2. Program definition
a. Program vision document complete
b. Top-down and detailed (bottom-up) business requirements and objectives reconciled
c. End-of-life vehicle plan complete
3. Business planning and approvals
a. Program funding approval complete
4. Program planning and resource management
a. Product assurance plans complete
b. Resource requirement assessment complete
5. Design and development
a. Final packaging theme complete
b. Comprehensive product and process feasibility
c. Preliminary workstation designs and operation descriptions
d. Preliminary gage, fixture, test equipment and mistake-proofing requirements and plans
e. Preliminary control plans
6. Production preparation
a. Preliminary systems/controls architecture defined
b. Establish interface standards team
c. Preliminary appropriate tooling plan
7. Sourcing and logistics
a. Production purchase orders issued for top 20 percent of parts
b. All source packages approved
8. Program and process assessment
a. Program assessment (function, product cost, program cost, timing and process conformance)
b. Lessons learned, documented and shared

Product and process design complete: 100 percent production feasible product and process design is complete. All verification, validation and production plans confirmed. This is the speed of execution point in the process.
Deliverables/Requirements
1. Brand vision/marketing plans
a. Service readiness plan complete
b. Glove box kit defined
c. Marketing launch core team established
2. Program definition
a. Trade-off analysis complete
3. Program planning and resource management
a. Product assurance plan updated
b. Resource requirement assessment complete
c. Launch plan identified
4. Design and development
a. Product design complete
b. System and component design FMEAs and key characteristics complete
c. Design for service efficiency complete
d. Product and process design release complete
e. Process design complete
f. Process FMFAs and key characteristics complete
g. Workstation designs and operation descriptions complete
h. Gage, fixture, test equipment, mistake-proofing plans complete
i. Control plans complete
j. Feasibility of facilities and plans complete
5. Production preparation
a. Process capability estimates complete
b. Tooling and equipment specifications complete
c. Preliminary diagnostics and service procedures
d. Appropriate tool plan complete
e. Facility plans complete
f. System/controls architecture complete
6. Sourcing and logistics
a. Material handling plan complete
b. Production purchase orders issued
7. Build and test
a. ED testing (engineering design), simulation and analysis complete
b. All test plans complete
c. build plan complete
d. Quality measurement plan complete
8. Program and process assessment
a. Program assessment (function, product cost, program cost timing and process conformance)
b. Lessons learned, documented and shared

c) Execution
Production readiness—II: Build of products and properties for design verification. Verification of production build process intent. Determination of product and process issues for resolution. Product and process training of key personnel.
Deliverables/Requirements
1. Brand vision/marketing plans
a. Final communication strategy
2. Program planning and resource management
a. Resource requirement assessment complete
3. Production preparation
a. Assembly plant and supplier process design vented
b. Initial process performance complete
c. Preliminary diagnostic and service procedures
d. Preliminary man-assignments identified
e. Assembly plant key operator training complete
f. Vehicle communications software and testing verified
4. Sourcing and logistics
a. Material handling, material supplied
b. Process sign-off started
5. Build and test
a. Products built and assessed
b. System DV testing complete
c. Build issues and corrective actions identified
d. Systems and product dimensional targets verified
e. Quality tracking measures and process verified
6. Program and process assessment
a. Program assessment (function, product cost, tooling and process conformances)
b. Lessons learned, documented and shared

Production readiness—III: Validation of tooling, equipment and verify facilities. Certification test plan is developed.
Deliverables/Requirements
1. Program planning and resource management
a. Resource requirement assessment complete
2. Production preparation
a. Control plans for production complete
b. Man-assignments (individual tasks assigned to individuals) complete
c. Complete diagnostic and service procedures finalized and validated
d. Plant training initiated
e. Production process installed at home plant and certified
f. Production torque process verified
g. Containment plan for emergencies complete
3. Sourcing and logistics
a. Process sign-off complete
b. Components for build received with PPAP warrant
c. Production material handling racks and containers required for received product
4. Build and test
a. Vehicle DV testing complete
b. Issues identified/resolved and corrective actions verified
5. Program and process assessment
a. Program assessment (function, product cost, program cost, timing and process conformance)
b. Lessons learned, documented and shared

d) Launch
Job 1: Continue ramp-up with production of first units for direct sale. All build options introduced.
Deliverables/Requirements—1st review of end milestones
1. Brand vision/marketing plans
a. Service pans catalog delivered
2. Production preparation
a. Port operations installation process validated
b. Assembly plant facilities validated
c. System fill complete
3. Sourcing and logistics
a. All production material handling received
4. Build and test
a. Product built and assessed
Deliverables/Requirements—2nd review of end milestones
5. Brand vision/marketing plans
a. Flash updates and technical service bulletins issued
6. Program planning and resource management
a. Resource requirement assessment complete
7. Production preparation
a. First customer product built
b. Ramp-up plan executed
8. Build and test
a. Containment issues identified/resolved and corrective actions verified
9. Program and process assessment
a. Customer feedback systems implemented
b. Program assessment (function, product cost, program cost, timing and process conformance)
c. Lessons learned, documented and shared.


For more Information:
* Strategic Six Sigma, Six Sigma Handbook, Six Sigma Projects, Six Sigma Process Management, Lean Six Sigma, Quality Management Books. Lean Initiatives. Quality Excellence. Business Excellence *



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