DMAIC An Overview

Barry Murash MBBit

Nortel
2007
6 Sigma Evolution
Where did it come from
> A continuation of the overall TQM (Total Quality Management)
concept of continual improvement of a process originally introduced
by the Quality Gurus DemingJuranCrosbyTaguchi.
> Conceptualized and formally introduced by Motorola in the mid
1980s as a quality goal required because technology was becoming
so complex that the traditional ideas about acceptable quality levels
were inadequate.
> In 1989 Motorola announced a five-year goal a defect rate of not
more than 3.4 parts per million or 6 Sigma on its key processes.
By the Numbers . . .
Fortune 500 companies doing Lean Six Sigma 100

Dollars returned compared to dollars invested 8:1

Benefits as a percent of revenue for top companies 5



Sigma () is a measure
Six Sigma:
Measure of Process Capability
* DPMO = Defects per million opportunities
that focuses on the variation of the process output
Customer
Expectation
Defective
Process Output
(Variation)
6 Process output
= 3.4 Defects per
Million Opportunities
SIGMA DPMO * YIELD
1.0 691,462 30.8538%
2.0 308,538 69.1462%
3.0 66,807 93.3193%
4.0 6,210 99.3790%
5.0 233 99.9767%
6.0 3.4 99.9997%
1
2
3
4
5
6
Top-Level Indicators
A Structured Framework
Revenue Revenue
Expense Expense
Cash Flow Cash Flow
Satisfaction Satisfaction
Quantify Quantify
Strategy Strategy
Revenue Revenue
Expense Expense
Cash Flow Cash Flow
Satisfaction Satisfaction Revenue Revenue
Expense Expense
Cash Flow Cash Flow
Satisfaction Satisfaction
Quantify Quantify
Strategy Strategy
Process Management
Control Systems
Problem Solving
(DMAIC)
Process (Re) - Design
(DMADV)
To instill process discipline & fact-based decisions
Closing
Performance
Gaps
Aligning the
Organization
Managing
Processes

Process Description: Process Customer: Customer Validated Requirem
Process Flowchart
Position
Step/
Time
Complaint Handling
Service Rep Claims Claims Customer
I s
s
u
e
R
e
c
e
i v
e
d
I s
s
u
e
R
e
c
e
i v
e
d
D
a
t a
G
a
t h
e
r i n
g
D
i s
p
o
s
i t i o
n
Major Account Responsiveness
Indicators Checking
Process
Outcome
Results
Checking
Item
Control
Specs/
Target
What to
Check
Freq-
uency
When to
Check
Who
Check
AND AND
X1=
Docn
stds
not
met
X2=
Issue
mis-
class
P3=
Negn
stds
not
met
Q1=
W/O
not to
stds
X X
1 1
X X
2 2
X X
3 3
Upstream
measure
1
Outcome
Indicator
Upstream
measure
2
Upstream
measure
3
Y Y
1 1
Vision
DEFINE
the project
opportunity
and
boundaries
Define Measure Analyze Design Validate
MEASURE
and prioritize
customer
requirements
(CTQs)
ANALYZE
alternative
high level
process
design
against
CTQs
DESIGN and
optimize the
detailed
process flow
supporting
the high level
design
selected
VALIDATE
that the
detailed
design meets
customer
requirements
and achieves
performance
objectives
DEFINE
the project
boundaries
Define Measure Analyze Improve Control
MEASURE
the defects
and where
they occur
in the
process
ANALYZE
why the
defects
occur and
verify which
reasons are
root causes
IMPROVE
performance
by
implementing
solutions
that eliminate
root cause(s)
CONTROL
the process by
monitoring
performance
upstream to
ensure the
problems stay
fixed
DEFINE
the project
boundaries
Define Measure Analyze Improve Control
MEASURE
the defects
and where
they occur
in the
process
ANALYZE
why the
defects
occur and
verify which
reasons are
root causes
IMPROVE
performance
by
implementing
solutions
that eliminate
root cause(s)
CONTROL
the process by
monitoring
performance
upstream to
ensure the
problems stay
fixed
Tell us whats important
- Focus -
Tell us whats not working
- Measure -
Helps us fix the problem
- Improve -
DMAIC An Iterative approach
Define Measure Analyze Improve Control
Team Charter
Process Mapping
Defining CTQs
SIPOC
Measure process
Performance
Measure CTQs
Determine baseline
sigma level

Identify & Quantify
root causes
Use various
statistical and
analytical tools,
identify low hanging
fruit

Select, design &
Implement solution
Institutionalize
Improvements
Implement ongoing
Controls
Standardize process
DEFINE at a Glance
Identify Business Opportunity/Gap ($)
Identify Customers
Critical To Quality
(CTQ) Attributes
Map High Level Processes
and Set Boundaries
Select measures that link
process performance to
problem area related to CTQ
Shows need for improvement
Develop Preliminary Problem
Statement
Select Resources
(% Time) and
Charter Project
Prepare Communication & Project Plans
Identify Outcome Indicators
To define the customer, their CTQs, the team charter, and map the
core business process
Assess Financial $ Impact (COQ)
MEASURE at a Glance
To measure the process performance
Calculate
Performance
Stratify Data
Plot Defect Data Over Time
Develop Data
Collection Plan
Create Detailed
Process Map
Customer Customer
Identify Value Added &
Non-Value Added Steps
Assess
Process Performance
Set Process
Performance / $
Improvement
Goal
Develop
Final Problem
Statement
Collect Data
Scatter Plots
Y
X
Contingency Table
Sub Cause
Yes No
Present
Not
Present
D
e
f
e
c
t

55
55
Made the Sale
Did Not Make the Sale
Time WithCustomer
(in minutes)
5 10 15 20 25 30 3 5 40 45 50 55 60 >60
5 10 15 20 25 30 3 5 40 45 50 55 60 >60
Made the Sale
Did Not
Make the Sale
5 10 15 20 25 30 3 5 40 45 50 55 60 >60
5 10 15 20 25 30 3 5 40 45 50 55 60 >60
Time With Customer
(in minutes)
5 10 15 20 25 30 3 5 40 45 50 55 60 >60 5 10 15 20 25 30 3 5 40 45 50 55 60 >60
5 10 15 20 25 30 3 5 40 45 50 55 60 >60 5 10 15 20 25 30 3 5 40 45 50 55 60 >60
Stratified Frequency Plots
Root
Cause
1
Root
Cause
2
Sub
Cause
Sub Sub
Cause
Sub
Cause
Sub Sub Cause
Sub Sub Sub
Cause
Sub
Cause
Sub
Cause
Sub Cause
Sub Sub Cause
Sub Sub Cause
Cause and
Effect
Diagram
Brainstorm and Organize Potential Causes
Verify Potential Causes with Data
Confirm Root Causes
Root
Cause
1
Root
Cause
2
Sub
Cause
Sub Sub
Cause
Sub
Cause
Sub Sub Cause
Sub Sub Sub
Cause
Sub
Cause
Sub
Cause
Sub Cause
Sub Sub Cause
Sub Sub Cause
Cause and
Effect
Diagram

Final
Problem
Statement

Final
Problem
Statement
ANALYZE at a Glance
To analyze the data and the process map to determine root causes and
opportunities for improvement
Solution Selection Matrix
Identify and
Select Solutions
Conduct
Cost/Benefit Analysis
FMEA

Itemor
Process
Step
Potential
Failure
Mode
Potential
Effect (s)
of Failure
Potential
Cause(s)
Current
Controls
R
P
N

Recommended
Action
Responsibi lity
and
Target Date Action Taken
S
e v e r i t y
O
c c u r r e n c e
D
e t e c t i o n
R
P
N

After
S
e v e r i t y
O
c c u r r e n c e
D
e t e c t i o n
Total Risk Priority Number = After Risk PriorityNumber =
Develop Action Plan For
Full Implementation
Conduct
Risk Analysis
Develop Pilot Plan
Updated Pareto Chart
Before After
Quantify Pilot Results
Update Outcome
Indicators
Before After
IMPROVE changes
implemented
}
Improvement
Good
Time
DEFINE
Before After
Good
Time
Before After
IMPROVE changes
implemented
Time
}
Improvement
3.2
3.6
Cost/Benefit
Analysis
Approval from
Finance
Cost
Benefit
Solution (s) / Specific Task (s) ____________________________
Problem Statement ________________________________________
:
Task / Project Who Due Date Status
Gantt Chart
Problem
Root
Causes
Solutions Specific
Tasks
1.3
A1 A2 A3 A4
}
Improvement
A2 A1 A3 A4
3.1
50%
25%
75%
100%
50%
25%
75%
100%
IMPROVE at a Glance
To generate, select, and implement improvements
Develop and Document
Standard Practices
Train Personnel
Training
Curriculum
Training
Manual
Build the
Process Management Control System
Fully Implement Solutions
and PMCS
Close Project
and Celebrate
Standard
Practice
Replicate
Projects at Other
Locations
Cost/Benefit
Analysis
Approval from
Finance
Verify Cost/Benefit
X Upstream Indicators
UCL
LCL
UCL
LCL
Y Outcome Indicators
Good
CONTROL at a Glance
To institutionalize the improvement and implement ongoing monitoring