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7 QC Tools: The Lean Six Sigma Pocket Toolbook

Flowchart [p. 33-41] Check Sheet [p. 78-81] Histogram [p. 111-113] Pareto [p. 142-144] Cause-and-Effect [p. 146-147] Scatter [p. 154-155] Control Chart [p. 122-135]
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Pareto Diagram

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Step 1: Decide on problem, type of data, and causes or categories.

Step 2: Collect the data.

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Step 3: Order the causes or categories.

Step 4: Calculate the cumulative totals.

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Step 5: Draw and label the horizontal axis.

Step 6: Draw, scale, and label the vertical axis.

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Step 7: Draw bars for each cause or category.

Step 8: Draw cumulative total lines.

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Interpret the Pareto Chart.

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Pareto Diagram (Using EXCEL) 1. Create a table listing the sources of defects in the first column and in the second column calculate the total number of defects per source.
Error Category Improper credit check Unsigned signature card Starter checks not provided Disclosures not provided Checks not ordered Paperwork lost at DP center Incorrect data entry at DP Jan 2 4 4 2 1 2 Feb 3 1 Mar 1 2 1 1 4 1 2 Apr 3 May 1 4 1 2 Jun 2 1 5 Total 4 18 6 3 16 2 4

source: Brightman, Data Analysis

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2. Sort the table by the total number of defects in descending order. In the third column, calculate the cumulative percentage for each row in the table.
Error Category Unsigned signature card Checks not ordered Starter checks not provided Improper credit check Incorrect data entry at DP Disclosures not provided Paperwork lost at DP center Total 18 16 6 4 4 3 2 Error Category Unsigned signature card Checks not ordered Starter checks not provided Improper credit check Incorrect data entry at DP Disclosures not provided Paperwork lost at DP center Total 18 16 6 4 4 3 2 Cum % 33.96% 64.15% 75.47% 83.02% 90.57% 96.23% 100.00%

3. Create a chart with the ChartWizard (custom --- line-column on two axes).

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Opening checking account errors

20 15 10 5 0
si Ch gna St tu ec ar re te ks rc no c ar he d to ck rd s er Im no ed pr op t pr In co ov er rr id cr ec ed t d edi Di tc at sc he a lo en Pa ck try pe s ur es rw at no or t p DP k lo ro st vi at d DP ed ce nt er

100.00% 80.00% 60.00% 40.00% 20.00% 0.00%

Un s ig ne d

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Cause and Effect Diagram

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Step 1: Develop problem statement.

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Step 2: Brainstorm causes.

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Step 2: Brainstorm causes.

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Step 3: Determine the major cause categories.

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Step 4: Determine the category for Each listed cause.

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Step 4: Determine the category for Each listed cause.

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Step 5: Put categories and causes On cause & effect diagram.

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Step 6: Identify the most likely causes.

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Failure to understand variation is the central problem of management.

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Stable vs. Unstable process

Stable process: a process in which variation in outcomes arises only from common causes.

Unstable process: a process in which variation is a result of both common and special causes.

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source: Moen, Nolan and Provost, Improving Quality Through Planned Experimentation

Red Bead experiment

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Red Bead Experiment

What are the lessons learned? 1. 2. 3. 4.

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Statistical Process Control: Control Charts

Process Parameter

Track process parameter over time - mean - percentage defects Distinguish between - common cause variation (within control limits) - assignable cause variation (outside control limits) Measure process performance: how much common cause variation is in the process while the process is in control?

Upper Control Limit (UCL)

Center Line

Lower Control Limit (LCL)

Time

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Conceptual view of SPC

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source: Donald Wheeler, Understanding Statistical Process Control

Process Stability vs. Process Capability

Wheeler, Understanding Statistical Process Control

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Advantages of Statistical Control 1. Can predict its behavior. 2. Process has an identity. 3. Operates with less variability. 4. A process having special causes is unstable. 5. Tells workers when adjustments should not be made. 6. Provides direction for reducing variation. 7. Plotting of data allows identifying trends over time. 8. Identifies process conditions that can result in an acceptable product.
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source: Juran and Gryna, Quality Planning and Analysis, p. 380-381.

Identifying Special Causes of Variation

source: Brian Joiner, Fourth Generation Management, pp. 260.

See also Lean Six Sigma Pocket Toolbook, p. 133-135.

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Strategies for Reducing Special Causes of Variation

Get timely data so special causes are signaled quickly. Put in place an immediate remedy to contain any damage. Search for the cause -- see what was different. Develop a longer term remedy.

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source: Brian Joiner, Fourth Generation Management, pp. 138-139.

In a common cause situation, there is no such thing as THE cause.

Brian Joiner

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Improving a Stable Process

Stratify -- sort into groups or categories; look for patterns. (e.g., type of job, day of week, time, weather, region, employee, product, etc.) Experiment -- make planned changes and learn from the effects. (e.g., need to be able to assess and learn from the results -- use PDCA .) Disaggregate -- divide the process into component pieces and manage the pieces. (e.g., making the elements of a process visible through measurements and data.)
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source: Brian Joiner, Fourth Generation Management, pp. 140-146.

A Conversation with Joseph Juran

Take this example: In finance we set a budget. The actual expenditure, month by month, varies - we bought enough stationery for three months, and thats going to be a miniblip in the figures. Now, the statistician goes a step further and says, How do you know whether its a miniblip or theres a real change here? The statistician says, Ill draw you a pair of lines here. These lines are such that 95% of the time, youre going to get variation between them. Now suppose something happens thats clearly outside the lines. The odds are somethings amok. Ordinarily this is the result of something local, because the system is such that it operates in control. So supervision converges on the scene to restore the status quo. Notice the distinction between whats chronic [common cause] and whats sporadic [special cause]. Sporadic events we handle by the control mechanism. Ordinarily sporadic problems are delegable because the origin and remedy are local. Changing something chronic requires creativity, because the purpose is to get rid of the status quo - to get rid of waste. Dealing with chronic requires structured change, which has to originate pretty much at the top.

Source: A Conversation with Joseph Juran, Thomas Stewart, Fortune, January 11, 1999, p. 168-170.

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