CUSTOMER &S

Cix
OMPETITIVE
SigmaINTELLIGENCE

S S
IX
FOR

IGMA

SYSTEMS INNOVATION & DESIGN

DEPARTMENT

OF STATISTICS

REDGEMAN@UIDAHO.EDU

OFFICE: +1-208-885-4410

Client,DEnterprise
& Competitive
Intelligence
for
Product,
Process
R. RICK EDGEMAN,
PROFESSOR
& CHAIR S
IX S
IGMA BLACK
BELT &

S S
IX

Six Sigma

IGMA

DMAIC: The Measure Phase

DEPARTMENT

OF STATISTICS

Client, Enterprise & Competitive Intelligence for Product, Process &

S S
IX

Six Sigma

IGMA

a highly structured strategy for acquiring, assessing, and

applying customer, competitor, and enterprise
intelligence for the purposes of product, system or
enterprise innovation and design.

DEPARTMENT

OF STATISTICS

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Define the problem and customer

Define

requirements.

Measure

Control

Measure

defect rates and

document the
process in its
current incarnation.
Analyze process data and determine
the capability of the process.

Improve the process and remove

defect causes.

Improve

Analyze

Control process performance and

ensure that defects do not recur.

Client,
Competitive Intelligence
for Product,
Process &
SixEnterprise
Sigma&Innovation
& the DMAIC
Algorithm

Six Sigma
Measure:
What Measurements are Important and
What Tools Should be Used?
1.

Select Customer Critical to Quality (CTQ) Characteristics;

2. Define Performance Standards (Numbers & Units);
3. Establish the Data Collection Plan,
4. Validate the Measurement System,
5. and Collect the Necessary Data.

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure: 1. Select Customer Critical to Quality (CTQ) Characteristics.
Among useful quality tools in the MEASURE phase are:
Quality Function Deployment (QFD) which relates CTQs to measurable
internal sub-processes or product characteristics.

Process Maps create a shared view of the process, reveals redundant or

Unnecessary steps, and compares the actual process to the ideal one.

Fishbone Diagrams provide a structure for revealing causes of the effect.

Pareto Analysis provides a useful quantitative means of separating the vital
few causes of the effect from the trivial many, but require valid historical data.

Failure Modes and Effects Analysis (FMEA) identifies ways that a subprocess or product can fail and develops plans to prevent those failures. FMEA is
especially useful with high-risk projects.

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure: 1. Select Customer Critical to Quality (CTQ) Characteristics.
FAILURE MODES AND EFFECTS ANALYSIS (FMEA)
Failure Modes and Effects Analysis (FMEA) Process is a structured approach that has
the goal of linking the FAILURE MODES to an EFFECT over time for the purpose of
prevention. The structure of FMEA is as follows:

Preparation FMEA Process Improvement

a.
b.
c.
d.
e.

Select the team

Develop the process map and steps
List key process outputs to satisfy internal and external customer requirements
Define the relationships between outputs and process variables
Rank inputs according to importance.

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure: 1. Select Customer Critical to Quality (CTQ) Characteristics.
FAILURE MODES AND EFFECTS ANALYSIS (FMEA)
Preparation FMEA

Process Improvement

a. Identify the ways in which process inputs can vary (causes) and identify associated FAILURE
MODES. These are ways that critical customer requirements might not be met.
b. Assign severity, occurrence and detection ratings to each cause and calculate the
RISK PRIORITY NUMBERS (RPNs).
c. Determine recommended actions to reduce RPNs.
d. Estimate time frames for corrective actions.
e. Take actions and put controls in place.
f. Recalculate all RPNs.
FAILURE MODE: How a part or process can fail to meet specifications.
CAUSE: A deficiency that results in a failure mode sources of variation
EFFECT: Impact on customer if the failure mode is not prevented or corrected.

Client, Enterprise & Competitive Intelligence for Product, Process &

FMEA Standardized Rating System

Six Sigma

1 < RPN = (Degree of Severity)*(Likelihood of Occurrence)*(Ability to Detect) < 1000

RATING

DEGREE OF SEVERITY

LIKELIHOOD OF
OCCURRENCE

ABILITY TO DETECT

Customer will not notice the adverse effect or it is

insignificant.

Likelihood of occurrence is remote.

Sure that the potential failure will be found or prevented

before reaching the next customer.

Customer will probably experience slight annoyance.

Low failure rate with supporting

documentation.

Almost certain that the potential failure will be found or

prevented before reaching the next customer.

Customer will experience annoyance due to slight

degradation of performance.

Low failure rate without supporting

documentation.

Low likelihood that the potential failure will reach the next
customer undetected.

Customer dissatisfaction due to reduced performance.

Occasional failures.

Controls may not detect or prevent the potential failure

from reaching the next customer.

Customer is made uncomfortable or their productivity is

reduced by the continued degradation of the effect.

Relatively moderate failure rate with

supporting documentation.

Moderate likelihood that the potential failure will reach

the next customer.

Warranty repair or significant manufacturing or assembly

complaint.

Moderate failure rate without

supporting documentation.

Controls are unlikely to detect or prevent the potential

failure from reaching the next customer.

High degree of customer dissatisfaction due to component

failure without complete loss of function. Productivity
impacted by high scrap or rework levels.

Relatively high failure rate with

supporting documentation.

Poor likelihood that the potential failure will be detected

or prevented before reaching the next customer.

Very high degree of dissatisfaction due to the loss of function

without a negative impact on safety or governmental
regulations.

High failure rate without supporting

documentation.

Very poor likelihood that the potential failure will be

detected or prevented before reaching the next customer.

Customer endangered due to the adverse effect on safe

system performance with warning before failure or violation
of governmental regulations.

Failure is almost certain based on

warranty data or significant DV
testing.

Current controls probably will not even detect the

potential failure.

10

Customer endangered due to the adverse effect on safe

system performance without warning before failure or
violation of governmental regulations.

Assured of failure based on warranty

data or significant DV testing

Absolute certainty that the current controls will not detect

the potential failure.

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure:
1. Select Customer Critical to Quality
(CTQ) Characteristics.
FAILURE MODES AND EFFECTS ANALYSIS (FMEA)
Preparation FMEA Process

Improvement

Develop and implement plans to reduce RPNs.

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure: 2. Define Performance Standards: Numbers & Units
At this stage customer needs are translated into clearly defined measurable traits.
OPERATIONAL DEFINITION: This is a precise description that removes any
ambiguity about a process and provides a clear way to measure that process. An
operational definition is a key step towards getting a value for the CTQ that is being
measured.
TARGET PERFORMANCE: Where a process or product characteristic is aimed
If there were no variation in the product / process then this is the value that would
always occur.
SPECIFICATION LIMIT: The amount of variation that the customer is willing to
tolerate in a process or product. This is usually shown by the upper and lower
boundary which, if exceeded, will cause the customer to reject the process or product.
DEFECT DEFINITION: Any process or product characteristic that deviates outside
of specification limits.

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure:
3. Establish Data Collection Plan, Validate the Measurement System, and
Collect Data.
A Good Data Collection Plan:
a. Provides clearly documented strategy for collecting reliable data;
b. Gives all team members a common reference;
c. Helps to ensure that resources are used effectively to collect only critical data. The
cost of obtaining new data should be weighed vs. its benefit. There may be viable
historical data available.
We refer to actual process variation and measure actual output:
a. what is the measurement process used?
b. describe that procedure
c. what is the precision of the system?
d. how was precision determined
e. what does the gage supplier state about: f. Do we have results of either a:
* Accuracy * Precision * Resolution
* Test-Retest Study?
* Gage R&R Study?

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure: 3. Establish Data Collection Plan, Validate the Measurement
System, and Collect Data. Note that our measurement process may also have variation.
a.

Gage Variability:
Precision:

Accuracy:

Both:

b. Operator Variability: Differences between operators related to measurement.

c. Other Variability: Many possible sources.
Repeatability: Assess effects within ONE unit of your measurement system, e.g.,
the variation in the measurements of ONE device.
Reproducibility: Assesses the effects across the measurement process, e.g., the
variation between different operators.
Resolution: The incremental aspect of the measurement device.

Client, Enterprise & Competitive Intelligence for Product, Process &

Six Sigma
Measure: 3. Establish Data Collection Plan, Validate the Measurement
System, & Collect Data.
GAGE R&R (Repeatability & Reproducibility) STUDY:
a. Operators at least 3 recommended;
b. Part the product or process being measured. It is recommended that at least 10
representative (reflects the range of parts possible) parts per study, with each
operator measuring the same parts.
c. Trial each time the item is measured. There should be at least 3 trials per part,
per customer. Source of Variation
% Contribution
Total Gage Repeatability & Reproducibility

R1 + R2

Repeatability

R1

Reproducibility

R2

Part-to-Part

100% - (R1 + R2)

Total Variation

100%

Client, Enterprise & Competitive Intelligence for Product, Process &

S S
IX

Six Sigma

IGMA

End of Session

DEPARTMENT

OF STATISTICS

Client, Enterprise & Competitive Intelligence for Product, Process &