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The Tools of Six Sigma

March 31, 2004

Six Sigma is a buzzword that’s getting attention in all types of industries.  The success of GE, Motorola, and others has prompted many an executive to declare that he/she wants “Six Sigma.”  But what does that mean?  What are the methods and tools of Six Sigma?

Generally, Six Sigma is concerned with reducing variability.  The goal of Six Sigma is a six-sigma level of quality or 3.4 defects per million opportunities. To accomplish this, projects are identified and prioritized.  Then, project teams attack the problems using the DMAIC method: Define, Measure, Analyze, Improve, Control.  Let’s talk about each phase and the tools associated with each.

Phase 1: Define

In this step, the problem is defined.  This includes identifying the CTQ’s, the critical-to-quality characteristics as defined by the customer and identifying the key factors affecting the CTQ’s.

Phase 2: Measure

The measure phase consists of two major steps.  Step 1 is to identify the internal processes that influence the CTQ measurements.  Step 2 is to conduct a measurement systems analysis, which includes gauge studies and to perform a thorough process capability study.

Phase 3: Analyze

In the analyze phase, the project team determines which inputs are affecting the outputs.  This is done using the following three steps:

Step 1: Develop and state a hypothesis about the cause or causes.

Step 2: Test the hypothesis through data analysis

Step 3: If your hypothesis is correct, add your cause to a list of significant causes affecting the process.

Phase 4: Improve

The improve phase involves quantifying the effects of the key variables on the process and developing an improvement plan that modifies the key factors to achieve the desired process improvement.

Phase 5: Control

In the control phase, you put in place a system to maintain the changes/improvements you developed in the Improve phase.  This phase involves documenting and monitoring processes.

The Tools

There are statistical methods as well as qualitative tools that are used for process improvement using Six Sigma.  This article will explain some of the key tools in brief.

1. Process Mapping or Value Stream Mapping

One of the most important steps in process improvement is to map out the process in question.  Process mapping is one way to accomplish this.  For the lean enterprise, Value Stream Mapping adds the information flow dimension to this tool.  In general, this involves mapping your product and information flow throughout any given process.  This can be done in manufacturing as well as administrative functions.

2. Basic Statistics

These basic statistics tell the analyst the central tendency and the dispersion of the data.  They consist of the following for a given set of data:

Mean: Sometimes called the average or arithmetic mean, the mean is the sum of a series of values divided by the number of values.

Median:  The midpoint in a series of data points.

Mode: The value that occurs most often in a set of values.

Range: The range measures a spread of data points.  Very simply, it is equal to the largest value in a set of data minus the smallest value.

Variance:  The variance is the average squared deviation of each number in a data set from the mean. 

Standard Deviation: The most common measure of spread, the standard deviation is the average distance from the mean.  It is equal to the square root of the variance.

Correlation: The correlation is the degree to which two variables are related, measured in terms of correlation coefficient.

3. Basic Graphical Analysis

Histogram: The histogram is a vertical bar graph representing the distribution of a given data set.  It is also known as a frequency distribution bar graph.

Scatter Plot: The scatter plot is a graph in which individual data points are plotted in two dimensions.   Scatter plots graphically show correlation.

4. Cause and Effect Diagram (Fishbone Diagram)

The Cause and Effect Diagram or Fishbone Diagram is a graphical tool for identifying the relationship between a problem and its potential causes.  One of the most effective ways of constructing such a diagram is to brainstorm potential causes in a team environment.

5. XY Matrix

The X-Y Matrix is used to link customer CTQ’s to process inputs.  It is simply a group of rows and columns, with one set of increments marked along the X axis and another set of increments marked along the Y axis.

6. Gauge R&R (Repeatability and Reproducibility)

A Gauge R&R ensures that you’re measuring what you think you’re measuring.  IT looks at your units of measure and number of variables, calibrates the measurement gauge, and then randomly selects samples to measure against different operators.

7. Pareto Chart

A Pareto Chart graphically depicts the relative importance of causes, defects, and other aspects of a process. It is used to identify factors in a process that have the greatest cumulative effect.

8. Multivariate Analysis

Multivariate Analysis offers a way to reduce possible causes of variation in a process to a family of related causes.  Multivariate charts present an analysis of three main sources of variation: intra-piece (within a single piece or batch), inter-piece (piece-to-piece or batch-to-batch), and temporal (time related).

9. Hypothesis Testing

Hypothesis Testing defines the problem, statistically tests data assumptions, selects samples, and determines whether or not the probability of a defect is caused by random chance or has a more tangible cause hidden in the process.

10. Failure Mode and Effects Analysis (FMEA)

FMEA is a disciplined methodology that identifies potential failures and puts in place a plan to prevent them from happening.  There are two types of FMEA’s that can be performed: Product or Design FMEA (DFMEA) and process FMEA (PFMEA).  DFMEA relates to product failures and PFMEA relates to process failures.

11. Design of Experiments (DOE)

DOE is a powerful tool that systematically identifies and quantifies the effects of two or more factors on the outcome of a process by experimenting with many factors and variables simultaneously.

12. Control Chart

The Control chart is the fundamental tool of Statistical Process Control (SPC).  It determines whether a process is operating consistently (in control) or if a special cause has occurred to change the process mean or variance.

Other than the DMAIC methodology that is the core of Six Sigma, the key tools outlined in this article have been around for many years.  DMAIC / Six Sigma is a system for effectively using these tools in a disciplined manner to achieve reduced variation.

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About the Author 

Darren Dolcemascolo is an internationally recognized lecturer, author, and consultant. As Sr. Partner and co-founder of EMS Consulting Group, he specializes in productivity and quality improvement through lean manufacturing.   Mr. Dolcemascolo has written the book Improving the Extended Value Stream: Lean for the Entire Supply Chain, published by Productivity Press in 2006.  He has also been published in several manufacturing publications and has spoken at such venues as the Lean Management Solutions Conference, Outsourcing World Summit, Biophex, APICS, and ASQ.  He has a BS in Industrial Engineering from Columbia University and an MBA with Graduate Honors from San Diego State University.

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