journey on the pathway toward quality began in 1969. I was a
doctoral student at New York University’s Graduate School of
Business Administration and President of the Statistics Club.
(People still kid me about being president of the Statistics
Club.) I was called into Dr. Deming’s office to collect an
anonymous gift to be given to a Japanese student studying
Statistics. I had no idea why he wanted a Japanese student,
but “mine was not to question why.” Much later I
discovered how famous Dr. Deming was in Japan. I only knew
that he was VERY well known for his work in sampling theory
Deming really shocked me when I first met him. I had really
long hair at the time and his first words to me were: “Why
don’t you get a haircut!” Fast forwarding eleven years, I
was teaching at the University of Miami in 1980 when the NBC
white paper “If Japan Can, Why Can’t We?” was aired on
television. It caused quite a stir in the United States. The
dean at the time, Dr. Carl McKenry, called Dr. Deming and
asked if he would come give a seminar. While Carl was on the
phone with Dr. Deming he said: “We have one of your former
students down here.” Dr. Deming replied: “Who is it?”
Carl said: “Howard Gitlow.” Dr. Deming replied: “Tell
me, do you pay him enough to get a hair cut?” When I heard
that story, I just couldn’t believe that he remembered me.
Much later I realized that this was typical of Dr. Deming.
Deming came to the University of Miami in 1980 to give a
seminar and I was assigned to be his assistant. I sat with him on
the dais and helped him. I listened very closely to what he
had to say about management and had a personal epiphany. I
realized that I would at best be a decent theoretical
statistician, but I thought I could be a better management
theorist. Well, it is now 27 years later and I am still
studying management theory.
Deming was very kind to me. He would take me
to visit with his clients. I learned a lot by
watching a master statistician ply his
the late 1980s, the top management of Florida Power & Light Company
decided to transform their style of management from
traditional Management by Objective, to Japanese Total Quality Control, and also
to try to be the first non-Japanese company to ever win the
My Point of View
good news is that management is now a science. It has three
component parts: (1) Macro Model (Dashboards), (2) Micro Model
(Projects), and (3) Management Model (Management style), see
figure 1. It is the form of professional management that you
will learn in the University of Miami’s Six Sigma programs.
1: Model for Professional Management (Six Sigma Management)
macro model is a dashboard management system.
A dashboard is a tool used by management to clarify and assign
accountability for the “critical few” key objectives, key
indicators and projects / tasks needed to steer an
organization toward its mission statement. Dashboards have several benefits, they include:
deployment of the mission statement throughout an organization
using a cascading and interlocking system of key objectives
management’s attention between financial, customer, process,
and employee key objectives.
communication between, and within, the levels of an
all processes (jobs) to the mission statement.
reducing the number of daily crises that take you away from
your regular work and frequently cause uncompensated overtime.
These daily crises are frequently nothing more that the
typical malfunctioning of the processes within your
and testing hypotheses about the effectiveness of potential
structure of a dashboard can be seen in table 1 below. The
president’s key objectives and indicators emanate from the
mission statement (see row 1 and columns 1 and 2 of Table 1). Direct reports identify their key objectives and indicators
by studying the president’s key indicators (column 2 of
Table 1) that relate to their area of responsibility.
The outcome of these studies is to identify the key
objectives and indicators (see columns 3 and 4 of Table 1)
required to improve the president’s key indicator(s) (see
column 2 of Table 1) to achieve a desirable state for
presidential key objective(s) (see column 1 of Table 1).
This process is cascaded throughout the entire
organization until processes are identified which must be
improved or innovated with Six Sigma projects or tasks (see
column 5 of Table 1).
1: Generic Dashboard (Macro
Six Sigma Projects
or more business indicators show progress toward each
or more area indicators show progress toward each area
Sigma projects are used for improving or innovating
processes to move indicators in the proper direction.
University of Miami provides an excellent example of a
dashboard. Table 2 shows the dashboard between a third level
manager (Vice President of Business Services) and a fourth
level manager (Chief of Campus Police) at the University.
More on this dashboard later.
2: Portion of the University of Miami Dashboard
Micro Model - Six Sigma DMAIC Model
micro model includes the DMAIC model for improving an existing
product, service or process, the DMADV model for inventing a
new product, service or process, or innovating an existing
product, service or process, and Lean thinking for eliminating
waste in processes.
DMAIC model is the
Six Sigma model used to improve existing products, services or
processes. It has 5 phases, they are: Define, Measure,
Analyze, Improve, and Control. Each phase is briefly explained
below with an example about an accounting reporting process.
The define phase involves preparing a project charter
(rationale for the project), understanding the relationships
between Suppliers-Inputs-System-Outputs-Customers (called
SIPOC analysis), and analyzing Voice of the Customer data to
identify the critical to quality (CTQs) characteristics
important to customers, and developing a project objective.
For example, a Six Sigma team was assigned by top
management to review the production of a monthly report by the
accounting department as a potential Six Sigma project.
This involved identifying the need for the project
(relative to other potential projects), the costs and benefits
of the project, the resources required for the project and the
time frame of the project.
As a consequence of doing a SIPOC analysis and a Voice
of the Customer analysis, the team determined that management
wants a monthly accounting report to be completed in 7 days
(the normal time to complete is seven days). They also
determined that the report should never be completed in less
than 4 days (the relevant information is not available before
then) and never later than 10 days.
Team members identified the project objective as
follows: Reduce (direction) the variability in the cycle time
(measure) to produce an error free accounting report (system)
from the current level of 7 days plus or minus 3 days to 7
days plus or minus 1½ days (target) by January 10, 2003
The measure phase involves developing operational definitions
for each Critical-To-Quality (CTQ) variable, determining
the validity of the measurement system for each CTQ, and
establishing baseline capabilities for each CTQ.
Referring to the accounting report example, the team
members created an operational definition of variability in
cycle time such that all relevant personnel agreed upon the
definition (for example, they clearly identified the start and
stop points needed to compute cycle time).
Next, they performed a statistical study to determine
the validity of the measurement system for variability in
cycle time. Finally,
team members collected baseline data about variability in
cycle time and statistically analyzed it to get a clear
picture of the current situation.
The analyze phase involves identifying the upstream variables
(Xs) for each CTQ using a flowchart.
Upstream variables are the factors that affect the
performance of a CTQ. Also, the analyze phase involves conducting a risk analysis
(called Failure Modes and Effect Analysis - FMEA) for each X
in respect to it's potential impact on the CTQ, operationally defining each X, performing studies to determine the validity of the
measurement system for each X, establishing baseline
capabilities for each X, and understanding the effect of each
X on the CTQ.
Referring to the accounting
report example, team
members identify all input and system variables (Xs) that
impact the CTQ, “variability in cycle time,”
= number of days from request to receipt for line item A data,
= number of days from request to receipt for line item B data,
= number of days from request to receipt for line item C data,
= number of days from request to receipt for line item D data,
= number of days to reformat the line item data to prepare the
= number of days to prepare the report,
= accounting clerk preparing the report (Mary or Joe),
= number of errors in the report,
= number of days to correct the report,
= accounting supervisor correcting the report (Harry or Sue),
= number of signatures required before the report is released.
example, the number of signatures required before releasing
the report (X11) may affect the average time to
produce the report, or the accounting clerk preparing the
report (X7) may dramatically affect the variability
in cycle time to produce the report. Next, team members
operationally define the Xs and perform statistical studies to
determine the validity of their measurement systems.
Fourth, team members collect baseline data to determine
the current status of each X using control charts. Finally,
team members study the data and develop hypotheses about the
relationships between the Xs and the CTQ.
In this case, separate histograms of the CTQ for each
level of each X indicated that: X1 (number of days
from request to receipt for line item A data), X3 (number
of days from request to receipt for line item C data), X7
(accounting clerk preparing the report (Mary or Joe)), and X10
(accounting supervisor performing the corrections to the
report (Harry or Sue)) may be important to the reduction of
variability in the cycle time (CTQ).
The other Xs did not substantially affect the CTQ.
The improve phase involves designing experiments to understand
the relationships between the CTQs and the Xs, determining the
levels of the critical Xs that optimize the CTQs, developing
action plans to formalize the level of the Xs that optimize
the CTQs, and conducting a pilot test of the revised system.
Back to the accounting report example, team members
conducted an experiment to identify the levels of the critical
Xs identified in the analyze phase to minimize variation in
the time to produce the accounting report.
The experiment revealed that team members had to work
with the personnel responsible for line items A and C to
decrease the average and standard deviation of days to forward
the line items to the department preparing the report.
Further, the experiment revealed that there is an
interaction between the clerk preparing the report and the
supervisor correcting the report.
The analysis showed that if Mary prepared the report,
it was best for Sue to correct the report, or if Joe prepared
the report, it was best for Harry to correct the report.
A pilot run of the revised accounting report system
showed it generated a stable normal distribution of days to
produce the report with a mean of 7 days and a standard
deviation of ½ day.
The control phase involves avoiding potential problems with
the Xs with risk management and mistake proofing,
standardizing successful system revisions, controlling the
critical Xs, documenting the revised system, developing a control plan,
revised system over to the process owner for continuous
turning of the PDSA cycle, disbanding the Six Sigma team,
and celebrating the team's success. Risk management involves developing a plan to minimize
the risk of increasing variation in cycle time.
Mistake proofing involves installing systems that have
a low probability of producing errors in the production of the
accounting report, from incoming data to submitted report.
In the accounting report example, team members identify
potential problems and methods to avoid them with X1,
X3, X7 and X10 using risk
management and mistake proofing techniques. For example, they
establish procedures to ensure the pairing of clerks and
supervisors, and data collection methods to identify and
resolve future problems in the reporting system.
The new system is standardized and fully documented in
training manuals. At
this point, team members turn the revised system over to the
process owner (supervisor of the Accounting
Department) and celebrate their success.
The process owner continues to work toward improvement
of the revised system beyond its (supervisor of the Accounting
Department) current level of output, that
being, the distribution of days to produce the report has been
improved to have an average of 7 days with a standard
deviation of ½ day, and is a predictable normal distribution.
This translates to a report being early or late about
once every 24,500 years!
The team chose not to wait around for an error to
the University of Miami auto theft DMAIC
the auto theft key indicator (SEC7) can be seen in Figure 2.
It shows the number of auto thefts by month (SEC7)
before September 1999 (month 24).
September 1999 (month 24) is the month that a Six Sigma
project team implemented a change to the process for
patrolling parking lots. The team members determined that the
number of auto thefts per month is a stable process. Using
Pareto analysis they determined that most auto thefts occur in
2 campus parking lots between 7:00 a.m. and 7:00 p.m.
The Police Chief redeployed the police force to heavily
patrol the 2 problematic lots between 7:00 a.m. and 7:00 p.m.
in September 1999. Subsequently,
as shown in the line graph in Figure 2, there was a drastic
reduction in the number of auto thefts by month (SEC7).
2: Line Graph Obtained from Minitab of Auto Thefts
Campus Per Month Before and After September 1999
the project team began, the University was experiencing about
93 auto thefts per year on average. After the project was
completed and the findings implemented, the University
experiences only 2 to 3 auto thefts annually. Wow!
Micro Model - Six Sigma DMADV Model
DMADV model is the Design
for Six Sigma (DFSS)
model used to create major new features of existing products,
services, or processes, or to create entirely new products,
services, or processes. It has 5 phases, they are: Define,
Measure, Analyze, Design, and Verify/Validate. Each phase is briefly
described below using an example 6 of designing a new
dormitory at University of Miami.
The Define Phase of the DMADV model has five
components: establishing the background and business case,
assessing the risks and benefits of the project, forming the
team, developing the project plan, and writing the project
University of Miami has become a strong, private, doctoral
granting university with academic integrity.
Rapid growth in student enrollment, a policy that
stipulates that all incoming freshmen must live on campus
(unless they live with their family), and the wish of the
President for a more residential campus, created more demand
than supply for on-campus housing.
A Design for Six Sigma project team was assembled to
develop the business case and project charter for the building
of a new residential dormitory on campus.
project charter is: To create
a design for a high-class living facility that encourages
learning and community (product) aimed at
executives-in-residence, MBA students, as well as junior and
senior undergraduate business students (market segments) to
increase (direction) the number of on campus residents
(measure of success) by 280 students (target) by July 15, 2008
The project leaders were Scott Widener (Master Black Belt) and
Adam Johnson (Black Belt).
The Measure Phase of a Design for Six Sigma project has three
steps: segmenting the market, designing and conducting a
survey of stakeholder segments, and, using the survey results
as Quality Function Deployment inputs to find Critical to
Quality Characteristics (CTQs). Team members use Quality
Function Deployment matrix to understand the relationships
between the needs and wants of stakeholders and the features
of the product, service or process design.
In the dormitory example, the Dean of the
School of Business Administration identified three distinct
market segments for the new on-campus housing.
These market segments are: executives-in-residence,
regular MBA students, and junior and senior undergraduate business students.
Executives-in-residence are individuals that come to
campus for one or two weeks to attend a concentrated class.
Currently, no regular MBA students live on campus. Team
members developed a survey using the features identified from
focus groups. The survey was then completed by a sample of
regular MBA and undergraduate business students. Table 3 shows
the results of the survey broken down by market segment.
Kano Survey Results Broken Down by Market Segment
One-Way (O) – User satisfaction is proportional
to the performance of the feature; the less
performance the less user satisfaction, and the more
performance, the more user satisfaction.
Must-Be (M) – User satisfaction is not
proportional to the performance of the feature; the
less performance, the less user satisfaction, but high
performance creates feelings of indifference to the
Attractive (A) – User satisfaction is not
proportional to the performance of the feature; low
levels of performance create feelings of indifference
to the feature, but high levels of performance create
feelings of delight to the feature.
Indifferent (I) – User does not care about the
Questionable (Q) – Users response does not make
sense (e.g., delighted if feature is present and
delighted if feature is absent).
Reverse (R) – User offers responses opposite the expected
responses (e.g., “do not like it” if feature is
present and “delighted” if feature is absent).
team members created a Quality Function Deployment matrix
crossing the needs and wants of stakeholders (rows) from the
survey with the dormitory features (columns), see table 4.
4: Overall QFD
bottom of table 4 indicates the importance of each feature (column)
to the stakeholder's needs (row) for the dormitory, for example,
simple occupancy rooms is the most important feature
(normalized weight = 8.46%).
The Analyze Phase contains four steps: design generation,
design analysis, risk analysis, and model design. The aim of these four steps in the Analyze Phase is to
develop high level designs. In addition to this, the designs will be evaluated using risk
nominal (desired) values are established for all CTQs in the Analyze
Phase for the “best” design.
Five room designs were developed in the
Analyze phase, they are:
Preferences – Includes only the features
that are deemed as “One-Way”, “Attractive”, or “Must-Be” via the undergraduate responses in
Preferences – Includes only the features
that are deemed as “One-Way”, “Attractive”, or
“Must-Be” via the graduate responses in the survay.
Hall – Includes only the features of the
nicest dormitory rooms currently available on campus.
Suite – Includes only the features and
services that have large contributions to business student
Suite – Includes all of the features that
were deemed as “One-Way”, “Attractive”, or
“Must-Be” by any of the market segments
via the survey.
that the five designs do not consider common area designs,
just the rooms themselves.
However, all designs will share the same common area
design within the building.
The five designs are graded on six criteria
determined by project team members through brainstorming using
a Pugh Matrix, with Eaton Hall serving as a baseline.
The six criteria are:
of Customer to Pay More – Luxuries come at a price that
must be evaluated with respect to customer price
information was determined by the survey.
Repair Frequency – This is a general comparison to the
baseline that answers the question:
Will this design increase the frequency of needed
repairs over that of the baseline?
of Repair – This is a general comparison to the baseline
that answers the question:
Will this design introduce CTQs that will unduly
burden current employees in repair and maintenance
Frequency – Does the design introduce many CTQs that
need yearly replacement?
to Clean and Common Maintenance – Do any of the
introduced CTQs that require an inordinate amount of
maintenance and cleaning?
As an example of this criterion, fish tanks would
score a low grade on this criterion, as they require
significant upkeep, whereas plastic plants would score
high, as they only require an occasional dusting.
Cost/Benefit Ratio – This criterion considers the cost
of the design and tries to match the soft benefit of
appreciation of current university students and the value
as a selling point to future students.
results led to the realization that the “Graduate
Preferences” concept is the best concept, with Undergraduate
and Luxury concepts being possible substitutes.
Risk Analysis revealed seven potentially serious hazards
with the “Graduate Preferences” design, they are:
Occupancy Rooms – Potential lack of help in disabling
– Potential Fire
– Potential Fire
Rental Service – Potential Fire
Bathrooms – Potential lack of help in disabling
Size Bathtub -- Potential lack of help in disabling
Roof – Potential Falls
Finally, a model of the “Graduate
Preferences” design was created with Broderbund’s 3D Home
Architect 4.0 and is depicted in Figure 3.
3: Room Layout
The Design Phase of a Design for Six Sigma project has three
steps: constructing a detailed design of the “best” design
from the Analyze Phase; developing and estimating the
capabilities of the Critical to Process elements (CTPs) in the
design; and preparing a verification plan to enable a smooth
transition among all affected departments.
Table 5 shows the features of the final design for the
Graduate Preference design.
5: Final Design Features
a residential floor design was developed, given the constraints
placed by the dimensions of the plot of land, and the integration
of common areas and other required items into the design, such as stairs,
elevators, and trash disposal.
The intent of the Verify/Validate Phase is to facilitate
buy-in of process owners, to design a control and transition
plan, and to conclude the DMADV project.
In the dormitory example, the process owners and all
stakeholders were kept intimately involved in the project.
A summarized checklist of the findings of this project
was developed and should serve as a guide for the engineers
and architects who will further develop the project.
All bids must include historical process capabilities
of the bidding parties.
All bids must include
historical process capabilities of the bidding parties.
These process capabilities may include:
defects per units constructed,
timeliness of deliveries,
timeliness of construction,
defects per units fabricated,
rework time per initial man hours invested, and
fines per project that result from construction regulation violations.
A preventive maintenance system per manufacturer
recommendations must be implemented after construction.
Occupancy indicator control charts must also be implemented,
of applications per semester,
of vacant rooms by semester,
of students on a waiting list by semester, and
between residents by semester.
The final part of the Verify Phase is to
maintain communication between the champion and the process
lines of communication will alleviate any confusion or other
unforeseen problems that will inevitably develop.
It will ensure that the conceptual design is not
compromised by outside forces and neglect.
Micro Model - Lean Management
is a management style that promotes reducing waste through the
elimination of non-value added activities for example,
(for example, unnecessary complexity),
eliminating work in process and inventory, and increasing
productive flexibility and speed of employees and equipment. Non-value added activities in a process include any step
that: (1) customers are not willing to pay for, (2) do not
change the product or service, (3) contain errors, defects, or
omissions, (4) require preparation or setup, (5) involve
control or inspection, (6) involve over-production, special
processing and inventory, or (6) involve waiting and delays.
Value added activities include steps that customers are
willing pay for because they positively change the product or
service in the view of the customer.
Lean management has several components, they are: Value
Streams, Total Productive Maintenance (TPM), Quick
Changeovers, Poka-Yoke, and the 5Ss. Each component is
explained briefly below. An example of lean thinking using the
A value stream
all the value added and non-value added process steps and
decisions necessary to move a product or service from supplier
to customer. These steps include design and redesign, raw
material flows, sub-component flows, information flows,
production and service flows, and people flows, to name a few
steps. A lean value
stream is a value stream in which an upstream process only
makes what a downstream process needs, when it needs it. There
is no (or little) inventory. Takt time indicates the pace at which every step in the process must
produce one unit of output to meet customer demand per time
period, for example, per shift. Continuous
flow refers to a process with a batch size equal to one. Each unit passes immediately from step to step without any
waiting time in between steps.
Processes with a batch size of one and no waiting
between the steps in the process is the “holy grail” of
production and service. A pull
system initiates production/service in a given step in a
process using a request from the next downstream step in the
Total Productive Maintenance
is a theory useful for maintaining plants and equipment with
total involvement from all employees. Its objectives are to
dramatically increase production and employee morale by: (1)
decreasing waste, (2) reducing costs, (3) decreasing batch
sizes, (4) increasing production velocity, and (5) increasing
(Single Minute Exchange of Die – SMED) is a technique that
team members can use to analyze, and then reduce: (1) the time
it takes to setup equipment (including tools and dies) and
people (for example, shift to shift setup for cashiers in a
supermarket), (2) the resources required for a changeover, and
(3) the materials necessary for a changeover. It creates the
opportunity in a value stream to effectively and efficiently
institute small batch sizes, or even one-piece flows. One
piece flows occur when one unit at a time flows through a
value stream, as opposed to batch flows when a batch of units
flows through a value stream.
Internal activities are the steps in a process that can
only be performed while the process is idle. External
activities are the steps in a process that can be performed
while the process is in operating mode.
(pronounced POH-kah YOH-kay) is Japanese for mistake-proofing
devices. These devices are used to prevent the causes of
defects and/or defective output (called errors), or to
inexpensively inspect each item that is produced to determine
whether it is conforming or defective. A poka-yoke device is
any mechanism that prevents a mistake from being made or makes
the mistake obvious at a glance.
The 5Ss form
a system for tidying up and maintaining a process. Each of the
5Ss is discussed below. Seiri means
throwing away unnecessary things, and putting the remaining
necessary “things” in order, that is, organizing
“things” using specific rules. Once an employee has
internalized the rules for throwing away unnecessary
things and for organizing necessary “things,” he or she
will quickly be able to find "things". Seiton
means tidily putting “things” in their proper place which
is determined with seiri. Putting things away requires
following three rules: (1) deciding where things belong, (2)
deciding how things should be put away, and (3) deciding when
things should be put away. Following the put-away rules leaves
"things" where they can be quickly found next time
they are needed. Seiso
is an attitude that considers a dirty and untidy work place
intolerable.There are three broad levels of cleaning. First,
there is the overall cleaning of everything. Secondly, there
is the cleaning of specific items, tools, machines and
workplaces. Thirdly, there is the cleaning at the detail
level, getting to grime in screw threads, corners and
is visual management. Visual management leverages location,
distance, shape, brightness, color, and contrast so that
something stands out when we are looking for it. Visual
controls include work instructions, hazard warnings,
indicators of where things are kept, equipment and tool
designations, cautions and reminders, and indicators and plans
of what happens when. Whenever people need reminding, a visual
control should be there to help them. Shitsuke
draws together the other four Ss ensuring they are used
properly. People make mistakes, forget, and state things
incorrectly. We also get stuck in habits which are not helpful
with our work. Habits are, however, very useful things, and if
we can align them with the work disciplines of the 5Ss, we can
forge them into a complete disciplined approach to management
an important method of changing how people think and act.
example of Lean thinking using the 5Ss.
A company produces plastic cups for packaging food products. A thin film
of plastic is produced by an extruder which goes into a
thermoforming machine where cups take form. After
thermoforming, a cardboard sleeve is added to the cup to make
it strong enough to hold the food stuff and keep its form. The
company was experiencing problems in their production
process. Variation in the thickness of the plastic film from
the extrusion process caused problems in the thermoforming
process. A plastic film that is too thin will “pop” when a
vacuum is created in the thermoforming mold. This situation
forces the company to produce a thicker plastic film (waste of
raw materials) to avoid constant stops of the thermoforming
machine (waste of time). The Green Belt project leader was
Six Sigma team members prepared a business case for the
project which results in a
is an acronym for Specific, Measurable, Actionable,
Results Oriented, and Time Bound. The project objective is to
reduce (direction) the
(measure of variation) of
plastic films produced (process)
to less than 0.03
(target) by June 30, 2006 (deadline).
Team members operationally define the
plastic film. It is defined below.
Reset the full spectrum machine before producing a plastic
roll. After the roll has been produced, print the Summarized
Report from the full spectrum machine. The report contains the
CDSpread for the roll.
Record the CDSpread from the summarized or electronic report.
If CDSpread ≥ 0.03, then the roll is considered to be
regular quality. If CDSpread < 0.03, then the roll is
considered to be high quality.
team members conduct a measurement systems analysis and
collect baseline data for the CTQ. Baseline data was drawn
from 15 successive rolls of plastic. The distribution of
CDSpread approximated a normal distribution. Figure 4 shows a
dot plot of the CDSpread with an average CDSpread = 0.06, and
0 rolls having CDSpread < 0.03.
4: Dotplot of CDSpread
5 is an individual and moving range chart of the CDSpread
data. It shows the CDSpread is out of statistical control (2
out of 3 points in zone A or beyond), and hence, not stable
5: I-MR chart of CDSpread
Team Members created a flowchart
(see figure 6) of the plastic roll extrusion process with the
Xs that potentially can affect the stability, shape, spread
and center of CDSpread.
Process Map of Plastic Roll Production Process
= Employee is properly trained in standard methods (yes, no)
= Information tag is complete (complete, incomplete)
= Information tag reliable (reliable, unreliable)
= Request for production format (Errors, No-Errors)
Next, the team members
performed a Failure Modes and Effects Analysis (FMEA) to
identify the high risk Xs that have a high probability of
effecting CDSpread. From the FMEA, the Xs with the highest
Risk Priority Number are:
= Employee is trained (yes, no)
= Information tag is complete (complete, incomplete)
= Information tag is reliable (reliable, unreliable)
members developed operational definitions for X1, X2,and X3, conducted
measurement systems analyses for the Xs, and collected baseline data for
each high risk X. Finally, they developed hypotheses
concerning the relationships between for the Xs the high risk Xs and the
CTQ (CDSpread), they are:
Properly training employees will
decrease the number of mistakes, not only in the inventory
department, but also on the extrusion department. Once
employees realize how crucial the inventory keeping process is
(quality in, quality out), they will act more carefully,
production will be smoother, and CDSpread will
Complete tags will help employees in the warehouse to sort the
materials that will go into the extruder, and to decrease the
number of mistakes in the proportion of new and recycled
materials, and consequently, decrease CDSpread.
Accurate information in the tags will help employees in the
warehouse to identify the materials that will go into the
extruder, and to decrease the number of mistakes by mixing two
different grades of materials, and consequently, decrease
Improve phase. Due
to the characteristics of the plant, it was difficult
to run an experiment between the Xs and CDSpread. The general
manager felt that it was not reasonable to mix different raw
materials and/or in suboptimal percentages on purpose to
experiment on the effect on CDSpread. Expense and scheduling
were given as reasons for not conducting experiments. Team
members hypothesized that the application of the “5S”
techniques would have a very high likelihood of setting the
optimal levels of the Xs, and consequently, optimizing
CDSpread. Before and after pictures are shown in figures 7
7 through 12: Before and After Pictures Using the “5S”s”
members created a revised flowchart for the process which
incorporates the 5Ss. It is shown in figure 13.
13: Revised Flowchart
team members pilot tested the revised process. Figure 14 shows
that the 5S technique was implemented in the week of April 10,
2006. Everything was ready on April 14th, and on
April 16th an out of control point appeared
in the moving range chart (data point 15). This is a sign that
there was a change in the process output, directly related to
the 5S techniques.
14: Before and After I-MR Chart for CDSpread
As you can see, the
process was dramatically improved by application of the 5S
Control phase: Team
members established a risk abatement plan to decrease the risk
of failure of the revised process that included control
guidelines for the process owner and present the benefits and
costs of the revised process. Finally, table
6 shows the costs and benefits of the project.
6: Costs and Benefits of the Project
annual savings on raw material
(paint, new tags, barcode inventory system)
arguing between the extrusion and thermoforming
spent on the project
macro (dashboard) model and the micro model (DMAIC, DMADV or
LEAN projects) both require data based management if they are
to work effectively in an organization. Data based management
requires that employees report the actual data about their
outputs (key indicators). If a punitive management style, such
as Management by Objectives (M.B.O.) is being used to mange
the employees in an organization, then the employees may
distort the data about their outputs to avoid negative
performance reviews. For this reason, it is imperative that
the macro model and the micro model are used in a positive and
nurturing managerial environment.
Such an environment was described by Dr. W. Edwards Deming and
is briefly discussed below.
Management Style - System of Profound Knowledge (Dr. Deming)
1. People are best inspired by a mix of intrinsic and
extrinsic motivation, not only by extrinsic motivation.
Intrinsic motivation comes from the sheer joy of performing an
act. It releases human energy that can be focused into
improvement and innovation of a system. It is management's
responsibility to create an atmosphere that fosters intrinsic
atmosphere is a basic element of Deming's theory of
motivation comes from the desire for reward or the fear of
punishment. It restricts the release of energy from intrinsic
motivation by judging, policing, and destroying the
individual. Management based on extrinsic motivation will
"squeeze out from an individual, over his lifetime, his
innate intrinsic motivation, self-esteem, dignity, and build
into him fear, self-defense."
2. Manage using both a process and results orientation, not
only a results orientation. Management's job is to create an
environment in which employees have the direction and energy
to use the DMAIC model, the DMADV model, and Lean thinking to
improve and innovate the processes that create results, not
just to manage results. This paradigm shift allows management
to define the capabilities of processes, and consequently, to
predict and plan the future of a system to achieve
organizational optimization. This type of optimization
requires that managers make decisions based on facts, not on
guesswork and opinion. It is critical that top management
change the culture of their organization from “management by
guts” (called KKD in Japan) to “management by data.”
It is easy to refute an argument based on guesswork or
opinion, but it is difficult to refute an argument based on
solid, scientific data. Managers must consider visible
figures, as well as unknown and unknowable figures (for
example, the cost of an unhappy customer or the benefit of a
3. Management's function is to optimize the entire system so
that everyone wins, not to maximize only their component of
the system. Managers must understand that individuals,
organizations, and systems of organizations are
interdependent. Optimization of one component may cause
sub-optimization of another component. Management's job is to
optimize the entire system towards its aim.
This may require the managers of one or more components
of a system to knowingly sub-optimize their component of the
system to optimize the entire system.
4. Cooperation works better than competition, if the aim of
the system is not to win. In a cooperative environment,
everybody wins. Customers win products and services they can
brag about. The firm wins returns for investors and secure
jobs for employees. Suppliers win long-term customers for
their products. The community wins an excellent corporate
a competitive environment, most people lose. The costs
resulting from competition are huge.
They include the costs of rework, waste, and
redundancy, as well as the costs for warranty, retesting,
re-inspection, customer dissatisfaction, schedule disruptions,
and destruction of the individual's joy in work. Individuals
and organizations cannot reap the benefits of a win-win point
of view when they are forced to compete.
competition ever the preferred paradigm?
The answer is “yes,” if and only if the aim of the
system is to win. If
the aim of the system is anything other than to win, for
example to improve or have fun, then competition is not the
preferred paradigm. Cooperation
is the preferred paradigm in all systems with non-competitive
my opinion, if managers practice these four paradigms, they
will reap enormous benefits.
summary, the purpose of Six Sigma management is to “promote joy in
work” for all employees so that they have the energy to
participate in the improvement and innovation projects
identified from the organizational dashboard!!!