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Chapter No: 05

Six Sigma Implementation

5.1 Over view of Six Sigma Implement . . . 5.2 Role of Six Sigma Implementation 5.3 Six Sigma Implementation Categories 5.4 DMAIC/DMADV 5.5 Why Lean and Six Sigma 5.6 5Whys, Ford 8Ds (Discipline) 5.7 Statistical Process Control

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.1 Over view of Six Sigma Implementation: How to implement Six Sigma in the company? What is our first step? Where do we start?

Many executives worry about a false start, failure or the cost of implementation. To successfully implement the 6 Sigma initiatives, one should first understand a companys performance. Six Sigma initiatives focus on improving profitability, rather than simply improving quality. However, knowing the cost of poor quality is a starting point. Knowing how much money is wasted in company can be surprising to many executives. Most companies do not even have measurements for tracking cost of poor quality (COPQ). The components of COPQ are internal failures (scrap, rework and lost capacity), external failures (field failures, warranty cost, complaints, returned material and lost business), appraisal (inspection, testing and audit) and prevention (quality planning, process control, improvement and training).

How can you determine if your company can benefit from Six Sigma implementation? Lets look for the following characteristics: Quality focus and objectives are not clearly defined and communicated. Executives think quality has nothing to do with business and profitability. Measurements (levels and trends) to track operations performance, including Reject rate, rolled yield, COPQ, design effectiveness, cycle time, inventory levels, employee skills development and financial performance, are not in place. Lack of measurements lead to centralized decision-making (executives making the decisions). Executives are busy fighting fires, making an effort to .look busy. And badgering employees. Employees are afraid of management-reluctant to take the initiative to improve performance and feel no one is listening to concerns. To overcome such bottlenecks to higher profitability, a company must establish focus business initiative and implement measurements. To benefit from Six Sigma implementation, loss in profitability must be made visible throughout the company. All staff must recognize the value of improving profitability, and have passion to achieve improved results, to become committed to improving business performance. To implement Six Sigma methodology in a selected area, the plan must include, first and foremost,
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} training of executives in Six Sigma methodology. Company executives must understand the concept, steps, requirements, expectations and management to actively participate and contribute to the success of the project. Employees should never have reason to doubt executives. priority to improve profitability, passion for methodology and staff contribution. Employees must understand the consequences associated with applying or ignoring Six Sigma methodology. The entire company executives and employees must have a common goal, a common objective and a common priority to make the Six Sigma initiative successful. The following steps are needed to implement the Six Sigma initiative: Perform financial analysis to understand profitability, COPQ and key contributors. Establish profitability objectives. Measure contributors to profitability. Establish business objectives and define values. Recruit a firm for Six Sigma training and implementation guidance. Select a pilot project or area for small wins. Define projects and develop plans to realize improvements. Conduct executive, champion, Black Belt and Green Belt training. Solve problems and develop solutions to reduce waste. Monitor progress of projects and provide support as needed. Celebrate and publicize successes. Learn lessons from small wins and optimize approach. Institutionalize the Six Sigma initiative company-wide.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.2 Role of Six Sigma Implementation: One key innovation of Six Sigma involves the "professionalizing" of quality management functions. Prior to Six Sigma, quality management in practice was largely relegated to the production floor and to statisticians in a sep-erare quality department. Six Sigma borrows martial arts ranking terminology to define a hierarchy (and career path) that cuts across all business functions. Six Sigma identifies several key roles for its successful implementation: Executive Leadership includes the CEO and other members of top management. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements. Champions take responsibility for Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from upper management. Champions also act as mentor to Black Belts. Master Black Belts, identified by champions, act as in-house coaches on Six Sigma. They devoted 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from statistical tasks, they spend their time on ensuring consistent application of Six Sigma across various functions and departments. Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. they devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma. Green Belts, the employees who take up Six Sigma implementation along with their other job responsibilities, operate under the guidance of Black Belts. Yellow Belts, trained in the basic application of Six Sigma management tools, work with the black Belt throughout the project stages and are often the closest to the work.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.3 Six Sigma Implementation Categories:

5.3.1 Six Sigma As A Metric: Sigma is the measurement used to assess process performance and the results of improvement efforts - a way to measure quality. Businesses use sigma to mea-sure quality because it is a standard that reflects the degree of control over any process to meet the standard of performance established for that process. Sigma is a universal scale. It is a scale like a yardstick measuring inches, a balance measuring ounces, or a thermometer measuring temperature. Universal scales like temperature, weight, and length allow us to compare very dissimilar objects. The sigma scale allows us to compare very different business processes in terms of the capability of the process to stay within the quality limits established for that process. The Sigma scale measures Defects Per Million Opportunities (DPMO). Six Sigma equates to 3.4 defects per million opportunities. The Sigma metric allows dissimilar processes to be compared in terms of the number of defects generated by the process in one million opportunities.

Figure: Six Sigma Scale

A process that operates at 4.6 Sigma is operating at 99.9% quality level. That means: 4000 wrong prescription each year 2 long or short landings at airports each day 400 lost letters per hour
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} A process that operates at the 6 Sigma level is operating at 99.9997% quality level. At 6 Sigma, these same processes would produce: 13 wrong drug prescription per year 2 long or short landings at airports each year 1 lost letters per hour Clearly, the value of sigma is its universal application as a measuring stick for organizational and process quality. With sigma as the scale, measures of asis process quality and standards for should-be process targets for quality improvement can be set and understood for any business process.

5.3.2 Six Sigma As Methodology: The Six Sigma methodology builds on the Six Sigma metric. Six Sigma practitioners measure and assess process performance using DPMO and sigma. They apply the rigorous DMAIC (Define, Measure, Analyze, Improve, Control) methodology to analyze processes in order to root out sources of unacceptable variation, and develop alternatives to eliminate or reduce errors and variation. Once improvements are implemented, controls are put in place to ensure sustained results. Using this DMAIC methodology has netted many organizations significant improvements in product and service quality and profitability over the last several years. The Six Sigma methodology is not limited to DMAIC. Other problem-solving techniques and methodologies are often used within the DMAIC framework to expand the tool set available to Six Sigma projects teams. These include: Theory of Inventive Problem Solving (TRIZ) Cause Analysis Method Lean 5 Whys Ford 8Ds (Discipline) Utilizing the sigma metric and marrying this variety of approaches with the DMAIC methodology, the Six Sigma methodology becomes a powerful problem-solving and continuous improvement methodology. Clearly, the use of a consistent set of metrics can greatly aid an organization in understanding and controlling their key processes. So too, the various problem-solving methodologies significantly enhance an organization's ability to drive meaningful improvements and achieve solutions focused on root cause. Unfortunately, the experience of Motorola University consultants has demonstrated that good metrics and disciplined methodology are not sufficient
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} for organizations that desire breakthrough improvements and results that are sustainable over time. In fact, conversations with organizational leaders who report dissatisfaction with the results of their Six Sigma efforts have shown their Six Sigma teams have sufficient knowledge and skill related to good use of metrics and methodology. However, all too often, these teams have been applying the methodology to low level problems, and have been working with process metrics that don't link to the overall strategy of the organization. It is this recurring theme that has driven Motorola University to develop the concept of Six Sigma as a management system, first introduced in the book "The New Six Sigma".

Theory of Inventive Problem Solving (TRIZ) "TRIZ" is the (Russian) acronym for the "Theory of Inventive Problem Solving." G.S. Altshuller and his colleagues in the former USSR developed the method between 1946 and 1985. TRIZ is an international science of creativity that relies on the study of the patterns of problems and solutions, not on the spontaneous and intuitive creativity of individuals or groups. More than three million patents have been analyzed to discover the patterns that predict breakthrough solutions to problems, and these have been codified within TRIZ. TRIZ is spreading into corporate use across several parallel paths - it is increasingly common in Six Sigma processes, in project management and risk management systems, and in organizational innovation initiatives. o Generalized Solution: TRIZ research began with the hypothesis that there are universal principles of creativity that are the basis for creative innovations, and that advance technology. The idea was that if these principles could be identified and codified, they could be taught to people to make the process of creativity more predictable. The three primary findings of the last 65 years of research are as follows: 1. Problems and solutions are repeated across industries and sciences. By classifying the contradictions in each problem, you can predict good creative solutions to that problem. 2. Patterns of technical evolutions tend to be repeated across industries and sciences. 3. Creative innovations often use scientific effects outside the field where they were developed.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Much of the practice of TRIZ consists of learning these repeating patterns of problems-solutions, patterns of technical evolution and methods of using scientific effects, and then applying the general TRIZ patterns to the specific situation that confronts the developer. Here, you take the specific problem you face, and generalize it to one of the TRIZ general problems. From the TRIZ general problems, you identify the TRIZ solutions to those general problems, and then see how these can be applied to the specific problem you face. o EXAMPLE: A powerful demonstration of this method was seen in the pharmaceutical industry. Following the flow of Figure 1, the specific problem was as follows: an important process needed cell walls to be broken down in bacteria cells so that hormones inside the cells could be harvested. A mechanical method for breaking the cell walls had been in use at a moderate scale for some time, but the yield was only 80%, and was variable. Higher yields and a scale able solution were needed. The TRIZ general problem at the highest level is to find a way to produce the product with no waste, at 100% yield, with no added complexity. One of the patterns of evolution of technology that TRIZ identifies is that energy (fields) replaces objects (mechanical devices). For example, consider using a laser instead of a scalpel for eye surgery. In this case, ultrasound could be used to break the cell walls, or an enzyme could be used to "eat" it (chemical energy). This may seem very general, but it led the pharmaceutical researchers to analyze all the resources available in the problem (the cells, the cell walls, the fluid they are in, the motion of the fluid, the processing facility, etc.) and to conclude that three possible solutions had a good potential for solving their problem: The cell walls could be broken by sound waves (from the pattern of evolution of replacing mechanical means by fields) The cell walls could be broken by Shearing, as they pass through the processing facility (using the resources of the existing system in a different way ) An enzyme in the fluid could eat the cell walls and release the contents at the desire time.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} All three methods have been tested successfully. The least expensive, highest yield method was soon put in production. o Eliminating Contradiction: Another of the fundamental concepts behind TRIZ is that at the root of many problems is a fundamental contradiction that causes it (we'll give examples below.) In many cases, a reliable way of solving a problem is to eliminate these contradictions. TRIZ recognizes two categories of contradictions: 1. Technical contradictions are classical engineering "trade-offs." The desired state can't be reached because something else in the system prevents it. In other words, when something gets better, something else automatically gets worse. Classical examples include: The product gets stronger (good), but the weight increases (bad). Service is customized to each customer (good), but the service delivery system gets complicated (bad). Training is comprehensive (good), but keeps employees away from their assignments (bad).

2. Physical contradictions, also called "inherent" contradictions, are situations in which an object or system suffers contradictory, opposite requirements. Everyday examples abound: Software should be complex (to have many features), but should be simple (to be easy to learn). Coffee should be hot for enjoyable drinking, but cold to prevent burning the customer. Training should take a long time (to be thorough), but not take any time.

o Some of The TRIZ Tools: The "General TRIZ Solutions" referred to in Figure 1 have been developed over the course of the 65 years of TRIZ research, and have been organized in many different ways. Some of these are analytic methods such as: The Ideal Final Result and Ideality. Functional Modeling, Analysis and Trimming Locating the Zones of Conflict. (This is more familiar to Six Sigma problem solvers as "Root Cause Analysis.") Some are more prescriptive such as:

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} The 40 Inventive Principles of Problem Solving The Separation Principles Laws of Technical Evolution and Technology Forecasting 76 Standard Solutions In the course of solving any one technical problem, one tool or many can be used One of these tools, "The 40 Principles of Problem Solving" is the most accessible "tool" of TRIZ. o THE 40 PRINCIPLES OF PROBLEM SOLVING: These 40 Principles are the ones that were found to repeat across many fields, as solutions to many general contradictions, which are at the heart of many problems. Here are just a few of the Principles and examples of how they could have been used to create products that were once new and innovative:

Cause Analysis Methods: o Cause Analysis Methods: Is/Is Not Matrix: This is a good technique to pinpoint a problem by exposing when it does and does not occur. The matrix questions help to organize existing knowledge and information about the problem. Using this technique first to identify the problem can help focus additional problem analysis. Example: Let us
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} assume that the problem is initially defined as "not enough time to do what needs to be done." In order to define the problem, we have to find out when this problem exists and when it does not exist. It appears that it affects a few people on specific occasions, which means other staff might be available to help out. o Cause Analysis Methods: Cause and Effect Diagram: Cause and Effect Diagram: Identifies and organizes contributing factors: This technique is most effective after the problem has been well defined, although the problem that is initially identified is frequently revised after the contributing branches start to be discussed. It is used to identify and organize possible causes of the problem or factors needed to address it. The diagram provides a pictorial display of a list and shows the relationships between factors. Example: Let us assume that the problem is initially defined as stress. In order to define the problem, we have to identify what contributes to the problem. We may decide, based on the contributing branches, that stress is too general. Possibly poor communication is a better statement of the problem. Then we can assess which contributing factors are most important, such as unclear expectations and limited feedback.

o Cause Analysis Methods: Top-Down Flow Chart: Top Down Flow Chart: Analyzes contributing factors: This technique provides a picture of the major sequential steps in a process. It enforces logical thinking to identify the major steps necessary to accomplish a

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} goal. The chart can then be analyzed to determine if there are steps that were overlooked that therefore resulted in the problem under investigation. Example: Let us assume that the problem is initially defined as lack of systems to support desired changes. In order to define the problem, we need to identify the steps involved in planning and implementing the change. In this situation, it appears that Step #3 may have been overlooked or done poorly.

5.3.3 Six Sigma As A Management System: Six Sigma as a best practice is more than a set of metric-based problem solving and process improvement tools. At the highest level, Six Sigma has been developed into a practical management system for continuous business improvement that focuses management and the organization on four key areas: Understanding and managing customer requirements Aligning key processes to achieve those requirements Utilizing rigorous data analysis to understand and minimize variation in key processes Driving rapid and sustainable improvement to the business processes As such, the Six Sigma Management System encompasses both the Six Sigma metric and the Six Sigma methodology. It is when Six Sigma is implemented as a management system that organizations see the greatest impact. General Electric started its quality focus in the 1980s with Work-Out. Today, Six Sigma is providing the way to meet our customer needs and relentlessly look for new ways to exceeds their expectations.
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Work-Out in the 1980s defined how we behave. Today, Six Sigma is the way we work. Six Sigma is a vision we strive toward and a philosophy that is part of our business culture. It has changed the DNA of GE and has set the stage for making our customers feel Six Sigma. Honeywell views its Six Sigma initiative (called Six Sigma Plus) as the way to maintain its position with its customer as a premier company. At Honeywell, Six Sigma refers to our overall strategy to improve growth and productivity as well as measurement of quality. As a strategy, Six Sigma is a way for us to achieve performance breakthroughs.

Fig: Six Sigma as a Metric, Methodology, Management System

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.4 DMAIC/DMADV: 5.4.1 DMAIC Define, Measure, Analyse, Improve, and Measure: DMAIC is the over-riding methodology that unifies a framework for problem solving and continuous improvements that are determined by critical business needs. These business needs are driven by fundamental voices that make a business operate, Voice of Customer, Voice of Business and Voice of Employee.

Figure: DMAIC Define, Measure, Analyse, Improve, and Control

DEFINE: Define is the phase when a problem or an improvement initiative is identified and scoped. In this phase, the problem statement is developed to describe the pain for the problem that needs solving or the improvement that is required. This is often supported by the extent and consequences and importantly the solution is yet to be known. During this phase the problem is also defined in term of the measurable criteria or metrics and is factors that are critical to customers quality requirements are identified.
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} MEASURE: In this phase, a baseline data is established. The ability to measure the critical to customers quality and the metrics is also determined. The process in which the problem is occurring or improvement is required would be mapped out in detail and would include time, people and material elements to ensure that the current state is clearly understood. Impact to the Critical to Customers quality is also established by identifying the key input variables and key output variables. These measures are essential to establish the capability and stability of the process. ANALYSE: In this phase, a thorough data analyses is carried out to narrow down, from the trivial many reasons of a problem occurring to the critical few. A relationship between the input factors to the output factors will be established. Additionally, activities such cause and effect study, time and motion analysis, analysis of statistical data will be performed in this stage and the results are expected to assist with the identification of the critical few root causes.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} IMPROVE: This phase is the most crucial phase where upon identifying the root-causes, solutions would be generated and tested by piloting it. During this phase team creativity often helps to generate solutions that results maximum gains. Data collected during this phase will be reviewed against the baseline data as a measure of improvement. Risk analysis would also be carried out during this phase to determine the impact of not accepting a solution. CONTROL: In this phase, the improvements that are identified during Improve would need to be documented and thoroughly captured. A roadmap of solving the problem would need to be established. Implementation plans as well as changed management procedures will be developed to ensure the successful transition of the solution to team that ultimately responsible to the process. WITH THE DMAIC METHODOLOGY, a consistent and standardized way of problem solving can be established throughout the organization. A rigor in which the importance and contribution of each phase will assist in ensuring the problem or improvement are achieved and these in turn would lead toward an improved enterprise performance.

5.4.2 DMADV Define, Measure, Analyse, Design, and Verify: The DMADV project methodology, also known as DFSS (Design for Six Sigma) is a data-driven quality strategy for designing products and processes, and it is an integral part of a Six Sigma Quality Initiative. features five phases: Define design goals that are consistent with customer demands and the enterprise strategy.

Measure and identify CTQs (characteristics that are Critical to Quality), product capabilities, production process capability, and risks.

Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.

Design details, optimize the design, and plan for design verification. This phase may require simulations.
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).

5.4.3 DMAIC VS DMADV: The Similarities of DMAIC and DMADV: Let's first look at the DMAIC and DMADV methodologies and talk about how they're alike. DMAIC and DMADV are both: i. ii. iii. iv. v. Six Sigma methodologies used to drive defects to less than 3.4 per million opportunities. Data intensive solution approaches. Intuition has no place in Six Sigma -- only cold, hard facts. Implemented by Green Belts, Black Belts and Master Black Belts. Ways to help meet the business/financial bottom-line numbers. Implemented with the support of a champion and process owner.

The Differences of DMAIC and DMADV: DMAIC and DMADV sound very similar, don't they? The acronyms even share the first three letters. But that's about where the similarities stop.
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} In DMAIC methodology, the whole system is analysed and then suggest such strategy which may cause improvement in the organisation performance which is target of Six Sigma Methodology. After implementing the such strategy, the need of control the process occurs so that it may produce the products which satisfy our customers. On the other hand, DMADV design a new system for the organisation to meet the target. After completing Define, Measure, Analyse process, design of new system is done by six sigma team instead of improving the same existing system. Another difference is that when the design of new system is accomplished, the organisation test the new system and deeply analyse that whether it give required performance or not. If it gives such performance, the implementation occurs. When to Use DMAIC: The DMAIC methodology, instead of the DMADV methodology, should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately. When to use DMADV: The DMADV methodology, instead of the DMAIC methodology, should be used when:
i. ii.

A product or process is not in existence at your company and one needs to be developed. The existing product or process exists and has been optimized (using either DMAIC or not) and still doesn't meet the level of customer specification or six sigma level.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.5 Why Lean and Six Sigma: 5.5.1 Lean Manufacturing: Lean Manufacturing is a great competitive weapon that reduces your costs, improves quality and improves your bottom line. If you are competing against off shore competition, you need lean manufacturing! Lean production is aimed at the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible. Lean excellence is a coordinated response to today's highly competitive environment. Its roots lie in manufacturing and are strongly influenced by the production system principles originally developed at Toyota. What kind of results should you expect from a lean manufacturing implementation? Defects reduced by 20%. Delivery Lead Time reduced by more than 75%. On Time Delivery improved by 99+% Productivity (sales per employee) increases of 15-35% per year. Inventory (working capital) reductions of more than 75%. Return on Assets improvements 100+% Lean makes use of many tools and techniques. Every operation is different and no two companies put these improvements in place the same way and use the same tools and techniques the same way. Discrete manufacturers, process manufacturing and job shops can all benefit greatly. 5.5.2 Lean Six Sigma And DMAIC Methodology: Speed, customer satisfaction and lower cost through operations excellence are the essential factors for organizations that deliver products and services, with the aim to achieve and sustain superior shareholder returns in businesses. Organizations such as manufacturing, banking, insurance, retail, and government always drive towards prioritizing operational excellence as for these sectors so much of their costs are tied into operations. Analysis from Lean and Six Sigma consultants say that 30-80% of the costs in a service business are pure waste. Eliminating this waste can not only reduce costs, but more importantly allows businesses and services to become faster and much more responsive to its customers, driving revenue growth.
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.5.3 WHY LEAN SIX SIGMA: Lean Six Sigma can be described as a data driven principle and process optimization, adopted by businesses to enhance process or service efficiency, customer satisfaction, eliminating waste and reduction of operational costs. By integrating of the DMAIC methodology, through the proven practices, focused deployment and implementation into the day-to-day running of an operation that ensures flawless execution and rapid results. Lean Six Sigma is a new paradigm that has been introduced to industries to challenge the traditional notion that a gain in excellence for a particular key performance area requires the trade off in excellence of other significant key performance area. An example of a traditional paradigm is shown below.

Figure: Lean Six Sigma Paradigm

The Lean Six Sigma paradigm can be defined as gaining excellence in one key performance area through the requirement and achievement of excellence in all significant key performance areas, as illustrated next page.

The fusion of Lean and Six Sigma is required because: Lean cannot bring a process under statistical control. Six Sigma alone cannot dramatically improve process speed or reduce invested capital.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.6 5Whys, Ford 8Ds (Discipline): 5.6.1 5 WHYS: 5 WHYS is a problem solving technique that allows you to get at the root cause of a problem fairly quickly. It was made popular as part of the Toyota Production System (1970s.) Application of the strategy involves taking any problem and asking Why - what caused this problem? By repeatedly asking the question "Why" (five is a good rule), you can peel away the layers of symptoms that can lead to the root cause of a problem. Very often the first reason for a problem will lead you to another question and then to another. Although this technique is called "5 Whys," you may find that you will need to ask the question fewer or more times than five before you find the issue related to a problem. Benefits Of 5 Whys It helps to quickly identify the root causes of a problem. It helps determine the relationship between the different root causes. It can be learned quickly and does not acquire statistical analysis to be used. When 5 Whys Most Useful: When problem involves human factors or interactions. In all types of business situations whether solving a lean manufacturing or for any other business problem. Example of 5 Whys Analysis (Wheel Example): Why is our largest customer unhappy? Because our deliveries of bicycles have been late for the last month. Why have our deliveries of bicycles been late for the last month? Because production has been behind the schedule. Why has production been behind the schedule? Because there is shortage of wheels. Why are we having shortage of wheels? Because incoming inspection has rejected a large number of wheels for not being round. Why are we rejecting so many parts? Because purchasing switched to a cheaper wheel supplier that has inconsistent quality.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.6.2 FORD 8Ds: Originally developed at Ford Motor Company, Eight D was introduced in 1987 in a manual titled "Team Oriented Problem Solving" (TOPS). This course was written at the request of senior management of the automaker's Power Train organization, which was facing growing frustration at the same problems that were recurring year after year. The focus of this system was to use this approach in a team environment. Teams are to be cross-functional and include members from both the manufacturing organizations as well as design engineering. The Ford 8Ds are most effective in dealing with chronic recurring problems, primarily defects or warranty issues. They were never intended to replace or stand as a systemic quality system. The 8Ds' focus was to deal with problems and discover the weaknesses in the management systems that allowed the problem to occur In the first place. The real benefit would come by changing how management decisions allowed the problem to happen. The problem is merely a symptom of a greater systemic management issue. Global 8D problem solving is made up of a detection cycle and a prevention cycle. It defines a corrective action methodology. Increasingly, these days, companies practicing lean manufacturing are requiring their employees to also understand the 8-Discipline approach (Eight D) to team-based problem solving. These essentially present a standard methodology for data analysis and statistical thinking as follows: 1. D - Use a team approach. 2. D - Describe the problem. 3. D - Implement and verify interim containment actions. 4. D - Define and verify root causes. 5. D - Verify the corrections action(s). 6. D - Implement permanent corrective actions. 7. D - Prevent problem recurrence. 8. D - Congratulate the team. For most manufacturing organizations, routine problem solving will not improve the product and/or process. A more systemic overall quality initiative, such as six sigma or another method is still required.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.7 Statistical Process Control: Statistical process control (SPC) is an effective method of monitoring a process through the use of control charts. Control charts enable the use of objective criteria for distinguishing background variation from events of significance based on statistical techniques. Much of its power lies in the ability to monitor both process center and its variation about that center, by collecting data from samples at various points within the process. Variations in the process that may affect the quality of the end product or service can be detected and corrected, thus reducing waste as well as the likelihood that problems will be passed on to the customer. With its emphasis on early detection and prevention of problems, SPC has a distinct advantage over quality methods, such as inspection, that apply resources to detecting and correcting problems in the end product or service. In addition to reducing waste, SPC can lead to a reduction in the time required to produce the product or service from end to end. This is partially due to a diminished likelihood that the final product will have to be reworked, but it may also result from using SPC data to identify bottlenecks, wait times, and other sources of delays within the process. Process cycle time reductions coupled with improvements in yield have made SPC a valuable tool from both a cost reduction and a customer satisfaction standpoint. HOW TO PERFORM SPC: The key steps for implementing Statistical Process Control are: Identify defined processes. Identify measurable attributes of the process. Characterize natural variation of attributes. Track process variation. If the process is in control, continue to track. If the process is not in control: o Identify assignable cause o Remove assignable cause o Return to Track process variation In practice, reports of SPC in software development and maintenance tend to concentrate on a few software processes. Specifically, SPC has been used to control software (formal) inspections, testing, maintenance, and personal process improvement. Control charts are the most common tools for determining whether a software process is under statistical control. A variety of types of control charts are used in SPC. Table 1, based on a survey of SPC usage in organizations attaining Level 4 or higher on the SEI CMM metric of process maturity, shows what types are most commonly used in applying SPC to software. The combination of an Upper Control Limit (UCL) and a Lower Control Limit (LCL) specify, on control charts, the variability due
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} to natural causes. Table 2 shows the levels commonly used in setting control limits for software SPC. Table 3 shows the most common statistical techniques, other than control charts, used in software SPC. Some of these techniques are used in trial applications of SPC to explore the natural variability of processes. Some are used in techniques for eliminating assignable causes. Analysis of defects is the most common technique for eliminating assignable causes. Causal Analysis-related techniques, such as Pareto analysis, Ishikawa diagrams, the Nominal Group Technique (NGT), and brainstorming, are also frequently used for eliminating assignable causes.

In practice, reports of SPC in software development and maintenance tend to concentrate on a few software processes. Specifically, SPC has been used to control software (formal) inspections, testing, maintenance, and personal process improvement. Control charts are the most common tools for determining whether a software process is under statistical control. A variety of types of control charts are used in SPC. Table 1, based on a survey of SPC usage in organizations attaining Level 4 or higher on the SEI CMM metric of process maturity, shows what types are most commonly used in applying SPC to software. The combination of an Upper Control Limit (UCL) and a Lower Control Limit (LCL) specify, on control charts, the variability due to natural causes. Table 2 shows the levels commonly used in setting control limits for software SPC. Table 3 shows the most common statistical techniques, other than control charts, used in software SPC. Some of these techniques are used in trial applications of SPC to explore the natural variability of processes. Some are used in techniques for eliminating assignable causes. Analysis of defects is the most common technique for
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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} eliminating assignable causes. Causal Analysis-related techniques, such as Pareto analysis, Ishikawa diagrams, the Nominal Group Technique (NGT), and brainstorming, are also frequently used for eliminating assignable causes.

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