Six Sigma Demystified: Second Edition

Six Sigma Demystified, written by Quality America president Paul Keller, may be used for training groups of LSS Black Belt, Green Belt and Champions for self-study to master the tools and methodology of Six Sigma, or as an easy to use reference source for Six Sigma personnel. This Six Sigma book provides many examples for service processes. Detailed examples are provided using Minitab and MS Excel. 

• Part One of Six Sigma Demystified focuses on the deployment strategy, including the management commitment necessary for success, the selection of personnel to lead the effort, and the selection of projects aligned with your business strategy.
• Part Two describes the DMAIC methodology for project implementation. Each stage is discussed in detail, with its objectives, detailed examples, and recommended tools for application. A sample DMAIC project is highlighted through each section.
• Part Three provides details on each of the necessary Tools for Six Sigma, presented in alphabetical order for easy reference, with clear descriptions of When to Use, Methodology, and Interpretation. Calculations and assumptions are provided as needed. The Second Edition has been expanded to include detailed examples of their use in popular software such as MS Excel, Minitab, and Green Belt XL.
• Each chapter in Parts One and Two concludes with a quiz to challenge the reader, with detailed solutions at the end of the book. This Six Sigma book includes a final exam (with one hundred questions) that tests the readers knowledge of the deployment strategy, tools and methods.

Sample Excerpts

Introduction

There are now many excellent books on Six Sigma. Many of these emphasize the deployment issues of Six Sigma, providing valuable insight into the big-picture issues required for successful implementation of Six Sigma at an organizational level. These issues, including management responsibility, resource allocation, and customer focus, are summarized in Chapter 1. Successful Six Sigma deployment involves continual success of projects, each incrementally moving the organization closer to its strategic goals of shareholder return, employee growth, and customer satisfaction. Each project, in turn, progresses from its initial definition through the define, measure, analyze, improve, and control (DMAIC) cycle to the maturity of financial reward. This project evolution requires much attention to detail by the project team, including its black belt, green belts, and sponsor. Unfortunately, many Six Sigma books fail to develop the detail of the tools necessary for practical use, or they cover only a small handful of the tools required for an organization's projects. Readers are not provided clear benefits for the tools or may wonder if the tools may be applied to their specific processes and projects.

I am often asked by clients, "How does Six Sigma apply to us?" Each industry tends to approach problems as if no other market segment has experienced the same problems, now or ever. Even if the problems were the same, the solutions certainly can't apply across industries. Some books provide far too much statistical background for the tools. Readers are forced to endure academic derivations of formulas or statistical tests that have limited use in today's computerized world. This tends to force the focus away from the practical use and limitations of the tools.

Six Sigma Demystifiedis written to address these needs. This Second Edition has taken the input of the many thousands of readers of the First Edition to further refine specific topics, as well as to provide further detail on using Minitab and Excel to solve common problems found in both service and industrial settings, as well as certification exams.

How to Use this Book

The book's presentation is based on the implementation strategy for Six Sigma. Part 1 addresses the management responsibilities for developing a coherent infrastructure to support successful Six Sigma projects. Part 2 addresses the details of deploying Six Sigma projects using the Six Sigma define, measure, analyze, improve, and control (DMAIC) problem-solving methodology. Each chapter in Parts 1 and 2 concludes with exercises to test the subject matter expertise of the reader. Section exams are also provided for Parts 1 and 2, in addition to a final exam addressing the entire scope of the text. Solutions to the questions are provided at the end of the book.

Part 3 of the book serves as a reference guide to detail the statistical, lean, and problemsolving tools used most often in the DMAIC project deployment. It includes a variety of tools useful to Six Sigma teams, each presented within the context of an objective for a particular stage of DMAIC. Since many tools have applications within multiple stages of DMAIC, each tool description includes a "When to Use" section relating to the DMAIC methodology and its objectives. Detailed interpretation of each tool is also provided, with reference to other tools that should be used in conjunction with that tool for full effectiveness. Calculations and assumptions are provided as needed, as are detailed examples of their use in popular software such as MS Excel, Minitab, and Green Belt XL. To attract interest from the widest audience, many examples are provided for service processes. This book may be used for training groups of black belts and green belts or for self-study to master the tools and methodology of Six Sigma.

Table of Contents

PART ONE: PREPARING FOR DEPLOYMENT

Chapter 1: Deployment Strategy

What is Six Sigma?

Differences between Six Sigma and TQM

Six Sigma and Lean

Elements of a Successful Deployment

Chapter 1 Quiz

Chapter 2: Developing the Training and Deployment Plan

Training Needs Analysis

Executive Overview Training

Champions

Black Belts

Green Belts

Chapter 2 Quiz

Chapter 3: Focusing the Deployment

Customer Focus

Project Selection

DMAIC Problem Solving

Chapter 3 Quiz

PART TWO: DMAIC METHODOLOGY

Chapter 4: Define Stage

Objectives

Project Definition

Top-level Process Definition

Team Formation

Recommended Tools

Chapter 4 Quiz

Chapter 5: Measure Stage

Objectives

Process Definition

Metric Definition

Process Baseline Estimation

Measurement Systems Analysis

Recommended Tools

Chapter 5 Quiz

Chapter 6: Analyze Stage

Objectives

Value Stream Analysis

Analyzing Sources of Variation

Determining Process Drivers

Recommended Tools

Chapter 6 Quiz

Chapter 7: Improve Stage

Objectives

Defining the New Process

Assessing Benefits of Proposed Solution

Evaluating Process Failure Modes

Implementation and Verification

Recommended Tools

Chapter 7 Quiz

Chapter 8: Control Stage

Objectives

Standardize on the New Methods

Measure Bottom Line Impact

Document Lessons Learned

Recommended Tools

Chapter 8 Quiz

PART THREE: SIX SIGMA TOOLS

Affinity Diagram

ANOVA

Autocorrelation Charts

Box-Whisker Chart

C Chart

Cause and Effect Diagram

Confidence Interval on Mean

Confidence Interval on Proportion

Contingency Table

Contour Plot

Control Plans

Design of Experiments (DOE)

Distributions

Equality of Variance Test

Evolutionary Operation (EVOP)

Exponentially Weighted Moving Average (EWMA) Chart

Factorial Designs

Failure Modes and Effects Analysis

Five S

Flowchart

Gantt Chart

Goodness of Fit Tests

Histogram

Hypothesis Testing

Individual-X and Moving Range Charts

Interaction Plots

Lean Methodology

Level Loading

Linearity Analysis

Matrix Diagrams

Multi-Vari Plots

Nominal Group Technique

Nonparametric Test on Equality of Means

Np Chart

P Chart

Pareto Chart

PERT Analysis

Prioritization Matrix

Process Capability Index

Process Cycle Efficiency

Process Decision Program Charts

Process Maps

Process Performance Indices

Quality Function Deployment

R&R Studies

Regression Analysis

Residuals Analysis

Response Surface Analysis

Run Test Rules

Scatter Diagrams

SIPOC

Spaghetti Diagrams

Statistical Process Control (SPC) Charts

Transformations

U Chart

Velocity

Work Breakdown Structure

X-Bar Chart

Final Exam

Answers to Quizzes and Exams

APPENDICES

1. Area Under the Standard Normal Curve.

2. Critical Values of the t-Distribution.

3. Chi-Square Distribution.

4. F Distribution (a = 1%)

5. F Distribution (a = 5%)

6. Control Chart Constants

7. Table of d2* Values

8. Sigma Level to DPMO Conversion

9. Estimating Sigma Using Long-term DPMO (from Field Data)

10. Durbin-Watson Table

GLOSSARY

REFERENCES

INDEX