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Breakthrough Strategy
or
Your Worse Nightmare?
Jeffrey T. Gotro, Ph.D.
Director of Research & Development
Ablestik Laboratories
Agenda
A Symbol
A Measure
A Benchmark or Goal
A Method
Standard Deviation
Standard Deviation is a Measure
of Variability
100K
(66,800 ppm)
Average
Company(6,210 ppm)
10K
Restaurant Bills
Doctor Prescription Writing
Payroll Processing
Order Write-up
Journal Vouchers
Wire Transfers
1K
Purchased Material
Lot Reject Rate Air Line Baggage
Handling
(230 ppm)
100
10
Best in Class
Domestic Airline
Flight Fatality Rate
(3.4 ppm)
SIGMA
(0.43 ppm)
DMAIC Approach
Define
40
Measure/Analyze
35
Improve
Control
Defect Rate
30
25
20
15
Chronic Waste
10
Chronic Waste
40
38
36
34
32
30
28
26
24
22
20
18
Time
16
14
12
10
-2
-4
-6
-8
-1
0
10
DMAIC Approach
Define
Measure
Analyze
Improve
Control
Measure
Project Scope
Process Map
Project Charter
Data Collection
Business Impact
Control Charts
Voice of the
Customer (VOC)
Pareto Charts
Affinity Diagram
Kano Model
CTQ Tree
diagram
Prioritization Matrix
Measurement
System Analysis
Process Capability
Yields (RTY)
Analyze
Improve
Control
Multivari
Analysis
Brainstorming &
Creativity tools
Statistical Process
Control (SPC)
Design of
Experiments
(DOE)
Standard Operating
procedures (SOP)
FMEA
Hypothesis
testing
ANOVA
Noise Variables
Scatter plots
Design of
Experiments
Full Factorial
Fractional
Factorial
Response
Surface
Pilot Trials
Implementation
Plan
12
Supplier
Inputs
Requirements
Process
Value-added
tasks
Feedback
S.
Output
Customer
Feedback
I.
P.
O.
C.
13
What is a process?
Controllable
Inputs
(Xs)
Process
Key Process
Outputs
(Ys)
Noise Inputs
Y = f (X)
14
Upper
Spec.
Limit
Cust. Tolerance
0.3
0.2
0.1
0.0
-4
-3
-2
-1
Process Capability
Cp=1
15
Upper
Spec.
Limit
Cust. Tolerance
0 .4
0 .3
0 .2
0 .1
0 .0
-8
-6
-4
-2
Cp=2
16
Upper
Spec.
Limit
Cust. Tolerance
0.3
0.2
0.1
0.0
-8
-6
-4
-2
Process
Capability
17
Process Drift
0.4
Cp = 1.33
Cpk = 1.33
Lower
Spec.
Limit
Cust. Tolerance
Upper
Spec.
Limit
0.3
0.2
0.1
0.0
-5.33
-4.0
-2.67 -1.33
1.33
2.67
4.0
5.33
18
Process Drift
0.4
Cp = 1.33
Cpk = 0.83
Lower
Spec.
Limit
Upper
Spec.
Limit
Cust. Tolerance
0.3
0.2
0.1
0.0
-5.33
-4.0
-2.67 -1.33
1.33
2.67
4.0
5.33
19
Upper
Specification
Limit
Lower
Specification
Limit
Upper
Specification
Limit
Lower
Specification
Limit
Upper
Specification
Limit
Lower
Specification
Limit
Upper
Specification
Limit
Capable Process
Unstable Process
LSL
Unstable Process
Mean shifts present
Excess variation (
changes)
Special causes of
variation are present,
Process output is not
stable over time and
is not predictable
Fri
USL
Time
Thur
Wed
Tue
Mon
21
Stable Process
Stable process:
Variation reduced (lower )
Process is centered in spec window
Mean shifts reduced
Only common cause variation
is present
Process output is stable/predictable
The process is termed in statistical
control.
LSL
USL
Time
22
Executives
{
Champion
{
{
Black Belt
{
{
Green Belt
{
{
Quick Hit
no
Easy to Fix?
yes
no
Solution
Available?
yes
Other Initiative
Process focus
Analyze Y = f(x)
Reduce variation & defects
Complex relationships
25
Project Focus
29
Some Results
Motorola 10 years; $11 Billion Savings
AlliedSignal - $1.5 Billion estimated savings
General Electric started efforts in 1995
{ 1998: $1.2 Billion less $450 Million in
costs net benefits = $750 Million
{ 1999 Annual Report: more than $2 Billion
net benefits
{ 2001: 6,000 projects completed; $3 Billion
in savings
30
31
32
Questions?
33
34