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Last week Google bought Motorola Mobility division for $12.1 Billion dollars. Such a massive deal all p0int to Google primarily interested in Motorola’s large patent chest as a way to protect the Android operating system. As this deal made the news, what I thought about was this: what else is Google getting?

Six Sigma Trademark

Motorola won the trademark on “Six Sigma” in 1993. History teaches us that Motorola invented the Six Sigma methodology and approach to reducing defects by attacking process variation. “Six Sigma”, the trademark, could very well be part of what Google just bought.

If that’s true, then Google will own the trademark to “Six Sigma”. Interesting. Then again, the use of Six Sigma at Google would be so surprising, since that is a requirement for many jobs there. Of course none of this really matters, but is only interesting insofar as patents and trademarks are interesting. The answer of which is not much at all.

Below is the trademark document for “Six Sigma” from the US Patent Office (USPTO):

Six Sigma Trademark: Motorola and Google is a post from: Lean Six Sigma Consulting

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The Six Sigma methodology is well rooted in statistics and statistical mathematics. Today, we’re not talking about the DMAIC Methodology or DMAIC Framework of Define, Measure, Analyze, Improve, or Control. Rather, we’re talking about the statistical definition of “Six Sigma”.

What does it mean to be “Six Sigma”? Six Sigma at many organizations simply means a measure of quality that strives for near perfection. But the statistical implications of a Six Sigma program go well beyond the qualitative eradication of customer-perceptible defects. It’s a methodology that is well rooted in mathematics and statistics.

The objective of Six Sigma Quality is to reduce process output variation so that on a long term basis, which is the customer’s aggregate experience with our process over time, this will result in no more than 3.4 defect Parts Per Million (PPM) opportunities (or 3.4 Defects Per Million Opportunities – DPMO). For a process with only one specification limit (Upper or Lower), this results in six process standard deviations between the mean of the process and the customer’s specification limit (hence, 6 Sigma). For a process with two specification limits (Upper and Lower), this translates to slightly more than six process standard deviations between the mean and each specification limit such that the total defect rate corresponds to equivalent of six process standard deviations.

Many processes are prone to being influenced by special and/or assignable causes that impact the overall performance of the process relative to the customer’s specification. That is, the overall performance of our process as the customer views it might be 3.4 DPMO (corresponding to Long Term performance of 4.5 Sigma).

However, our process could indeed be capable of producing a near perfect output (Short Term capability – also known as process entitlement – of 6 Sigma). The difference between the “best” a process can be, measured by Short Term process capability, and the customer’s aggregate experience (Long Term capability) is known as Shift depicted as Zshift or sshift.

For a “typical” process, the value of shift is 1.5; therefore, when one hears about “6 Sigma,” inherent in that statement is that the short term capability of the process is 6, the long term capability is 4.5 (3.4 DPMO – what the customer sees) with an assumed shift of 1.5. Typically, when reference is given using DPMO, it denotes the Long Term capability of the process, which is the customer’s experience.

The role of the Six Sigma professional is to quantify the process performance (Short Term and Long Term capability) and based on the true process entitlement and process shift, establish the right strategy to reach the established performance objective

As the process sigma value increases from zero to six, the variation of the process around the mean value decreases. With a high enough value of process sigma, the process approaches zero variation and is known as ‘zero defects.’

So, decrease your process variation (remember variance is the square of your process standard deviation) in order to increase your process sigma. The end result is greater customer satisfaction and lower costs.

Six Sigma Definition is a post from: Lean Six Sigma Consulting

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Those involved in continuous improvement have one thing in common: our aim is to improve how things are done. That means that one common phenomena in processes is that there was a way of performing a task and a new way of performing a task. In any change process worth measuring, it’s important to determine through hypothesis testing whether there was a statistically significant change in the process. One common way to see if there was a statistically significant change in the process is to use the Paired T-Test.

When to Use a Paired T-Test

Suppose you run a call center. One metric most call centers monitor is Handle Time – or the total time a customer service representative is on the phone. Now, let’s assume you have 3 CSR’s and their average handle times were as follows:

• CSR1: 434 Seconds
• CSR2: 567 Seconds
• CSR3: 123 Seconds

Now, say you decide that the current process contains several steps that you consider to be waste; you identify those steps, and you make changes in the customer service process. After the change, those same CSR’s now have the following average handle times:

• CSR1: 987 Seconds
• CSR2: 276 Seconds
• CSR3: 877 Seconds

Null Hypothesis

But before you make any claims on the change process, it’s important to understand the Null Hypothesis in the case of a Paired T-Test.

For this example, our Null Hypothesis is that:

• There is no difference in the mean handle times before the process change and after the process change.

Looking only at the before and after results doesn’t guarantee that there was a statistically significant change in the process, however. We use the Paired T-Test for that.
Let’s use another example.

Order Fulfillment Picking Process Change

Picking is a process in Order Fulfillment. Now, suppose you manage the outbound department and Picking was a process you managed. Now, imagine that your pickers are measured by the Pick Rate, or the number of items picked per hour.

Because you are a diligent and motivated manager with skills in continuous improvement, you decide that as a team you would improve the picking process, with the hope of increasing Pick Rate with no change in labor. Below are the results of the process change:

In the table above, we have pick rates for the pickers before the process change and after the process change. We also calculate the mean and standard deviations before and after. Then, using excel, we simply do the standard calculations for a Paired T-Test, which gives us the results below:

The data shows that we can reject the Null Hypothesis. In other words, we can reasonably conclude that the process change resulted in a statistically significant change in the mean pick rates of the pickers before and after.

Paired T-Test Examples

There are many example in business where you could use the Paired T-Test. Here are just a few:

• New drug efficacy (pain before and after, weight before and after, etc.)
• Logistics – change in the mean time-in-transit from supplier to customer (change in route, trucker rest times, pedal acceleration, etc.)

Is There a Difference: Using a Paired T Test To See Significance in a Change Process is a post from: Lean Six Sigma Consulting

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Continuing our investigation into Crazy Correlations, today we look at a case that completely validates the mantra that correlation is definitely not causation; put another way, just because there appears to be a relationship between one event and another event, it doesn’t necessarily mean that they are related. Today we look at Kmart Jobs and Casey Anthony.

Who is Casey Anthony?

In all honesty, I am very clueless as to current media hype events. But, apparently, Casey Anthony is a person who allegedly killed her daughter. In the United States, this has been a big deal with news of the murder trial all over the television. Last week, I guess, Casey Anthony was found Not Guilty by the Jury and the court released from Jail. Anyway, that’s all I care to know. Moving on. Not quite yet. Writing this post was a bit painful because I truly don’t care who Casey Anthony is or the media circus surrounding her murder trial. But, her case does serve to illustrate something interesting about regression analysis. Anyways, I’ll suffer through the embarrassment in order to illustrate something about the regression model. What is really interesting is the relationship between the phrase “Casey Anthony” and “Kmart Jobs”:

The correlation coefficient or, R^2,  shows 0.9160 which means that almost all of the variation can be explained by the regression model. In other words, without any other context involved, there’s definitely a strong relationship between Casey Anthony and Kmart Jobs. But is this true? In all honesty, I don’t care and you probably don’t either. Here’s the point: just because there appears to be a strong relationship between one variable to another, that doesn’t really mean there are necessarily related. Unless of course Casey Anthony will be working at Kmart now that she’s out of jail. Previous Correlation exercises:

• Lean Six Sigma Certification and Florida
• Lean Six Sigma and Net Promoter Score

Crazy Correlation or Stupid Regression: Casey Anthony Murder Trial and Kmart Jobs is a post from: Lean Six Sigma Consulting

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We know that the majority of keyword searches on Google are no longer single words, but phrases and, to a growing extent, phrases in conjunction with other phrases such as:

• lawn mower and honda
• swimming pool and contractor
• etc.

And sometimes, a phrase is searched in conjunction with a location, which is our Crazy Correlation for today.

Using Google Correlate, I searched for the phrase “lean six sigma certification” and the surprising keyword phrase with a high correlation coefficient was “Doral Florida”. This might mean that a good percentage of professionals living in Doral Florida are interested in obtaining lean six sigma training and certification.

I validated this hunch with another Google tool called Google Insights for Search, which shows us keyword searches by location. And, the result validated the relationship between “lean six sigma certification” and “doral florida” as can be seen below:

This relationship begs the question: what is going on in Doral Florida? What companies in Doral Florida have a demand for professionals with lean and six sigma experience?

This sparked my curiousity. So, I went to Indeed.com, a vertical search service for jobs. There, I searched for “lean six sigma” jobs in Doral Florida. Here’s what I found:

There were 64 jobs posted looking for lean six sigma professionals in Doral Florida. Based on the lean six sigma jobs search, Ryder, Watson Pharmaceuticals, and Hertz appear to be companies that are currently hiring professionals with lean six sigma experience.

Any ideas?

Crazy Correlation: Lean Six Sigma Certification and Florida is a post from: Lean Six Sigma Consulting

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Six Sigma Black Belt Training and Certification usually means that you’ve completed an approved project, mentor Green Belts, and pass a Six Sigma Black Belt test.

Below is a typical body of knowledge found in most Six Sigma Black Belt Training and Exams.

The topics in this Body of Knowledge include additional detail in the form of subtext explanations and the cognitive level at which the questions will be written. This information will provide useful guidance for both the Examination Development Committee and the candidates preparing to take the exam. The subtext is not intended to limit the subject matter or be all-inclusive of what might be covered in an exam. It is meant to clarify the type of content to be included in the exam. The descriptor in parentheses at the end of each entry refers to the maximum cognitive level at which the topic will be tested. A more complete description of cognitive levels is provided at the end of this document.

1. Enterprise-Wide Deployment [9 Questions]
   1. Enterprise-wide view
      1. History of continuous improvement
         Describe the origins of continuous improvement and its impact on other improvement models. (Remember)
      2. Value and foundations of Six Sigma
         Describe the value of Six Sigma, its philosophy, history and goals. (Understand)
      3. Value and foundations of Lean
         Describe the value of Lean, its philosophy, history and goals. (Understand)
      4. Integration of Lean and Six Sigma
         Describe the relationship between Lean and Six Sigma. (Understand)
      5. Business processes and systems
         Describe the relationship among various business processes (design, production, purchasing, accounting, sales, etc.) and the impact these relationships can have on business systems. (Understand)
      6. Six sigma and Lean applications
         Describe how these tools are applied to processes in all types of enterprises: manufacturing, service, transactional, product and process design, innovation, etc. (Understand)
   2. Leadership
      1. Enterprise leadership responsibilities
         Describe the responsibilities of executive leaders and how they affect the deployment of Six Sigma in terms of providing resources, managing change, communicating ideas, etc. (Understand)
      2. Organizational roadblocks
         Describe the impact an organization’s culture and inherent structure can have on the success of Six Sigma, and how deployment failure can result from the lack of resources, management support, etc.; identify and apply various techniques to overcome these barriers. (Apply)
      3. Change management
         Describe and use various techniques for facilitating and managing organizational change. (Apply)
      4. Six Sigma projects and kaizen events
         Describe how projects and kaizen events are selected, when to use Six Sigma instead of other problem-solving approaches, and the importance of aligning their objectives with organizational goals. (Apply)
      5. Six Sigma roles and responsibilities
         Describe the roles and responsibilities of Six Sigma participants: black belt, master black belt, green belt, champion, process owners and project sponsors. (Understand)
2. Organizational Process Management and Measures [9 Questions]
   1. Impact on stakeholders
      Describe the impact Six Sigma projects can have on customers, suppliers and other stakeholders. (Understand)
   2. Critical to x (CTx) requirements
      Define and describe various CTx requirements (critical to quality (CTQ), cost (CTC), process (CTP), safety (CTS), delivery (CTD), etc.) and the importance of aligning projects with those requirements. (Apply)
   3. Benchmarking
      Define and distinguish between various types of benchmarking, including best practices, competitive, collaborative, etc. (Apply)
   4. Business performance measures
      Define and describe various business performance measures, including balanced scorecard, key performance indicators (KPIs), the financial impact of customer loyalty, etc. (Understand)
   5. Financial measures
      Define and use financial measures, including revenue growth, market share, margin, cost of quality (COQ), net present value (NPV), return on investment (ROI), cost-benefit analysis, etc. (Apply)
3. Team Management [16 Questions]
   1. Team formation
      1. Team types and constraints
         Define and describe various types of teams (e.g., formal, informal, virtual, cross-functional, self-directed, etc.), and determine what team model will work best for a given situation. Identify constraining factors including geography, technology, schedules, etc. (Apply)
      2. Team roles
         Define and describe various team roles and responsibilities, including leader, facilitator, coach, individual member, etc. (Understand)
      3. Team member selection
         Define and describe various factors that influence the selection of team members, including required skills sets, subject matter expertise, availability, etc. (Apply)
      4. Launching teams
         Identify and describe the elements required for launching a team, including having management support, establishing clear goals, ground rules and timelines, and how these elements can affect the team’s success. (Apply)
   2. Team facilitation
      1. Team motivation
         Describe and apply techniques that motivate team members and support and sustain their participation and commitment. (Apply)
      2. Team stages
         Facilitate the team through the classic stages of development: forming, storming, norming, performing and adjourning. (Apply)
      3. Team communication
         Identify and use appropriate communication methods (both within the team and from the team to various stakeholders) to report progress, conduct milestone reviews and support the overall success of the project. (Apply)
   3. Team dynamics
      Identify and use various techniques (e.g., coaching, mentoring, intervention, etc.) to overcome various group dynamic challenges, including overbearing/dominant or reluctant participants, feuding and other forms of unproductive disagreement, unquestioned acceptance of opinions as facts, groupthink, floundering, rushing to accomplish or finish, digressions, tangents, etc. (Evaluate)
   4. Time management for teams
      Select and use various time management techniques including publishing agendas with time limits on each entry, adhering to the agenda, requiring pre-work by attendees, ensuring that the right people and resources are available, etc. (Apply)
   5. Team decision-making tools
      Define, select and use tools such as brainstorming, nominal group technique, multi-voting, etc. (Apply)
   6. Management and planning tools
      Define, select and apply the following tools: affinity diagrams, tree diagrams, process decision program charts (PDPC), matrix diagrams, interrelationship digraphs, prioritization matrices and activity network diagrams. (Apply)
   7. Team performance evaluation and reward
      Measure team progress in relation to goals, objectives and other metrics that support team success and reward and recognize the team for its accomplishments. (Analyze)
4. Define [15 Questions]
   1. Voice of the customer
      1. Customer identification
         Segment customers for each project and show how the project will impact both internal and external customers. (Apply)
      2. Customer feedback
         Identify and select the appropriate data collection method (surveys, focus groups, interviews, observation, etc.) to gather customer feedback to better understand customer needs, expectations and requirements. Ensure that the instruments used are reviewed for validity and reliability to avoid introducing bias or ambiguity in the responses. (Apply)
      3. Customer requirements
         Define, select and use appropriate tools to determine customer requirements, such as CTQ flow-down, quality function deployment (QFD) and the Kano model. (Apply)
   2. Project charter
      1. Problem statement
         Develop and evaluate the problem statement in relation to the project’s baseline performance and improvement goals. (Create)
      2. Project scope
         Develop and review project boundaries to ensure that the project has value to the customer. (Analyze)
      3. Goals and objectives
         Develop the goals and objectives for the project on the basis of the problem statement and scope. (Apply)
      4. Project performance measures
         Identify and evaluate performance measurements (e.g., cost, revenue, schedule, etc.) that connect critical elements of the process to key outputs. (Analyze)
   3. Project tracking
      Identify, develop and use project management tools, such as schedules, Gantt charts, toll-gate reviews, etc., to track project progress. (Create)
5. Measure [26 Questions]
   1. Process characteristics
      1. Input and output variables
         Identify these process variables and evaluate their relationships using SIPOC and other tools. (Evaluate)
      2. Process flow metrics
         Evaluate process flow and utilization to identify waste and constraints by analyzing work in progress (WIP), work in queue (WIQ), touch time, takt time, cycle time, throughput, etc. (Evaluate)
      3. Process analysis tools
         Analyze processes by developing and using value stream maps, process maps, flowcharts, procedures, work instructions, spaghetti diagrams, circle diagrams, etc. (Analyze)
   2. Data collection
      1. Types of data
         Define, classify and evaluate qualitative and quantitative data, continuous (variables) and discrete (attributes) data and convert attributes data to variables measures when appropriate. (Evaluate)
      2. Measurement scales
         Define and apply nominal, ordinal, interval and ratio measurement scales. (Apply)
      3. Sampling methods
         Define and apply the concepts related to sampling (e.g., representative selection, homogeneity, bias, etc.). Select and use appropriate sampling methods (e.g., random sampling, stratified sampling, systematic sampling, etc.) that ensure the integrity of data. (Evaluate)
      4. Collecting data
         Develop data collection plans, including consideration of how the data will be collected (e.g., check sheets, data coding techniques, automated data collection, etc.) and how it will be used. (Apply)
   3. Measurement systems
      1. Measurement methods
         Define and describe measurement methods for both continuous and discrete data. (Understand)
      2. Measurement systems analysis
         Use various analytical methods (e.g., repeatability and reproducibility (R&R), correlation, bias, linearity, precision to tolerance, percent agreement, etc.) to analyze and interpret measurement system capability for variables and attributes measurement systems. (Evaluate)
      3. Measurement systems in the enterprise
         Identify how measurement systems can be applied in marketing, sales, engineering, research and development (R&D), supply chain management, customer satisfaction and other functional areas. (Understand)
      4. Metrology
         Define and describe elements of metrology, including calibration systems, traceability to reference standards, the control and integrity of standards and measurement devices, etc. (Understand)
   4. Basic statistics
      1. Basic terms
         Define and distinguish between population parameters and sample statistics (e.g., proportion, mean, standard deviation, etc.) (Apply)
      2. Central limit theorem
         Describe and use this theorem and apply the sampling distribution of the mean to inferential statistics for confidence intervals, control charts, etc. (Apply)
      3. Descriptive statistics
         Calculate and interpret measures of dispersion and central tendency and construct and interpret frequency distributions and cumulative frequency distributions. (Evaluate)
      4. Graphical methods
         Construct and interpret diagrams and charts, including box-and-whisker plots, run charts, scatter diagrams, histograms, normal probability plots, etc. (Evaluate)
      5. Valid statistical conclusions
         Define and distinguish between enumerative (descriptive) and analytic (inferential) statistical studies and evaluate their results to draw valid conclusions. (Evaluate)
   5. Probability
      1. Basic concepts
         Describe and apply probability concepts such as independence, mutually exclusive events, multiplication rules, complementary probability, joint occurrence of events, etc. (Apply)
      2. Commonly used distributions
         Describe, apply and interpret the following distributions: normal, Poisson, binomial, chi square, Student’s t and F distributions. (Evaluate)
      3. Other distributions
         Describe when and how to use the following distributions: hypergeometric, bivariate, exponential, lognormal and Weibull. (Apply)
   6. Process capability
      1. Process capability indices
         Define, select and calculate Cp and Cpk to assess process capability. (Evaluate)
      2. Process performance indices
         Define, select and calculate Pp, Ppk and Cpm to assess process performance. (Evaluate)
      3. Short-term and long-term capability
         Describe and use appropriate assumptions and conventions when only short-term data or attributes data are available and when long-term data are available. Interpret the relationship between long-term and short-term capability. (Evaluate)
      4. Process capability for non-normal data
         Identify non-normal data and determine when it is appropriate to use Box-Cox or other transformation techniques. (Apply)
      5. Process capability for attributes data
         Calculate the process capability and process sigma level for attributes data. (Apply)
      6. Process capability studies
         Describe and apply elements of designing and conducting process capability studies, including identifying characteristics and specifications, developing sampling plans and verifying stability and normality. (Evaluate)
      7. Process performance vs. specification
         Distinguish between natural process limits and specification limits, and calculate process performance metrics such as percent defective, parts per million (PPM), defects per million opportunities (DPMO), defects per unit (DPU), process sigma, rolled throughput yield (RTY), etc. (Evaluate)
6. Analyze [24 Questions]
   1. Measuring and modeling relationships between variables
      1. Correlation coefficient
         Calculate and interpret the correlation coefficient and its confidence interval, and describe the difference between correlation and causation. (Analyze)
         NOTE: Serial correlation will not be tested.
      2. Regression
         Calculate and interpret regression analysis, and apply and interpret hypothesis tests for regression statistics. Use the regression model for estimation and prediction, analyze the uncertainty in the estimate, and perform a residuals analysis to validate the model. (Evaluate)
         NOTE: Models that have non-linear parameters will not be tested.
      3. Multivariate tools
         Use and interpret multivariate tools such as principal components, factor analysis, discriminant analysis, multiple analysis of variance (MANOVA), etc., to investigate sources of variation. (Analyze)
      4. Multi-vari studies
         Use and interpret charts of these studies and determine the difference between positional, cyclical and temporal variation. (Analyze)
      5. Attributes data analysis
         Analyze attributes data using logit, probit, logistic regression, etc., to investigate sources of variation. (Analyze)
   2. Hypothesis testing
      1. Terminology
         Define and interpret the significance level, power, type I and type II errors of statistical tests. (Evaluate)
      2. Statistical vs. practical significance
         Define, compare and interpret statistical and practical significance. (Evaluate)
      3. Sample size
         Calculate sample size for common hypothesis tests (e.g., equality of means, equality of proportions, etc.). (Apply)
      4. Point and interval estimates
         Define and distinguish between confidence and prediction intervals. Define and interpret the efficiency and bias of estimators. Calculate tolerance and confidence intervals. (Evaluate)
      5. Tests for means, variances and proportions
         Use and interpret the results of hypothesis tests for means, variances and proportions. (Evaluate)
      6. Analysis of variance (ANOVA)
         Select, calculate and interpret the results of ANOVAs. (Evaluate)
      7. Goodness-of-fit (chi square) tests
         Define, select and interpret the results of these tests. (Evaluate)
      8. Contingency tables
         Select, develop and use contingency tables to determine statistical significance. (Evaluate)
      9. Non-parametric tests
         Select, develop and use various non-parametric tests, including Mood’s Median, Levene’s test, Kruskal-Wallis, Mann-Whitney, etc. (Evaluate)
   3. Failure mode and effects analysis (FMEA)
      Describe the purpose and elements of FMEA, including risk priority number (RPN), and evaluate FMEA results for processes, products and services. Distinguish between design FMEA (DFMEA) and process FMEA (PFMEA), and interpret results from each. (Evaluate)
   4. Additional analysis methods
      1. Gap analysis
         Use various tools and techniques (gap analysis, scenario planning, etc.) to compare the current and future state in terms of pre-defined metrics. (Analyze)
      2. Root cause analysis
         Define and describe the purpose of root cause analysis, recognize the issues involved in identifying a root cause, and use various tools (e.g., the 5 whys, Pareto charts, fault tree analysis, cause and effect diagrams, etc.) for resolving chronic problems. (Evaluate)
      3. Waste analysis
         Identify and interpret the 7 classic wastes (overproduction, inventory, defects, over-processing, waiting, motion and transportation) and other forms of waste such as resource under-utilization, etc. (Analyze)
7. Improve [23 Questions]
   1. Design of experiments (DOE)
      1. Terminology
         Define basic DOE terms, including independent and dependent variables, factors and levels, response, treatment, error, etc. (Understand)
      2. Design principles
         Define and apply DOE principles, including power and sample size, balance, repetition, replication, order, efficiency, randomization, blocking, interaction, confounding, resolution, etc. (Apply)
      3. Planning experiments
         Plan, organize and evaluate experiments by determining the objective, selecting factors, responses and measurement methods, choosing the appropriate design, etc. (Evaluate)
      4. One-factor experiments
         Design and conduct completely randomized, randomized block and Latin square designs and evaluate their results. (Evaluate)
      5. Two-level fractional factorial experiments
         Design, analyze and interpret these types of experiments and describe how confounding affects their use. (Evaluate)
      6. Full factorial experiments
         Design, conduct and analyze full factorial experiments. (Evaluate)
   2. Waste elimination
      Select and apply tools and techniques for eliminating or preventing waste, including pull systems, kanban, 5S, standard work, poka-yoke, etc. (Analyze)
   3. Cycle-time reduction
      Use various tools and techniques for reducing cycle time, including continuous flow, single-minute exchange of die (SMED), etc. (Analyze)
   4. Kaizen and kaizen blitz
      Define and distinguish between these two methods and apply them in various situations. (Apply)
   5. Theory of constraints (TOC)
      Define and describe this concept and its uses. (Understand)
   6. Implementation
      Develop plans for implementing the improved process (i.e., conduct pilot tests, simulations, etc.), and evaluate results to select the optimum solution. (Evaluate)
   7. Risk analysis and mitigation
      Use tools such as feasibility studies, SWOT analysis (strengths, weaknesses, opportunities and threats), PEST analysis (political, environmental, social and technological) and consequential metrics to analyze and mitigate risk. (Apply)
8. Control [21 Questions]
   1. Statistical process control (SPC)
      1. Objectives
         Define and describe the objectives of SPC, including monitoring and controlling process performance, tracking trends, runs, etc., and reducing variation in a process. (Understand)
      2. Selection of variables
         Identify and select critical characteristics for control chart monitoring. (Apply)
      3. Rational subgrouping
         Define and apply the principle of rational subgrouping. (Apply)
      4. Control chart selection
         Select and use the following control charts in various situations:
         individual and moving range (ImR), p, np, c, u, short-run SPC and moving average. (Apply)
      5. Control chart analysis
         Interpret control charts and distinguish between common and special causes using rules for determining statistical control. (Analyze)
   2. Other control tools
      1. Total productive maintenance (TPM)
         Define the elements of TPM and describe how it can be used to control the improved process. (Understand)
      2. Visual factory
         Define the elements of a visual factory and describe how they can help control the improved process. (Understand)
   3. Maintain controls
      1. Measurement system re-analysis
         Review and evaluate measurement system capability as process capability improves, and ensure that measurement capability is sufficient for its intended use. (Evaluate)
      2. Control plan
         Develop a control plan for ensuring the ongoing success of the improved process including the transfer of responsibility from the project team to the process owner. (Apply)
   4. Sustain improvements
      1. Lessons learned
         Document the lessons learned from all phases of a project and identify how improvements can be replicated and applied to other processes in the organization. (Apply)
      2. Training plan deployment
         Develop and implement training plans to ensure continued support of the improved process. (Apply)
      3. Documentation
         Develop or modify documents including standard operating procedures (SOPs), work instructions, etc., to ensure that the improvements are sustained over time. (Apply)
      4. Ongoing evaluation
         Identify and apply tools for ongoing evaluation of the improved process, including monitoring for new constraints, additional opportunities for improvement, etc. (Apply)
9. Design for Six Sigma (DFSS) Frameworks and Methodologies [7 Questions]
   1. Common DFSS methodologies
      Identify and describe these methodologies. (Understand)
      1. DMADV (define, measure, analyze, design and validate)
      2. DMADOV (define, measure, analyze, design, optimize and validate)
   2. Design for X (DFX)
      Describe design constraints, including design for cost, design for manufacturability and producibility, design for test, design for maintainability, etc. (Understand)
   3. Robust design and process
      Describe the elements of robust product design, tolerance design and statistical tolerancing. (Apply)
   4. Special design tools
      1. Strategic
         Describe how Porter’s five forces analysis, portfolio architecting and other tools can be used in strategic design and planning. (Understand)
      2. Tactical
         Describe and use the theory of inventive problem-solving (TRIZ), systematic design, critical parameter management and Pugh analysis in designing products or processes. (Apply)

Six Sigma Black Belt Training is a post from: Lean Six Sigma Consulting

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Not surprisingly, the term Black Belt has its roots in the exotic realm of martial arts. Like a person skilled in the Oriental sport of karate, the Six Sigma Black Belt is self-assured and knowledgeable, the result of intensive training and real-world experience.

Motorola, the company that holds the Six Sigma trademark, says the data-driven defect-reduction process has saved the company more than $16 billion over the past 15 years. Six Sigma has generated similarly stunning results at companies here and abroad in the manufacturing, transactional, and service sectors. All businesses — regardless of sector, size, or project – link their success to one factor. In Six Sigma parlance, it’s the Black Belt.

The term Black Belt refers to project leaders, skilled in the use of statistical methods and interpersonal communication, and dedicated to using Six Sigma methods to ensure customer satisfaction. Green Belts require less training than Black Belts and take responsibility for leading fewer projects, while Master Black Belts spend nearly all of their time consulting, mentoring, and training Green Belts and Black Belts.

Not surprisingly, the term Black Belt has its roots in the exotic realm of martial arts. Like a person skilled in the Oriental sport of karate, the Six Sigma Black Belt is self-assured and knowledgeable, the result of intensive training and real-world experience. The Six Sigma Black Belt is disciplined, purposeful, and decisive, able to lead highly focused efforts aimed at improving a company’s bottom line. And, to ensure continued improvement, the Black Belt works affirmatively to identify and mentor new Black Belts.

The evocative term is not without its detractors, however. For some, martial arts is synonymous with violence, attack mode, and bravado, all of which run counter to the term’s intended meaning: a methodically executed self-defense. Some companies have changed the names of their process improvement change leaders to move away from these images. Raytheon, for example, has replaced the words Black Belt with Expert, as in Six Sigma Expert and Six Sigma Master Expert. Mount Carmel Health System refers to Black Belts as Guides, and Master Black Belts as Master Guides. Countrywide Financial Corporation has left the Six Sigma and Belt terminology completely behind; instead, they refer to Master Black Belts, Black Belts and Green Belts as Gold, Silver, and Bronze certification levels, respectively. The Vanguard Group has even gone as far as to call their process improvement efforts “Unmatchable Excellence,” although much is based on the Six Sigma methodology.

While the late Bill Smith, a Motorola senior engineer and scientist, commonly gets credit for initiating the Six Sigma concept, the wordsmith who originated the belt argot is Dr. Mikel Harry. In 1986-1987 Harry, on authorized sabbatical from Motorola, spent three months at the Unisys Salt Lake Printed Circuit Facility, where he worked as a technical consultant with Unisys facility manager Clifford Ames. Harry’s mission was to solve a costly circuit board production problem.

According to Harry, once the problem was solved, Ames asked him to train others at Unisys. Harry referred to those he trained as process characterization experts, the term he had previously used for trainees at the Motorola Government Electronics Group. Harry remembers brainstorming with Ames to come up with something a little catchier. When Harry suggested Black Belts, Ames responded enthusiastically: “That’s sexy! I can sell that.” And the rest, as they say, is history.

Because a team approach is the norm among Motorola scientists and engineers, the belt-naming convention may appear to some to have occurred over time and osmotically among Motorola executives. However, Harry cites contracts, reports, and other artifacts that document the terminology’s introduction and implementation. The belt terminology, first articulated in a 1988 contract between Unisys and Harry, appears that same year in strategy papers from the first Unisys Black Belt trainees. Harry says he formally introduced the terminology to Motorola in a 1989 white paper, A Strategic Vision for Accelerating The Implementation of Six Sigma at Motorola, a paper he prepared for then CEO Robert Galvin.

By the early 1990s, the Black Belt nomenclature was hot. Recently retired Quality Director John Lupienski complements Harry’s version of the origins of Black Belt terminology in a time line Lupienski prepared for a 1990s Motorola Six Sigma presentation. Lupienski, who participated in Motorola’s first Quality Council meetings with Bill Smith and Jack Germain (Motorola’s first Vice President of Quality), says the Black Belt program began in 1990 with the organization of a DOE symposium committee. Additional Motorola employees who were present at this time verify these facts.

The following year, Harry established Motorola’s Six Sigma Research Institute, which he had proposed in his 1989 Strategic Vision white paper, and served as its founding Director and a senior member of the technical staff. The Institute, a research and testing site, offered a reasonable alternative to the factory floor for simulations and statistical problem solving. As the Institute’s Director, Harry relied on the Black Belt framework to move Six Sigma methodology across the corporation.

Harry successfully nurtured the Black Belt model, encouraging other companies to implement it in 1992. Harry says he persuaded those other companies — Texas Instruments, IBM, Kodak, Digital Equipment, and Asea Brown Boveri — to share expertise and work with Motorola and the Institute to craft a mutually beneficial training program.

David Hallowell, the Digital representative at that time, recalls the common Black Belt curriculum that the consortium identified, developed and piloted. The statistical part of the body of knowledge was easy to see, but a key insight was the inclusion of a healthy measure of soft skills to deal with the change management, business awareness, and team dynamics critical to real Six Sigma success. The Six Sigma Technical Institute was soon deploying that training for Black Belt candidates. By the end of 1992, the first half-dozen Six Sigma Black Belts had gained recognition in Asia and the United States.

The Black Belt jargon has stuck. In fact, an online Google search for Six Sigma generates a whopping 554,000 keyword matches, many of them about Black Belt training. Just as Six Sigma has outlived early skepticism about its long-term survival, the Green Belt/Black Belt/Master Black Belt designations have emerged as generally accepted business terminology.

Six Sigma Black Belt Certification is a post from: Lean Six Sigma Consulting

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In previous posts, we covered the DMAIC Methodology in Six Sigma. Specifically, we covered:

1. Define Phase, DMAIC
2. Measure Phase, DMAIC
3. Analyze Phase, DMAIC
4. Improve Phase, DMAIC

In this post, we’ll cover the final phase of the DMAIC Methodology in Six Sigma, Control.

DMAIC – Six Sigma – Control

If you recall, the Improve Phase of DMAIC focused on implementing the practical solutions to the root causes identified in the Analyze Phase of DMAIC. In this phase of DMAIC, Control, we focus on verifying whether or not the changes we made in Improve led to the expected changes. Part of the Control Phase is also verifying how much improvement was made, if any at all.

Here are a few critical questions in the Control Phase:

1. How do you know the problem has been reduced?
2. How do you know that the problem will not come back?
3. How do you know you are measuring the right process indicators?
4. What did you learn while leading the project?

In general, the critical output in Control is a before/after chart as shown below:

Depending on the problem and the process, a Control Chart showing the Pre-Intervention and Post-Intervention is a good way to demonstrate whether the changes made, made an impact or not.

In terms of the overall picture, the Control Phase might be visualized below:

Part of the Control Phase Tollgate will be to also discuss what other problems might or should be considered next after the completion of you current project. And, a cost/benefit analysis is also important to complete at this step.

Lean Six Sigma: Elements of CONTROL is a post from: Lean Six Sigma Consulting

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In previous posts, we discussed the DMAIC Methodology in Six Sigma. We discuss the previous phases of DMAIC here:

1. Define Phase, DMAIC
2. Measure Phase, DMAIC
3. Analyze Phase, DMAIC

And in this post, we’ll discuss the Improve Phase of DMAIC.

Let’s revisit, from a high-level, the DMAIC storyboard:

In Define, we discuss the problem and make sure to obtain agreement on the problem from the stakeholders. In the Measure Phase, we discuss data collection methods, how to appropriately display information, and how to analyze and synthesize and decide where the team will focus their efforts in the next phase, the Analyze Phase. In the Analyze Phase, we discuss root cause analysis and hypothesis testing.

In this phase, the Improve Phase, we assume that root causes were reached and some or most were validated. Given that context, below is the rough outline of the Improve Phase in DMAIC.

Here are some questions that can drive the overall tone of the team in the Improve Phase:

• What possible actions or ideas will help us address the root cause(s) of the problem and achieve our goal?
• Which of these ideas form workable potential solutions?
• Which solution(s) will most likely achieve our goal with the least cost and disruption?
• How do we test our chosen solution to ensure its effectiveness and then implement it permanently?

In the Improve Phase, the work is driven from the assumption that root causes were identified and verified. The next step is to utilize the following tools:

1. Solution Selection Matrix: To brainstorm the potential practical methods to address the root causes.
2. Action Plan: This is typically a Gantt Chart showing people responsible for which action item and a date by which it should be completed.
3. Barriers and Aids Diagram: This is an exercise that shows what the change management challenges might be for implementing the improvements – this will usually contain issues related to people.
4. Cost and Benefit Analysis that shows the cost of the project and the potential benefit. In most organizations, this step is completed by both the project lead and the Chief Financial Officer of the site Controller.

For those familiar with Lean Manufacturing, this step should remind you of PDCA – indeed, DMAIC came from the PDCA cycle.

When the items above are completed, then the project team is ready to tollgate the Improve Phase. In the next section, we’ll discuss the last phase in the DMAIC Methodology, the Control Phase.

Lean Six Sigma: Elements of IMPROVE is a post from: Lean Six Sigma Consulting

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In the DMAIC methodology of Six Sigma, parts of it are managed with standard project management tools, but within the context of an improvement project. The Action Plan, also called a Gantt Chart, is usually used in the Improve Phase, where the root causes are identified and the countermeasures have been decided.

Within the context of the DMAIC Six Sigma Methodology, the Action Plans catalogs all activities that must be performed to ensure successful implementation of the proposed solution(s). This includes the practical methods that were identified on the Solutions Selection Matrix and any solutions to barriers discovered in the Barriers & Aids analysis that were not cancelled by offsetting aids.

Action Plans answer these basic questions:

• Who?
• What?
• When?
• Where?
• How?

Action Plans define an organized, effective implementation of selected solutions.

DMAIC Action Plan Construction

Below are some helpful steps in creating an action plan (within the context of a DMAIC project):

1. Analyze the proposed improvement or solution and break it down into manageable steps
2. List the activities that must be done to ensure successful implementation of the improvements
3. For each activity, identify the resources needed / responsible for each step
4. List the remaining barriers from the barriers-and-aids analysis and any actions that can be taken to overcome these barriers (and who will do them)
5. Brainstorm, if necessary, for other items of possible significance
6. Add Due Dates for each activity
7. Track the status of each activity on the master list

Below is an example of what an Action Plan might look like.

Action Plan is a post from: Lean Six Sigma Consulting

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As key tool in the Six Sigma DMAIC Methodology is the use of the Solution Selection Matrix. By contrast, this same approach in Lean Manufacturing is typically called a Countermeasures Matrix, which shows all the potential countermeasures for each root cause.

A solution selection matrix will contain the following:

1. The problem we’re trying to solve.
2. The root causes attached to the problem, in a sideways branching tree diagram.
3. The practical solutions attached to each root cause – a root cause can have several practical solutions.

Then, there can be a number of likert scale attributes to judge the effectiveness or feasibility of the proposed solutions.

A Solution Selection Matrix example is shown below:

This exercise should be done as a team, involving the right stakeholders and decision makers in order to be effective. This exercise can have the potential to create strong supporters or strong resistors, so take caution because going forward, we are thinking less and less about data, but more and more about people-related issues and making change happen in an organization.

Solution Selection Matrix is a post from: Lean Six Sigma Consulting

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The third Phase in the 6 Sigma DMAIC methodology is Analyze. Previously, we discussed the steps in the DMAIC Define Phase and Measure Phase. In the Define Phase, the focus is on agreement of what the problem is, it’s impact on customers, the firm, and with initial quantification of the “pain.” In the DMAIC Measure Phase of 6 Sigmas, the focus is on data collection, to validate that what was thought of as a problem truly is a problem. In the Analyze Phase, the focus turns to identifying the root causes for the problems the firm, the customer, and the employees experience.

Below is a general roadmap of items to remember and satisfy in the DMAIC methodology of Six Sigma in the Analyze Phase.

DMAIC: Analyze Phase Storyboard

Visually,

Lean Six Sigma: Goals for Analyze Phase

The Analyze Phase in 6 Sigma is designed to accomplish the following:

• Use data to help focus the team on finding and verifying the true root causes of problems
• Specific objectives for ANALYZE include: Perform Cause and Effect analysis on the problem
• Continue analysis to the level of actionable root causes
• Select the root causes with the greatest impact to improve the CTQ
• Verify the root causes with data using the appropriate tools and display the analysis and techniques used
• Verified Root Causes will form the foundation for solutions in the Improve Phase – failing to find true root causes will cause you to take actions on the wrong things and miss the targeted improvement

The DMAIC storyboard for the Analyze Phase above outlines the steps for us:

1. Root Cause Analysis
2. Identify Root Causes
3. Create Test Plan to test each Root Cause (a Root Cause is also a Hypothesis)
4. Test Hypothesis (Test Root Causes) using statistical hypothesis testing
5. Tollgate to the DMAIC Steering Committee

Some Common Tools used in the DMAIC Analyze Phase are:

• Affinity Diagram
• Digraph
• Root Cause Analysis, Fishbone Diagram / Ishikawa Diagram, Cause and Effect Diagram

When root causes are identified, we can consider those to be Hypothesis, which need to be validated or invalidated as true root causes. To verify our hypothesis, a few statistical tools are used:

• Scatter Plot or Regression Analysis
• Present / Not Present Matrix, Contingency Table (Chi Square Analysis)
• And other methods of hypothesis testing (not covered in this post)

Once a root cause is verified as a true root cause, then that paves the way for the Improve Phase in DMAIC, where we focus on practical solutions that will surgically attack the root causes we validated in the Analyze Phase.

Lean Six Sigma: Elements of ANALYZE is a post from: Lean Six Sigma Consulting

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Part of the Analyze Phase in the DMAIC Six Sigmas Methodology is to verify the potential root causes with hypothesis testing. One common hypothesis test is an application of the Chi Square Test called a Contingency Table, also called a Present / Not Present Matrix.

What is a Contingency Table

For something to be a root cause, the defect rate must be higher when root cause is present and the defect must be lower when this root cause absent. The easiest way to show this is to use 2×2 grid and look for patterns.

The data on the grid will make it very clear if what you are looking at is a root cause of the defect that you are after or not. The grid is constructed so that you have a box containing four other boxes (2×2).

On the rows, you add labels “root cause present” and “root cause absent” and across the columns, you label the columns “defect present” and “defect absent.” Then, you fill in the grid with data (numbers of observations).

You will have to go and look at some non-defective parts and see if your potential root cause is present or absent (you may already have data for your potential root cause from MEASURE, if not, you have to measure that too).

For a potential root cause to be considered verified by this tool, most of the data must be “on the diagonal.” This means that it will fall in the “defect present/root cause present” box and the “defect absent/root cause absent” box.

If it fits this pattern, then you can be confident that if you eliminate the root cause, then the defect will go away. If it does not fit this pattern, you can use more advanced Statistical Tests to verify the root causes.

As an example, let’s assume the following:

Defect: Packages in Order Fulfillment are rejected by the Packing Scanner

And, during our data collection phase in Measure, we have data that shows the data below:

Typically, they hypothesis takes the form of:

H₀: there is no relationship between dirty shipping labels and packing scanner rejections
H₁: there is a relationship between dirty labels and packing scanner rejections

Given the data above, we follow this intermediate equation:

Then, we follow the Chi-Square Equation:

Which gives us the results below:

Given the results above, we can conclude the following:

We Reject the Null Hypothesis

There are many possible applications of the contingency table. Think about your business, the defects that you deal with, and perhaps there might be an opportunity to apply the Chi-Square or Contingency Table to your process.

Feel free to download a Free Chi-Square Template.

Lean Six Sigma: Contingency Table and Chi Square Test is a post from: Lean Six Sigma Consulting

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This article is a follow-up to my article on Justin Bieber and Six Sigma.

To the extent that search terms is a measure of intention and interest, Google Trends is helpful in identifying, by geography, the general interest of that population given the search term.

Out of curiosity, I decided to search on the term “Lean Six Sigma” and this is what I found:

India is really interested in Lean Six Sigma and so is the United States, Singapore, and the United Arab Emirates.

What is going on in India? Why is India so interested in Lean Six Sigma?

United Arab Emirates? – what’s going on there that they are so interested in Lean Six Sigma?

Assuming the data above is correct AND that we can gauge interest and intention based on search term, the following world regions are most interested in the topic of “Lean Six Sigma”:

1. India
2. United States
3. Singapore
4. United Arab Emirates
5. Canada
6. Australia
7. United Kingdom
8. France
9. Germany
10. Afghanistan

On the one hand, I expected some of the above, but there are some countries that I was very surprised to see on the list, like Afghanistan.

Lean Six Sigma in India

So what is going on in India?

Without data to support my claims, we generally know that many back-office processes that were once performed in the United States have been outsourced to places like India, Philippines, and others. Often, this is called “Business Process Outsourcing” or BPO for short. This usually includes the following processes:

• Call Center, Contact Center, Help Desk
• Payroll
• Billing
• Human Resources
• Logistics
• Financial, Planning, and Accounting (FP&A)
• Mortgage Processing
• Medical Card Processing
• Other Support Functions

The general trend is to use a third party in a lower cost country to perform these support functions for the company.

And this makes sense: support functions like the ones I describe above are perfect processes for the implementation of Lean and Six Sigma. And with the massive outflow of these types of jobs from the United States and elsewhere to India, it makes sense that the demand and interest for Lean Training, Six Sigma Training, and Certification has grown correspondingly.

By region in India, the following have the most interest in “Lean Six Sigma”:

1. Bangalore
2. Chennai
3. Mumbai
4. Hyderabad
5. Delhi
6. Mahape

If we overlayed the number of BPO companies in these locations, I believe that there will be a good match between the number of BPO companies and search interest from Google Trends.

Common Business Process Outsourcing (BPO) Lean Six Sigma projects are typically on behalf of the client and can be the following:

• Increase First Call Resolution [for client...]
• Reduce inbound non-revenue generating contacts [for client...]
• Improve CSAT (Customer Satisfaction) [for client...]
• Improve Net Promoter Score (NPS) [for client...]

From a historical perspective, below is a the search term “Lean Six Sigma” in India, over time, from 2004 to today:

Based on the chart above, there was a significant jump in interest for the term “Lean Six Sigma” around March 2009. I wonder what happened in March 2009 that led to that spike.

Lean Six Sigma in the United States

Second on the worldwide regional list for “Lean Six Sigma” is the United States.

The growth pattern for the search term “Lean Six Sigma” is very interesting for the United States:

An interesting pattern emerges for the search term “Lean Six Sigma” – there is a dip toward the end of the fiscal year and a big spike at the beginning of the proceeding fiscal year. I don’t know exactly what is driving that behavior, but my guess is that corporate budgets are depleted toward the end of the year and replenished at the beginning of the year and interest in Lean Training and Six Sigma Training follows the same pattern.

By region in the United States, below is the interest map for the search term “Lean Six Sigma”:

By Region in the United States, these are the areas that appear to show the most interest in “Lean Six Sigma”:

1. Norfolk
2. Pensacola
3. Washington
4. Columbus
5. Rochester
6. San Antonio
7. Minneapolis
8. Dallas
9. San Diego
10. Atlanta

I’m not sure what exactly is driving interest for Lean Six Sigma in these regions. My guess, though, for Norfolk and Pensacola is Government and the Armed Forces – Army, Navy, Marines – there is much interest and Lean Six Sigma activity within Government.

Lean Six Sigma in India and United States is a post from: Lean Six Sigma Consulting

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Note: If you arrived here searching for Justin Bieber, I’m sorry but you’ll see geeky stuff about Lean Manufacturing and Six Sigma instead. But, in the hope that I don’t dissappoint you, skip to the bottom of this article and you can get your Justin Bieber fix with him performing “Baby”.

On to other News

Assuming that worldwide search trends captures the interest and thoughts of a country, Google Trends is pretty helpful. Using Google Trends, we get some insight into what general worldwide regions are searching and one can compare search terms and view search volume as if we were navigating the intent of humans with a garmin gps.

Where is Six Sigma More Popular Than Justin Bieber

Yup, In India, “Six Sigma” as a search term is more popular than “Justin Bieber” as a search term (Six Sigma¹, Justin Bieiber):

From this same chart, again assuming that search terms are a good way to capture the consciousness of a country, in Hong Kong and Pakistan, Six Sigma and Justin Bieber are competitively close. And, in Malaysia and the Philippines, Six Sigma is no match for Justin Bieber.

Look – even in Nigeria, Justin Bieber beats Six Sigma^{2 3} hands down.

What if we just looked at the worldwide trend for “Six Sigma”^{4 5 6 7} as a search term?

Using just “Six Sigma” ^{8 9 10 11 12 13 14}, below is the worldwide trend:

From the chart above, the interest for the search term “Six Sigma” is declining. By geography, we get:

From the perspective of interest by geography, the following search for the term “Six Sigma” in order of highest to lowest:

1. India
2. Singapore
3. Hong Kong
4. Pakistan
5. Sri Lanka
6. United States
7. United Arab Emirates
8. Nigeria
9. Philippines
10. Malaysia

At least half of the countries search for the term “Six Sigma” are in Asia. I imagine this is true because many of operations (back office operations and shared services) that were based in the United States and Europe have moved or will be moved to Asia based operations.

It’s Your Turn

What do you think of the Google search data above? Any insights I might have missed?

Unrelated and Cheesy

Here’s Justin Bieber performing “Baby”:

Where Six Sigma is More Popular Than Justin Bieiber is a post from: Lean Six Sigma Consulting

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Producing high quality products and services is key for any organization that wishes to stay in business. Yet, from my individual experience (probably your experience as well), not enough priority is given to quality.

An important goal for any organization is to produce trouble-free products and services and delightful products and services.

An important goal for any organization is to produce trouble-free products and services and delightful products and services.

By doing so, loyalty is created, reduces costs, and allows the firm to further delight the customer through other offerings.

Deming postulated what I discuss above in what is now known as the Deming Chain Reaction:

Deming’s point with the Deming Chain Reaction is to show how quality improvement impacts the bottom line.

improve quality => decrease costs => improve productivity => decrease prices => increase market => stay in business => provide employment => return on investment

Granted, his assumptions, at the time, was that competing on low price would increase sales, but that approach might not be the brand promise for some firms (Nordstrom’s and Zappos, for example).

Thinking of the Deming Chain Reaction, how might you apply this simple idea to your business?

The Deming Chain is a post from: Lean Six Sigma Consulting

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The Problem Statement is deceptively simple. Yet, we know it is so difficult to write. Why? And how can we effectively write one that is convincing, rallies people around the cause, aligned and focues, and maintains momentum for the team after the inertia has worn off?

Clutter

Before I write about the elements of an effective Problem Statement, let me first address its common enemy: Clutter.

William Zinsser once wrote the following about writing well and the role of clutter:

Clutter is the disease of American writing. We are a society strangling in unnecessary words, circular constructions, pompous frills and meaningless jargon.

Who can understand the viscous language of everyday American commerce and enterprise: the business letter, the interoffice memo, the corporation report, the notice from the bank explaining its latest “simplified” statement? What member of an insurance or medical plan can decipher the brochure that tells him what his costs and benefits are? What father or mother can put together a child’s toy—on Christmas Eve or any other eve—from the instructions on the box? Our national tendency is to inflate and thereby sound important. The airline pilot who announces that he is presently anticipating experiencing considerable precipitation wouldn’t dream of saying that it may rain. The sentence is too simple—there must be something wrong with it.

Perhaps a sentence is so excessively cluttered that the reader, hacking his way through the verbiage, simply doesn’t know what it means. Perhaps a sentence has been so shoddily constructed that the reader could read it in any of several ways. Perhaps the writer has switched pronouns in mid-sentence, or has switched tenses, so the reader loses track of who is talking or when the action took place. Perhaps Sentence B is not a logical sequel to Sentence A—the writer, in whose head the connection is clear, has not bothered to provide the missing link. Perhaps the writer has used an important word incorrectly by not taking the trouble to look it up.

Then, Zinsser offers a solution:

How can the rest of us achieve such enviable freedom from clutter? The answer is to clear our heads of clutter. Clear thinking becomes clear writing.

Indeed, clear thinking becomes clear writing. So, get clear about your thinking.

The Problem Statement

I wanted to set the stage with Zinsser’s discussion on clutter because unclear writing is often the root cause for poorly-written problem statements. The upshot of a poorly-written problem statement is that the actual problem might actually be important and should be addressed, but if delivered poorly – or the story isn’t shared effectively – then, nobody will likely care.

What Are We Solving For?

We must frame the problem appropriately, setting the context for the audience that might not be familiar with the problem.

Here are a few elements that make for an effective problem statement:

1. Focused and Concise: A problem statement should be based on fact and should be just a few sentences.
2. Create a sense of ownership for the team: creating ownership for the problem can be in the form of how it affects employees, the company, or morale.
3. Describe the symptoms in measurable terms, using measures such as money, time, customers affected, compliance regulations broken, or other important metrics.

Ineffective Problem Statements

Here are few elements that make for ineffective problem statements:

1. The problem statement assigns blame to a person, group, or “it’s not our fault” or “it’s their fault” statements.
2. The problem statement assigns cause.
3. The problem statement offers a solution.
4. The problem statement is too broad – boiling the ocean strategy.

Problem Statement Examples

The examples below are considered effective problem statements and contain the elements I discuss above.

1. Data gathered between 2/19/04 and 3/5/04 showed that 49% of total case replenishment time was spent in within-warehouse travel. Based on 2004 forecasted labor hours, we will spend approximately $4.5MM on within-warehouse travel costs.
2. For the western region fulfillment center, an average of 1749 shipments per day miss the 12 and 20 hour deadline for premium shipments. This equates to over 500,000 shipments per year – over 1/2 million customers that will receive their package later than promised.
3. In the southwestern call center, we received an average of 323 contacts about missing instructions for product Y in the last 27 days. Annually, this amounts to 4380 contacts at an average cost per contact of $6.75; these unnecessary contacts will cost the company almost $30,000 – money the company does not have to spend.

Cost of Doing Nothing

One effective way to set the stage with a problem statement is by showing what will happen if nothing is done about the problem. This might be phrased like the following:

For the previous 90 days, company x has documented 35 workplace recordable injuries, resulting in 250 hours of paid time off due to health-related reasons. If we do nothing, we can expect xyz more employees injuring themselves, possibly costing the company in xyz in productivity and abc in annual costs.

Practice Over Theory

Like with most things in Lean Six Sigma, one learns from doing. So, go try it today and have your peers review and provide feedback.

Lean Six Sigma: The Problem Statement is a post from: Lean Six Sigma Consulting

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Do you eat, drink, breathe, and live lean manufacturing and six sigma? In this day and age, where there are endless resources available to us – anytime and anywhere and most of them free, it is helpful to have what you need to be an effective lean manufacturing or six sigma practitioner.

With that as context, here are 22 Lean Six Sigma, Business Excellence, or Process Improvement iPhone Apps: resources that can help you in your practical implementation of lean methods or six sigma anywhere you might be.

Lean Daily

Lean Daily consolidates the latest posts from your favorite lean blogs into one convenient app.

Current blogs accessible through the app:

• Lean Blog
• Evolving Excellence
• Gemba Panta Rei
• Jamie Flinchbaugh
• LSS Academy
• Curious Cat Management Improvement
• Matthew E. May, In Pursuit of Elegance

There is also additional content accessible through the app, such as:

• Lean news
• Audio podcasts
• Video podcasts
• Gemba Academy videos

Cost: Free

Lean Enterprise Institute

The Lean Enterprise Institute provides a free iPhone app that you can download for your iPhone or iPod Touch. This app is another way for you to stay connected with LEI – our community and our latest content and information. You can download the app via this Apple link or via the iTunes App Store (search for “lean enterprise”).

In this app, you can see and interact with:

• LEI books: info and descriptions
• LEI workshop calendar and descriptions
• LEI YouTube videos
• Blogs from John Shook and Michael Balle
• Jim Womack’s e-letters
• Streaming audio from past LEI webinars
• Tweets from LEI staff members
• Lean People
• and more

Cost: Free

Task Rate Calculator

According to the description in iTunes:

“Task Rate Calculator” is an app specifically designed to enable management consultants and operations managers to quickly and easily derive capacity rates for any task, anywhere, any time, minimizing the need for extended and resource-intensive time/motion studies and number crunching. To establish a task’s capacity rate, simply:

• enter high-level descriptive information about a task (ID #, unit of measure and description),
• enter a “minimum” and “maximum” number of minutes to complete a task unit, then
• use sliders to enter percentage estimates for work volumes that fall within five equal time duration quintiles

“Task Rate Calculator” will then generate the weighted average amount of time it takes to complete a given task unit, as well as the average number of task units that can be completed per hour. “Task Rate Calculator” provides you with helpful information and instruction for each requested piece of data, and allows you to enter Verification Notes to record how data was obtained and when. “Task Rate Calculator” also allows you to send data to any email address; once received, the emailed data can easily be copied and pasted into a spreadsheet to form the building blocks of effective performance analysis.

“Task Rate Calculator” is designed with the following audience in mind:

• Management consultants
• Six Sigma black belts
• Lean practitioners
• Project managers
• Operations managers
• Supply Chain / Logistics managers
• Strategic planners
• Finance managers
• Accountants
• Engineers
• IT managers

and can be used to quickly provide objective, activity-based data to build the following:

• Staffing models
• Budgets
• Unit cost analyses
• Project plans

Cost: $4.99

BlitzGemba – Gemba Walk Notebook

Ummm, this next iPhone App seems a bit overdone. Whenever I’ve done a Gemba Walk, all I’ve needed was a pencil and a pad of paper. I’m not sure what this App offers, but for $9.99, it better offer drinks, food, some entertainment, and some ice cream also.

Here’s the description from the iTunes Store:

BlitzGemba is an easy-to-use notebook App for a gemba walk reporting purpose. It can be used for an ordinary gemba tour or for a visit with a specific observation goal. The App integrates the principles of lean thinking and gemba management into a standardized, efficient report with handy features (counter, stopwatch, voice recording, photos). It includes the possibility to send your findings by email so that you can work out your report in your own computer environment.

Features:

• Efficient and effective reporting tool
• Standardized note taking for observations, countermeasures and To Dos
• Additional tools: counter, stopwatch, amount indicator
• Incorporation of files in the gap report: sound recorder, photos or video*
• Structured database for the locations of the gemba visits
• Chronological storage of the revealed gaps
• Archivation on the device
• Hints to get more out of the gemba walk included
• Identification of gap sort by mentioned categories
• Export possibility by email
• Latest position is stored when closing the App

After reading the description, it doesn’t look like I’ll be getting anything I couldn’t get from a pad of paper and a pencil. So, save your money, buy some paper and a pencil instead.

Cost: $9.99

TPS – Lean Six Sigma

This iPhone App wins the “stupidest icon award” for an icon that has nothing to do with the App itself. Seriously, what does two men and a seductive woman holding a fishing pole, fishing in a bag full of money have to do with anything?

Anyway, here’s the description on iTunes:

This new book emphasizes the introduction of a new blueprint, called TPS-Lean Six Sigma, for addressing the primary concerns of manufacturing and service in a more sustainable and humanized way. It leads to a High Performance Culture and allows employees to realize their full potential and contribute creatively while the organization benefits from increased profitability, market share, and customer satisfaction. By way of this book, Hubert Rampersad and Anwar El-Homsi are launching a revolutionary, holistic concept which actively has human capital embedded in Lean Six Sigma in a manner that not only stimulates commitment, integrity, work-life balance, passion, enjoyment at work and employee engagement but also stimulates individual and team learning in order to develop a motivated workforce and sustainable performance improvement and quality enhancement for the organization.

I suggest you don’t buy this App, save your money, and buy some junk food instead.

Cost: $14.99

Kaizen by Karen Martin and Associates

This iPhone App is pretty useful. It provides the basic preparation needed for successful Kaizen events. The App is essentially a big reminder or To Do list for effective Kaizen events.

Here’s the description:

Portable, interactive checklists for planning and executing Kaizen events and conducting post-Event follow up to assure sustainability. Assure successful outcome through event planning and execution.

Cost: Free

ASQ Six Sigma Green Belt and Black Belt Guide

This iPhone App is a reference guide and a study guide for the ASQ Green Belt and Black Belt Certification Exams for SixSigma. If you care about black belt certification or recognition from ASQ, then maybe this iPhone App is for you.

From the iTunes Store:

Upward Mobility’s Six Sigma Green Belt and Black Belt test prep app for the iPhone contains a targeted curriculum of 299 questions addressing key topics for this important certification from the American Society for Quality (ASQ).

This app contains 149 Green Belt questions, and 150 Black Belt questions.

Each question is paired with an explanatory answer and a Key Takeaway. The Key Takeaway is designed to help the learner master the most important point of the question.

The primary editors for the content were Ted Chan, an experienced project manager who holds a MBA from MIT’s Sloan School of Management, and Eric Chan, an ASQ certified industrial engineer.

This app would also be useful for anyone studying for IASSC’s Green Belt and Black Belt certifications, or who wants to improve their general Six Sigma / quality management skills. It is also an effective refresher for those who need to be re-certified.

The intuitive Study Mode interface allows you to track your progress and circle back to questions for later review. Test Mode allows you to take the course as a sample exam and quickly review incorrect answers.

In many cases, professional training is reimbursable. Check with your employer or tax accountant to determine if this training module would be for you.

Cost: $6.99

SigmaCalc: Six Sigma Process Calculator

If you ever need to do any Six Sigma calculations on the road, such as Defects Per One Million Opportunities (DPMO) or Rolled Throughput Yield, then maybe this iPhone App is for you.

From the iTunes Store:

SigmaCalc is a Six Sigma process calculator that allows the user to calculate the Sigma value of any process — manufacturing, transactional or service. If offers a slick interface for quick computations.

Six Sigma process calculator fields include units, opportunities per unit, defects and shift. Six Sigma process calculator output fields include defects per unit, DPMO (defects per million opportunities), defects (percent), yield (percent) and process Sigma.

Developed by the same person who founded iSixSigma (www.iSixSigma.com), the premier Six Sigma media company and publisher in the world.

Bonus: the about page includes definitions of all the input and output variables so you have a full understanding of your process.

Cost: $0.99

Sigmalator: The Six Sigma Value Calculator

Yes, another six sigma value calculator.  Here’s their description:

Six Sigma is a set of strategies, tools, methods, and training programs proven in many industries to greatly improve work processes. This business management strategy began in manufacturing processes to eliminate defects (errors), but since has been broadly applied to a variety of industries including the airline industry and most recently, healthcare. In Six Sigma, a defect is broadly defined as anything that can lead to customer dissatisfaction.

The term “six sigma” is derived from a field of statistics known as process capability studies and comes from the idea that if there are six standard deviations between the average and the nearest defect, there will be practically no errors. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of product within its specifications. Processes that operate with “six sigma quality” over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities (DPMO). Six Sigma’s implicit goal is to improve all processes to that level of quality or better.

The question is often asked, “What Sigma Level Are We?”. Sigmalator is designed to take the number of defects/errors in a process and calculate a sigma value.

Sigma Levels:
Sigma levels represent the following long-term DPMO values:

• 1 sigma = 690,000 DPMO = 31% efficiency
• 2 sigma = 308,000 DPMO = 69.2% efficiency
• 3 sigma = 66,800 DPMO = 93.32% efficiency
• 4 sigma = 6,210 DPMO = 99.379% efficiency
• 5 sigma = 230 DPMO = 99.9767% efficiency
• 6 sigma = 3.4 DPMO = 99.99966% efficiency

To account for the real-life increase in process variation over time, an empirically-based 1.5 sigma shift is introduced into the calculation. This is based on the fact that a process that is normally distributed will have 3.4 parts per million beyond a point that is 4.5 standard deviations above or below the average. So the 3.4 DPMO of a “Six Sigma” process in fact corresponds to 4.5 sigmas, namely 6 sigmas minus the 1.5 sigma shift introduced to account for long-term variation.

Cost: $0.99

Process Improvement Essentials

This is a book as an iPhone App.  I haven’t read it, but is another resource for those on-the-go.

By James R. Persse, PhD

Published by O’Reilly Media (http://oreilly.com/catalog/9780596102173/)

Today, technology has become too much a part of overall corporate success for its effectiveness to be left to chance. The stakes are too high. Fortunately, the idea of ‘quality management’ is being reinvigorated. In the last decade process programs have become more and more prevalent. And, out of all the available options, three have moved to the top of the chain. These three are:

• The 9001:2000 Quality Management Standard from the International Standards Organization;
• The Capability Maturity Model Integration from the Software Engineering Institute; and
• Six Sigma, a methodology for improvement shaped by companies such as Motorola, Honeywell, and General Electric.

These recognized and proven quality programs are rising in popularity as more technology managers are looking for ways to help remove degrees of risk and uncertainty from their business equations, and to introduce methods of predictability that better ensure success.

Process Improvement Essentials combines the foundation needed to understand process improvement theory with the best practices to help individuals implement process improvement initiatives in their organization. The three leading programs: ISO 9001:2000, CMMI, and Six Sigma–amidst the buzz and hype–tend to get lumped together under a common label. This book delivers a combined guide to all three programs, compares their applicability, and then sets the foundation for further exploration. It’s a one-stop-shop designed to give you a working orientation to what the field is all about.

Superb Reading Features

Through a partnership between O’Reilly Media and Lexcycle, this app includes the same features that have made Stanza an iPhone phenomenon with over a million downloads:

• Full book text search
• Several fonts and themes to choose from
• Built-in dictionary
• The ability to add annotations
• Landscape view
• Extensive cross-referencing and working hyperlinks
• Zoom function for images and screenshots

Cost: $4.99

TaktCalc: The Lean and Kanban Calculator

Unlike the two Six Sigma calculators above, this one is very focused on lean-specific measures such as takt time, unit kanban, and others.

TaktCalc is the iPhone application that allows you to evaluate your manufacturing processes on the shop floor.
TaktCalc is designed to be used as a tool for professional process control engineers familiar with the principles of Demand Flow Technology. TaktCalc will aid computing kanban sizes and operational takt times. The purposes of these pages is to familiarize you with TaktCalc. For more detailed instruction regarding Demand Flow Technology as well as lean manufacturing please review the links page.

Cost: $4.99

Business Excellence

This business assessment tool outlines the key elements for any business success, irrespective of industry or size. It allows you to assess your business and provides guidance on how to drive improvement. It is based on BusinessExcellence.ie model for Business Success. Assess your business under the headings of Strategy, Products & Services and Processes. Submit your assessment to BusinessExcellence.ie for a personalised roadmap for your business.

Cost: Free

iGuides: Basics of Six Sigma

Here’s another Six Sigma guide.

There are many different theories on how a business should be run. One of the best theories out there is Six Sigma. If you have heard of it, but never looked into it, or if you want to start using it then you need run through this guide and find out what you’ve been missing! The road to a better business starts here!

Haven’t you always wanted to know the basics of Six Sigma? Learning about Six Sigma has never been so easy with the newest line of applications from Brighthouse Labs!

With so many mysteries in this world, we all need a guide sometimes. Understanding the world around you is the only sure way to get the most out of it. Don’t get caught with less information than you need! Download the iGuides – Basics of Six Sigma application today and get in the know!

FEATURES:

• Great Introductions that help you understand the “big picture”.
• View chapter by chapter for fastest searching.
• Step by step, easy to follow instructions.

Cost: $2.99

Go Lean

This App, put out by Synerflex Consulting, looks to be an RSS aggregator of various lean resources on the web. It was created by a consulting firm, so it appears to be a marketing tactic to gain clients.

From the iTunes Store:

Synerflex Consulting brings you all the top headlines, videos and learning on LEAN Manufacturing and LEAN Service. It also provides you a brief daily learning on LEAN.

Cost: Free

Leancalc

Here’s the iTunes description:

Lean Calculator is a must have for Lean and Six Sigma practitioners, Manufacturing Engineers, Industrial Engineers, Supervisors, and Managers.

Lean Calculator is the perfect application to quickly calculate common Lean (TPS) equations. It will return any missing variable for:

• Takt Time
• Demand
• Available Time
• Resources
• Leadtime
• Cycle Time
• WIP
• Throughput
• OEE (Overall Equipment Effectiveness, Availability, Quality, Throughput)

Cost: $0.99

SigmaCoach: The Six Sigma Coach

Another Six Sigma guide – except this one is in German:

Nutzen Sie Sigma Coach als ständigen Begleiter, wenn Sie Six Sigma Projekte durchführen. Nutzen Sie die Beschreibungen vieler Standard-Werkzeuge, aber auch solcher Werkzeuge die wir in unserer Beratungspraxis schätzen gelernt haben (bspw. die 3V-Methode).

Mit Sigma Coach sprechen wir nicht nur den erfahrenen Anwender an, sondern auch den Personenkreis, der erstmalig mit der Projektvorgehensweise nach Six Sigma Erfahrung sammeln möchte.

Möchten Sie die Beschreibung eines Werkzeugs einem Kollegen zukommen lassen? Dann nutzen Sie die E-Mail Funktion, mit der Sie Inhalte und grafische Darstellungen direkt aus der Applikation versenden können.

Verwenden Sie unseren grafischen Sigma Rechner zur Bestimmung der Prozessgüte. Experimentieren Sie mit den Parametern und sehen Sie das unmittelbare Ergebnis.

Funktionszusammenfassung

• Erläuterung der Bedeutung einer strukturierten Projektvorgehensweise
• Beschreibung der 5 Phasen eines Six Sigma Projektes (DMAIC)
• Darstellung von insgesamt 25 Werkzeugen
• E-Mail Versand der Werkzeugbeschreibungen
• Beschreibung der Qualifizierungshierarchie
• Rechner zur Berechnung der Prozessgüte

Cost: $0.99

My Six Sigma: The Ultimate Guide

Yes, another guide to Six Sigma. Here’s the iTunes description:

Six Sigma is a business management strategy, which improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. In statistical terms, the purpose of Six Sigma is to reduce process variation so that virtually all the products or services provided meet or exceed customer expectations. This app is provide both educational and referential information for professionals who seek to understand, implement or certified in this field. The following topics are covered in details:

• Understanding Six Sigma
• How Six Sigma was developed
• The Math & Science behind the Six Sigma
• Core Six Sigma Methodologies
• Fundamental Implementation roles
• Available Solutions & Technologies
• Green Belt vs. Black Belt Certification
• Tips for consideration of Six Sigma
• Glossary of Six Sigma Terms

Cost: $12.99

Six Sigma Process Aid

Calculate process sigma levels.

• Generate a histogram of data, with key statistical measures.
• Lookup methods, statistical methods and definitions from Wikipedia. When no network connection is available, you get a locally cached version.
• Mark documents as favorites for quick access.

As part of the Process Aid framework the application:

• Updates local content and links when connected to the network and a new version is available.
• Provides the simple Tools, Process, Bookmarks interface, optimized for the iPhone.
• Enables easy navigation, categorization and quick alphabetical access.
• Gives you key six sigma information, just when you need it.
• * Looks good enough to show your customers and colleagues.

Cost: Free

Lean Six Sigma Using SigmaXL and Minitab

This one is expensive. I can’t comment on the value, but it’s expensive. Here’s the iTunes Store description:

Effectively Execute Lean Six Sigma Projects using SigmaXL and Minitab Written by a Six Sigma Master Black Belt and a Ph.D., this practical guide to Lean Six Sigma project execution follows the DMAIC (Define, Measure, Analyze, Improve, and Control) roadmap. The many real-world examples used in the book offer in-depth theoretical analyses and are implemented using the two most popular statistical software suites–SigmaXL and Minitab. This expert resource covers Lean topics ranging from basic data analysis to complex design of experiments and statistical process control. Harness the power of SigmaXL and Minitab and enable sustained positive operational results throughout your organization with help from this authoritative guide. Lean Six Sigma Using SigmaXL and Minitab explains how to: Define the project goals, project manager, value statement, stakeholders, and risk Schedule tasks using the Gantt chart, critical path analysis, and program evaluation and review technique Capture the voice of internal and external customers Assess the cost of quality Gather data and measure process performance Perform process capabilities analysis Apply Lean Six Sigma metrics to determine baseline performance Implement analysis techniques such as Pareto analysis, value stream mapping, failure mode and effect analysis (FMEA), and regression analysis Identify constraints via factorial experiments, and implement process improvements Monitor production performance using statistical process control.

Cost: $29.99

Design for Six Sigma

This is the book as an iPhone App. It’s expensive and not sure how helpful. Here’s the iTunes Store description:

The Latest Tools and Guidance Needed to Implement Design for Six Sigma in New Product and Service Development!

Hailed as a classic in its first edition, Design for Six Sigma has been fully revised and updated to equip you with everything you need to implement Design for Six Sigma (DFSS) in new product and service development.

The Second Edition of this indispensable design tool retains the core of the previous edition, while adding new information on innovation, lean product development, incomplete DOE, mixture experiments, and alternative DFSS roadmaps—plus new thread-through case studies.

From quality concepts and DFSS fundamentals…to DFSS deployment and project algorithm…to design validation, the updated edition of Design for Six Sigma gives you a solid understanding of the entire process for applying DFSS in the creation of successful new products and services.

Packed with detailed illustrations, careful directions and comparisons, and worked-out calculations, the Second Edition of Design for Six Sigma features:

A one-stop resource for developing a sure-fire DFSS program. Expert walkthroughs that help readers choose the right design tools at every stage of the DFSS process New to this edition: new chapters on innovation, lean product development, and computer simulation; new material on critical parameter management; new thread-through case studies Providing real-world product development experience and insight throughout, the Second Edition of Design for Six Sigma now offers professionals in a wide range of industries the information required to maximize DFSS potential in creating winning products and services for today’s marketplace.

Filled with over 200 detailed illustrations, the Second Edition of Design for Six Sigma first gives you a solid foundation in quality concepts, Six Sigma fundamentals, and the nature of Design for Six Sigma, and then presents clear, step-by-step coverage of:

• Design for Six Sigma Deployment
• Design for Six Sigma Project Algorithm
• DFSS Transfer Function and Scorecards
• Quality Function Deployment (QFD)
• Axiomatic Design
• Innovation in Product Design
• Lean Product Development
• TRIZ
• Design for X
• Failure Mode-Effect Analysis
• Fundamentals of Experimental Design
• Incomplete DOE
• Taguchi’s Orthogonal Array Experiment
• Taguchi’s Robust Parameter Design
• Tolerance Design
• Response Surface Methodology
• Mixture Experiments
• Design Validation

Cost: $89.99

Six Sigma

Yes, this App is simply called Six Sigma. Again, it’s a reference guide. Here’s the description:

Ever wish you had a quick reference guide to the Six Sigma methodology and tools on your iPhone?

Now you can with the Six Sigma iPhone Application.

The Six Sigma iPhone Application is a Quick Reference Guide for the Six Sigma™ program methodology and tools. Not only does it have the complete Six Sigma methodology, it also has short synopsis for each Six Sigma and Lean Manufacturing tool.

The Six Sigma iPhone Application contains the following for each of the Six Sigma D.M.A.I.C. phases:

• Activities
• Available Tools (most with step by step instructions)
• Example Tools with Pictures of real life tools and templates
• Gate Review Topics

Cost: $3.99

The Six Sigma Fieldbook, by Mikel Harry

This is another expensive book as an iPhone App.

The authoritative hands-on guide to putting the Six Sigma strategy into practice, written by Mikel Harry, co-founder of the Six Sigma Academy, and Don Linsenmann, the Six Sigma champion who helped to implement Six Sigma across DuPont’s eighteen business divisions.The ideal companion to Mikel Harry and Richard Schroeder’s national bestseller Six Sigma, THE SIX SIGMA FIELDBOOK takes readers inside the nuts and bolts of implementing the Six Sigma breakthrough strategy, showing readers how companies can streamline their operations, improve the quality of their products and services, and dramatically increase their profits.Based on DuPont’s multi-year unrolling of Six Sigma throughout the company’s global business divisions, THE SIX SIGMA FIELDBOOK discusses the opportunities, obstacles, and challenges DuPont faced in making the decision to embrace Six Sigma and attempting to adapt it to DuPont’s unique culture. DuPont Six Sigma champion Don Linsenmann reveals the tools DuPont’s managers needed to introduce and sustain Six Sigma quality at every level of the company, from the corner office of the executive boardroom to the factory level. DuPont used Six Sigma to help reshape their entire business model; as a result, they saved billions of dollars. Using as a framework DuPont’s successful multiyear implementation of Six Sigma across its business divisions, THE SIX SIGMA FIELDBOOK reveals the day-to-day obstacles and challenges managers face in coordinating its efforts to implement and sustain Six Sigma and offers a comprehensive road-map on how companies of all kinds can successfully apply Six Sigma methodology to increase profits and improve quality.

About the Author

MIKEL J. HARRY, Ph.D., is the founder and former CEO of the Six Sigma Academy, Inc. He helped develop the Six Sigma program at Motorola during the 1980s and later served as corporate vice president at Asea, Brown, Boveri, Ltd. He lives in Scottsdale, Arizona. DON R. LINSENMANN is vice president and corporate champion, Six Sigma, at DuPont, leading the global deployment of DuPont’s Six Sigma program. In addition, he has global responsibility for DuPont’s Corporate Strategic Accounts. He lives in West Chester, Pennsylvania.

Cost: $29.99

20+ Lean Six Sigma iPhone Apps is a post from: Lean Six Sigma Consulting

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Abbott has voluntarily recalled its Similac Brand Baby Formula because evidence of beetle larvae has been found in several containers.

Imagine feeding your cute, little, adorable baby beetle larvae – yes, very gross and very upsetting and incredibly scary for mothers. I know the reaction in my household has been one of inconvenience, annoyance, and fear. My wife is not happy.

How does beetle larvae enter the production process and result in contaminated baby formula? What would their 5 Why exercise look like?

From a reputation and branding perspective, is Abbott doing enough to win the hearts and wallets of mothers across America? Based on the numerous videos I’ve included on this post, there are some very, very, very mad and angry mothers.

Be sure to check out the videos below of moms speaking with Abbott Customer Service.

Abbott Similac Recall Process

So, I went to the Abbott website to check if the infant formula we have is contaminated with beetle larvae. Answer: yes, all of our infant formula is contaminated with beetle larvae.

Great, several hundred dollars worth of our baby formula is now garbage. How can I get my money back?

Well, the next step is shown below:

I completed a form with my address, lot number, and then Abbott will send me a FEDEX box where I will return all of our formula. Once Abbott receives the recalled infant formula, they will then reimburse us, which could take 4 – 6 weeks.

More About the Abbott Similac Baby Formula Recall

Abbott is initiating a proactive, voluntary recall of certain Similac-brand, powder infant formulas in the U.S., Puerto Rico, Guam and some countries in the Caribbean.

Abbott is recalling these products following an internal quality review, which detected the remote possibility of the presence of a small common beetle in the product produced in one production area in a single manufacturing facility. The United States Food and Drug Adminstration (FDA) has determined that while the formula containing these beetles poses no immediate health risk, there is a possibility that infants who consume formula containing the beetles or their larvae, could experience symptoms of gastrointestinal discomfort and refusal to eat as a result of small insect parts irritating the GI tract. If these symptoms persist for more than a few days, a physician should be consulted.

The recall of these powder infant formulas includes:

• Certain Similac powder product lines offered in plastic containers.
• Certain Similac powder product lines offered in 8-ounce, 12.4-ounce and 12.9-ounce cans.
• To immediately find out if the product in your possession is included in this recall, parents and caregivers should visit www.similac.com/recall/lookup, and type in their lot number to determine if their product is affected, or call (888) 376-2054.

No Abbott liquid infant formulas are impacted. Products not involved in the recall include all Abbott Nutrition liquid ready-to-feed and concentrated infant formulas and all powder and liquid specialty formulas, such as Similac Expert Care™ Alimentum®, Elecare ®, Similac Expert Care™ Neosure ®, Similac® Human Milk Fortifier, and metabolic formulas for inherited disorders.

About the Recall

The company is implementing a plan to address this matter in the affected manufacturing facility, which is expected to be completed shortly. No other facilities or products are involved in this recall.
Abbott has consulted with the U.S. FDA regarding this recall.

Information for Parents and Caregivers

Products with affected lot numbers should be returned to Abbott at no cost to the consumer.
Parents and caregivers can go to www.similac.com/recall/lookup or call Abbott’s consumer hotline, (888) 376-2054, 24 hours a day, seven days a week.

Both the website and the consumer hotline have specific details on how to complete the return process.
Holger Liepmann, executive vice president, Abbott Nutrition said:

“Abbott understands that parents expect to feed their children only the highest quality product. We are taking this action so that parents know that the infant formula products they provide unquestionably meet the highest quality standards for which they are known. We regret any inconvenience this situation poses to parents and consumers.”

You Can Find and Download All Similar Baby Formula Affected Lot Numbers Here ¹

In addition to poor Abbott infant formula quality, how about their response to this? Are they doing enough to win the hearts and wallets of mothers across America?

Hundreds of Angry Moms: Similac Baby Formula Recall is a post from: Lean Six Sigma Consulting

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What motivates an individual and an organization is sometimes not aligned with the rewards system we put in place to encourage a higher level of performance. We see this dynamic in the cigarette sin tax situation where a higher sin tax does not lead to less smoking.

Thinking about the specific Lean Deployment or Six Sigma Implementation you’re involved in, what rewards system is in place to encourage a higher level of performance? Is that rewards system aligned to what is truly motivating the individual? The organization?

What Motivates Us?

In Daniel Pink’s book Drive, we learn that financial incentives rarely motivate people toward higher performance. Conversely, financial disincentives rarely dismotivate people from doing what they shouldn’t be doing.

Case in point: the cigarette sin tax. ¹

The Cigarette Sin Tax

The cigarette sin tax infographic below shows how much money the federal government and the state government is collecting from the cigarette sin tax. As you can see, as the cigarette sin tax increases, there is a negligible decrease in smoking. In fact, as the cigarette sin tax increases, we don’t see much of an affect on smoking cessation.

According to Daniel Pink, he argues that the common motivational tactic of “if you do X, you will get Y” doesn’t often work for knowledge workers. Or, in the case of smoking, “if you do X, you will have to pay Y” doesn’t work in reducing the behavior.

If money won’t help curb the behavior, then what will?

How to Quit Smoking

I don’t smoke, but I’ve helped people quit smoking while I was a service missionary in ghettos of Ohio. The idea of quitting a very addictive habit and the psychology involved in that is really interesting to me.

According to Daniel Pink, stopping a habit like smoking is better done with what he calls “implementation intentions”. Defined, Implementation Intentions are

if-then plans that connect anticipated critical situations with responses that will be effective in accomplishing one’s goals. Whereas … goals specify what one wants to do/achieve (i.e., “I intend to perform behavior X!”…), implementation intentions specify the behavior that one will perform in the service of goal achievement if the anticipated critical situation is actually encountered (i.e. “If situation Y occurs, then I will initiate goal-directed behavior Z!”).

In other words, to stop smoking, the person needs more than just the goal of “I will Quit Smoking”. There must be the implementation intention of “how” one actually does it. Having the goal of “I will Quit Smoking” isn’t enough, but must be supported by intermediate goals of feeling-reaction, such as:

I feel X, I will do Y

In other words,

• If I get a craving, I will chew gum
• If I get twitchy for a cigarette, I will distract myself
• When I want an afternoon smoke break, I will do ten push-ups
• When I feel stressed and need a cigarette, I will run up and down stairs
• If a friend attempts to peer pressure me into smoking a cigarette, I will walk away and read a book or a magazine and not hang out with that person for a while

The idea is simple, but takes the person from a moral-will  or from a simple will power perspective of “I will Quit Smoking” to a position where it is more practical and the future behavior has already been decided.

Motivation and Lean Thinking

It is important to be aware and plan for the motivations of why people and organizations are undertaking a Lean Deployment or Six Sigma Implementation. And, are the rewards you provide for successful completion of an A3 or a Six Sigma project monetary? If so, you might want to reconsider your rewards system to be more aligned to what is truly motivating that person from succeeding or reaching a higher level of performance.

Cigarette Sin Tax and Lean Six Sigma Deployments is a post from: Lean Six Sigma Consulting

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The second phase in the Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC) methodology is Measure. In a previous post, we discussed the Define Phase in the Six Sigma DMAIC Methodology.

During the Measure phase, the focus shifts from “do we agree that X is a problem” to “what’s the phenomena that is happening such that it is a problem?” For example, if a machine is failing, it would be good to know how often, when it’s failing, and other items related to the defect.

In other words, collect data.

But, it’s not just data. It’s gut or hunch also.

Here’s what I mean: often times, we begin with “hunch” or “gut” and that gives us a good place to start of where to collect data. Ideally, we want to marry our gut hunch with data.

Lean Six Sigma: Purpose of Measure (DMAIC)

• Through more detailed analysis, select a problem and problem space that will have the biggest impact on the organization and set an improvement target.

Lean Six Sigma: Tools used in Measure (DMAIC)

In the Lean Six Sigma phase of Measure, these are often the tools that are used:

1. Run Chart
2. Control Chart

1. Measurement System Analysis
2. Prioritization Matrix
3. Pareto Analysis
4. Spaghetti Diagram
5. Process Cycle Efficiency

Lean Six Sigma, Measure, Critical Checkpoints

• Plan for and document the results of data collection.
• Establish improvement targets.
• Stratify situation to a component level specific enough to analyze.
• Frame a problem statement clearly and simply, using data.
• Present data using appropriate descriptive charts and graphs.

Lean Six Sigma, Measure Tollgate Checklist

• How and where did you collect the data?
• Are you using attribute or continuous data and why?
• What does the distribution of your data look like?
• How repeatable and reproducible is your data?
• What is your sampling plan?
• How did you ensure randomness in your data collection?
• What is the current performance of the process?
• How did you establish your improvement target?

This constitutes a basic template for the Measure Phase in Six Sigma.

Lean Six Sigma: Elements of MEASURE is a post from: Lean Six Sigma Consulting

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Not everything is important. For this reason, we need to prioritize so that we can channel energies and resources in the most prudent way.

The Prioritization Matrix is a simple tool that provides a way of sorting a diverse set of items into an order of importance. It also enables their relative importance to be identified by deriving a numerical value of the importance of each item. Which means that an item with a score of 344 is clearly higher in importance than an item with a score of 133.

There are many types of prioritization matrices, such as Quality Function Deployment, etc. Today, I’ll be covering the most practical and simple way to prioritize amongst many variables.

When to use a Prioritization Matrix

• Use it to prioritize complex or unclear issues, where there are multiple criteria for deciding importance.
• Use it when there is data available to help score criteria and issues.
• Use it to help select items to be actioned from a larger list of possible items.
• When used with a group, it will help to gain agreement on priorities and key issues.
• Use it, rather than simple Voting, when the extra effort that is required to find a more confident selection is considered to be worthwhile.

How to use a Prioritization Matrix

1. Identify the overall objective. For example, ‘Increase the profitability of the x, y, z product line.
2. Gather the people who are to work on the problem. They should, between them, understand the problem area and how items on the list may be judged.
3. Produce the list of items to be prioritized. This may be done using other tools, such as Brainstorming or Surveys.
4. Identify a list of criteria which may be used to judge how well each item on the list from step 3 serves the objective from step 1.
5. Approaches to identifying criteria may include:
   • Analyze the statement of objectives (e.g. What are the components of profit?).
   • Identify practical constraints (e.g. How easy is it to do?).
   • Consider the benefits, costs and risks.
   • Aim for criteria that can be measured objectively and easily, rather than subjectively or with difficulty.
   • Word the criteria such that it is clear that agreeing with them is desirable. Thus use ‘Low cost of ownership’, rather than ‘Ownership cost’.
6. Allocate a weighting number to each criterion to show their relative importance in achieving the overall objective. Thus a criterion with a number of 4 is twice as important as one with a number of 2. In general, these weights are arbitrary but should give you a sense of “gravity”.
7. When allocating numbers in a group, if consensus cannot be reached, give each person the same number of points to spread amongst the criteria or use some other Voting method.
8. Select the actual criteria to use against the list items to be prioritized. This may be done by:
   • Rejecting criteria which have an importance number which is much lower than others.
   • Reducing the number of criteria to a small and manageable number, typically around three, by selecting those with the highest importance number.
9. Define how the list items from step 3 will be scored against each of the criteria identified in step 6. Approaches to consider include:
   • Have a limited set of possible score values, with associated text to describe what they mean. Thus a score of 4 may mean ‘item strongly supports the criterion.
   • Use a Voting system, as in step 5, where each person has a fixed number of points to distribute across items.
   • Use negative scores for negative effects. An example is where the criterion is ‘reduces manufacturing cost’, but the list item actually increases manufacturing cost.
   • Use a percentage scale either for direct scoring or to convert the final score into a percentage. This makes it easier to deduce information, for example if one item has a score of 64%, it is clear that all other scores against this criterion total only 36%.
10. Score each item against each criterion, using the method identified in step 7.
11. If actual numerical values are available for these comparisons, translate the values into the same score range as identified in step 7. For example, if actual costs are available, but the scoring system uses a total of 100, then divide each cost by the total of all costs and multiply by 100.
12. Multiply each score from step 8 by the number allocated to the appropriate criterion in step 5 to get the weighted score for each item against each criterion, as in the figure below.
13. For each item, add up all of the weighted scores from step 8. This gives the final prioritizing score for each item. The scores may left as they are or converted to percentage values.
14. The final list of prioritized items may be made clearer for communication and decision making by sorting it into priority order and displaying it in a Pareto Chart.

Prioritization Matrix is a post from: Lean Six Sigma Consulting

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For the remainder of 2010, I thought I’d highlight the Lean Six Sigma events upcoming from around the world. If you know of an event taking place that should appear here, let us know in the comments below or feel free to email.

ASQ 19th Annual Service Quality Conference

September 13-14, 2010, Las Vegas, NV

From the conference website:

In today’s competitive marketplace, standing apart from your rivals is more important than ever. Customer service and other quality tools are must-haves. Learn how to use these tools to your advantage and sharpen your organization’s competitive edge.

This exceptional educational opportunity will once again bring you the latest topics in service quality. The two-day conference will provide how-to’s, step-by-step advice, success stories, and implementation guidance on major organizational changes. Participants will learn how to improve customer service, reduce costs, and increase customer loyalty and satisfaction from leaders in the quality industry.

Speakers:

• Joan Brennan, DNP, RN: Joan is the Vice President of Performance Excellence at AtlantiCare, which includes AtlaniCare Regional Medical Center, AtlantiCare Health Services, AtlantiCare Behavioral Health, and the AntlantiCare foundation. She will be speaking on Leadership in Patient Safety and Performance Excellence in Healthcare.
• Michael Pulido: Michael is the Chief Human Resources Officer at Heartland Health. He’ll be speaking about the human dimensions in change initiatives, especially in the context of Healthcare.

Presenters Include:

• Alex Draughton: Customer 1st Campaign – From Ideas to Improved Service
• Lynda Curtin: Strengthen Your Innovation Instinct with Six Thinking Hats
• Liz Keim: Lean Six Sigma – Past, Present, and Future
• Jim Duarte and Sean Dyer: Advanced Analytics for Continuous Improvement
• John Goodman: Creating Remarkable Service at Lower Cost
• Tania Salarvand and Nico Dorka: Innovation Value Proposition to Ensure Competitive Edge
• John Iverson: The Significant Seven – Key Processes Each Service Organization Should Master
• Tim King: QFD for Innovating the Competitive Edge
• James Gordon: Using Analytics to Improve the Customer Experience
• Bernard Nnenji: Six Sigma Comes to Advertising
• Diane Schmalensee: Turn Customers to Advocates
• Judith and Joseph: Establishing Relationships to Provide Quality Service
• Jeanette Rogers: Applying the Taguchi Loss Function to Service Quality

You can learn more and register for this event here.

Plan-Do-Check-Act: A Scientific Approach to Problem Solving

September 23 – October 21, Thursdays, 7:00 – 8:50 PM, Stanford University

From the Stanford University Course Website:

Most people have experienced organizations that can’t effectively deal with gaps between desired and actual performance. These organizations spend money, energy, and countless hours in meetings — and nothing improves. The problem: poor or inadequate decision-making processes. What’s the solution?

This course introduces the Plan-Do-Check-Act (PDCA) approach to problem solving. It is also known as the Deming Cycle or the “A3 approach” because it is often done on an A3-sized piece of paper (11″ Å~ 17″). Because it is based on the scientific method, it teaches clear thinking and engages team members at all levels. It also increases the likelihood that the proposed countermeasures will be effective, because they’re based on facts and data gathered at the place where the work is performed, from the people who perform it.

Students will explore the requirements of sound A3 thinking and management by following the stages of learning illustrated in the textbook. They will also develop their own abilities to recognize and create effective A3s. Participants will learn how to use the A3 as a management tool and gain experience in the three basic roles of the A3 process (author, responder, and coach). This course is geared to any managers who wish to lead and manage their organization more effectively, and those who wish to improve their critical thinking skills. This includes HR professionals who are looking to improve the behavior, alignment, and performance of the people in their organizations.

Instructor:

• Dan Markovitz, President, TimeBack Management: Dan Markovitz teaches companies how to apply lean manufacturing principles to personal productivity. He is a faculty member at the Lean Enterprise Institute. He received a BA from Wesleyan University and an MBA from Stanford.

Key Concepts of Lean in Healthcare

October 11 – 12, 2010, Lean Enterprise Institute, Cambridge, MA

From the Events website:

This two-day workshop is designed for individuals and teams that want to gain a better understanding of the components and underlying philosophy of lean, and how the elements and philosophy work together to create a lean healthcare organization. This course is designed specifically for healthcare settings, incorporating examples from many departments and patient pathways.

This course explains how the visible tools and methods of lean are based on a mindset, philosophy, and thought process. Special emphasis is placed on balancing Toyota’s equally-important core principles of continuous improvement and “respect for people.” Practical steps will be presented for starting with lean immediately upon returning to your healthcare organization, as well as a way of thinking through a longer-term lean strategy for your organization.

Instructor:

• Mark Graban: Mark is a Senior Fellow at the Lean Enterprise Institute and author of the Shingo Prize-winning book Lean Hospitals: Improving Quality, Patient Safety, and Employee Satisfaction. Previously, Mark worked as a consultant for numerous healthcare organizations across North America and in the United Kingdom. He taught and led teams of hospital personnel across multi-month lean transformation engagements in departments including laboratory, radiology, primary care, and nursing settings. Working with managers and senior leaders, these hospitals developed a track record of sustaining their lean improvements and also instilling a culture of continuous improvement and kaizen. With a background in Industrial Engineering, Mark first learned and practiced lean in various manufacturing industries, learning how lean concepts and management methods could be translated into different settings. Mark has a B.S. in Industrial Engineering from Northwestern University and an M.S. in Mechanical Engineering and an M.B.A. from the Massachusetts Institute of Technology’s Leaders for Global Operations Program.

Kanban for Software Development

• October 12 – 15, 2010, Hamburg, Germany
• October 26, Warsaw, Poland
• October 27, Paris France

From the events website:

What is Kanban?

Kanban is a new lightweight approach to software development that transfers principles from the Lean Production/Toyota-Production-System to the software development. In this context, two rules are defined:

1. Each process takes work from the previous process (pull principle) in order to avoid overloading.
   Work in progress is restricted so that no expensive stocks accumulate.

Advantages of Kanban

Kanban can be introduced with relatively little effort into existing software development environments and also works with a strong division of labor.

Moreover, Kanban delivers an useful perspective to consider the entire value chain beyond the pure software development. For this reason, Kanban is also interesting for companies which are for example already applying scrum successfully for the development.
Agenda

We offer two day kanban trainings with David Anderson.

Each day covers a differnet module, so it´s possible to attend either day one or day two or both days (recommended)

Day 1: Kanban mechanics

• Introduction using “Kanban In Action” cartoon
• Introductory exercise: Demand Analysis
• GetKanban Game
• Value-Network Mapping
• Visualization
• Work Item Types
• Exercise: Map the value network, visualize it, define work item types
• WIP Limits
• Classes of Service
• Service Level Agreements
• Exercise: Determine classes of service, WIP limits, service level agreements, show how these relate to the Demand Analysis from Intro Exercise

Day 2: Why Kanban? & Improvement Opportunities

• Intro: What is Kanban? XP 2010 Key Note Speech “Defining Kanban – the value of creating a Limited WIP Society in your organization”
• Recipe for Success
• XIT Case Study
• Corbis Collaboration Study
• Economic Cost Model for Lean (Waste)
• Bottleneck Management
• Introduction to Understanding Variation

Instructor:

• David J. Anderson: David J. Anderson leads a management consulting firm focused on improving performance of technology companies. He has many years management experience leading teams on agile software development projects. David was a founder of the agile movement through his involvement in the creation of Feature Driven Development. He was also a founder of the APLN, a non-profit dedicated to improving management and leadership in technology companies. Recently David has been focusing his attention on business agility and enterprise scale agile software transitions through a synergy of the CMMI model for organizational maturity with Agile and Lean methods.

AME International Lean Conference

November 15 – 19, 2010, Baltimore, Maryland (American Manufacturing Association)

This looks to be a really great conference this year with some amazing Keynote Speakers including:

• Malcolm Gladwell: Malcolm Gladwell has an incomparable gift for interpreting new ideas in the social sciences and making them understandable, practical and valuable. In 2005, Time magazine named Malcolm one of its “100 Most Influential People”. His book, Outliers: The Story of Success, is having an even greater impact than his first two. In Outliers, Malcolm suggests an exciting new approach to helping people succeed by using the factors that really foster success. It debuted as a #1 bestseller for The New York Times, The Wall Street Journal, The San Francisco Chronicle, Barnes & Noble, and Publisher’s Weekly. He is the author of two other New York Times #1 bestsellers, The Tipping Point and Blink. With his first book, Malcolm embedded the concept of The Tipping Point in our everyday vocabulary and gave organizations new tools for understanding how trends work. In Blink, he analyzed first impressions-the snap judgements that we all make unconsciously and instinctively-and explores how we can master this important aspect of successful decision-making. Malcolm is a staff writer for The New Yorker magazine. His editor describes his work as a new genre of story, an idea-driven narrative focused on the everyday and combines research with material that’s more personal, social and historical. He now has another bestseller, What the Dog Saw, a compilation of essays from his writings in The New Yorker magazine. He was previously a reporter for the Washington Post.



• Dr. John Toussaint: Dr. John Toussaint is Chief Executive Officer of the ThedaCare Center for Healthcare Value and former CEO of ThedaCare, Inc. During his tenure as president and CEO of ThedaCare, he introduced the ThedaCare Improvement System (TIS), which is derived from the Toyota Production system. This model of continuous improvement helped save millions of dollars in healthcare costs by reducing patient errors, improving outcomes and delivering better quality care at a higher value. ThedaCare and Dr. Toussaint’s work have been featured in Health Affairs, Wall Street Journal, New York Times, Modern Health Care and Health Management Technology. He is asked to speak all over the world on LEAN and the topics of quality and efficiency in healthcare.



• George Koenigsaecker: George Koenigsaecker is a principal investor in several Lean enterprises. He is a Board Member of the Shingo Prize, The Association of Manufacturing Excellence, The Thedacare Center for Healthcare Value, Ariens Outdoor Power Equipment, Baird Capital Partners, Simpler Consulting and Watlow Electric Corporation. From 1992-1999, he led the Lean conversion of the HON Company, a $1.5 billion office furniture manufacturer, his efforts led a tripling of volume and culminated in HON Industries being named by Industry Week magazine as one of the “World’s Best Managed Companies”. Prior to this, George was with the Danaher Corporation, where he was President of the Jacob’s Vehicle Equipment Company (whose Lean conversion is featured in the book Lean Thinking by Jim Womack and Dan Jones) and Group President of the Tool Group, then the largest business unit of Danaher. He also developed and implemented the “Danaher Business System”, a comprehensive Lean enterprise model. He has held senior management positions in Finance, Marketing and Operations with Rockwell International and Deere & Company. He is a graduate of the Harvard Business School.
• Colleen Abdoulah: Colleen Abdoulah, the only female CEO to lead a Top 20 cable company, is widely respected for her passionate focus on customer experience and company culture. Colleen has guided WOW! Internet, Cable and Phone through seven years of industry leading financial success and earned an unprecedented ten J.D. Power & Associates awards for customer satisfaction. She has been the Keynote Speaker at a variety of management conferences and business forums, where she has shared her views on the strategic importance of customer experience and company culture; development of gender-balanced management and leadership; and cultivation of authentic leadership among other topics. Prior to joining WOW!, Colleen spent much of her career at Tele-Communications Inc. (TCI) where she served in a number of positions, including Assistant to the COO and Executive Vice President of Cable Operations. She architected the business strategy and deployment of TCI’s digital cable service after serving as General Manager of Netlink, where she oversaw operations of TCI’s national satellite division.
• Dr. John Izzo: Author of the Five Secrets You Must Discover Before You Die, and named by Leadership Excellence Magazine as one of North America ‘s Top 100 Thought Leaders, Dr. John Izzo sees and feels the goodness many of us aspire to. As an author, community leader and inspiring speaker, he has worked hard to talk about the essential elements of Leadership and the new frontier of that ever changing role. His interests are Development as it pertains to the individual, as well at the company, Corporate Culture and the pursuit of creating places that support the individual and the corporate vision, and Personal Well-being in the fight to balance work and life. He works with leaders to create corporations and organizations where values and purpose are the foundations for success. Establishing these foundations helps leaders and organizations reach sustainable success through the integration of purposeful leadership and business practices.
• Howard Putnam: Author of The Winds of Turbulence on leadership and ethics and former CEO of Southwest Airlines, Howard Putnam inspires audiences to a greater vision and new insights. Southwest Airlines changed the way the game is played in the airline industry, creating a new model that focused on low costs, low fares and great customer service. The goal was to expand the size of the pie (market). They hired “attitudes” and developed skill sets. Tradition doesn’t always work in any industry. Sometimes you have to flip your model upside down for a fresh look. You have to have a clear and concise vision if you want your organization to survive and thrive through turbulence. A clear understanding of what business or businesses you are really in is critical. Cultures can then be developed to support the vision and business. Bottom line improvement comes through your people. Howard will share with you how successful organizations get through the maze.

There will also be several Factory or Site Tours and Presentations, such as:

• Lion Brothers
• Corradetti Glass Blowing Studio
• Connecticut Center for Advanced Technology
• New York City Health and Hospitals Corporation
• Eaton Corporation
• Harley Davidson Factory Tour
• GM Power Train Factory Tour

Value Stream Mapping for Healthcare

October 14, Lean Enterprise Institute, Cambridge, MA

From the website:

This interactive workshop demonstrates how to apply lean principles and value-stream mapping, a fundamental and critical tool, to accomplish what many healthcare organizations find difficult to do: make fundamental improvements in their clinical/administrative processes. You will see how the key elements of lean thinking and value-stream mapping apply to the primary and secondary processes of healthcare organizations, such as emergency medical care, pharmacy, diagnostic procedures (lab and radiology), sterile processing, case management and patient registration, discharge, records and billing. By learning to identify key processes to tackle, draw an accurate current-state map of each process, apply lean principles to envision a leaner future-state for each process, and implement the future-state in a way that can be sustained, you will develop a methodology that leads to improved outcomes and true continuous improvement.

Instructors:

• Tom Shuker: Tom is a 30-year veteran in various manufacturing environments within General Motors Corporation. Tom has also spent two-years at New United Motors Manufacturing Inc. (NUMMI), the GM-Toyota joint venture, working within the Toyota Manufacturing System and performing lean assessments of Toyota facilities in Kentucky and Japan. Tom has co-authored two books on Lean, Value Stream Management and Value Stream Management for the Lean Office, both published through Productivity Press, Inc. Tom is also a co-author of Mapping to See – A Value-Stream Improvement Kit for Office and Service, published by the Lean Enterprise Institute. He has a Bachelor of Science degree from Michigan State University, and an MBA from Western Michigan University. He currently aids companies implementing lean through an investment group that purchases small manufacturing firms and helps turn them around and as a member of the consulting group Lean Transformations Group.
• James (Beau) Keyte: Beau began his lean career in the mid-80′s on the shop floor at the Ford Motor Company. He then pioneered the use of lean concepts in office, service, and healthcare settings, beginning in 1993. Since then, he has applied lean throughout enterprises and supply chains and assisted companies in defining and realizing financial- and market-related successes. He is the co-author with Drew Locher of The Complete Lean Enterprise: Value-stream mapping for administrative and office processes, a recipient of the Shingo Research Prize. Beau currently aids companies implementing lean through Lean Transformations Group.
• Judy Worth: Judy Worth got her first introduction to lean from one of her business partners, who left their company in Lexington, KY, to work at the start up of Toyota’s first North American plant in Georgetown, KY. She got additional exposure to the value-stream mapping tool when she served as instructional designer for LEI’s Mapping to See Kit for lean in office and services. For the past four years, Judy’s focus has been on implementing lean in healthcare. She has extensive experience facilitating value-stream mapping workshops in healthcare organizations, including hospitals and primary care, and has also provided training and coaching services for healthcare in-house lean facilitators. Judy is the co-author of a white paper on lean competencies, “Building Capability for Success with Lean: The Critical Competencies.” She currently aids companies implementing lean through Verble, Worth, and Verble, and the Lean Transformations Group.

If I’ve missed any Lean Six Sigma events for the remainder of 2010, please make a note of it in the comment section below.

Lean Six Sigma Events Guide 2010 is a post from: Lean Six Sigma Consulting

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A Check Sheet is one of the Seven (7) Basic Quality Tools. A Check Sheet is a simple tool for data collection. In this post, I’ll show how to create and use a Check Sheet and provide some basic heuristics and common pitfalls of Check Sheet and data collection overall.

A Check Sheet allows us to use a structured & standardized format for collecting defect information:

• Minimizes the chance that different people will collect the data in the different ways
• Forces the team to consciously think about what data they want to collect, why they want to collect it, and what they plan to do with the data once collected

What is a Check Sheet

• Check sheets are data collection forms constructed to record specific information about a process in a organized manner
• Check sheets are designed to answer the question “How often does this event occur and under what conditions?”
• Check sheets can be used either to support conclusions concerning a process on its own or may be a step in the process of assembling the data to support one of the other improvement tools

Elements of a Check Sheet

• A description of what data is being collected – need to make sure that clear Operational Definitions are established for each variable being collected
• Places to put the data (actual ease of data collection / recording needs to be as simple as possible – tally sheets work well)
• Room for comments – both for the defect types and general (in case the data either does not fall into one of the pre-set categories or in case something special happens – e.g. a power failure – that needs to be documented)
• Room for potential statistical data

Check Sheets – Key Points

• Keep the form simple to use and understand; (the easier you make the sheet to use, the more likely you will get the data you need)
• Include only information that you intend to use
• Pilot or test the Check Sheet form before you use it on a full-scale basis – Make changes to it if necessary

How To Create a Check Sheet

• As a team, brainstorm to determine the exact data to be collected and how this data will be organized into categories and then subcategories (taking the time to really think this through will greatly aid later on in the project)
• Always stay focused on the improvement opportunity (what are you trying to learn about) and keep asking yourself what you will use the data for
• Develop exact Operational Definitions of each variable
• Construct the data collection form or forms that will allow recording of the observations or events in their proper classifications as determined earlier
• Test a draft copy of the check sheet by confirming that all possible observations or events may be recorded in one and only one place on the check sheet
• Make necessary corrections to the check sheet
• Collect the desired process data using the check sheet

Check Sheets – Points to Remember

• Allow extra space on the check sheet to record important observations not anticipated during the design of the check sheet
• Determine and record the time period and other process conditions that will be fixed or constant during the observation
• Make sure that the data form and the meaning of all the labels are understood equally and consistently by all team members
• Allow enough time for all observations to be correctly made and recorded during the collection process
• Remember, a check sheet provides only organized raw data. It may be necessary to use another improvement tool to better interpret the results.

Check Sheets – Common Pitfalls

• Measuring things that do not answer the question being asked
• Inability to obtain sufficient sample size
• Associates simply not taking measurements or collecting data (sometimes as a result of strong focus on “making their numbers”)
• “Lost” check sheets – should keep track of how many are handed out and how many come back
• “We can get that from the system” attitude – resulting in spending more time trying to query log files than it would take to manually collect the data
• Poor Operational Definitions resulting in large amounts of “noise” in the data

Check Sheets is a post from: Lean Six Sigma Consulting

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No, we’re not talking about children or infants here. We’re talking about people who are so invested in their idea, business, and process, which results in hyper tunnel vision and they begin to believe the fantasy that their [enter "whatever" here] is the best and cannot get better. Calling that [thing] imperfect is analogous to calling someone’s baby ugly.

Why?

Because the person is so invested in their endeavor that they fail to see truth.

Here are some examples of Ugly Baby Syndrome:

• You build a product without identifying a problem to solve or a market need. You love you idea so much, but you continue to build something that nobody wants.
• You manage a process in your business that you are very proud of; you believe it’s perfect and that it can’t be improved any further.
• You own a business and have enjoyed market leadership for a long time; you don’t believe there are any competitors. You become complacent because you continue to believe “who will outsmart us? nobody can be better at what we do.”

• You manage a process where speed is a critical to quality metric and you don’t believe you can deliver any faster.
• You believe your creation is perfect and that nothing can penetrate its armor; but, the truth is that there are most likely chinks in the armor that you have failed to see.

If you suffer from any of the above symptoms, then a dose of truth and humility is the cure. Most likely, what you believe is likely false. In other words, that baby you feel is so angelic and perfect, is most likely pretty average looking.

So, let go of your ego, acknowledge that nothing is perfect but the pursuit of perfection is an admirable trait, and get to work.

Your Baby is Ugly is a post from: Lean Six Sigma Consulting

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This is Part 6 of 6 of the Deming Red Bead Video Tutorial.

Go Back To Part 1

Red Bead Experiment: Part 6 is a post from: Lean Six Sigma Consulting

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This is Part 5 of 6 of the Deming Red Bead Video Tutorial.

Go To Part 6

Red Bead Experiment: Part 5 is a post from: Lean Six Sigma Consulting

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This is Part 4 of 6 of the Deming Red Bead Experiment Video Tutorial.

But, before we get to the Red Bead Video Tutorial, here are some famous quotes of Dr. W. Edwards Deming.

Famous Quotes of Dr. W. Edwards Deming

1. “Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.”
2. “Quality is everyone’s responsibility.”
3. “If you can’t describe what you are doing as a process, you don’t know what you’re doing.”
4. “You can not inspect quality into the product; it is already there.”
5. “Innovation comes from the producer — not from the customer.”
6. “It is not enough to do your best; you must know what to do, and then do your best.”

1. “Learning is not compulsory… neither is survival.”
2. “Confusing common causes with special causes will only make things worse.”
3. “The prevailing style of management must undergo transformation. A system can not understand itself. The transformation requires a view from outside.”
4. “If you stay in this world, you will never learn another one.”
5. “The result of long-term relationships is better and better quality, and lower and lower costs.”
6. “If you do not know how to ask the right question, you discover nothing.”
7. “We should work on our process, not the outcome of our processes.”
8. “Quality starts in the boardroom.”
9. “There is a penalty for ignorance. We are paying through the nose.”
10. “A manager of people needs to understand that all people are different. This is not ranking people. He needs to understand that the performance of anyone is governed largely by the system that he works in, the responsibility of management.”

1. “A committee appointed by the President of a company will report what the President wishes to hear. Would they dare report otherwise?”
2. “Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place”
3. “Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.”
4. “Does experience help? NO! Not if we are doing the wrong things.”
5. “A system is a network of interdependent components that work together to try to accomplish the aim of the system. A system must have an aim. Without the aim, there is no system.”
6. “It is not necessary to change. Survival is not mandatory.”
7. “It is important that an aim never be defined in terms of activity or methods. It must always relate directly to how life is better for everyone… The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment.”
8. “The job can’t be finished only improved to please the customer.”
9. “The average American worker has fifty interruptions a day, of which seventy percent have nothing to do with work.”
10. “The customer is the most important part of the production line.”
11. “When asked what single event was most helpful in developing the Theory of Relativity, Albert Einstein replied, ‘Figuring out how to think about the problem’.”

It is not necessary to change. Survival is not mandatory.

Go To Part 5

Red Bead Experiment: Part 4 is a post from: Lean Six Sigma Consulting

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This is Part 3 of the Deming Red Bead Experiment Video Tutorial.

But, before the tutorial, below is a biography of Dr. W. Edwards Deming (credit to the deming.org), the creator of the Red Bead Experiment.

Biography of Dr. W. Edwards Deming

William Edwards Deming was born in Sioux City, Iowa on 14 October 1900 to William Albert Deming and Pluma Irene Edwards.

As an adult, he used the name W. Edwards Deming.

His brother, Robert Edwards was born on 11 May 1902; his sister, Elizabeth Marie, later Elizabeth Deming Hood was born on 21 January 1909.

The family lived at 121 Bluff Street in Sioux City. In 1904, they moved to the Edwards farm located in Polk City, between Ames and Des Moines. The farm was owned by Pluma’s father, Henry Coffin Edwards (Pluma’s mother, Elizabeth Grant, died when Pluma was young).

In an effort to encourage settlement in the West, the United States government granted parcels of land (usually 40 or 80 acres) to citizens who agreed to settle, farm or develop the land.

William Albert Deming filed on 40 acres in Camp Coulter, later named Powell, Wyoming. The family moved to Wyoming in 1907. They rented a house in Cody until they could build on their own land. William Albert learned that his parcel was poor, useless for farming.

Their first dwelling was a shelter, rectangular in shape (like a railroad box car), covered with tar paper, often referred to as a tar paper shack. Water was pumped from a well. There was little protection from the harsh weather. The family was often cold, hungry and in debt.

Eighty years later, on a visit to Powell, Dr. Deming learned that the 40 acres was still referred to as the Deming Addition.

Pluma Irene and William Albert Deming were well-educated and emphasized the importance of education to their children. Pluma had studied in San Francisco and was a musician. William Albert had studied mathematics and law. Young Ed Deming attended school in Powell and held odd jobs to help support the family.

In 1917, he enrolled in the University of Wyoming at Laramie. In 1921 he graduated with a B.S. in electrical engineering. In 1925, he received an M.S. from the University of Colorado and in 1928, a Ph.D. from Yale University. Both graduate degrees were in mathematics and mathematical physics.

Dr. Deming studied music theory, played several instruments and composed two masses, several canticles and an easily sung version of the Star Spangled Banner.

Dr. Deming married Agnes Bell in 1922 in Wyoming. Agnes and Ed had a daughter, Dorothy. Agnes died in 1930. Dr. Deming married Lola Elizabeth Shupe in 1932. They had two daughters, Diana and Linda. Dorothy died in 1984.

Dr. and Mrs. Deming lived in Washington, D. C. for the remainder of their lives in the house that they bought in 1936. With her family at her side, Mrs. Deming died on 25 June 1986. Dr. Deming, surrounded by his family, died at his home on 20 December 1993.

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Red Bead Experiment: Part 3 is a post from: Lean Six Sigma Consulting

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Part 1 explained the Red Bead Experiment. In Part 2, I’ll share the a video tutorial on the Red Bead Experiment – part 2 of that video series.

Before we get to the video, below are Dr. Deming’s Fourteen Points – the principles by which he practiced management and quality management.

Deming Fourteen Points

1. “Create constancy of purpose towards improvement”. Replace short-term reaction with long-term planning.
2. “Adopt the new philosophy”. The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.
3. “Cease dependence on inspection”. If variation is reduced, there is no need to inspect manufactured items for defects, because there won’t be any.
4. “Move towards a single supplier for any one item.” Multiple suppliers mean variation between feedstocks.
5. “Improve constantly and forever”. Constantly strive to reduce variation.

1. “Institute training on the job”. If people are inadequately trained, they will not all work the same way, and this will introduce variation.
2. “Institute leadership”. Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.
3. “Drive out fear”. Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organisation’s best interests.
4. “Break down barriers between departments”. Another idea central to TQM is the concept of the ‘internal customer’, that each department serves not the management, but the other departments that use its outputs.

1. “Eliminate slogans”. Another central TQM idea is that it’s not people who make most mistakes – it’s the process they are working within. Harassing the workforce without improving the processes they use is counter-productive.
2. “Eliminate management by objectives”. Deming saw production targets as encouraging the delivery of poor-quality goods.
3. “Remove barriers to pride of workmanship”. Many of the other problems outlined reduce worker satisfaction.
4. “Institute education and self-improvement”.
5. “The transformation is everyone’s job”.

Red Bead Experiment Video Tutorial

This is part 2 of 6 of the Deming Red Bead Video Tutorial:

Go To Part 3

Red Bead Experiment: Part 2 is a post from: Lean Six Sigma Consulting