Quality Improvement – Besterfield Summary 3 SIX SIGMA OVERVIEW Six Sigma is a quality improvement approach as well as a statistical concept that counts the amount of nonconformities in a good or service. The statistical features are nothing new; they have just been reemphasized after decades of knowledge. The three main components of the quality improvement technique are the organizational structure, benefits, and DMAIC. A REVIEW OF HISTORY When Motorola's CEO, Robert Galvin, set a demanding quality stretch goal in the mid-1980s, statistical experts came up with the concept of Six Sigma quality. By 1988, the company had achieved a remarkable leap in the quality of multiple products and was the first recipient of the Malcolm Baldrige National Quality Award, largely as a result of its TQM initiatives. Mikel Harry and his associates have improved the process by 1990. There was less variation in the procedure when the information was made public. 99.9999998% of the good or service will be within specifications and the nonconformance rate will be 0.002 parts per million (ppm) if we can lower sigma, s, to the point where the standards are at 66. The capacity index (Cp), which is calculated as the specification tolerance (upper specification limit minus lower specification limit) divided by six seconds, is another helpful metric. This condition is visually depicted in Figure 1, and information at various specification limitations is provided in Table 1. The Six Sigma concept states that operations seldom remain in the center; instead, the center frequently "shifts" above and below the objective. A regularly distributed process is depicted in Figure 2, albeit it has moved within a range of 1.5 seconds above and below the objective. In the scenario shown in the diagram, 99.9996600% of the good or service will meet specifications, and the percentage of nonconformance will be 3.4 parts per million. There is a 1.5 process capacity index (Cpk) in this off-center scenario. For various specification limit locations, Table 2 displays the percentage difference between specifications, the nonconformance rate, and the process capability. It is important to make no assumptions about the type and size of shift in advance; this is a question of discovery. A 1.5 s process shift corresponds to a statistical nonconformance rate of 3.4 ppm. In actuality, other businesses like Allied Signal and General Electric were seeing comparable quality improvements before the mid-1990s. The conformance rate is substantially nearer to two parts per billion (ppb), or 0.002 ppm. The following justifies this assertion: 3 Initially, the process shift is taken to be 1.5 s, although it might be considerably less. About 1990, the original idea for this change was conceived. We have far greater control and measurement over the process. Secondly, it is presumed that the process shift consistently occurs at 1.5 seconds, which is untrue. Third, the X bar and R chart monitoring method with n 5 4 would probably detect and fix an outof-control scenario in, let's say, two hours. As a result, the process would only operate at a 3.4 ppm non-conformance rate for 5% of the time during a 40-hour workweek. □ If the process does, in fact, stray, a connected controller should be able to maintain it focused throughout the majority of the process. □ With a 0.5s process shift at 5.0 sigma, a 1.0s process shift at 5.5 sigma, and a 1.5s process shift at 6.0 sigma, a nonconformance rate of 3.4 ppm may be attained. Thus, another method to get 3.4 ppm is to maintain the processes central. It is crucial to realize that this data is based on the specific component and not the full good or service. For instance, if a product or service consists of 20 parts or steps and each is at 6.0 sigma with a 1.5-second shift, then 68 parts per million (ppm) of the product will not meet specifications [(1 2 0.999996620) 5 0.000068 or 68 ppm], which is 0.0068%. 11.781%, or 117,100 parts per million, of the product or service will be nonconforming if 4.0 sigma and 1.5 s shift are used. Reaching Six Sigma standards won't be simple, thus it should only be tried for essential quality attributes when the circumstances demand it. Enhancement Approach The abbreviation DMAIC, which stands for Define, Measure, Analyze, Improve, and Control, represents the five stages of the improvement process. Its goal is to reduce cycle time while increasing quality and cost. While not a novel idea, no other improvement methodology employs and organizes improvement tools in the same way as Six Sigma.3 Senior management must be updated on each phase's success. The MAIC model was created by Motorola. Practitioners of General Electric introduced the define step. Describe A process plan, a project charter, and client feedback make up this phase. Besterfield: www.pearsonhighered.com Project Charter The project charter outlines the goals, project management, and problem definition. An illustration of a skillfully crafted issue statement is: A customer satisfaction survey revealed that out of 150 billing problems, 18 had faults that needed an hour to fix. The current situation is outlined in the aforementioned paragraph. We have the chance to outline a target in the measure phase, such "Reduce billing errors by 75%." Finding areas for improvement is not hard because there are a lot more issues than there is space for analysis. The following selection criteria must be used by the quality council or work group to prioritize problems: 1.Is the issue significant and not trivial, and if so, why? 2.Will finding solutions to problems help achieve objectives? 3.Is it possible to characterize the issue precisely with objective measurements? The quality council or work group should identify a problem that, if solved, yields the most value for the least amount of effort when choosing an initial improvement opportunity. Pareto analysis and an affinity diagram might be useful at this phase. The quality council or another authority, which has the jurisdiction to approve projects, provide resources, and establish internal operating norms, is in charge of project management. If a natural work group is the primary source of the issue, then they will make up the core team. The process owner (if not already a member of the work group) and a representative from the upstream and downstream processes should also be on the team. The team should be chosen and given the assignment to enhance a certain process or set of processes if the issue is multifunctional, as the majority of problems are. Objectives and Progress are an essential part of the charter. The Six Sigma methodology places a strong emphasis on the project's financial return. Goals, however, can also be expressed in terms of enhanced quality, worker happiness and safety, customer satisfaction from both internal and external sources, and environmental effect. A timeline or milestones should be used to illustrate progress. Process Map: A process map aids in the team's comprehension of the business and production operations that make up a company. The Supplier, Input, Process, Output, and Customer (SIPOC) process model is depicted in Figure 3. Business operations including purchasing, engineering, accounting, and marketing are some other areas where nonconformance might provide a significant opportunity for improvement, in addition to production processes. Materials, cash, knowledge, data, etc. are examples of inputs. Information, data, goods, services, etc. are examples of outputs. Both internal and external parties can be suppliers and customers. One process's output may also serve as another process's input. Performance metrics are typically required for outputs. Their purpose is to attain certain and preferable results, including contentment from customers. The purpose of providing feedback is to make the process better. In order to generate an output, such as a product, a service, or an input for another process, a certain mix of people, materials, equipment, technique, measurement, and environment interact to form the process. A process needs to be repeatable, contain value-added activities, and have observable input and output. It needs to be effective, efficient, manageable, and flexible. Furthermore, it needs to follow specific guidelines set out by rules, limitations, and policies. Limitations pertaining to union-based job descriptions for employees, state and federal restrictions for the storage of environmental waste, or bioethical guidelines concerning patient care are a few examples of these kinds of circumstances. The first step in process definition is determining the internal and/or external clientele. Every internal procedure and the organization's purpose are defined by the consumer. Process improvements must be framed in terms of increasing customer satisfaction as a consequence of better goods and services, since the company exists to serve the customer. Every process has a minimum of one owner. When just one individual is doing the task, the owner may often be easily identified. Often, though, the process will cut across organizational boundaries, with individuals inside each company owning supporting sub-processes. Therefore, efforts to enhance the process should include ownership. Inherent to every functional area are processes. Customer satisfaction, leadership, design, suppliers, maintenance, finance, human resources, product realization, marketing, service, and other areas are all handled by processes. Voice of the Customer Information gleaned from the voice of the customer points to issues that are most in need of resolution and have the most room for development. Various inputs can be used to identify problems, including the following: ▏ Examination of recurring external warning indicators, including field malfunctions, grievances, exchanges, and so on □ Examining internal alarm signals that are repeated (such as the 100% test, scrap, rework, and sorting). Proposals from important insiders, such as union stewards, managers, supervisors, and professionals Suggestions made through suggestion systems □ Field research on user requirements. Information on rivals' performance (from lab testing and user data) □ Key external parties' remarks (suppliers, journalists, customers, and detractors) □ Results and remarks from independent labs and government regulators □ Focus groups and surveys with customers and staff Group brainstorming at work One such tool is the Critical to Quality tree. Quantify The measure phase's goals are to ascertain the process capacity, verify the correctness of the data, and comprehend the process. Reviewing the define phase, creating a baseline, and learning more about the process are all accomplished with the use of this data. Recognize the Process: A value stream map gives information about process waste. This technique serves as a starting point for comprehending the process's logistics. A map or diagram simplifies complicated information into a visual representation that is simple to comprehend. The team finds this exercise to be eye-opening because it is uncommon for everyone to comprehend the full procedure. Subsequently, the input and output target performance measurements are specified. A crucial component of meaningful process improvement is measurement. Something cannot be improved if it cannot be measured. An ancient proverb states that "what gets measured, gets done." The group will assess if the measurements required to comprehend and enhance the process are currently being utilized, and if not, they will establish new ones. □ Determine performance metrics about customer expectations; Identify the data required for process management; Establish a consistent feedback system with suppliers and consumers. Set benchmarks in terms of timeliness, cost, quality, and waste. After determining the desired performance metrics, the group may gather all relevant data and information. If these data are insufficient, new information is discovered. Collecting data helps the team to: (1) establish baseline measurement standards; (2) work with facts to prove the existence of an issue; (3) establish the effectiveness of a proposed solution; and (4) assess its efficacy. It is crucial to obtain the appropriate data for the problem and to gather only the data that is required. The group should create a strategy that incorporates feedback from both internal and external clients and guarantees that it addresses the following queries: 1.What information regarding the issue or procedure do we like to acquire? 2.What applications do the data have? 3.How many pieces of information are required? 4.What deductions may we make based on the information gathered? 5.What are the possible next steps that we may take in light of the findings? A variety of techniques can be used to gather data, including the use of check sheets, computers running software, portable gauges, online systems, and data gathering devices. The group will go over the current protocols in a methodical manner. Typical data and information pieces consist : □ consumer data, including surveys and complaints; ▏ design data, including field data, service, maintainability, bills of materials, specifications, drawings, and function; □ Process data, including routes, tools, operators, raw materials, and suppliers and component components; statistical data, including frequency distribution, skewness, kurtosis, range, average, median, and standard deviation; □ quality data, including run charts, life testing, inspection stages, operator and equipment matrix analysis, Pareto diagrams, cause-and-effect diagrams, check sheets, scatter diagrams, control charts, histograms, process capability, acceptance sampling, Taguchi's loss function, and run charts; □ supplier details, including technical proficiency, on-time delivery, and process variance; □ data mining: an analytical technique that involves utilizing a computer to comb through vast volumes of data in an effort to find recurring patterns. A strategy for gathering data may be created using this information. What, who, where, when, why, and how data is gathered will all be determined by it. Following the completion of the plan, data may be gathered by the use of flowcharts, run charts, control charts, Pareto analyses, histograms, check sheets, and Taguchi's loss function. Verify the Accuracy of the Data: Every device used to gather data has to be calibrated in accordance with established protocols, which can need independent laboratory verification. Measurements need to be precise—that is, extremely minimal variation—and accurate—that is, on target. Gauge repeatability and reproducibility, or GR&R for short, is a widely used method for assessing measurement systems. Assess Process Capability: Process capability is a statistical metric that evaluates how well a process adheres to the requirements in comparison to variations. A control chart may be used to determine how steady the variance is over time in order to obtain a trustworthy measurement. Examine Process analysis, cause analysis, and charter update make up this phase. Finding and confirming the root causes of the issue is the goal. Process Analysis: To determine takt time, non-value-added operations, and bottlenecks, thoroughly examine the value stream map. Examine the information gathered during the measure step. Cause Investigation: The first step in this activity is to determine every possible cause. It calls for brainstorming, expertise, and in-depth process understanding. In this stage, the cause-and-effect diagram works especially well. The why-why, tree diagram, and relationship diagram are further techniques. A word of caution: the goal is not to find answers, but to identify causes. Thus, only plausible causes—regardless of how minor—should be included. Many businesses utilize simulation modeling to find potential reasons when data is not readily available. Using stratification, Pareto analysis, and multiple voting, one may reduce the number of possible reasons. Reexamining the problem description can also help to narrow down the range of possible reasons. Verifying the most likely or root cause(s) is crucial since making a mistake here might result in wasting time and money looking into potential fixes for the incorrect reason. Here are a few methods of verification: 1.Compare the issue statement to the most likely reason. 2.Review all the information that indicates the most likely reason. 3.Determine the essential elements and their levels using statistical approaches including scatter diagrams, hypothesis testing, ANOVA, experimental design, Taguchi's quality engineering, and other cutting-edge methodologies. 4.figures that demonstrate gains from the removal of non-value-added tasks. The following stage might start when the underlying reason has been identified. Analysis phase results may need alterations to the charter phase, specifically to the issue description, team composition, timetable, required resources, and objectives. Enhance This stage chooses the best solution or solutions, tests a pilot, and puts the plan into action. Its purpose is to create a better procedure that will achieve objectives. Optimal Solution The project team starts looking for potential solutions as soon as all the information is available. To fix an issue, many solutions are usually needed. Sometimes a quick glance at the data analysis shows the answers to be quite clear. During this stage, the primary approach is brainstorming, where creativity is the driving force. It need ingenuity and imagination in addition to issue understanding to brainstorm potential solutions. Three categories of creativity exist: (1) innovation in process creation, (2) process fusion, or (3) process modification. The first category includes the pinnacle of ingenuity, like the transistor development. A synthesis activity is the combining of two or more processes to create a superior process. It is an original fusion of the preexisting. Benchmarking is crucial to this kind of inventiveness. Modification is the process of making an existing process better by making changes to it. When managers make use of the knowledge, training, and vigor of empowered teams or project groups, it works. The three kinds are not mutually exclusive; rather, they overlap. The distinctive characteristic that sets humans apart from the rest of the animal kingdom is creativity. The majority of issues that lead to inefficiency and ineffectiveness un businesses are straightforward issues. There is an abundance of creative potential to address these issues. Numerous flaws are found and fixed, which substantially improves quality, and being permitted to produce is very fulfilling, which greatly boosts morale.5 After potential solutions have been identified, the next step is to evaluate or test them. As previously said, there are other ways to address the problem. Assessment and/or experimentation identify which prospective solutions are most likely to succeed as well as the benefits and drawbacks of each. The following factors are taken into consideration while evaluating the potential solutions: cost, effect, practicality, resistance to change, repercussions, and training. There are two further categories for solutions: short range and long range. Making a decision will be made easier by statistical approaches including run charts, control charts, priority matrix, histogram, and design of trials. The capacity to assess potential solutions is one of the characteristics of control charts. The graphic makes it clear if the proposal is beneficial, bad, or has no impact at all. Once suggested modifications have been implemented, the value stream map should be updated to assess process performance. The remedy ought to, at the very least, stop recurrence.