Implementing Six Sigma Smarter Solutions Using Statistical Methods, 2nd Edition IMPLEMENTING SIX SIGMA Smarter Solutions� Using Statistical Methods Second Edition FORREST W BREYFOGLE III Founder and P[.]
IMPLEMENTING SIX SIGMA Smarter Solutions Using Statistical Methods Second Edition FORREST W BREYFOGLE III Founder and President Smarter Solutions, Inc www.smartersolutions.com Austin, Texas JOHN WILEY & SONS, INC IMPLEMENTING SIX SIGMA IMPLEMENTING SIX SIGMA Smarter Solutions Using Statistical Methods Second Edition FORREST W BREYFOGLE III Founder and President Smarter Solutions, Inc www.smartersolutions.com Austin, Texas JOHN WILEY & SONS, INC This book is printed on acid-free paper ⬁ Copyright 2003 by Forrest W Breyfogle III All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, e-mail: permcoordinator@wiley.com Limit of Liability / Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (316) 572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our web site at www.wiley.com Library of Congress Cataloging-in-Publication Data: Breyfogle, Forrest W., 1946– Implementing Six Sigma: smarter solutions using statistical methods / Forrest W Breyfogle III.—2nd ed p cm Includes bibliographical references and index ISBN 0-471-26572-1 (cloth) Quality control—Statistical methods Production management—Statistical methods I Title TS156.B75 2003 658.5⬘62—dc21 Printed in the United States of America 10 2002033192 To a great team at Smarter Solutions, Inc., which is helping organizations improve their customer satisfaction and bottom line! CONTENTS PREFACE PART I xxxi S4 /IEE DEPLOYMENT AND DEFINE PHASE FROM DMAIC Six Sigma Overview and S4 /IEE Implementaton 1.1 Background of Six Sigma, 1.2 General Electric’s Experiences with Six Sigma, 1.3 Additional Experiences with Six Sigma, 1.4 What Is Six Sigma and S4 /IEE?, 10 1.5 The Six Sigma Metric, 12 1.6 Traditional Approach to the Deployment of Statistical Methods, 15 1.7 Six Sigma Benchmarking Study, 16 1.8 S4 /IEE Business Strategy Implementation, 17 1.9 Six Sigma as an S4 /IEE Business Strategy, 19 1.10 Creating an S4 /IEE Business Strategy with Roles and Responsibilities, 22 1.11 Integration of Six Sigma with Lean, 31 1.12 Day-to-Day Business Management Using S4 /IEE, 32 1.13 S4 /IEE Project Initiation and Execution Roadmap, 33 1.14 Project Benefit Analysis, 36 1.15 Examples in This Book That Describe the Benefits and Strategies of S4 /IEE, 38 1.16 Effective Six Sigma Training and Implementation, 41 1.17 Computer Software, 43 vii viii CONTENTS 1.18 1.19 1.20 1.21 Selling the Benefits of Six Sigma, 44 S4 /IEE Difference, 45 S4 /IEE Assessment, 48 Exercises, 51 Voice of the Customer and the S4 /IEE Define Phase 52 2.1 Voice of the Customer, 53 2.2 A Survey Methodology to Identify Customer Needs, 55 2.3 Goal Setting and Measurements, 57 2.4 Scorecard, 59 2.5 Problem Solving and Decision Making, 60 2.6 Answering the Right Question, 61 2.7 S4 /IEE DMAIC Define Phase Execution, 61 2.8 S4 /IEE Assessment, 63 2.9 Exercises, 64 PART II S4 /IEE MEASURE PHASE FROM DMAIC Measurements and the S4 /IEE Measure Phase 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 Voice of the Customer, 71 Variability and Process Improvements, 72 Common Causes versus Special Causes and Chronic versus Sporadic Problems, 74 Example 3.1: Reacting to Data, 75 Sampling, 79 Simple Graphic Presentations, 80 Example 3.2: Histogram and Dot Plot, 81 Sample Statistics (Mean, Range, Standard Deviation, and Median), 81 Attribute versus Continuous Data Response, 85 Visual Inspections, 86 Hypothesis Testing and the Interpretation of Analysis of Variance Computer Outputs, 87 Experimentation Traps, 89 Example 3.3: Experimentation Trap—Measurement Error and Other Sources of Variability, 90 Example 3.4: Experimentation Trap—Lack of Randomization, 92 Example 3.5: Experimentation Trap—Confused Effects, 93 Example 3.6: Experimentation Trap—Independently Designing and Conducting an Experiment, 94 Some Sampling Considerations, 96 DMAIC Measure Phase, 96 65 71 ... IMPLEMENTING SIX SIGMA IMPLEMENTING SIX SIGMA Smarter Solutions Using Statistical Methods Second Edition FORREST W BREYFOGLE III Founder and President Smarter Solutions, Inc www.smartersolutions.com... Cataloging-in-Publication Data: Breyfogle, Forrest W., 1946– Implementing Six Sigma: smarter solutions using statistical methods / Forrest W Breyfogle III.? ?2nd ed p cm Includes bibliographical references... DMAIC Six Sigma Overview and S4 /IEE Implementaton 1.1 Background of Six Sigma, 1.2 General Electric’s Experiences with Six Sigma, 1.3 Additional Experiences with Six Sigma, 1.4 What Is Six Sigma