DMAIC – An Overview

Barry Murash MBBit

Nortel
2007
 6 Sigma Evolution…
Where did it come from…
> A continuation of the overall TQM (Total Quality Management)
concept of “continual improvement” of a process originally introduced
by the “Quality Guru’s” …Deming…Juran…Crosby…Taguchi.

> Conceptualized and formally introduced by Motorola in the mid

1980’s as a quality goal required because technology was becoming
so complex that the traditional ideas about acceptable quality levels
were inadequate.

> In 1989 Motorola announced a five-year goal – a defect rate of not

more than 3.4 parts per million – or 6 Sigma on its key processes.
 By the Numbers . . .

Fortune 500 companies doing Lean Six Sigma 100

Dollars returned compared to dollars invested 8:1

Benefits as a percent of revenue for top companies 5

 Six Sigma:
Measure of Process Capability
• Sigma (“”) is a measure…
6 Process output
SIGMA DPMO * YIELD = 3.4 Defects per
Million Opportunities
1.0 691,462 30.8538% 6
2.0 308,538 69.1462%
3.0 66,807 93.3193% 5
4.0 6,210 99.3790% 4 Defective
5.0 233 99.9767%
6.0 3.4 99.9997% 3
* DPMO = Defects per million opportunities
2
Process Output
(Variation) 1

Customer
Expectation
…that focuses on the variation of the process output
 A Structured Framework
Tell us what’s important Helps us fix the problem
- Focus - - Improve -
Top-Level Indicators
Satisfaction Revenue Problem Solving
Quantify (DMAIC)
Strategy
Define Measure Analyze Improve Control
Aligning the
Cash Flow Expense Organization DEFINE
the project
MEASURE ANALYZE IMPROVE CONTROL
the defects why the performance the process by
boundaries and where defects by monitoring
they occur occur and implementing performance
in the verify which solutions upstream to
process reasons are that eliminate ensure the
root causes root cause(s) problems stay
fixed
Tell us what’s not working Vision
Managing Closing
- Measure - Processes Performance
Gaps Process (Re) - Design
Process Management (DMADV)
Control Systems
Outcome
Define Measure Analyze Design Validate
Process Description: Process Customer:
Complaint Handling Major Account
Customer Validated Requirem
Responsiveness
Indicator Y1
Process Flowchart Indicators Checking
Position Process Control Checking Freq-
Customer Service Rep Claims Item uency
Upstream DEFINE MEASURE ANALYZE DESIGN and VALIDATE
X1
AND
Step/ Outcome Specs/ What toWhen to Who
Time Results Target Check Check Check
the project and prioritize alternative optimize the that the
Received

X1=
measure1
Issue

Doc’n
stds
not
opportunity customer high level detailed detailed
met

Upstream and requirements process process flow design meets

X2
X2=
Data Gathering

Issue
boundaries
mis-
class
measure2 (CTQs) design supporting customer
P3= against the high level requirements
X3
Neg’n
stds
not
Upstream CTQs design and achieves
met
Disposition

selected performance
Q1=
W/O
not to
measure3 objectives
stds

To instill process discipline & fact-based decisions

 DMAIC – An Iterative approach

Define Measure Analyze Improve Control

• Team Charter • Measure process • Identify & Quantify Select, design & • Institutionalize
• Process Mapping Performance root causes Implement solution Improvements
• Defining CTQs • Measure CTQs • Use various • Implement ongoing
• SIPOC • Determine baseline statistical and Controls
sigma level analytical tools, • Standardize process
identify low hanging
fruit
DEFINE at a Glance
To define the customer, their CTQs, the team charter, and map the
core business process

Identify Business Opportunity/Gap ($) Identify Outcome Indicators

Select Resources • Select measures that link

(% Time) and
process performance to
Charter Project
problem area related to CTQ
• Shows need for improvement

Identify Customer’s Develop Preliminary Problem

Critical To Quality Statement
(CTQ) Attributes

Map High Level Processes Assess Financial $ Impact (COQ)

and Set Boundaries

Prepare Communication & Project Plans

 MEASURE at a Glance
To measure the process performance

Create Detailed Develop Data Assess Set Process

Process Map Collection Plan Process Performance Performance / $
Improvement
Goal
Collect Data

Identify Value Added & Stratify Data

Non-Value Added Steps
Customer Customer
Develop
Calculate Final Problem
Performance Statement
Plot Defect Data Over Time
 ANALYZE at a Glance
To analyze the data and the process map to determine root causes and
opportunities for improvement

Brainstorm and Organize Potential Causes Confirm Root Causes

Root Cause and Root
Cause Effect Cause
1 Sub Sub Cause
Sub Sub Cause Diagram 1
Sub Sub Sub Sub Sub Sub
Cause Cause
Sub Sub
Cause Sub Cause Sub
Cause Cause
Cause and Sub Sub Final Sub Sub Final
Cause Cause
Effect
Diagram
Problem Problem
Sub
Cause
Statement Sub Statement
Cause
Sub Cause Sub Cause
Sub Sub Cause Sub Sub Cause
Sub Sub
Cause Cause
Root Sub Sub Cause Root Sub Sub Cause
Cause Cause
2 2

Verify Potential Causes with Data

Stratified Frequency Plots
Contingency Table Scatter Plots Made the Sale
Sub Cause Made the Sale

Yes No
5

5
5 10
10 15
15 20
20 25
25
25 30
30
30 33 55
5 40
40 45
45 50
50
50 55
55 60
60 >60
>60

Present Y
Did Not
Did Not Make the Sale
Defect

Make the Sale

Not 5 10 15 20 25
25 30
30 33 55 40
40 45
45 50
50
50 55 60 >60

Present X Time With Customer

Time With Customer

(in minutes)

(in minutes)
 IMPROVE at a Glance

To generate, select, and implement improvements

Identify and Conduct Develop Pilot Plan Update Outcome

Select Solutions Risk Analysis Gantt Chart Indicators
FMEA
Solution Selection Matrix “After”

Occurrence

Occurrence
Item or Potential Potential Responsibility

Detection

Detection
Severity

Severity
Before After

RPN
Process Failure Effect (s) Potential Current Recommended and
Good

RPN
Step Mode of Failure Cause(s) Controls Action Target Date Action Taken

Problem
Root Solutions Specific
3.2 3.6
Causes Tasks
IMPROVE changes
implemented }
Improvement

DEFINE IMPROVE changes

implemented
}Improvement
Time

Total Risk Priority Number = “After” Risk Priority Number =

Conduct Develop Action Plan For Quantify Pilot Results

Cost/Benefit Analysis Full Implementation Updated Pareto Chart
:
Cost/Benefit Problem Statement ________________________________________
Solution (s) / Specific Task (s) ____________________________ Before After
Analysis Task / Project Who Due Date Status
1.3  100%
3.1 
100%

75% 75%

Cost
}
50% 50%
Improvement
Benefit
25% 25%

Approval from A1 A2 A3 A4 A2 A1 A3 A4
Finance
 CONTROL at a Glance

To institutionalize the improvement and implement ongoing monitoring

Develop and Document Train Personnel Verify Cost/Benefit

Standard Practices
Cost/Benefit
Standard Training Training Analysis
Practice Curriculum Manual
Approval from
Finance

Fully Implement Solutions Close Project

and PMCS and Celebrate
“Y” Outcome Indicators
Build the
Process Management Control System Good

Replicate
Projects at Other
“X” Upstream Indicators Locations
UCL

LCL