LESSON 9: Process Improvement and Six Sigma

o Process Improvement Methodologies

 Process improvement depends on the ability to effectively identify problems, develop
good solutions, and implement them.
 A systematic, fact – based problem – solving approach is vital to accomplishing this. A
structured problem – solving approach provides all employees with a common language
and a set of tools to communicate with each other, particularly as members of cross –
functional teams. It also ensures that solutions are developed objectively, rather than
based on opinions or rash judgments.
 Numerous methodologies for improvement have been proposed over the years, and
different organizations use different approaches.
 Although each methodology is distinctive in its own right, they share many
common themes:
1. Redefining and Analyzing the Problem – collect and organize information,
analyze the data and underlying assumptions, and reexamine the problem for
new perspectives, with the goal of achieving a workable problem definition.
2. Generating Ideas – “brainstorm” to develop potential solutions.
3. Evaluating and Selecting Ideas – determine whether the ideas have merit and
will achieve the problem solver’s goal
4. Implementing Ideas – sell the solution and gain acceptance by those who must
use them.

o The Deming Cycle

 The Deming cycle is a simple adaptation of the scientific method for process
improvement.
 In 1939, Walter Shewhart first introduced this as a three – step process of specification,
production, and inspection for mass production that “constitute a dynamic scientific
process of acquiring knowledge”.
 These steps correspond to the scientific method of hypothesizing, carrying out an
experiment, and testing the hypothesis.
 Shewhart depicted this process graphically as a circle to convey the importance of
continual improvement.
 Deming modified his idea and presented it during his seminars in Japan in 1950. The
“Deming wheel” consisted of:
1. Design the product with appropriate tests.
2. Make the product and test in the production line and in the laboratory.
3. Sell the product.
4. Test the product in service and through market research. Find out what users think
about it and why nonusers have not bought it.
  Japan executives adapted this into the PDCA cycle – Plan (design the product), Do
(ensure that production makes the product as designed), Check (check sales/complaints
and confirm whether the customer is satisfied), Act (use feedback to incorporate
improvements in the next phase of planning).
 This became known as the Deming cycle; Deming introduced this during his
management seminars in the 1980s and changed “Check” to “Study”, calling it
the PDSA cycle.
 PDSA provides a basic framework for developing, testing, and implementing changes to
any process that will lead to improvement.
 The Plan stage consists of studying the current situation and describing the
process (its inputs, outputs, customers, and suppliers); understanding customer
expectations; gathering data; identifying problems; testing theories of causes; and
developing solutions and action plans.
 In the Do stage, the plan is implemented on a trial basis, such as in a laboratory,
pilot production process, or with a small group of customers, to evaluate a
proposed solution and provide objective data. Data from the experiment are
collected and documented.
 The Study stage determines whether the trial plan is working correctly by
evaluating the results, recording the learning, and determining whether any further
issues or opportunities need to be addressed. Often, the first solution must be
modified or scrapped. New solutions are proposed and evaluated by returning to
the Do stage.
 In the last stage, Act, the improvements become standardized and the final plan is
implemented as a “current best practice” and communicated throughout the
organization. This process then leads back to the Plan stage for identification of
other improvement opportunities.

Detailed Steps in the Deming Cycle

Plan
1. Define the process: its start, end, and what it does.
2. Describe the process: list the key tasks performed and sequence of steps, people involved,
equipment used, environmental conditions, work methods, and materials used.
3. Describe the players: external and internal customers and suppliers, and process operators.
4. Define customer expectations: what the customer wants, when, and where for both external
and internal customers.
5. Determine what historical data are available on process performance, or what data need to be
collected to better understand the process.
6. Describe the perceived problems associated with the process: for instance, failure to meet
customer expectations, excessive variation, long cycle times, and so on.
7. Identify the primary causes of the problems and their impacts on process performance.
8. Develop potential changes or solutions to the process, and evaluate how these changes or
solutions will address the primary causes.
 9. Select the most promising solution(s).
Do
1. Conduct a pilot study or experiment to test the impact of the potential solutions(s).
2. Identify measures to understand how any changes or solutions are successful in addressing the
perceived problems.
Study
1. Examine the results of the pilot study or experiment.
2. Determine whether process performance has improved.
3. Identify further experimentation that may be necessary.
Act
1. Select the best change or solution.
2. Develop an implementation plan: what needs to be done, who should be involved, and when
the plan should be accomplished.
3. Standardize the solution, for example, by writing new standard operating procedures.
4. Establish a process to monitor and control process performance.

o Creative Problem Solving

 Creativity is seeing things in new or novel ways.
 In the Toyota production system, which has become the benchmark for world –
class efficiency a key concept is soikufu – creative thinking or inventive ideas,
which means capitalizing on worker suggestions.
 An effective problem – solving process that can easily be adapted to quality improvement
stems from creative problem – solving (CPS) concepts pioneered by Alex Osborn and
refined by Sidney Parnes. This strategy consists of the following steps:
1. Understanding the “mess”.
2. Finding facts.
3. Identifying specific problems.
4. Generating ideas.
5. Developing solutions.
6. Implementing solutions.

o Custom Improvement Methodologies

1. An approach used by some hospitals and the US Coast guard is known by the acronym
FADE: focus, analyze, develop and execute.
 In the Focus stage, a team selects the problem to be addressed and defines it,
characterizing the current state of the process, why change is needed, what the desired
result should be, and the benefits of achieving that result.
 In the Analyze stage, the team works to describe the process in detail, determine what
data and information are needed, and develop a list of root causes for the problem.
 The Develop stage focuses on creating a solution and implementation plan along with
documentation to explain and justify recommendations to management who must
allocate the resources.
  Finally, in the Execute stage, the solution is implemented and a monitoring plan is
established.
2. Process – improvement methodologies are often aligned with the unique organizational
culture of many organizations just like a process known as DRIVE – Define the problem,
Recognize the cause, Identify the solution, Verify the action, and Evaluate the results.

o DMAIC
 The most widely – known process improvement methodology is DMAIC – define,
measure, analyze, improve and control.
 It is a process improvement approach used in Six Sigma.

Common Six Sigma Tools Used in DMAIC

Define:
 Project charter
 Cost of quality analysis
 Pareto analysis
 High level process mapping
Measure:
 Run charts
 Check sheets
 Descriptive statistics
 Measurement system evaluation
 Process capability analysis
 Benchmarking
Analyze:
 Scatter diagram
 Detailed process mapping
 Statistical inference
 Cause – and – effect diagrams
 Failure mode and effects analysis
 Root cause analysis
Improve:
 Design of experiments
 Mistake proofing
 Lean production
 Deming cycle
 Seven management and planning tools
Control:
 Control charts
 Standard operating procedures
o Lean Tools for Process Improvement
 Lean approaches focus on the elimination of wastes in all forms, including defects
requiring rework unnecessary processing steps, unnecessary movement of materials or
people, waiting time, excess inventory, and overproduction.
 Some of the key tools used in lean production include:
1. The 5S’s.
 The 5S’s are derived from Japanese terms: seiri (sort), seiton (set in order), seiso
(shine), seiketsu (standardize), and shitsuke (sustain). They define a system for
workplace organization and standardization.
a. Sort – refers to ensuring that each item in a workplace is in its proper place or
identified as unnecessary and removed.
b. Set in order – means to arrange materials and equipment so that they are easy
to find and use.
c. Shine – refers to a clean work area. Not only it is important for safety, but as a
work area is cleaned, maintenance problems can be identified before they
cause greater problems.
d. Standardize – means to formalize procedures and practices to create
consistency and ensure that all steps are performed correctly.
e. Sustain – means to keep the process going through training, communication,
and organizational structures.
2. Visual controls – are indicators for tools, parts, and production activities that are
placed in plain sight of all workers so that everyone can understand the status of the
system at a glance.
3. Efficient layout and standardized work – the layout of equipment and processes is
designed according to the best operational sequence, by physically linking and
arranging machines and process steps most efficiently.
4. Pull production – in this system, upstream suppliers do not produce until the
downstream customer signals a need for parts.
5. Single minute exchange of dies (SMED) – refers to rapid changeover of tooling and
fixtures in machine shops so that multiple products in smaller batches can be run on
the same equipment.
6. Total productive maintenance – is designed to ensure that equipment is operational
and available when needed.
7. Source inspection – inspection and control by process operators guarantees that
product passed on to the next production stage conforms to specifications.
8. Continuous improvement – in order to make lean production work, one must get to
the root causes of problems and permanently remove them.