Six Sigma Analyze Phase

Upendra Kachru

SIX SIGMA

Step in Analyze Phase

Process Map
Value Stream Mapping
Cause & Effect
Fishbone Diagram (Minitab)
C&E Matrix (Excel)
Process Capability
Cpk
Cp

Upendra Kachru

SIX SIGMA

What Is a Value Stream?

Defines value from the customers perspective
All of the actions and tasks, both value added and
non-value added, required to bring an item (an idea,
information, product or service) from its inception
through delivery.
These include actions to process information from the
customer and actions to transform the product on its way
to the customer.

Value streams vary in scope: reach beyond the

enterprise to single process size
Upendra Kachru

SIX SIGMA

Value Stream Mapping

What it isa way of making waste evident in a process
Why do itto eliminate the waste
How do ituse swimlane diagrams and, for now, show
only lane changes, and document touch time, cycle time
& people involved in each process step

Upendra Kachru

SIX SIGMA

Value and Waste

Value is that for the sake of which a process exists; e.g., to
produce designs that meet customer needs within the constraints
of time, money, and regulatory requirements.
Waste in a process is anything not needed to get the job done to
the satisfaction of the customer and other stakeholders.
Only processing adds value.
All the rest is waste:
Waiting
Moving
Inspecting or Approving
Reworking

Upendra Kachru

SIX SIGMA

Ohnos 7 Types of Waste

Inventories of goods awaiting processing or consumption

Unnecessary transport of goods
Defects in products
Overproduction of goods not needed
Unnecessary processing
Waiting by employees for process equipment to finish work or
for an upstream activity to complete.
Unnecessary movement of people

Upendra Kachru

SIX SIGMA

Value Categories
Value categories as defined below
Value Added:
Physically transforms the thing going through the process
Must be done right the first time
Meaningful from the customers perspective (is the customer willing
to pay for it?)

Value Enabling:
Satisfies requirements of non-paying external stakeholders
(government regulations)

Non-Value Added
Everything else

Upendra Kachru

SIX SIGMA

A Simple Example
Customer Need:
Stapled pages
Info: Location of stapler
Pick Up Paper

Walk to Stapler

Time: 1 sec.
Distance: 0

Time: 5 sec.
Distance: 20 ft.

Info: Where to place staple

Staple Paper
Time: 2 sec.
Distance: 0

Excess Travel
Walk to Desk
Time: 5 sec.
Distance: 20 ft.

Put Down Paper

Time: 1 sec.
Distance: 0

Total Time: 14 sec.

Total Dist: 40 ft.
Value Added Time: 4 sec.
Value Added Dist: 0

Value Added Time: 28%

Upendra Kachru

SIX SIGMA

Value Stream Process Steps

1. Prepare
2. Gather Data & Develop Current State

3. Develop Future State & Action Plan

4. Execute to Plan
5. Align
Upendra Kachru

SIX SIGMA

Value Stream Process

Step 1 - Prepare
Gather Preparatory Information

Document the Case for Change

Define the Scope (start and end of process)
Identify the Requirements
Review/establish Measurements

Set Logistics for Event

Participants
Location
Materials
Meals/Refreshments
Etc.

Upendra Kachru

SIX SIGMA

Value Stream Process

Step 2 - Gather Data (Develop Current State)
Observe and gather data
Walk the value stream - see the actual work place
Follow and make notes about item and information flow
Gather data for each step in the flow
Trigger/done

actual lead time

Actual cycle time on time delivery

Defect rate

batch sizes overtime

Quality

variations

output
staffing
work in process

Map the flow of items

Map the flow of information
Add data and issues
Upendra Kachru

SIX SIGMA

Characterising Inputs
Inputs can be classified as one of three types
Controllable (C)
Things you can adjust or control during the process
Speeds, feeds, temperatures, pressures.

Standard Operating Procedures (S)

Things you always do (in procedures or common sense things)
Cleaning, safety.

Noise (N)
Things you cannot control or don't want to control
(too expensive or difficult)
Ambient temperature, humidity, operator...
Upendra Kachru

SIX SIGMA

Characterising Inputs- Example

Machining a shaft
on a lathe

C
C
C
C
C
C
C
S
C
N
N
N
S

Upendra Kachru

Outputs (Ys)
Diameter
Taper
Surface finish

Inputs (xs)
Rotation speed
Traverse speed
Tool type
Tool sharpness
Shaft material
Shaft length
Material removal per cut
Part cleanliness
Coolant flow
Operator
Material variation
Ambient temperature
Coolant age

SIX SIGMA

Detailed Example

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Upendra Kachru

SIX SIGMA

Value Stream Process

Step 3 Future State & Action Plans
Discuss the ideal state
Develop the future state map
Develop action plans & cadence tracking
Build draft time line for implementation

Communication & training as required

Designing for 6-sigma
Reduce the number of parts in a product
Reduce the number of steps in a process
Upendra Kachru

SIX SIGMA

Action Plan Template

#

Process Step or
Function

Original
Problem

Action Items

Person
Responsible

Due
Date

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

Upendra Kachru

SIX SIGMA

Metrics and Comments

Swimlane Diagram
RFI Process for Placing Drawings
Structural
Engineer

Architect

General
Contractor

Fabricator

Detailer

Upendra Kachru

Prepare
Engineering
Drawings based on
Loads

Prepare Architectural
Drawings

Check details
& modify as
appropriate

Check details
& modify as
appropriate

Modify
Engineering
Drawings

Check details
& modify as
appropriate

Subcontract Detailing
to Fabricator

Subcontract Detailing
To Detailer

Check details
& modify as
appropriate

Prepare Details

SIX SIGMA

Return modified
details to fabricator

Example: RFI Process for Placing Drawings

Q?
What is the percentage of actual processing
time compared to the amount of time it sits in
someones In tray?
LEAD
TIME
Structural
Engineer

Check RFI
& modify drawing as
appropriate

PROCESS
TIME

Upendra Kachru

SIX SIGMA

Example: RFI Process for Placing Drawings

Lead time
(LT)

Sample entry:

Time spent
to respond
to RFIs
(VAT)

Assumptions:
8 hour work days (weekends not deducted)

Sections of RFI log where time spent was not recorded are
not included in the calculation.

Upendra Kachru

SIX SIGMA

Example: RFI Process for Placing Drawings

Value Stream Mapping (Designing for 6-sigma)
Reduce the number of steps in a process
Reduce the number of non-value adding steps
Current State

Future State with

Rework

Future State without

Rework

Future State with

EDI

Steps

Steps

Steps

Steps

87

100

67

100

32

100

11

100

73

84

46

69

11

34

27

12

14

19

28

19

60

55

18

Total steps
Non-Value adding
Non-value adding but
necessary
Value-adding

Upendra Kachru

SIX SIGMA

Cause & Effect (Fishbone) Diagram

C & E Analysis
A method a work group can use to identify the possible causes of
a problem
A tool to identify the factors that contribute to a quality
characteristic
Visual means for tracing a problem to its causes
Identifies all the possible causes of a problem and how they relate
before deciding which ones to investigate
C & E analysis is used as a starting point for investigating a problem

Upendra Kachru

SIX SIGMA

Cause & Effect (Fishbone) Diagram

All the factors that could affect the problem or the quality
characteristic
Five Major Categories
Materials
Methods

People
The problem or quality
characteristic

Machines
Environment
The effect is the outcome of the factors that affect it

Upendra Kachru

SIX SIGMA

Cause & Effect Matrix

The C&E matrix is constructed from the fishbone diagram using the
following procedure:
1. List the process output variables
2. Rate each output on a 1-to-10 scale to importance to the
customer
3. List process input variables (from the process map)
4. Rate each input's relationship to each output variable using a 0,
1, 3, 9 scale
5. Select the high ranking input variables to start the FMEA
process;
6. Determine how each selected input variable can "go wrong" and
place that in the Failure Mode column of the FMEA.
Upendra Kachru

SIX SIGMA

Cause and Effect Matrix

Benefit
Gain new knowledge and perspectives by sharing ideas with
others
Helps us understand our processes
Provides a basis for action
Whenever a problem is discovered, using C&E analysis
forces us to take a proactive stance by seeking out causes

Upendra Kachru

SIX SIGMA

Cause & Effect Matrix

Eight Steps in Cause and Effect Analysis:
Define the Effect

Effect

Identify the Major Categories

Generate Ideas
Evaluate Ideas
Vote for the Most Likely Causes
Rank the Causes
Verify the Results

Recommend Solutions
Upendra Kachru

SIX SIGMA

Cause & Effect Matrix

Upendra Kachru

SIX SIGMA

Process Capability
Process capability is the ability of the process to meet the design
specifications for a service or product.
Nominal value is a target for design specifications.
Tolerance is an allowance above or below the nominal value.
Nominal value
Process distribution
Lower
specification

20
Upendra Kachru

Upper
specification

25

30
SIX SIGMA

This process is capable

Process Capability
Capable Process
A stable process that meets customer requirements.
Spec limits or tolerances for product quality characteristics are:
Characteristic of the part/item (product) in question
Based on functional design considerations
Related to/compared with an individual part measurement

Used to establish a parts conformance to design intent

Capability assessments for unstable processes, may not be indicative

of how the process is actually performing.
Upendra Kachru

SIX SIGMA

Process Capability
Nominal
value
Process distribution
Lower
specification

20

Upper
specification

25

30

Process is not capable

Upendra Kachru

SIX SIGMA

Process Capability
Effects of Reducing Variability on Process Capability
Nominal value

Six sigma

Four sigma

Two sigma

Lower
specification

Upper
specification

Mean
Upendra Kachru

SIX SIGMA

Process Capability
Process Capability Ratio, Cp
A
B

Specification
Limit

Cpk =
A divided by
B

Specification
Limit

Upper specification - Lower specification

Cp =
6
Process capability ratio, Cp, is the tolerance width divided by
6 standard deviations (process variability).
Upendra Kachru

SIX SIGMA

Process Capability
Process Capability Index, Cpk
Process Capability Index, Cpk, is an index that measures the
potential for a process to generate defective outputs relative to
either upper or lower specifications.
Cpk = Minimum of

=x Lower specification
3s

Upper specification =x
3s

We take the minimum of the two ratios because it gives the worstcase situation.

Upendra Kachru

SIX SIGMA

Process Capability
Cpk & Cp
Cpk incorporates information about both the process spread and
the process mean, so it is a measure of how the process is
actually performing.
Cp relates how the process is performing to how it should be
performing. Cp does not consider the location of the process
mean, so it tells you what capability your process could achieve
if centered.

Upendra Kachru

SIX SIGMA

Example: Intensive Care Lab

The intensive care unit lab process has an average turnaround time
of 26.2 minutes and a standard deviation of 1.35 minutes.
The nominal value for this service is 25 minutes with an upper
specification limit of 30 minutes and a lower specification limit of
20 minutes.
The administrator of the lab wants to have three-sigma performance
for her lab. Is the lab process capable of this level of performance?
Upper specification = 30 minutes
Lower specification = 20 minutes
Average service = 26.2 minutes
= 1.35 minutes

Upendra Kachru

SIX SIGMA

Intensive Care Lab

Assessing Process Capability
Upper specification = 30 minutes
Lower specification = 20 minutes
Average service = 26.2 minutes
= 1.35 minutes
Cpk = Minimum of

=
x Lower specification

Upper specification x
3s

3s

Cpk =

Minimum of

26.2 20.0
3(1.35)

Cpk =
Upendra Kachru

Minimum of 1.53, 0.94

30.0 26.2

3(1.35)

= 0.94

SIX SIGMA

Process
Capability
Index

Intensive Care Lab

Assessing Process Capability
Cp =
Cp =

Upper specification - Lower specification

6
30 - 20
6(1.35)

= 1.23 Process Capability Ratio

Does not meet 3 (1.00 Cpk) target due to a shift in mean (Note
variability is ok since Cp is over 1.0)
Before Process Modification
Upper specification = 30.0 minutes Lower specification = 20.0 minutes
Average service = 26.2 minutes
= 1.35 minutes Cpk = 0.94 Cp = 1.23
Upendra Kachru

SIX SIGMA

Process Capability
Statistical Assessment of Process Capability
Get Process in Statistical Control
Statistical Assessment (Minitab or Excel)
Construct histogram of individual measurements
Compute probability of exceeding specifications P()
Empirically (observed)
Convert to defects per million (DPM) and sigma capability
Compute process capability indices Cp, Cpk

Upendra Kachru

SIX SIGMA

Process Capability
Control Charts for Attributes
p-chart: A chart used for controlling the proportion of
defective services or products generated by the process.

p =

p(1 p)/n

Where
n = sample size
p = central line on the chart, which can be either the historical average
population proportion defective or a target value.
Control limits are: UCLp = p+z

and LCLp = pz

z = normal deviate (number of standard deviations from the average)

Upendra Kachru

SIX SIGMA

Process Capability Requirements

Process must be normally distributed
Process must be in control
Process capability result:

> 1.34 = capable

< 1.33 = not capable
= 1.33 = barely capable
> 5 or 10 is overkill, excessive resource use

Upendra Kachru

SIX SIGMA

Process Capability
Spreadsheet Template

Upendra Kachru

SIX SIGMA

Process Capability Study

Upendra Kachru

SIX SIGMA

Process Capability Study

Upendra Kachru

SIX SIGMA

Process Capability
Alternatives for Improving Process Capability
If bias
Recenter and recompute P(), dpm, and sigma capability

If too much variation

Sort by 100% inspection
Widen tolerance
Use a more precise process (e.g., better or new technology)
to reduce variation
Use statistical methods to identify variation reduction
opportunities for existing process

Upendra Kachru

SIX SIGMA

Process Capability
Non-normal distributions
Use Capability Analysis (Nonnormal) to assess the capability
of an in-control process when the data are from the nonnormal
distribution. A capable process is able to produce products or
services that meet specifications.
The process must be in control and follows a nonnormal
distribution before you assess capability. If the process is not in
control, then the capability estimates will be incorrect.
Nonnormal capability analysis consists of a capability
histogram and a table of process capability statistics

Upendra Kachru

SIX SIGMA

Process Capability
How it helps

A Process Capability study is the end result of the analysis done

on process output data.
A Process Capability study reflects what our customer sees.
It indicates what our short term and long term situation looks
like.
Recognise however that our processes need to be stable (in
statistical control) as well as capable.
Before anything, we must have faith in our measurements, hence
the need for a measurement system analysis.

Upendra Kachru

SIX SIGMA

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