APPLICATION OF SIX SIGMA TOOLS TO PRODUCT LINE BUSINESS PLAN
DEVELOPMENT
Thomas J. Redling, Honeywell Aerospace, Albuquerque, New Mexico
Abstract
Six Sigma tools and methodologies have been
embraced by many large and successful
corporations such as Honeywell International to
reduce variation and improve the effectiveness with
which they conduct their day to day business
activities. While the heritage of these tools lies in
manufacturing, companies such as Honeywell
International have extended these concepts to
product development and growth into new
businesses areas. As a Six Sigma Black Belt
certification candidate, the author has chosen to
apply these tools to an emerging avionics product
line to develop a sound business development
strategy. Elements of this strategy will include the
business plan itself, product line road maps,
competitive analysis, and research and development
recommendations. This paper will focus on the
application of those tools to the business
development process and the lessons learned in that
process. The specifics of the business plan itself
will not be discussed due to their proprietary nature.
Where illustration is necessary, the author will
provide hypothetical examples to highlight the
application of a particular tool or methodology.
The author’s goal is to provide the reader with an
understanding of the value of Six Sigma tools with
respect to new business development.
What is Six Sigma?
Before embarking on a discussion of the
application of Six Sigma tools, the basics of Six
Sigma must be understood. Six Sigma is a
philosophy maintaining quality through the
reduction of reducing process variation via
scientific and statistical methods. Its roots are in
statistical process control and past initiatives such
as Zero Defects and Total Quality Management
(TQM). Six Sigma concepts were first applied to
manufacturing to reduce variation in the end
product of the process. This translates into a
consistent product quality. Its success in production
environments led to its application to the product
0-7803-9307-4/05/$20.00 ©2005 IEEE.
9.B.2-1
development process, and hence Design for Six
Sigma (DFSS) was born. DFSS combines the
statistical analysis aspects of Six Sigma with
structured design methodologies. This does more
than provide a canned set of tools for design
engineers to use. It provides a framework for fact-
based decision making and provides a common
communication language between engineers and
managers. This paper takes the application of Six
Sigma one step further and applies the tools to the
business process of new business development.
Who Put the Plus in Six Sigma Plus?
In parallel with Six Sigma, the concept of Lean
developed as well. After Six Sigma tools have been
applied to minimize variation in a process, Lean
works to eliminate waste from a process. This
makes it a complimentary set of tools that let you
further hone your business’ productivity.
Thought Process Map
As with any engineering or business activity,
the first step is to develop a plan. A thought
process map (TMAP) is used as a living document
that captures the plan and records progress towards
the project goal. The TMAP will be the centerpiece
of this paper and will provide the overview of the
new business pursuit process. While there is no
hard definition for the format of a TMAP, there are
several key characteristics that are critical to its
purpose [1].
The DMAIC Model
A five-step process is at the heart of the
creation of a good thought map. The acronym is
defined as follows:
D – Define the project.
M – Measure the current state.
A – Analyze the data.
I – Improve and/or implement the change.
C – Control the process and adjust as needed for R – Realistic
continuous improvement. [2]
T – Timely

A Problem Statement Questions and Answers

The first step of the process is to define the
Perhaps the most important aspect of using the
problem statement. Too often, problem solving
thought process map is the generation of questions.
jumps right to a solution without actually
These questions develop as the project is executed
understanding what the problem is. The problem
and guides the process to the desired end state. As
statement will also help you to narrow the scope of
the questions are answered during the project, the
the problem that you are trying to solve to a point
results are also documented on the thought process
where it is solvable. The problem statement must
map, thus creating an excellent project notebook.
appear on the thought process map.

Six Sigma Plus Tool Usage

Clear Definitions of the Goals
The thought process map also provides a
Once the problem statement has been
means for planning and capturing the application of
established, the next step in defining the scope of
Six Sigma Plus tools as the project is worked.
the project is the definition of the project goals.
These must be stated clearly and succinctly. The
SMART model can be applied to develop goals that Define Phase
are: The journey begins with the define phase of
S – Specific the DMAIC model. Figure 1 is provided as a
reference to guide the discussion.
M – Measurable
A – Achievable

Figure 1. Thought Process Map Sheet 1 (Define Phase)

9.B.2-2
 As mentioned earlier, this TMAP has been will cause numerous iterations of the TMAP and
modified into a more general form to protect ultimately result in a crisp set of goals that are
proprietary information specific to the pursuit that it achievable in the project’s timeframe.
is being applied to. The first step involves
The other important activity conducted in this
identifying what strategy exists and brainstorming
phase is a rough order of magnitude (ROM)
where the roadmap needs to go. This leads to a
estimate of the financial growth generated by the
problem statement, which, in its unrefined form,
project. This is important since it quantifies the
typically results in a number of broad strategies,
bottom line benefit to the organization. The
each of which attempts to solve too broad of a
important thing to realize is that this is a ROM and
problem. Here is where you need to focus and get
that you can refine the detail as the project
“boil the ocean down to a cup of coffee” [3]. This
proceeds.

Figure 2. Thought Process Map (Measure and Start of Analyze Phase)

Measure Phase the customer need? The corresponding second

question is who is the competition for fulfilling
Figure 2 represents the beginning of the
those needs? What needs to be done here is a voice
measure phase of the process. To continue from
of the customer (VOC) assessment. The quality
Figure 1, follow off-page connector 1. This phase
functional deployment (QFD) is a good means for
is driven by two major questions. First, what does
gathering and analyzing this data. One might be

9.B.2-3
inclined to immediately go out and gather customer
feedback on these needs. While that is an important
step to completing the process, some internal
planning needs to happen first. The best approach
is to brainstorm the customer needs internally with
technical and business people. In this case, the
exercise resulted in a total of 37 customer needs. A
Figure 3. Tree Diagram Generic Example
The 39 needs occupy the lowest level of the
tree (tier 4). The top level (tier 0) represents the
aggregate of all customer needs. Working from
top-down and bottom-up, tier 3 reduces the list to a
total of 15 subgroups. This is the set that is taken
forward to measure the voice of the customer
(VOC). This is captured using a 1-level quality
functional deployment (QFD 1).
The first pass at the QFD 1 is to be
accomplished internally. Domain experts will
populate the matrix as a starting point. This data
will then be validated with our external customers.
Any internal misperceptions are corrected based on
customer input. A measurement system evaluation
(MSE) is also conducted to confirm that the results
are statistically significant. All of this is fed back to
the original QFD 1 to ensure that the VOC is as
accurate as possible. This part of the process
actually enters into the analyze phase, but is
mentioned here since this closed-loop part of the
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tree diagram was then used to determine logical
sub-groupings to get the list down to a manageable
size (less than 20 elements). Figure 3 illustrates the
structure used. Due to the proprietary nature of the
lower levels of the tree, the actual needs have been
replaced with generic designators.
process can kick back to the measure phase several
times before it is completed.
The other part of the QFD 1 exercise involves
developing a competitive radar chart. This chart
shows the relative separation between the company
doing the market analysis (shown at the center) and
its closest competitors. Competitors that are closest
to the center represent direct competition. As the
competitors move outward on the chart, they
become more remote and are considered to be
longer-term threats.
Analyze Phase
As mentioned earlier, the analyze phase
actually starts during the refinement of the VOC.
Once the VOC has been established, the process
moves completely into the analyze phase, where the
VOC is analyzed to provide guidance on the best
possible product offering. Figure 4 illustrates that
part of the TMAP.
 Figure 4. Thought Process Map (Analyze Phase Continued)
This part of the analyze phase splits into two
parallel paths that result in a detailed value chain
map. The upper path looks at how the customer can
best be served and how the market should be
segmented. The lower path analyzes the statistical
properties of the data to determine any logical
subgroupings. This also feeds into the value chain
map to validate what comes out of the market
segmentation activity.
The first artifact that is created is a value sector
map. This approach first broadens the view to
extend beyond the company’s traditional markets in
order to identify all of the customer’s buying habits,
including related products that the company may or
may not produce at this time. This data is then
analyzed and segmented in terms of these buying
habits. This includes identifying the suppliers of
related products that the company does not yet
produce. These interrelated products are then
chained together in the sequence that they are used.
The chain is then divided into specific segments
that bring value to the customer.
Once the value sectors have been identified,
the company needs to identify where they wish to
compete. Revenue and profit margin heavily
9.B.2-5
influences these decisions. This narrows the scope
down to the actual business that will be pursued.
In parallel with the value segment map, a
conjoint analysis is conducted on the VOC data to
segment the data based on statistical properties.
Together, these two paths merge back together to
form the value chain map. The value chain map
identifies what value the company brings to its
customers and how the value flows from
stakeholder to stakeholder. This starts at the lowest
level supplier and ends up at the end user. It
captures the activities and benefits associated with
transforming the value as it flows through the chain.
Once the value being provided to the customer by
the company is identified in the value chain map, 3-
view systems engineering tools are employed to
define the product. This can be explained in terms
of the questions that are answered:
1. Operational View – What does the product do?
2. Functional View – How does the product do
it?
3. Architectural View – How is the product
constructed?
 Once the 3-view artifacts have been developed,
the pursuit plan for marketing and selling the
Figure 5. Thought Process Map (Remainder of Analyze Phase, Implement Phase, and Control Phase)
At this point, the assessment is made as to
whether the opportunity is short-term or long-term.
The short-term opportunities tend to be in
traditional markets where the company already has
a presence and reputation. The long-term
opportunities tend to be non-traditional markets
where the company will need to penetrate some
entry barriers.
Short-Term Opportunities
Short-term opportunities typically build on an
existing relationship or product. An example of an
existing relationship would be marketing a new
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product is developed. Figure 5 shows the
continuation of the analyze phase of the process.
piece of equipment to an aircraft manufacturer that
you already sell other components. These
components may or may not be related in some way
to the product offering. An example of an existing
product would be selling a product to a new
customer based on an off-the-shelf item or a
derivative product. Even better is the best of both
worlds, where an existing product is sold to a
current customer.
Once each of these short-term opportunities
has been identified, the next step is to identify the
needs of that particular customer. Just like in the
measure phase, the QFD methodology is employed,
using the voice of the customer as a starting point.
In government procurement programs, it is
important to gather and validate this information
prior to the release of a request for proposal (RFP),
since acquisition rules tend to prohibit private
communications between the seller and the
government. Any questions and associated answers
are shared with all competitors, so asking a
particular question may reveal clues about your
discriminating features.
The validated QFD data feeds into the 3-view
systems engineering artifacts, tailoring them to the
needs of that customer. With that said, there is an
important balance that must be struck here. While
the offering must address the customer needs to be
a viable product, it must not be allowed to become a
point solution that has no applicability beyond that
specific customers. Careful design decisions must
be made that balance specific customer
requirements with the future viability of the product
line. In some cases, business decisions are made to
address the very specific needs of a strategic
customer. There is nothing wrong with doing this,
as long as it is accepted that there will be little or no
reuse.
The next step is to develop a strategic failure
modes and effects analysis (FMEA). A strategic
FMEA differs from a conventional FMEA in that it
investigates failure modes of a system or process
that has not yet been deployed. The output from the
strategic FMEA is used to further tailor the 3-view
systems engineering artifacts. All of this
information is then taken forward to the
implementation phase.
Long-Term Opportunities
Sort-term growth is limited by existing
relationships and/or existing product applications.
While these opportunities provide good steady
growth for the business, it does not provide the
order of magnitude growth that will greatly increase
market share. For this type of growth, non-
traditional markets and product applications must
be explored. These pursuits tend to have a higher
risk and corresponding reward. A good growth
portfolio for a company includes both short and
long term pursuits, much in the same way that one
manages their stock portfolio.
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Once an opportunity is identified as long-term,
the development and execution of a market research
plan is required prior to the process outlined for the
short-term opportunities. Part of this plan involves
marketing and advertising, which sets the stage for
the actual pursuit. Once the pursuit becomes a
viable customer need, the process shifts to the
short-term path and the same steps are followed to
prepare for the actual pursuit.
Improve/Implement Phase
The next step is the actual implementation of
the pursuit. This is typically kicked off by a formal
RFP, which outlines the customer needs and
provides instructions as to how the proposal is to be
prepared. If the pre-RFP homework was completed
properly, there should be good alignment between
the QFD and the customer requirements in the RFP.
There will always be a few additional requirements
not captured in the QFD, but this should be
minimal. The 3-view systems engineering artifacts
then provide the basis for the technical proposal.
The operational view is translated into a description
of what the system does from a user perspective.
The functional view translates into how the system
will meet the customer’s requirements. Finally, the
architectural view translates into the proposed
system design, which also drives the cost estimates,
and hence the price to the customer.
In some cases, closely related pursuits are
executed in parallel. In these cases, careful
attention to scalability and modularity in the 3-view
system design ensures that the company can move
from one pursuit to the next with minimal non-
recurring engineering (NRE).
Control Phase
The control phase entails monitoring program
wins and program performance once under contract.
Program wins measures the effectiveness of sales
and marketing in convincing the customer that the
company’s offering provides them with the best
value. Value entails optimizing desired features vs.
price. The price must fit within the customer’s
budget, but does not necessarily have to be the
lowest as compared to the competition. There are
cases where a customer may select a more
expensive system because it better addresses their
needs and/or reduces program risk. As for desired Acknowledgement
features, the minimum is specified by the RFP.
The author extends his personal thanks to Mike
Any additional features must be assessed with
Mertens, his Master Black Belt mentor, who guided
respect to whether the end user can actually take
him through this process and showed him the
advantage of them. Additional features providing
importance of a good thought process map.
benefit can be a discriminator. Beyond this, other
features that do not provide benefit to the end user
represent gold-plating and will actually reduce the References
feature to price ratio.
[1] Hild, C., Sanders, D., and Ross, B., “The
The other control element is the monitoring of Thought Map,” Quality Engineering, 2000, pp. 21-
actual performance on contracts that are won. This 27.
is important for two reasons. First, the company’s
[2] “Hardware Design For Six Sigma (DFSS) Week
past performance can be used by future customers
One Facilitator Guide”, Thought Process Map
to assess their ability to perform on future contracts,
Module, Honeywell Defense and Space Electronic
which has a direct correlation to win probability.
Systems, Albuquerque, 2002, pp. 1-35.
Second, it validates cost estimates and allows the
company to make adjustments on future proposals [3] Mertens, Michael, Master Black Belt Mentor,
based on actuals collected on the existing contracts. quote was frequently used during Thomas Redling’s
black belt project mentoring sessions.

Summary and Conclusion

Six Sigma has its roots in manufacturing and Email Addresses
statistical process control. These concepts have Thomas J. Redling,
been extended into the product development thomas.redling@honeywell.com
process as well as the new business development
process. This paper has outlined a thought process
for applying Six Sigma tools to pursuing new 24th Digital Avionics Systems Conference
business. It provides scientific methods for October 30, 2005
converting qualitative data to quantitative data and
making fact-based decisions. While there is always
an amount of uncertainty in sales and marketing,
these methods allow a company to separate out the
knowns from the unknowns.

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