http://www.educatevirtually.com/ en charlie@EducateVirtually.com Copyright 2010 2010-09-06T20:04:48+00:00 http://www.educatevirtually.com/post/dmaic_or_dmadv_which_process_to_choose/ http://www.educatevirtually.com/post/dmaic_or_dmadv_which_process_to_choose/#When:20:04:48Z {summary}   To choose the proper process for the improvement project requires a brief understanding of each of the acronym based processes of DMAIC and DMADV.  DMAIC is namely Define, Measure, Analyze, Improve, and Control. Its five phases are geared toward breakthrough improvements in products, processes, and service delivery.  DMADV is namely Define, Measure, Analyze, Design, and Validate.  Its five phases are geared toward development of new products, processes, or service delivery. Choosing which process to follow can be a little confusing at the outset of an improvement project where the names of the first three phases for each of the processes is exactly the same.  To clarify the differences in the first three phases in DMAIC it’s clearly spelled out as Define, Measure, and Analyze with no hidden meanings.  In DMADV the definitions need clarification: Define - Development Project Definition Measure – Product, Process, or Service Delivery Requirements Definition Analyze - Product, Process, or Service Delivery Conceptual Design If the project’s goal is to develop a new product, process, or service delivery than clearly the process to follow is DMADV, which is a five phased development process.  If the project’s goal is to improve an existing product, process, or service delivery than clearly the process to follow is DMAIC, right?  In most cases it is, but if the existing situation is so broken and just fixing it won’t provide the ability to meet or exceed customer requirements a course correction to DMADV from DMAIC is in order. Was time wasted by starting off with DMAIC?  The Define and Measure phases in the DMAIC process generate deliverables that will be essential in the development project.  The Analyze phase provides great detail about the failure modes that a new product, process, or service delivery will have to mitigate to be successful.  Time wasn’t wasted, but the conversion from DMAIC to DMADV should take place during the Analyze phase at the latest.  Often after the Measure phase it is clear that a new development is required to meet customer expectations. From the outset if the project is a new development it is DMADV.  Otherwise, start with DMAIC and course correct if it is determined that redesign is required for the product, process, or service delivery.  Time will not have been wasted unless you don’t course correct. 2010-09-06T20:04:48+00:00 http://www.educatevirtually.com/post/quality_cost_performance_measurement/ http://www.educatevirtually.com/post/quality_cost_performance_measurement/#When:16:12:17Z {summary}   Quantifying the benefits from operations improvement projects is simplified when Quality Cost is one of the key performance measures of an organization’s balanced scorecard.  Quality Cost is actually a financial accounting activity that is often overlooked or goes undone.  The question for your organization is "Why are Quality Costs Not Managed"? Quality Cost accounting comprises four general categories, namely Prevention, Appraisal, Internal Failure, and External Failure.  To capture details in all four categories is often a daunting task.  Prevention and Appraisal activities are generally percentages of some departments’ overall activities, but not necessarily a specific function, which makes quantification inexact.  Internal and external failures are generally easier to quantify. Quality Cost management is most effective when it is kept as simple as possible.  Quantify what is generally easy to capture and have the information come directly out of the general ledger.  If the measurement can be simplified the organization gains a powerful performance metric.  How can this be done? First, focus on just the internal and external failure categories. Examples of internal failure are the following: Overtime, or extra labor Scrap, or waste Rework, or doing things a second time Supplier failures Process losses Downgrades These costs disappear if the process, or service delivery output is defect free. Examples of external failure are the following: Warranty charges Complaint adjustments Returned materials Customer allowances These costs disappear if the process, or service delivery output is defect free after the customer receives it. The next step is tedious, but only needs to be done one time.  Obtain the general ledger and review the definitions for all line item entries.  The general ledger often contains thousands of entries which makes this a tedious exercise, but one that is eye awakening.  Now use the definitions to identify and classify the ledger line items that fit the categories of internal and external failure. The final step is to track the internal and external failure ledger line items in a monthly Quality Cost Management report.  Successfully completed improvement projects drive the Quality Costs down.  When the performance measurement tracking is simplified then there is no reason for an organization not to manage their Quality Cost. 2010-08-28T16:12:17+00:00 http://www.educatevirtually.com/post/communication_the_key_for_implementing_change/ http://www.educatevirtually.com/post/communication_the_key_for_implementing_change/#When:13:49:17Z {summary} Human beings are inherently curious. We want to know what is going on and why. Social networks are booming because they fill the curiosity void through communication. It doesn’t have to be a book. The communication can be as little as 140 characters. Implementing change without communicating the Why, What, and the How can lead to failure.  When teams are formed to tackle issues and implement change everyone outside of the inner core team becomes curious. Why are they getting together? What are they doing behind those closed doors? How will this affect me? The rumor mill will fill the curiosity void with answers to all of these questions. Proactively getting out ahead of the rumor mill through communication is the key to successful implementation of change. If we haven’t communicated proactively even the best technical solutions will be difficult to implement and sustain.  A study was conducted by John P. Kotter and published in the Harvard Business Review entitled “Why Transformation Efforts Fail.”  The following are the key points from the article. Not Establishing A Sufficient Sense Of Urgency Not Creating A Powerful Enough Leadership Coalition Not Creating A Vision Under Communicating By A Factor Of 10 Not Removing Obstacles To The Vision Not Systematically Planning For And Creating Short-term Wins Declaring Victory Too Soon Not Anchoring Changes In The Culture It is clear from this list that communication that was proactive, easily understood, and delivered in a timely manner would circumvent all of the above. Even though we often think of communication as a soft skill it is the key for implementing change. 2010-07-28T13:49:17+00:00 http://www.educatevirtually.com/post/where_is_lean_six_sigma_applicable/ http://www.educatevirtually.com/post/where_is_lean_six_sigma_applicable/#When:14:48:31Z {summary} Lean Six Sigma is a five phased improvement process that employs tools and techniques to meet, or exceed customer requirements. If your organization has external customers, internal customers, or suppliers then opportunities exist to apply Lean Six Sigma. In every case, the improvement team defined the issues that were getting in the way of satisfying customer requirements. Measurements were used to establish a baseline of the current state of performance. Analysis was conducted on the measurement information to isolate the root causes of the issues. Creative solutions were then developed to improve performance beyond the current state. To assure that the issues resolved remained resolved controls were implemented. The preceding illustrated the Lean Six Sigma process of Define, Measure, Analyze, Improve, and Control. The following are examples from numerous organizations. Sales and Marketing Order cycle time reduction Promotional marketing effectiveness Sales support efficiency Healthcare Discharge cycle time and cost reduction Medication dispensing efficiency Reduction in non-reimbursed claims Bio-Hazardous waste reduction Supply Chain Management Supply chain cycle time and inventory reduction Tactical corrective action process effectiveness Enhanced supplier communications Specification and revision control management Education School bussing system optimization Athletic field water management Curriculum effectiveness Hotel and Hospitality Purchasing and logistics for cruise ship consumables Hotel supplies inventory management Restaurant supplies inventory management Defense Systems and Military Light vehicle armor kit quality, delivery, and cost improvement Gun and guided missile system cost reduction Capture and disseminate field lessons learned cycle time reduction Training material update and global distribution cycle time reduction Manufacturing Inventory management and control Assembly operations cycle time, cost, and inventory reduction Production yield improvement and cost reduction Furniture finishing quality and consistancy Lean Six Sigma is applicable for any organization’s operating processes, delivery of services, or their production of products. 2010-07-26T14:48:31+00:00 http://www.educatevirtually.com/post/ctq_tree_its_all_about_what_to_measure/ http://www.educatevirtually.com/post/ctq_tree_its_all_about_what_to_measure/#When:02:24:16Z {summary} The CTQ Tree (Critical to Quality Tree) is all about what needs to be measured to drive improvement in the eyes of the customer. Our customers come in three categories with the first being the external customer, the second is the internal customer, and the third is the vendors who provide the goods and services that fuel our supply chain. During the define phase of the DMAIC improvement process we study our customer requirements. What is it the end user requires? What is it that each step in our process requires? What is it that our vendors need from us so they can meet our supply chain requirements? These are the multiple voices of the customer and the requirements we must define. The CTQ Tree provides a graphic to tie the progression of the requirements together. The progression starts with the Want or Need, which leads to the Drivers within the Process we must control, and then to the Critical to Quality Characteristics (CTQs) that we measure to control the Drivers. Once we know what to measure we must define what means good or bad, which is also called the specification. Typically our multiple levels of customers let us know what they want or need, but rarely do they define the CTQs and the specifications. View an example of the CTQ Tree In the measure phase of DMAIC we will measure our current state performance to establish the baseline. We measure our improvements from this baseline. The CTQ Tree not only defines what to measure but also whether or not the performance is good or bad. We offer online courses that will help your organization improve. To review our course selections visit EducateVirtually.com 2010-05-25T02:24:16+00:00 http://www.educatevirtually.com/post/gemba_kaizen_are_we_patient_enough/ http://www.educatevirtually.com/post/gemba_kaizen_are_we_patient_enough/#When:13:40:07Z {summary} Gemba Kaizen is the philosophy of small incremental improvements every day, every week, and every month. It all adds up to significant benefits at the end of the year, but are we patient enough? Gemba in Japanese means “Real Place”, which is where products are produced and where customers meet service providers. Kaizen means “continuous improvement” which is defined as small, incremental improvements, where if we spend any money it is minimal, and the improvement results are measured in hard cost savings, higher quality, and better productivity. There are three cornerstones that support the Gemba Kaizen philosophy of continuous improvement. 1. Eliminate Waste 2. Housekeeping 3. Standardization Eliminate waste is based upon the seven wastes as defined by Taichi Ohno, the father of the Lean Philosophy, which was originally known as “Just in Time”. 1. Overproduction – minimize producing more than is necessary to meet customer demand. 2. Inventory – minimize the quantity of raw materials, components, semi-finished, and finished goods on hand at any time. 3. Scrap, Rejects, and Repairs – minimize the time and cost associated with evaluation, disposition, repair and materials, scrap disposal, material handling, storage, expedited shipping, overtime, and non standard labor 4. Motion – minimize the motion and wear and tear on the employees through workplace design, ergonomics, and safety 5. Processing – minimize processing steps, travel distance, cycle time, and inventory levels 6. Waiting – minimize the downtime of equipment, changeover and set-up time, lack of parts, and synchronization between process steps and processes. 7. Transport – minimize transportation of materials and components on trucks, forklifts, and conveyors Housekeeping is based upon the philosophy that order, organization, and cleanliness fosters pride and efficiency in the workplace. 1. Sort the Tools and Objects that are Used from those Not Used 2. Straighten the needed items so they are easy to find, use, and put away 3. Scrub and clean the work area, which includes shelves and cabinets 4. Systematize the times and frequency for cleaning and putting all items back in order 5. Standardize your efforts and report progress on the work group’s Visual Management System Standardization is based upon repeatability and reproducibility of the best, easiest, and safest way to do a job or provide a service. Repeatability means that I will be consistent time after time and reproducibility means that the entire work group will be consistent time after time. To drive small incremental improvements every day, every week, and every month is best accomplished following a simple four step cycle. This cycle, often referred to as PDCA, was originated by Walter Shewhart and promoted in Japan by W. Edwards Deming. PDCA is the acronym for Plan, Do, Check, and Act. The following is the continuous cycle. 1. Study the Process (Check) 2. Determine Corrective Actions (Act) 3. Plan and Prioritize the Actions (Plan) 4. Implement the Improvements (Do) It all adds up to significant benefits at the end of the year, but are we patient enough? Gemba Kaizen training is available at EducateVirtually.com complete with all the tools needed for the continuous improvement journey. 2010-04-23T13:40:07+00:00 http://www.educatevirtually.com/post/statistical_experimentation_history/ http://www.educatevirtually.com/post/statistical_experimentation_history/#When:23:20:52Z {summary}Experimental design was developed in the 1920s by Sir Ronald A.Fisher of England. His techniques were first applied in agriculture. Dr.Genichi Taguchi has been one of the primary contributors to upgrading these experimental design methods for use in industry and design applications. Dr.Taguchi, an engineer, has developed a very powerful way to help improve the quality of products while simultaneously lowering costs. Between 1950 and 1970 Dr. Taguchi's methods of experimental design were developed at the Electrical Communication Laboratories (E.C.L.), the Japanese counterpart of Bell Laboratories. A notable application of these techniques was the development of a switch relay device. In 1971, the E.C.L. beat Bell Labs to market with this device, completing the project with one- fifth of Bell's personnel and one-fiftieth of its budget. Bell Labs invited Dr.Taguchi to explain his methods in 1972. A few years after the switch relay's introduction, Western Electric stopped production of the device and now imports them solely from Nippon Telephone and Telegraph.1 Ford Motor Company embraced Dr.Taguchi's methods in 1980 and formed the American Supplier Institute, where Dr.Taguchi is based, in 1981. Since that time, companies in many different industries, including ITT, Hewlett Packard, 3M, AT&T, Texas Instruments, and Sheller Globe, have begun to use these methods. Dr.Taguchi is considered to be one of the leading engineers of this century. He has received four Deming Prizes for his contributions to Japanese Quality. As a consultant to industry, he was awarded the Willard F. Rockwell, Jr. Medal at the 1986 International Congress on Technology and Technology Exchange. This prestigious award is given to only two individuals each year, with no more than one award per continent. Among the explanations suggested for Japan's post-war industrial success are Japanese methods of management, the use of statistical process control, and the application of Just-In-Time manufacturing techniques. However, the real key to their success has been designing the quality into the product using Dr.Taguchi's System of Experimental Design.2 The method is best described as an engineering tool with a statistical base. This approach is concerned with gains in productivity. Cost effectiveness is stressed, rather than statistical rigor. In the world of manufacturing, the classical assumptions of a detailed hypothesis, normality, or homogeneity of variance are generally impractical. In manufacturing, cost savings are realized by the reduction of scrap, lowering of inspection costs, and minimizing rework losses. These savings are achieved through process improvements and variation reduction. Design cost savings are realized by reducing the delivery cycle and minimizing engineering design changes. Reducing total Product cost is the ultimate goal. Industrial experiments consist of three different groups of key elements. First are factors such as time, temperature, and speed. Second are the levels for these factors, such as one minute versus two minutes, or 100 degrees versus 200 degrees. Third, is the outcome or quality characteristic being measured, or evaluated, like surface finish or cost. Selection of each of these elements is an important step in developing a well-designed experiment. The experimental design process flows through the following steps: 1. Define the problem 2. Determine the objective 3. Brainstorm 4. Design the experiment 5. Conduct the experiment and collect the data 6. Analyze the data 7. Interpret the results 8. Verify the predicted results These steps do not guarantee a successful experiment, but they do force the experimenter to proceed in a logical manner. All experiments conducted in this manner provide useful information, although some of them require a second experiment to achieve the desired improvement. Designing a successful experiment often requires a team of people familiar with the process or design. The members of the team contribute "a priori" knowledge, which helps to facilitate a well-designed experiment. Dr.Taguchi's methods provide a means for minimizing the effect of factors that can't be controlled, by controlling the factors that are controllable. Thus, the process or product is made robust in the face of uncontrollable factors. Dr.Taguchi calls these uncontrollables noise factors. A noise factor causes definite variation, but can't be eliminated from the design or the manufacturing process. Dr.Taguchi's experimental methods provide required information in a cost-effective manner for sound engineering decisions. Also, factors are identified which do not impact the quality of the process or product but can provide additional cost savings. Reproducible results are the key strength of Dr.Taguchi's methods. These techniques can improve quality without incurring capital and material cost increases. An important benefit is the separation of the vital few from the trivial many. Industrial experiments have too many variables with different characteristics for the cost-effective use of the classical experiment methods. Dr.Taguchi modified these experiment methods for manufacturing and design applications for cost effectiveness and efficiency. By doing so, he has provided the engineering community with a powerful, applicable, and useful tool for making sound engineering decisions. Process Predictability Management and EducateVirtually.com have assisted numerous companies over the past 26 years in the design and successful application of design of experiment methods. We have been directly involved in more than 450 experiments. These experiments ranged from new product development to solving product and process issues that were deemed impossible to resolve. 2010-02-15T23:20:52+00:00 http://www.educatevirtually.com/post/course_results_lean_six_sigma_green_and_black_belt_training/ http://www.educatevirtually.com/post/course_results_lean_six_sigma_green_and_black_belt_training/#When:18:17:29Z {summary} The Lean Six Sigma Green and Black Belt Course taught at Missouri State University's Management Development Institute finished last week. The results from the students are very impressive. The course comprises 4 weeks of training in a workshop format over a 4 month period of time spanning 13 weeks. Four Lean Six Sigma projects were completed during this time and 15 students achieved their Green Belt Certifications and have already begun their second projects to achieve their Black Belt Certifications. The total savings for the completed projects exceeded $750,000. We congratulate our students for their excellent project work and the successful application of what they learned. The Federal Bureau of Prisons Medical System certified 9 Green Belts with two team projects. Watts Radient certified 5 Green Belts with one team project. Lennox certified 1 Green Belt. Three additional projects from other students are nearing completion. Your project teams can achieve similar results at the upcoming MSU MDI Lean Six Sigma Course offered this Spring on campus. The Black Belt training covers the full 4 weeks and the Green Belt training is the first two weeks of the course. The Spring dates are 2/22 to 2/25, 3/29 to 4/1, 4/26 to 4/29, and 5/24 to 5/27. 4 Week Black Belt Certification Training: $4995 2 Week Green Belt Certification Training: $2995 Ask about team discounts Contact the MDI Course Manager with any questions or to Bulk Register a Team Click here for Belinda Davis 2009-12-16T18:17:29+00:00 http://www.educatevirtually.com/post/process_design_for_six_sigma_dfss/ http://www.educatevirtually.com/post/process_design_for_six_sigma_dfss/#When:17:08:55Z {summary}Designing a new process, or dramatically improving an existing one, is handled best by following a structured process. Design for Six Sigma (DFSS) has a five phase development process with the DMADV acronym. This acronym stands for Define, Measure, Analyze, Design, and Validate, but what does it actually mean with regard to a development project? The Define Phase is best described as the Development Project Definition. Where the keys to success are: Development Project Charter Business Case Deliverables based Project Plan with defined gate review requirements Risk management plan based upon FMEA results Organizational change management plan The Measure Phase is best described as the Requirements Definition. Where the keys to success are: Voice of the Customer Requirements that include internal and external customers and suppliers to the process Functional requirements for the process to mitigate risks QFD analysis to prioritize VOC requirements and Functional Requirements Staffing skill sets based upon functional requirements Defined performance metrics (KPMs) and tracking requirements for the process The Analyze Phase is best described as the Conceptual Design. Where the keys to success are: Detailed descriptions of the processes needed to satisfy prioritized functional requirements SIPOC process maps for each of the processes and IT supporting systems Roles, responsibilities, and staffing requirements to execute the processes Evaluation of process design’s capability to meet KPMs and VOC requirements The Design Phase is best described as the Detailed Design. Where the keys to success are: QFD analysis of Functional Requirements versus Process Components and Systems Detailed future state deployment (swim lane) process maps Management and Control Plans Job descriptions for required staffing Pilot test plans for processes and IT supporting systems The Validate Phase is best described as Test, Validate, and Implement. Where the keys to success are: Develop policies, procedures, and work instructions to execute all future state processes Pilot test future state processes with the policies, procedures, and work instructions Train process personnel and implement the future state processes on a full scale Implement the Management and Control Plans Process Design for Six Sigma requires collaboration among the process stakeholders. Often being face to face for the collaborative meetings is not possible from a logistics, or cost standpoint, which is where on-line Webinars provide the solution. At EducateVirtually.com we provide the facilitation and coaching required for extremely productive Webinars that accelerate the DFSS process. We have found that communication is enhanced and documentation is more complete using internet based meetings. New processes have been developed and implemented in as little as 12 weeks starting from a clean sheet of paper. For additional information, or to contact us visit EducateVirtually.com 2009-10-29T17:08:55+00:00 http://www.educatevirtually.com/post/sipoc_the_key_to_process_design_for_six_sigma/ http://www.educatevirtually.com/post/sipoc_the_key_to_process_design_for_six_sigma/#When:01:28:24Z {summary}Designing new processes is a complex task especially if your desire is zero defects. The Design for Six Sigma (DFSS) process is geared toward identifying the failures in the process that must be eliminated. The premise is the new design will mitigate all risks and potential failures because they were identified and then designed out of the process. The question becomes, “Just how do you do that?” The DFSS process has the acronym of DMADV, which stands for Define, Measure, Analyze, Design, and Validate. Let’s clarify these terms and make them understandable. Define: Development Project Definition Measure: Requirements Definition Analyze: Conceptual Design Design: Detailed Design Validate: Test, Validate, and Implement Process DFSS is a development project that should follow the typical development phases as named previously. During the requirements definition phase the voice of the customer and the business are defined. Potential failure modes are identified and the process functions that mitigate the risks are developed. The tricky transition is coming up with the conceptual design following the completion of the requirements definition. Here is where the SIPOC process mapping method comes into play. SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers. The conceptual process design is at a high level. To begin, identify who supplies inputs into the process and what those inputs are. Next, where does the process start and where does the process end. The process steps from the beginning to the end are limited to five steps. Then the outputs from each step, 1 thru 5, are defined along with the customers both internal and external who receive those outputs. The SIPOC process map becomes the conceptual design of the new process. The suppliers who provide inputs into the process are defined. The beginning and ending points are defined. The process outputs and their customers are defined. The next questions to answer are what volume will flow through the process and how often does the process cycle. These answers lead to the staffing requirements. Information technology solutions are identified at this point as well. The SIPOC process map facilitates timely completion of the new process conceptual design. At EducateVirtually.com we offer Webinar on Demand to coach and facilitate Process Design for Six Sigma. Visit us today. 2009-09-01T01:28:24+00:00