SIX SIGMA: SUCCESS AND FAILURE

STORIES
Richard J. Titus, Jr.
rjt4@lehigh.edu

Agenda

Pass out questionnaire and provide for time to review

My lean six sigma journey
What is Six Sigma
Integrating Lean and Six Sigma
Why are some programs successful and others
failures?
Six sigma overview presentation with input from
attendees
Questions

Objectives

Recalling your Statistics Past

Gain understanding of the Six Sigma Improvement
Program Attributes that Drive Success and Failure
Provide Introduction and Familiarization to Six
Sigma Terminology, Methodology and Tools Utilized
during Project Lifecycle.
Brief discussion of Problem Solving Methods/Tools
Provide Introduction and Familiarization to Six
Sigma Terminology, Methodology and Tools Utilized
during Project Lifecycle.
Feedback and Dialogue with Attendees

Why Does Six Sigma Fail?

Maybe its Our Statistics Past: Questions A-E
A. How many of you took a course in statistics?
B. Did you enjoy it?

C. Do you remember anything about the course?

D. Was it taught in an applied manner?
E. Did you do exercises to reinforce principles

such as capability, correlation, regression, etc.?

My lean six sigma journey

19+ years at Ingersoll-Rand variety of positions throughout the organization
1st Wave of Black Belt and Master Black Belt training conducted by Six Sigma Qualtec
Left industry for full-time teaching at Lehigh in 2000 and taught for 4 years
Applied to Penn States PhD Program in Industrial Engineering to further research in
Supplier Selection Process
Full-time academic and financial support by spouse 2004-2006
Encouraged to get off the gravy train and get back to work
Engaged with 1st clients including Crayola and Siemens Power Generation for Six Sigma
Training, Program and Project Support
Engaged with MANTEC.org to service clients in south central PA
Trained 30+ Waves of Green and Black Belts
Supported 150+ project with approximately $30 Million in Savings

Client List
Packaging Corporation of America, Trexlertown, PA

CBR Industries, Carlisle, PA

ECORE International, Lancaster, PA
EMCON Technologies (World-Wide Tier 1 Auto Parts Supplier
purchased by Faurecia Emissions Control Technologies), Troy,
Michigan
Fenner Precision, Manheim, PA
Fenner Drives, Manheim, PA
Furmanos Inc., Northumberland, PA
GAMSE Lithographing Company, Baltimore, MD
Glatfelter Paper Company, Spring Grove, PA
Hertz Rental Car Company, Orlando, FL and Phoenix, AZ
High Steel Company, Lancaster, PA
HVAC Distributors, Mount Joy, PA
Ignacio Gomez CIA IHM S.A., Bogota, Colombia
InterFace Solutions, Lancaster, PA
Librandis Plating Company, Middletown, PA
Morehouse Instrument Company, York, PA
New York Wire Company, Hanover, PA

Philips Hadco Lighting Division, Littlestown, PA

R.H. Sheppard Company, Hanover, PA
Siemens Medical Division, Malvern, PA
Siemens Power Generation Division, Orlando, Florida
Stoner Incorporated, Quarryville, PA
Sussex Wire Inc., Easton, PA
The Buck Company, Buck, PA
The Crayola Company, Easton, PA
Thermacore Inc., Lancaster, PA
Tobyhanna Army Depot, Tobyhanna, PA
Top Flight Incorporated, Glen Rock, PA
Ventura Foods Inc., Chambersburg, PA
Wire Mesh Products Inc., York, PA

What is this?

PowerPoint Money
PowerPoint Money is
projected savings that
only exists in
presentation and cannot
be spent, saved or
utilized in any practical
manner
Do Six Sigma Programs fail because they fail to
generate real savings or results. Are all the results
stuck in PowerPoint Slides?

Lets Answer These Questions

1. Do you have problems that you are unable or are
extremely difficult to solve?

2. Do you have problems that you solve over and over again
without identifying and eliminating the root cause?

3. Do you have a problem solving methodology?

Six Sigma: the DMAIC Process

Define: Establishes the business case for spending time, energy, and

money towards solving a problem or improving a process.

Define the scope, severity, size of the problem (Ys), the current performance

level, and target level after improvement.

Includes: Who, What, When, Where, How Much, How Often for both the
Current State and the Target State/Goals based on Customer Requirements.
Measure:
Understand the process. Identify potential variables (Xs) that create the output
that is underperforming (Ys).
Document the current process using Process Maps, Value Stream Maps,
FMEA (Failure Mode Effects Analysis)

Hypothesize on root causes of problems-

Fishbone Diagrams, XY Matrix, etc.

Develop a plan to collect data
Qualify measuring tools used to collect data.
Collect data.

Six Sigma: the DMAIC Process

Analyze:
Study data to identify trends, patterns, variation, root causes.
Hypothesize solutions, test, and validate.
Repeat as necessary.
Improve: Plan, Pilot and execute changes including

updating documentation, training, equipment

modifications/acquisitions. Setup control monitoring.
Control: Put systems in place to monitor the process to Keep process in control.
Identify when out of control.

I Chart of 007 OOS by Stage thru week of 9/23/12

$5,000

Sustain the gain.

Stage 1

Stage 2
UCL=$4,593

Individual Value

$4,000
$3,000
1

$2,000

UCL=$1,707

_
X=$1,323

$1,000

_
X=$642

$0

LB=$0
1/1/12

1/29/12 2/26/12 3/25/12 4/22/12 5/20/12 6/17/12 7/15/12 8/12/12

week

LB=$0
9/9/12

Project: CONTROL CHART FOR OOS $S JAN 1 2012 092312.MPJ; Worksheet: Worksheet 1; 10/1/2012

Six Sigma Phases and Scientific Problem Solving

Define
Problem Statement and
Charter

Measure
Validate Data Collected

Breakthrough
Strategy
Characterization

Analyze
Vital Few Factors For Root Cause
of Problem

Improve
Identify appropriate operating
conditions

Optimization

Control
Sustain - Insure Results to Bottom Line

Six Sigma Focus- include in Project Charter

Faster
Cycle Time
Better
Defects per unit (DPU)
Rolled Throughput Yield (RTY)
Cheaper
Cost of Poor Quality (COPQ)

Project Charter Example:

6 High speed presses, located at __, running
__ parts, operated by 1 operator, 2 shifts per
day, are running at approx. 70% utilization and
65% efficiency. Each run requires 1 operator,
and each run requires 1 setup person. Target
is 90% Utilization and 85% efficiency. Poor
Utilization impact cost $500k in lost revenue
and $75k in Contribution Margin. Poor
Efficiency impact cost $1.3M in lost revenue
and $250k in Contribution Margin

Not all projects will generate immediate

savings. There are requirements for
facilitating projects often focused on
measurement system analysis.

12

Six Sigma Focus: Create Measurement

System, Move the Mean, Reduce Variability
Six Sigma is a prescribed method that measures and characterizes
processes in order to make improvements
Improvements can be in measuring the process- creating a
Measurement System via Measurement System Analysis.
Moving the mean
Reducing variation

Shift the Mean

Reduce Variation

Center on Target with

Minimum Variation!

13

Six Sigma Variability: the Irony

There are no national certifications for Six Sigma certification

The American Society of Quality has recommended topics for
training levels such as Green Belt, Black Belt, etc. and
administers a test on the material
A google search of Six Sigma Training generates 17,000,000 hits
A google search of Six Sigma Certifications generates 28,000,00
hits
Do Six Sigma Programs fail because
training programs are focused on certifying
participants or counting the number of
certified belts versus applying to tools to
solve a business problem?

Six Sigma & Quality Engineering History

1920s Walter Shewhart of Bell Labs pioneers the use of statistics to analyze

product and process performance

1940-1993 W. Edwards Deming and Joseph Juran, students of Shewhart,
establish the principles of TQM and teach these concepts to companies
around the world, initially in the US, later in Japan and the rest of the world
1986 emergence of Six Sigma as an improvement model at Motorola
1988 Motorola wins Malcolm Baldrige National Quality Award
1990 Motorola, IBM, TI, Xerox, etc. adopt a Six Sigma model
1995 forward AlliedSignal, GE, Coca-Cola, FedEx, etc. popularize the
approach as a management method
1997 forward Six Sigma spans all industries and sectors:
Manufacturing, Service, Healthcare, Hospitality, Banking, Education
Other retail firms implementing Six Sigma include:
Federated Department Stores, Target, Gap, Wal-Mart, Home Depot,
Lowes, Sears, etc.

15

Connecting Lean and Six Sigma

Improvement Programs
Value Stream and Process Mapping
Pull-Based/Kanbans
Total Productive Maintenance

My preferenceapply Lean
Principles 1st in
Manufacturing
Environment

Visual/Data Management Integration

Standardized Work (SOPs- Standard Operating
Procedures and SMED (Single Minute Exchange of Dies)
5 S and Cell Manufacturing
Error Proofing/Root Cause Analysis
Six Sigma Methods

16

WHAT IT IS AND WHAT IT TAKE FOR SUCCESS

A business philosophy which demands a corporate
commitment to relentlessly and continuously meet, or
exceed customer requirements and improve profitably
A strategic senior-management driven initiative, requiring
organizational change, that is adopted by companies
seeking competitive advantage in the global marketplace
A rigorous application of the scientific method designed to
partner quantitative methods and the knowledge of
people, in order to assess and improve:
Critical processes within an organization
Significant inputs to the organization
Delivery of product and service based on customer and
stakeholder requirements

If you want to fail- ignore or dont use Data to

Solve the Problem
"In God we trust, all others bring data.
W. Edwards Deming

Which operator do you want running your

machines: Shift 1 or Shift 2?

18

The 6 Sigma Project Team Structure

FULL TIME
COMMITMENT
M.B.B

Black
Belt
20-40%

Green Belt

Problem solver, Proficient with Full Set

of Tools and Math
Problem solver, assists Black Belt.
Working Knowledge of tools
Functional 6 Sigma Team
Member. Familiar with tools

Yellow Belt
Project Team Members

Problem Solving Team

Member

Mentoring

Problem solver, Teacher, Mentor. Expert in

use of the tools

19

Six Sigma Implementation Model

Six Sigma places the emphasis on process

By using structured team-based, data-driven processes, senior

management drive root cause problem solving methodology can
resolve business problems where they originate
Problems are addressed at the root-cause level using a scientific
method for problem solving
Summary of Attributes of a Successful Six Sigma Program
Senior Management Drive/Support and Company Initiative
Data Driven Problem Solving (using the new language of quality
and process performance)
Regular Project Reviews
Rigorous Training and Application of Tools
Mentoring Throughout the Training and Project Support
Implement Quick Hits Where Possible
Team Based
Rigorous Involvement of Project Champion
Communication and Involvement of Stakeholders

Dr. W. Edwards Deming taught that by adopting

appropriate principles of management,
organizations can increase quality and
simultaneously reduce costs by reducing waste and
rework while increasing customer loyalty. The key is
to practice continual improvement and think of
manufacturing as a system, not as bits and pieces.

94% of failures are due to the system,

6% are due to the worker.
The factory offers 3% of the opportunity
for company improvement,
the rest of the business- 97%.

21

The Six Sigma DMAIC Roadmap

Six Sigma Successes

Reduction in process upsets in chemical processing operations
Risk reduction and cost savings from expanding sourcing from

single source
Supplier rating for quality, delivery and price (facilitating project)
Quotation management system, cycle time reduction
Order management system improvement reducing freight costs
while increasing sales
Line efficiency and supplier quality improvement
Joint Supplier/Customer Design of Experiments quality
improvement
IT Server Optimization
Cycle Count Variation Reduction

Customer/Supplier Joint Savings Model Overview

Select Critical Supplier Process for Improvement Project
Determine Key Metrics, Annual Usage,
Projected Resources, Savings and
Effective Date for Improvements

Go/No Go

Overall (LT) Capability

Pp
0.41
PPU
0.20
PPL
0.62
Ppk
0.20

USL
ST
LT

15

25

Observed Perf ormance

PPM<LSL
56000.00
PPM>USL
248000.00
PPMTotal
304000.00

35

Expected STPerformance
PPM< LSL
33724.55
PPM> USL
276303.34
PPMTotal
310027.89

45

55

Expected LT Performance
PPM< LSL
31885.96
PPM> USL
273583.66
PPMTotal
305469.62

Complete Capability
Study of
Existing Process
S ampl e Mean

Review Projected Savings, Resource/

Capital Requirements, Effective Date
for Implementation using Capability
Study following Measure Phase.

Potential (ST) Capability

Cp
0.40
CPU
0.20
CPL
0.61
Cpk
0.20
Cpm
*

40

3.0SL=41.33

30

X=30.10

20
Subgroup

S ample Range

Establish agreed upon Saving Split

L SL

Process Data
USL
35.0000
Target
*
LSL
15.0000
Mean
30.0972
Sample N
125
StDev (ST)
8.25584
StDev (LT)
8.14405

40

-3.0SL=18.86
0

10

15

20

25
3.0SL=41.18

30
20

R=19.47

10
0

-3.0SL=0.000

Continue to Implementation with Regular

Joint Project Reviews of Key Metrics

Cycle Count Variance Reductions

I-MR Chart of Cycle Count by Period

Individual Value

1000000

S A P Implementation C onfirmation E rrors

C y cle C ount Timing

2013

U C L=742450
U C L=508130

500000
_
X=-148249

-1000000
Jan-11

LC L=-1038948
M ay -11

S ep-11

Jan-12

S A P Implementation C onfirmation E rrors

U C L=1094224

LC L=-95440

LC L=-202609

LC L=-350408

-500000

U C L=81518 _
X=-6961

U C L=260836
_
X=29114

_
X=78861

M ay -12
Date

S ep-12

Jan-13

C y cle C ount Timing

M ay -13

S ep-13

2013

Moving Range

1000000
750000
500000

U C L=527357

__
M R=334903

0
Jan-11

LC L=0
M ay -11

U C L=284671
__
M R=87128

__
M R=161405

250000

S ep-11

LC L=0
Jan-12

M ay -12
Date

S ep-12

LC L=0
Jan-13

U C L=108696
__
M R=33268

M ay -13

LC L=0
S ep-13

25

Belts- Full-time versus Part-time

Originally most Six Sigma deployments where
initiated with full-time Black Belts
Most current deployments are done with part-time
Green and Black Belts. The key to successproject selection

What Is Green Belt Training?

A course on the use of a process-focus to manage the business
through the Six Sigma problem-solving approach of Define,
Measure, Analyze, Improve, and Control (DMAIC)
Classroom training and real world application of tools:
Learn and apply DMAIC tools
Utilize classroom exercises to demonstrate the application of tools
Demonstrate tool application to training project:
Deliver a financially measurable and significant business impact through

the application of the tools and principles

Show ability to use tools beyond the training environment
Submit a final report which documents tool understanding and application in
addition to process changes and financial impact
To ensure optimal knowledge transfer:
In addition to classroom training, provide approximately 4 on-site support
sessions lasting approximately 2 hours between each session and for several
months following the completion of the GB training depending on candidate
progress
Access via telephone or e-mail to answer questions

GB Certification Requirements
Class Attendance
Participation in Classroom and Group Exercises
Certification project approved by Senior Management and

Instructor
Successful completion of open-notes tests at end of

training weeks
Monthly project progress reviews required until project
termination or successful project completion
Submission of final written project report detailing steps

completed leading to successful project completion

Week 1 Training Topic Areas

Six Sigma Overview

Problem Definition

SIPOC (Supplier, Input, Process, Output, Customer) Diagram

Voice of the Customer

Team Facilitation

Process Mapping

Fishbone or Ishikawa Diagram

Cause and Effect or X-Y Matrix

Failure Mode & Effects Analysis

Rolled Throughput Yield (and Defects per Unit)

Probability

Introduction to Basic Statistics

Basic Tools (Intro. to Minitab and Graphical Methods/Intro. To Multi-Variable Methods)

Confidence Intervals

Intro. to Hypothesis Testing

Process Capability Analysis

Measurement System Analysis (Gage R&R and Attribute R&R)

Data Collection Plan

Project Planning

Define Phase Topics

Measure Phase Topics

* Topic Areas in BOLD Type are part of American Society of Quality Green
Belt Course Coverage Areas.

Week 2 Training Topic Areas

Candidate Project Reviews
Graphical Methods and Multi-Variable Methods
(Process Visualization)
Central Limit Theory and Intro. to Transforming NonNormal Data
Hypothesis Testing for Continuous and Attribute Data
Introduction to Design of Experiments (started
in Intro. to Multi-Variable Methods)
Randomized Blocks
Full Factorial Experiments
Intro. to Analysis of Variance
Correlation and Regression
Power and Sample Size
Control Planning and Application
Pilot Solution Planning, Process Standardization and Risk
Assessment (FMEA)
Mistake Proofing
Statistical Process Control
Project Planning and Management
* Topic Areas in BOLD Type are part of American Society of Quality Green Belt Course
Coverage Areas.

Analyze
Phase Topics

Improve
and Control
Phase
Topics

Shameless Advertisements
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(CVCR) Six Sigma Case Study- Lean Six Sigma at

Crayola (4 hour morning session)
April 4-5, 2014- Part II: Champion or Executive
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Lehigh on April 5)
Green and Black Belt Training Classes conducted at
MANTEC (MANTEC.org) in York, PA

Thank You and Additional

Questions