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JWBK119-FM August 31, 2006 2:52 Char Count= 0 Six Sigma Advanced Tools for Black Belts and Master Black Belts Loon Ching Tang National University of Singapore, Singapore Thong Ngee Goh National University of Singapore, Singapore Hong See Yam Seagate Technology International, Singapore Timothy Yoap Flextronics International, Singapore iii JWBK119-FM August 31, 2006 2:52 Char Count= 0 ii JWBK119-FM August 31, 2006 2:52 Char Count= 0 Six Sigma i JWBK119-FM August 31, 2006 2:52 Char Count= 0 ii JWBK119-FM August 31, 2006 2:52 Char Count= 0 Six Sigma Advanced Tools for Black Belts and Master Black Belts Loon Ching Tang National University of Singapore, Singapore Thong Ngee Goh National University of Singapore, Singapore Hong See Yam Seagate Technology International, Singapore Timothy Yoap Flextronics International, Singapore iii JWBK119-FM August 31, 2006 2:52 Char Count= 0 Copyright C  2006 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) 1243 779777 Email (for orders and customer service enquiries): cs-books@wiley.co.uk VisitourHomePageonwww.wiley.com All Rights Reserved. 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Library of Congress Cataloging-in-Publication Data Six sigma: advanced tools for black belts and master black belts/Loon Ching Tang .[et al.]. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-470-02583-3 (cloth : alk. paper) ISBN-10: 0-470-02583-2 (cloth : alk. paper) 1. Six sigma (Quality control standard) 2. Total quality management. I. Tang, Loon Ching. TS156.S537 2006 658.5  62--dc22 2006023985 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN-13 978-0-470-02583-3 (HB) ISBN-10 0-470-02583-2 (HB) Typeset in 10/12pt BookAntiqua by TechBooks, New Delhi, India Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire This book is printed on acid-free paper responsibly manufactured from sustainable forestry in which at least two trees are planted for each one used for paper production. iv JWBK119-FM August 31, 2006 2:52 Char Count= 0 Contents Preface xi PART A: SIX SIGMA: PAST, PRESENT AND FUTURE 1 Six Sigma: A Preamble . 3 H. S. Yam 1.1 Introduction 3 1.2 Six Sigma Roadmap: DMAIC . 4 1.3 Six Sigma Organization 7 1.4 Six Sigma Training . 8 1.5 Six Sigma Projects 10 1.6 Conclusion . 17 References . 17 2 A Strategic Assessment of Six Sigma 19 T. N. Goh 2.1 Introduction 19 2.2 Six Sigma Framework . 20 2.3 Six Sigma Features . 21 2.4 Six Sigma: Contrasts and Potential . 22 2.5 Six Sigma: Inherent Limitations 23 2.6 Six Sigma in the Knowledge Economy 25 2.7 Six Sigma: Improving the Paradigm 27 References . 28 3 Six Sigma SWOT . 31 T. N. Goh and L. C. Tang 3.1 Introduction 31 3.2 Outline of Six Sigma . 32 3.3 SWOT Analysis of Six Sigma . 32 3.4 Further Thoughts . 37 References . 39 v JWBK119-FM August 31, 2006 2:52 Char Count= 0 vi Contents 4 The Essence of Design for Six Sigma 41 L. C. Tang 4.1 Introduction 41 4.2 The IDOV Roadmap . 42 4.3 The Future 48 References . 48 5 Fortifying Six Sigma with OR/MS Tools . 49 L. C. Tang, T. N. Goh and S. W. Lam 5.1 Introduction 49 5.2 Integration of OR/MS into Six Sigma Deployment 50 5.3 A New Roadmap for Six Sigma Black Belt Training . 52 5.4 Case Study: Manpower Resource Planning 58 5.5 Conclusions 68 References . 68 PART B: MEASURE PHASE 6 Process Variations and Their Estimates . 73 L. C. Tang and H. S. Yam 6.1 Introduction 73 6.2 Process Variability . 76 6.3 Nested Design . 79 References . 83 7 Fishbone Diagrams vs. Mind Maps 85 Timothy Yoap 7.1 Introduction 85 7.2 The Mind Map Step by Step 86 7.3 Comparison between Fishbone Diagrams and Mind Maps . 87 7.4 Conclusion and Recommendations . 91 References . 91 8 Current and Future Reality Trees . 93 Timothy Yoap 8.1 Introduction 93 8.2 Current Reality Tree . 94 8.3 Future Reality Tree (FRT) 97 8.4 Comparison with Current Six Sigma Tools . 101 8.5 Conclusion and Recommendations . 105 References . 105 9 Computing Process Capability Indices for Nonnormal Data: A Review and Comparative Study 107 L. C. Tang, S. E. Than and B. W. Ang 9.1 Introduction 107 9.2 Surrogate PCIs for Nonnormal Data . 108 JWBK119-FM August 31, 2006 2:52 Char Count= 0 Contents vii 9.3 Simulation Study . 113 9.4 Discussion of Simulation Results 127 9.5 Conclusion . 128 References . 129 10 Process Capability Analysis for Non-Normal Data with MINITAB 131 Timothy Yoap 10.1 Introduction 131 10.2 Illustration of the Two Methodologies Using a Case Study Data Set . 132 10.3 A Further Case Study . 141 10.4 Monte Carlo Simulation 145 10.5 Summary 149 References . 149 PART C: ANALYZE PHASE 11 Goodness-of-Fit Tests for Normality . 153 L. C. Tang and S. W. Lam 11.1 Introduction 153 11.2 Underlying Principles of Goodness-of-Fit Tests . 154 11.3 Pearson Chi-Square Test 155 11.4 Empirical Distribution Function Based Approaches . 157 11.5 Regression-Based Approaches 163 11.6 Fisher’s Cumulant Tests 167 11.7 Conclusion 170 References . 170 12 Introduction to the Analysis of Categorical Data 171 L.C. Tang and S. W. Lam 12.1 Introduction 171 12.2 Contingency Table Approach . 173 12.3 Case Study 176 12.4 Logistic Regression Approach 181 12.5 Conclusion 193 References . 193 13 A Graphical Approach to Obtaining Confidence Limits of C pk 195 L. C. Tang, S. E. Than and B. W. Ang 13.1 Introduction 196 13.2 Graphing C p , k and p . 197 13.3 Confidence Limits for k . 199 13.4 Confidence Limits For C pk . 201 13.5 A Simulation Study 203 13.6 Illustrative Examples 206 13.7 Comparison with Bootstrap Confidence Limits . 207 13.8 Conclusions 209 References . 210 [...]... of Six Sigma, and on what problems should Six Sigma tools be used Six Sigma is unlikely to be a panacea for all quality ills; on the other hand, it must possess sufficient merits for the Six Sigma phenomenon to take hold In what follows, the essential features of Six Sigma will be highlighted, followed by broad overviews of the potential and limitations of Six Sigma In particular, the relevance of Six. .. articles, forums and newsletters on Six Sigma Six Sigma consulting organizations have mushroomed, each advertising its own, albeit similar, version of Six Sigma In the face of what might be called the Six Sigma phenomenon’, a balanced perspective on the subject would be useful before a person or organization takes a decision on whether ‘to Six Sigma, or not to Six Sigma that is, decides whether to... management Execute ‘closed-loop’ management and drive towards Six Sigma Figure 1.3 Six Sigma culture drives profitability 7 Six Sigma Organization Process Owner Project Champion Black Belt Team 1 Measure Define 2 Analyze Finance 3 Improve Realize 4 Control Employees Figure 1.4 Interactions of stakeholders in various phases of a Six Sigma project 1.3 SIX SIGMA ORGANIZATION For best results, the DMAIC methodology... T Yoap Singapore, April 2006 Part A Six Sigma: Past, Present and Future 1 Six Sigma: A Preamble H S Yam Six Sigma is a rigorous and highly disciplined business process adopted by companies to help focus on developing and delivering robust, near-perfect products and services In this opening chapter, we first present the underlying motivation for Six Sigma While Six Sigma has demonstrated itself to be... structure in a typical Six Sigma deployment This is followed by a discussion of how to customize appropriate levels of Six Sigma training for these various roles Finally, an example of a Six Sigma project is presented to illustrate the power of integrating existing technical expertise/knowledge with the Six Sigma methodology and tools in resolving leveraged problems 1.1 INTRODUCTION Six Sigma has captured... Figure 1.5 Black Belts The reporting hierarchy of the Six Sigma team 8 Six Sigma: A Preamble corporate-level management of Six Sigma, as well as obtaining the business unit executives to commit to specific performance targets and financial goals The Deployment Champions are business unit directors responsible for the development and execution of Six Sigma implementation and deployment plans for their... project for a defined period (usually one year) 1.4 SIX SIGMA TRAINING All Six Sigma practicing companies enjoy the benefits described earlier, with financial savings in operating costs as an immediate return In the long run, the workforce will Six Sigma Training 9 transform into one that is objectively driven by data in its quest for solutions as Six Sigma permeates through the ranks and functions and... included in the company’s Six Sigma outreach Champions training typically involves 3 days of training, with primary focus on the following: r the Six Sigma methodology and metrics; r the identification, selection and execution of Six Sigma projects; r the identification, selection and management of Black Belts Black Belt training is stratified by the final four phases of a Six Sigma project Measure,... is similar to Black Belt training in terms of syllabus, though discussion of the statistics behind the Six Sigma tools will have less depth Consequently, training is reduced to 4 days (or less) per phase, inclusive of project presentations 10 Six Sigma: A Preamble 1.5 SIX SIGMA PROJECTS While Six Sigma tools tend to rely heavily on the use of statistical methods in the analysis within their projects,... Schroeder, R (2000) Six Sigma, The Breakthrough Management Strategy Revolutionizing The World’s Top Corporations New York: Doubleday 2 Pande, P.S., Neuman, R.P and Cavanagh, R.R (2000) The Six Sigma Way New York: McGrawHill 3 Ehrlich, B.H (2002) Transactional Six Sigma and Lean Servicing Boca Raton, FL: CRC Press 4 Snee, R.D (1999) Why should statisticians pay attention to Six Sigma? An examination . traditional Six Sigma roadmap. Part A presents a strategic assessment of Six Sigma and its SWOT analysis, followed by discussions of current interests in Six Sigma, . Preface.................................................................................................. xi PART A: SIX SIGMA: PAST, PRESENT AND FUTURE 1 Six Sigma: A Preamble .....................................................................