4.GB (Manufacturing 00 C4) Measure Class

Additional Department Info
Six Sigma
Green Belt Core Skills Program (Manufacturing)
2.0 Measure Performance -- Overview
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Six Sigma Green Belt
Copyright 2006 Motorola. All rights reserved.

Rev 04 (13 Aug, 2006)
DMAIC and the Process Improvement

Roadmap
1.0
Define
Opportunities
3.0
2.0
Analyze
Opportunity
Measure
Performance
What is
wrong?
How are
What is
important? we doing?
Six Sigma Green Belt (Manufacturing)
4.0
5.0
Improve
Performance
Control
Performance
What
needs to
be done?
How do we
guarantee
performance?
M-2
Rev 04 (13 Aug, 2006)
Identify Critical Process

Characteristics
Define
Develop Baseline
Data Collection Plan
Assess Measurement System
Measure
Performance
Measurement
System
Stable and
Capable?
No
Improve
Measurement
System
Yes
Determine Sigma Performance
1.0
Define
Opportunities
2.0
Measure
Performance
3.0
Analyze
Opportunity
Analyze
4.0
Improve
Performance
5.0
Control
Performance
M-3
Rev 04 (13 Aug, 2006)
2.0 Road To Improvement

Where are we?
1.0
Define the
Opportunities
Inputs
Team Charter
business case
opportunity statement
goal statement
project scope
project plan
team roles and responsibilities
Action Plan
Prepared Team
Critical Customer Requirements
Process Maps
Quick Win Opportunities
Where are we going?
Objective
Identify critical measures that are
necessary to evaluate the success of
meeting critical customer
requirements and begin developing a
methodology to effectively collect
data to measure process performance.
Understand the elements of the six
sigma calculation and establish
baseline sigma for the processes the
team is analyzing.
2.0 Measure Performance
2.1 Determine What to Measure
2.2 Manage Measurement
2.3 Understand Variation
2.4 Determine Process
Performance (Discrete Data)
2.5 Determine Process
Performance (Continuous Data)
2.6 Evaluate Measurement System
3.0
Analyze
Opportunity
Key Deliverables
Input, Process, and Output

Indicators
Operational Definitions
Data Collection Formats and
Sampling Plans
Measurement System Capability
Baseline Performance Metrics
Process Capability
Sigma
Time
Other
Productive Team Atmosphere
4.0
Improve
Performance
5.0
Control
Performance
M-4
Rev 04 (13 Aug, 2006)
Six Sigma
2.1 -- Determine
What to Measure

Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To identify the key input, process and output indicators
(measures).
Key Topics
Performance Measurement
Input, Process, and Output Indicators
Indicator Relationships
M-6
Rev 04 (13 Aug, 2006)

Rev 04 (13 Aug, 2006)
Performance Measures - Customer

Value Achieved?
Market
Suppliers
Process Inputs
Business Processes
Input
Measures
Process
Measures
Important decisions
based on linking
customer expectations
to process performance
Process Outputs
Output
Performance
Measures
Critical
Customer
Requirements
Customer Value
M-8
Rev 04 (13 Aug, 2006)
Process Output Indicators include

CTQs & CTPs
Output Indicators
CTQs
________
________
CCRs
________
Customer
Issues
VOC
________
________
________
________
________
________
________
________
_________
_________
_________
CTPs
________
VOB
Business
Issues
________
________
________
________
________
CBRs
________
________
VOB - Voice of the Business

CBR - Critical Business Requirements
CTP - Critical to the Process
VOC - Voice of the Customer

CCR - Critical Customer Requirements
CTQ - Critical to Quality
M-9
Rev 04 (13 Aug, 2006)
Process Elements and Indicator Relationships

Effective improvement requires information from the entire supplier-customer,
cause and effect relationship.
Start Boundary ____________
Suppliers:
End Boundary ____________
Inputs:
Outputs:
Customers:
Process
Input Indicators
Process Indicators
Output Indicators
Measures that evaluate the degree to

which the inputs to a process, provided
by suppliers, are consistent with what
the process needs to efficiently and
effectively convert into customersatisfying outputs.
Measures that evaluate the

effectiveness, efficiency, and quality
of the transformation processes the
steps and activities used to convert
inputs into customer-satisfying
outputs.
Measures that evaluate dimensions of

the output may focus on the
performance of the business as well
as that associated with the delivery of
services and products to customers.
Examples:
# of customer inquiries
Type of customer inquiries
# of orders
# of positions open
Type of position open

Accuracy of the credit analysis
Timeliness of the contract
submitted for review
Examples:
Availability of service personnel
Time required to perform credit
review
% of non-standard approvals
required
# of qualified applicants
Total cost of service delivery
Total overtime hours
Examples:
# of calls/hour taken by each
service rep
2nd year customer retention

figures
Total # of meals delivered
% customer complaints
M-10
Rev 04 (13 Aug, 2006)
Input, Process and Output Indicators

Rev 04 (13 Aug, 2006)

Y = f(Xs)
X Factors
Input
Indicators
Input Measures
Raw material Quality
Supplier Delivery
Customer Forecast
Stock
Process
Indicators
Efficiency Measures
Machine Downtime
Staging time
Inspection time
Slitting time
Acknowledgement time
Y
Output
Performance
Indicators
Effectiveness Measures
Yield
Delivery cycle time
Customer Satisfaction Score
M-12
Rev 04 (13 Aug, 2006)
Exercise: Input, Process & Output Indicators

Objective
Create relationships between input, and process indicators to output indicators (CTQ/CTP).
(15 minutes)
Option 1
Instructions
1.
2.
3.
4.
Identify critical input, process steps and outputs using the SIPOC or functional deployment process map that your
team has created for the catapult process.
Brainstorm potential measures for the input, process steps and outputs selected in step 1.
Are the input, process and output indicators selected specific and measurable?
Are the input and/or process indicators leading indicators or lagging indicators?
Option 2
Instructions
1.
2.
3.
4.
Identify critical input, process steps and outputs using the SIPOC or functional deployment process map that your
team has created for your projects process.
Brainstorm potential measures for the input, process steps and outputs selected in step 1.
Are the input, process and output indicators selected specific and measurable?
Are the input and/or process indicators leading indicators or lagging indicators?
Workshop
Refer to workbook
Demonstration
QUICK WIN
OPPORTUNITIES.DOC
M-13
Rev 04 (13 Aug, 2006)

Rev 04 (13 Aug, 2006)
Link Output Performance to Process & Input Indicators
First, establish output indicators because they indicate how effective your process is at meeting CCRs.
Once you understand the key output performance measures, determine what key input and process
indicators you need in order to meet the desired outcomes and therefore satisfy customer
requirements.
You can use several tools to help show the relationship between the output
performance measures and key input and process measures. These are:
Cause and Effect Diagram

Relationship Matrix
Cause and Effect Matrix
Link Output Performance to Process & Input Indicators
STEPS
TOOLS
Establish output
indicators
Determine leading
process indicators
Cause & Effect Diagram

(Fishbone)
Cause & Effect Matrix
Relationship Matrix
Determine input indicators

M-15
Rev 04 (13 Aug, 2006)
Ishikawa Diagram
Cause and Effect Diagram
Perhaps the most useful tool for identifying root causes is the cause and effect diagram. It goes
by several names (Ishikawa, fishbone, etc.) and there are a variety of ways to use it. The cause
and effect diagram is primarily a tool for organizing information to establish and clarify the
relationships between an effect and its main causes.
The cause and effect diagram helps identify the Xs that affect the output indictors.
The cause and effect diagram develops a picture composed of words and lines designed to show
the relationship between the effect and its causes.
Receipt process
CAUSES
EFFECT
Problem
Problem
Statement
Statement
Rushed salespeople
Hourly completion
required
Rushed
Too many sales
Why are we not

able to verify 40%
of January
receipts?
Not enough sales

coverage at peak times
Salespeople
The cause and effect diagram assists in reaching a common understanding of the problem and
exposes the potential drivers of the problem.
M-16
Rev 04 (13 Aug, 2006)
Ishikawa Construction
How to Construct
Write the output indicator in the head of the
fish.
Determine the major categories (potential
causes) of the effect.
M-17
Rev 04 (13 Aug, 2006)
Ishikawa Construction
How to determine the Major Categories
There are different approaches used to determine the major categories.

1. Most common approach utilized is using generic categories of people,
methods, machines, material, and environment. Match them if you can with
major contributors to the problem. For example, a team of truck drivers is
working on a problem within their functional area:
Generic
Major Contributor
People
Driver
Method
Driving Process
Machine
Truck
Material
Contents of Truck
Environment
Route
2. Use the major activities of the process from your flowchart, assigning each a
major bone on the diagram.
3. You may brainstorm possible causes of the observed effect. After the list is
generated, affinitize into major categories to be used as major bones on the
diagram.
M-18
Rev 04 (13 Aug, 2006)
Example: Invoice Processing

Internal Mail
System
Computer
System
Cost-Reduction Program
Older System
One Pick-Up Daily
Excess
Demand
Downtime
Manual
Sort
New
Process
Excess Maintenance
Demand Contractor
Access Limitations
Low Priority
Hiring
Freeze
Equipment
Lost/Misplaced Mail
Turnover
Inexperienced Staff
Turnover
Access Limitations
Morale
Paycuts
Productivity Deadlines
Workspace
Low Priority
Maximize Cash
Payment
Delays
Increased Workload
Overtime
Reduced
Staff
Audit Recommendation
for Tighter Control
Centralized
Payment
Manual
Crowded
Authorization
Files
Space
Branch Offices
Missing Documentation
Forward Payments Weekly
Resigned
Reorganization
of Purchase Org.
No Limit Manager
Why are
invoices paid
late?
Missing
Purchase Orders
Finance
Policy
Documentation
M-19
Rev 04 (13 Aug, 2006)
Case Example: Slitting Process Cycle Time

Customer service
Method
Production Planning
Machine
Line Balancing
Machine setup
Open Order
Calculate Capacity
Packing
Capacity over booked
Order Acknowledgement
Late key in
Prepared schedule
Unscheduled down time

High yield loss
On time complete
OTD
BHR & Label
Long Cycle
Time
Quality issue
New order
Move material to staging area

Check material
Without forecast
Move material near to machine
Issue material from

location
Waiting/staging time
Issue MR
Measurement
Material
Environment
M-20
Rev 04 (13 Aug, 2006)
Exercise: Cause and Effect Diagram

For the catapult process, we are targeting to shoot the
ball for a distance of 92 inches to 108 inches.
Create a Cause and Effect Diagram with Catapult
Shooting Distance as the Output Indicator.
Create a Flipchart of the results.
(20 minutes)
Demonstration
C & E DIAGRAM.XLS
Workshop
Refer to workbook
M-21
Rev 04 (13 Aug, 2006)
Optional Exercise: Cause and Effect

Diagram for Your Project or Process Area
Create a Cause and Effect Diagram for your
project or process area.
Create a Flipchart of the results.
M-22
Rev 04 (13 Aug, 2006)
Link Output Performance to Process

and Input Measures
Example: Call Center
Relationship of Process & Input Measures

Process & Input
Output
Indicators
Performance Indicators
Answer
Speed
Employee First Time

Experience Resolution
Call Abandon Rate

Customer Satisfaction
Strong Relationship
Medium Relationship
Weak Relationship
Blank No
Relationship
Note: The strength of the relationship is based on how likely changes in the input/process measure will cause changes in
the output performance measure.
M-23
Rev 04 (13 Aug, 2006)
Cause and Effect Matrix

A tool that can help with the prioritization of
Key Input and Process Indicators (Xs) by
evaluating the strength of their relationship to
Output Indicators (Ys).
Useful when no data exists to establish
correlations.
Most effective in a team consensus
environment.
M-24
Rev 04 (13 Aug, 2006)
Steps to Create Cause and Effect Matrix

Delivery Cycle
Time
Yield
Customer
Satisfaction
10
Order Acknowledgement Time
84
Schedule Error Rate
96
Slitting Cycle Time
132
QA Buy-off Cycle Time
36
Machine Set-up Error
54
Capacity Overbooked
108
Monthly customer complaint
216
Packing Staging Time
144
STEP 1
STEP 3
STEP 2
STEP 4
STEP 5
STEP 6
M-25
Rev 04 (13 Aug, 2006)
Process for Creating Cause and Effect

Matrix
1. List across the top the Key Output Indicators.
2. Assign a priority number for each Output (scale from 1 to
10).
3. List vertically in 1st column all potential Input/Process
Indicators that may affect any of the Outputs.
4. Rate the effect or correlation of each Input to Output (see
sample scale below).
5. Multiply each rating by the priority and sum across, putting
result in last column.
6. The Input/Process Indicators can be prioritized by the
results.
Sample Scale (ratings):
0
1
3
9
=
=
=
=
No correlation
Little Correlation
Moderate Correlation
Strong Correlation
M-26
Rev 04 (13 Aug, 2006)
Exercise: Cause and Effect Matrix

Use the Cause and Effect Matrix to prioritize the
input and process Indicators to the output
indicators listed below:
(15 minutes)
1. Catapult shooting distance.
2. Catapult firing cycle time.
Demonstration
C & E MATRIX.XLS
Workshop
Refer to workbook
M-27
Rev 04 (13 Aug, 2006)
Optional Exercise: Cause and Effect Matrix

for Your Project or Process Area
Create a Cause and Effect Matrix for your project
or process area
Use Cause and Effect Matrix.xls template
M-28
Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To identify the key input, process and output indicators
(measures).
Key Topics
M-29
Rev 04 (13 Aug, 2006)
Six Sigma
2.2 -- Manage Measurement

Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
Write operational definitions (SOPs) for each key measure.

Develop a measurement and sampling action plan.
Collect data using measurement plan using checksheets and
templates if needed.
Summarize data using descriptive statistics and graphical
techniques.
Key Topics
Step 1:
Step 2:
Step 3:
Step 4:
Develop an Operational Definition

Develop a Measurement Plan
Collect Data
Display and Evaluate Data
M-31
Rev 04 (13 Aug, 2006)
Data Collection
Measurement management starts with a data collection methodology.
Data Collection Method
Identify
Measures
Step 1
Develop operational
definitions for measure
Step 2
Develop measurement plan
Step 3
Collect data
Step 4
Display and evaluate data
M-32
Rev 04 (13 Aug, 2006)
Step 1. Develop an Operational

Definition

Rev 04 (13 Aug, 2006)
Step 1: Operational Definition

An operational definition is a concept that helps guide the teams
thinking on what they need to measure as well as the key attributes of
the measure: what, how, and who. It provides the foundation for the
team to reach agreement and build consistency and reliability into data
collection. This helps ensure any person using the agreed-on definition
will be measuring the same thing.
Operational Definition
A precise description of the specific criteria used for the measures
(the what), the methodology to collect the data (the how), the amount
of data to collect (how much), and who has responsibility to collect
the data (the who).
Provides everybody with the same meaning.
Ensures that consistency and reliability are built in up front.
Describes the scope of the measure (what is included and what is not
included).
An operational definition puts communicable meaning into a

concept.
W. Edwards Deming
M-34
Rev 04 (13 Aug, 2006)
Six Sigma and Operational Definitions
Operational definitions enable a team to fully agree on how a particular

characteristic of a process is to be measured. It is the process
characteristic that is critical to the satisfaction of the customer.
Clarity is even more important when developing and selecting the

measures that will be used to determine the sigma performance of a
process.
Operational definitions may determine if a team is to count:
all the defects on an invoice (required to calculate defects per million

opportunities), or
the total number of defective invoices (any invoice with any defect), or
the type of defects encountered on an invoice (to eliminate the most common
defects first).
Each of these cases may require a very different approach for gathering the data.
Operational definitions help ensure that the team does it right the first
time when it comes to data collection.
M-35
Rev 04 (13 Aug, 2006)
Example: Operational Definition

Poor:
Cycle Time for delivery.
Good:
Delivery cycle time starts when order is logged in by the
customer service representative into ERPs opened order
database. The cycle time ends when the finished goods
receiving note is accepted and signed by the truck driver.
Delivery cycle time can be collected from the companys ERP
system. Minimum 30 data shall be collected from April 01, 2005
to August 31, 2005.
M-36
Rev 04 (13 Aug, 2006)
Exercise: Operational Definition

Objective
To practice developing an operational definition. (15 minutes).
Instructions
Each team shall elect a team leader.
Each team leader will get a catapult set with measurement tape.
Refer to the direction given in the workbook, write an Operational
Definition (OD) for shooting distance.
Each team leader should present the teams operational definition.
Note: No communication between teams allowed!

Workshop
Refer to workbook
M-37
Rev 04 (13 Aug, 2006)
Step 2. Develop a Measurement Plan

Rev 04 (13 Aug, 2006)
Step 2: Develop a Measurement Plan

Determining current process performance usually requires the collection
of data. When developing a measurement plan ensure that:
The data collected is meaningful
The data collected is valid
All relevant data is collected concurrently
Questions to Answer
What logistical issues are relevant?

What precise data will be collected?
Who will collect data?
Performance measurement?
Where is the data located?
Causes of process deficiencies?
When will it be collected?
Do we analyze all relevant data or a sample?
What additional assistance is required?
What is the right sample size?
What do you want to do with the data?
What is the right frequency?
Use daily, weekly, etc.
What will be the sample selection
Identify trends in the process data
method?
Identify deficiencies in the process
What tools are necessary?
Demonstrate current process
What formats will be used?
What logs will be kept?
performance
Identify variation in a process
Do we need a computer?
Identify a cause and effect relationship
M-39
Rev 04 (13 Aug, 2006)
Two Basic Types of Data

Attribute (Discrete) data ... is obtained by
COUNTING using criteria to determine level
of acceptability
Very Small
Pass
Continuous data ... is obtained

by MEASURING using a
measuring device. Can be
divided into parts and still make
sense
Small
Medium
Large
Fail
Very Large
Measurement: 0.2562
M-40
Rev 04 (13 Aug, 2006)
Develop a Measurement Plan - Types of Data

Before data collection starts, classify the data into different
types: continuous or discrete. This is important because it will:
Provide a choice of data display and analysis tools

Dictate sample size calculation
Provide performance or cause information
Determine the appropriate control chart to use
Determine the appropriate method for calculation of 6
Continuous
Discrete
Measured on a continuum
Time
Money
Weight
Length
Ordinal
Satisfaction rating
Months of the year
Days of the week
Nominal
Yes/No
Categories
Percent
defective
M-41
Rev 04 (13 Aug, 2006)
Sample Data Measurement Plan Form

Performance Operational
Measure
Definition
Data
Source
and
Location
Sample
Size
How will the data be used?
Who Will
Collect
the Data
Other Data
When Will How Will the that Should
Be Collected
the Data Be
Data Be
at the Same
Collected
Collected
Time
How will the data be displayed?
Examples:
Identification of Largest Contributors
Identifying if Data is Normally Distributed
Identifying Sigma Level and Variation
Root Cause Analysis
Correlation Analysis
Examples:
Pareto Chart
Histogram
Control Chart
Scatter Diagrams
M-42
Rev 04 (13 Aug, 2006)
Example: Cycle Time for Slitting Process

Performance
Measure
Delivery Cycle
Time
Operational
Definition
Order entry
date, time
Goods
received date,
time
Data Source
and Location
Sample Size
Who Will
Collect the
Data
When Will
Data be
Collected
ERP
database,
production
office
Minimum 30
Brandon Lin
Jenny King
Apr/01/05
to
Aug/31/05
How will data be used?

Identification of the Largest Contributors
Identifying of Data is Normally Distributed
Identifying Sigma Level and Variation
Root Cause Analysis
Correlation Analysis
How Will
Data be
Collected
Other Data
that should be
Collected at
Same Time
Systematic
Yield
sampling from Slitting time
Apr/01/05 Packing time
Capacity
Shift
How will data be displayed?

Pareto Chart
Histogram
Control Chart
Scatter Diagrams
M-43
Rev 04 (13 Aug, 2006)
Exercise: Data Measurement Plan

Objective
To practice developing a data measurement plan. (30 minutes).

Instructions
1. Refer to the process maps and cause and effect matrix.
2. Using the data measurement template as a guide, develop a data
measurement for your catapult process.
Demonstration
DATA_MEASUREMENT_PLAN.DOC
Workshop
Refer to workbook
M-44
Rev 04 (13 Aug, 2006)
Step 3. Collect Data

Rev 04 (13 Aug, 2006)
Step 3: Collect Data

1. First:
Evaluate the measurement system
2. Then:
Follow the plan note any deviations from the plan

Be consistent avoid bias
Observe data collection
Collect data on a pilot scale (optional)
M-46
Rev 04 (13 Aug, 2006)
Obtaining the Measurements

The data collected will only be as good as the collection system itself. In order to
assure timely and accurate data, the collection method should be simple to use
and understand. There are several methods. The most common are:
Checksheet - a simple log of tick marks representing the volume and type of work
Time stamps - a recording of the time that each activity begins and ends.
Product
Printed rollstock
Example: Checksheet
Product Returned for Quality Issues
Functional
Document Error
Unprinted rollstock
Printed paper pouch
Unprinted pouch
DATA COLLECTION METHOD
AUTOMATICALLY
MANUALLY
Writing in the log, recording the time, etc

For most initial efforts, a paper log is the
most
cost effective form of data collection
Assures accurate and timely data.

Removes the burden of collection from the
operator of the process.
It can be very expensive to set up.
It usually involves computer programming

and/or hardware
M-47
Rev 04 (13 Aug, 2006)
Identify Tools to Help You Collect Data

Hint: Identify types of data you need to
collect before you design the form
Checksheets
Product
Functional Issue
Document Error
Printed rollstock
Simple data collection form

which help determine how
often something occurs
Unprinted rollstock
Printed paper pouch
Unprinted pouch
(Mold Bleed)
Concentration Diagrams
Pictorial checksheet which helps you
C1
C3
mark where something occurs or the

Mold Plate
C2
C4
type of problem
M-48
Rev 04 (13 Aug, 2006)
Sampling
Using a sample of data you draw conclusions about the entire
population of data. This is known as statistical inference.
Sampling saves costs and time.
Sampling provides a good alternative to collecting all the data.
Identifying a specific confidence level allows us to make reasonable
business decisions.
Sampling From a Population
Parameters:
Entire
Population
of Data
Sample
Analysis
Statistical
Inference
Statistics:
X, S, etc.
M-49
Rev 04 (13 Aug, 2006)
Sampling Situations
Systematic
Process Sampling
Different situations which

dictate sampling techniques
Systematic Process Sampling
XXX
Sample
Typical Descriptive
Statistics:
To analyze and control a process
Average cycle time (xbar)

No. of defects
Proportion defective
Standard deviation (s)
Random Sampling
To describe a large population
(i.e. types of customers and buying
behavior)
Random Sampling
from a Population
XXXX
Sample
X
X
X
M-50
Rev 04 (13 Aug, 2006)
Sampling Types
Process - subgroup sampling (when changes over time is important)
Day 1
Day 3
Day 2
XXX
Sample
Sampling from a particular step in the process each day (hour, week, month)
Population - stratified random sample (when it is important to characterize the population)

Sample
A
C
D
D
Random
A
A
B
B
C
C
D
D
sampling within a logical category (location, shift, product, etc.)

M-51
Rev 04 (13 Aug, 2006)
Sampling Considerations
Where
Location in the process where process steps directly affect outputs (strong
relationship)
Maximize opportunity for problem identification (cause data)
Frequency
Dependent on volume of transactions and/or activity

Unstable process more frequently (use systematic or subgroup sampling)
Stable process less frequently (use sample size formula)
Dependent on how precise the measurement must be to make a meaningful
business decision
Considerations
Is the sample representative of the process or population?

Is the process stable?
Is the sample random?
Is there an equal probability of selecting any data point?
The answer to each of these questions must be yes before we can draw
statistically valid conclusions
M-52
Rev 04 (13 Aug, 2006)
Sampling Video
Video segment on sampling at Frito Lay
Discussion on sampling and video
SAMPLING
M-53
Rev 04 (13 Aug, 2006)
Sample Size Rules of Thumb

Selecting an adequate sample size, n, is a function of the risk of making a
wrong decision, the variability of the population, the difference to be
detected and/or the precision required. At this point, just remember that,
in general: n f ( , , )
If you want the risks of being wrong to decrease(, the sample size must increase(
.
As the variability in the population gets larger(
, the sample size increases(
.
As the difference to be detected gets smaller(, the sample size increases(
.
When choosing sample size, we must consider the following issues:
Cost of sampling
Practicality
Representativeness of the sample
Variability of population
However, both over-sampling and under-sampling can be wasteful. In

general, when starting out, you should over-sample. You can always cut
back if a smaller sample provides the relevant information.
M-54
Rev 04 (13 Aug, 2006)
Step 4. Display and Evaluate Data

Rev 04 (13 Aug, 2006)
Step 4: Display and Evaluate Data

Display data:
look for data
errors and
outliers.
Evaluate the
data collection
methods:
determine if the
methods used to
collect data have
provided
consistent and
representative
data.
Pareto
Run
Scatter
Histogram
M-56
Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
Write operational definitions (SOPs) for each key measure.

Develop a measurement and sampling action plan.
Collect data using measurement plan using checksheets and
templates if needed.
Summarize data using descriptive statistics and graphical
techniques.
Key Topics
Step 1:
Step 2:
Step 3:
Step 4:
Develop an Operational Definition

Develop a Measurement Plan
Collect Data
Display and Evaluate Data
M-57
Rev 04 (13 Aug, 2006)
Six Sigma
2.3 -- Understand Variation

Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To develop an understanding of the importance of variation in managing

processes and how to measure variation.
Key Topics
Understanding Variation
Measuring Variation Summary Statistics
Charting Variation
Variability, Stability, and Capability
Workshop
M-59
Rev 04 (13 Aug, 2006)
Variation means that a process does not produce exactly the same result every time the
product or service is delivered.
Variation exists in all processes.
Data Variation
Variation costs money.
Measuring and understanding variation in our business processes helps:

identify specifically what the current level of performance is, and
what needs to change.
In order to reduce the variability and therefore reduce the defects

delivered to customers.
M-60
Rev 04 (13 Aug, 2006)
What Causes Variation?
Market
Suppliers
Process Inputs
Business Process
Critical
Customer
Requirements
Process Outputs
Defects
Root cause
analysis of
variation leads to
permanent defect
reduction
Variation in the
output of
processes causes
defects
Y vs. Xs
M-61
Rev 04 (13 Aug, 2006)
Summary Statistics

Rev 04 (13 Aug, 2006)
Summary Statistics
Data can be summarized both numerically and graphically using
Summary Statistics and graphs or plots.
Summary statistics are:
numbers based on samples from a population.
They are point estimates (single numbers) of characteristics of the
distribution of population values.
2 WAYS TO SUMMARIZE
DATA
CONTINUOUS DATA
DISCRETE DATA
Counts.
Proportions.
Time graphs.
Center or location of data.

Spread of data.
Graphical plots of data.
M-63
Rev 04 (13 Aug, 2006)
Measures of Location
Two measures of the location, or center, of the
data are the mean and the median.
2 MEASURES OF LOCATION
(CENTER) OF DATA
MEAN
Average of data.
sum
x
count
MEDIAN
50th percentile, middle of
data.
xi
n
i 1
n
M-64
Rev 04 (13 Aug, 2006)
Measures of Location
Median = the point where half the data is above and
half the data is below:
22 44 66 77 99
Median==66
Median
Mean==5.6
5.6
Mean
22 44 66 99
Median==??
Median
22
90
44 66 77 90
Median==66
Median
Mean==21.8
21.8
Mean
The Mean is more sensitive to outliers, or unusual data points, than

the Median.
M-65
Rev 04 (13 Aug, 2006)
Measures of Spread
Two different data sets can have the same mean (i.e.,
location) but a different spread.
TARGET
LSL
USL
M-66
Rev 04 (13 Aug, 2006)
Measures of Spread
3 WAYS OF MEASURING
SPREAD
INTERQUARTILE
RANGE (IQR)
RANGE
VARIANCE
Use with moderate sample size,
when n equal or greater than 10
Use with small sample size, n <

10
R = Max{data} Min{data}
2
The range is more sensitive to

outliers than the standard
deviation.
(x x )
i1
n 1
STANDARD DEVIATION
The square root of the variance.
The standard deviation is measured

in the same units as the mean.
M-67
Rev 04 (13 Aug, 2006)
Measures of Spread
Interquartile range (IQR): The measure of the middle 50% of the
data, or, the difference between the 75th percentile point and the
25th percentile point.
The pth percentile point (or quantile) of a set of data is defined as:
A value below which at least p% of the data falls and
simultaneously at least (1-p)% of the data exceeds the value.
POSITION
DATA
10
12
REORDER
25th Percentile
10 12
Value = 9.5
Value = 4
75th Percentile
IQR = 5.5
M-68
Rev 04 (13 Aug, 2006)
The Normal Distribution

Rev 04 (13 Aug, 2006)
The Normal Distribution

single peak equal to average
continuously
declining on both
sides
symmetrical sides
M-70
Rev 04 (13 Aug, 2006)
Standard Deviation
The standard deviation noted as
- for the population
S - for the sample Normal Distribution
XXii
A normal distribution is completely described when we

know the mean and standard deviation of the data.
M-71
Rev 04 (13 Aug, 2006)
Yield and the Normal Curve

The normal curve can also be partitioned as shown below,
and because of its perfect symmetry, the following rules
apply
M-72
Rev 04 (13 Aug, 2006)
Frequency of Delivery Times
Effects of Variation?
Critical Customer
Requirement = 10 days
= 7.7 days
= Variation or data spread
Defects: Service
unacceptable to
customer
10
11
12
Delivery Time
M-73
Rev 04 (13 Aug, 2006)
Variation Reduction
If we reduce variation, then fewer observations will fall above
the customer requirement of 10 days.
= 7.7 days
Critical Customer
Requirement = 10 days
= Variation or data spread
Defects: Service
unacceptable to
customer
Defect Reduction
10
11
12
Delivery Time
M-74
Rev 04 (13 Aug, 2006)
Variation and Mean Reduction

If we reduce both the average delivery time and the variation
in delivery time, we can further reduce those times that do not
meet customer requirements.
= 6 days
Critical Customer Requirement =

10 days
Defects: Service
unacceptable to customer
10
12
M-75
Rev 04 (13 Aug, 2006)
How Does Variation Affect Process

Performance?
Measuring variation means that we can clearly
define how well we are meeting customer
requirements.
By observing or measuring the process over time
you can determine the mean and standard
deviation, and therefore, the performance of the
process against customer requirements.
Measuring process performance requires that we
measure two elements:
process variation
customer requirements
M-76
Rev 04 (13 Aug, 2006)
Goal of Six Sigma Business Improvement

LSL
TARGET
LSL
USL
TARGET
USL
MOVE MEAN
LSL
The goals of Six Sigma Business

Improvement are:
USL
to center the process well within customer

requirements and reduce variation, first by
eliminating special causes of variation, and
then eliminate the common causes of
variation in order for the process outputs to
be fully within customer requirements.
REDUCE SPREAD
TARGET
M-77
Rev 04 (13 Aug, 2006)
Charting Variation

Rev 04 (13 Aug, 2006)
Charting Variation -- Histograms

A histogram is a bar graph that displays the results for a sample
of performance data (daily commuting time, for example) in
picture form. This picture is sometimes called a frequency
distribution because it shows clearly how frequently each
separate value appears in the data.
M-79
Rev 04 (13 Aug, 2006)
Box Plots
An alternative to the histogram for graphically representing the
distribution of data.
Combines both distribution information and summary statistics on the same
graph.
Especially valuable when the objective is to compare two or more groups,
such as two different measuring tools or three shifts.
Mean Symbol
(Median)
50th percentile
Outliers
Tail
Tail
IQR
(BOX)
LQ 1.5(IQR)
UQ +1.5(IQR)
75th
percentile
(UQ)
25th
percentile
(LQ)
M-80
Rev 04 (13 Aug, 2006)
Box Plots and Histograms

32
52
Outliers (w/case #s)

Upper Tail
Upper Quartile
Median
IQR
Lower Quartile
IQR = Upper Quartile Lower Quartile

Upper Tail = UQ + 1.5(IQR)
Lower Tail
Lower Tail = LQ 1.5(IQR)
33
Outlier (w/case #s)

M-81
Rev 04 (13 Aug, 2006)
Box Plots - Skewed Distribution
15 74
19
M-82
Rev 04 (13 Aug, 2006)
Charting Variation Run Charts

Three Different Run Charts with the Same Distribution
X
16
26
25
24
23
22
21
20
19
18
17
16
15
14
X
17
X
X
18
26
25
24
23
22
21
20
19
18
17
16
15
14
X
X
X
X
19
X
X
X
X
X
20
X
X
X
X
21
X
X
22
X
23
X
24
26
25
24
23
22
21
20
19
18
17
16
15
14
M-83
Rev 04 (13 Aug, 2006)

Rev 04 (13 Aug, 2006)

Variability
The dispersion or spread of a set of data.
Linked to a company's costs and profits.
Variability reduction is the key to quality improvement.
Process Stability (State of Statistical Control)

Distribution characteristics (location, spread and shape)
of the measurements of a process remain constant over
time. (Predictable)
M-85
Rev 04 (13 Aug, 2006)

Stable Process - Predictable
M-86
Rev 04 (13 Aug, 2006)

Unstable - Not Predictable
M-87
Rev 04 (13 Aug, 2006)

Most important tool to assess and monitor process stability is the
control chart.
Control chart, uses a set of control limits to distinguish between
controlled and uncontrolled variation.
2 TYPES OF VARIATION
P Chart of Fail
0.7
CONTROLLED VARIATION
Proportion
Due to common causes of variation.

Examples of common causes of
variation are:
Room temperature.
Software processing speed.
Works of certified agent.
0.6
1
1
UCL=0.5912
0.5
UNCONTROLLED VARIATION
_
P=0.4559
0.4
LCL=0.3207
0.3
1
0.2
2
10
12
Sample
14
16
18
20
Tests performed with unequal sample sizes
Process not stable due to presence

of special causes of variation.
Due to special causes of variation.

Examples of special causes of
variation are:
System crashed.
Launching of new product.
Works of uncertified agent.
Not following procedure.
M-88
Rev 04 (13 Aug, 2006)

Process Control
Methodology used to eliminate the uncontrolled
variation in a process.
Process control involves:
detection of changes in the process output, i.e. out-ofcontrol conditions,
identification and removal of the special or assignable
cause(s) of variation.
M-89
Rev 04 (13 Aug, 2006)

Process Capability
Ability of a process to generate product that meets
engineering and customer specifications.
Capability Indices
Used to measure process capability.
Calculated by comparing the width of the process
specification to the width of the process measurements.
M-90
Rev 04 (13 Aug, 2006)
Variability,
Stability, and
Capability
M-91
Rev 04 (13 Aug, 2006)
Discussion: Histogram Interpretation

120
100
80
60
40
20
10
23
36
49
62
75
88 101 114 127
What type of distribution is this?

What could cause this?
30
25
20
15
10
5
3
4.5
7.5
10.5 12 13.5 15 16.5
What type of distribution is this?

What could cause this?
M-92
Rev 04 (13 Aug, 2006)
MINITAB - Basic Statistics

Practice.MTW

Rev 04 (13 Aug, 2006)
Navigating Minitab
Menus
Session window
commands/outputs
Worksheet, store data
M-94
Rev 04 (13 Aug, 2006)
Navigating Minitab
Type in these info as you
would in Excel
First row is the reference
and always start with
C
Second row is the name of
the variable - optional
T in C3-T
indicates that
D in C4-D indicates
data type is Text that data type is Date
M-95
Rev 04 (13 Aug, 2006)
Navigating Minitab
You can save as a project
(holds multiple
worksheets, and all
results)
You can save as Worksheet
only the information on
the current worksheet
M-96
Rev 04 (13 Aug, 2006)
Menu: File
Open a new project/work
sheet,
Open an existing project
Save project/worksheet
Extract data from a Database
Save outputs in session window
as an text (formatted word file
Print
Exit & others
M-97
Rev 04 (13 Aug, 2006)
Menu: Data
All operations to manipulate data

Working with worksheets, merging,
splitting, and subsetting
Operations about columns, copying,
stacking, transposing
Sorting, ranking, coding, changing data
types and many more
M-98
Rev 04 (13 Aug, 2006)
Menu: Calc
Calculations under
calculator
Column and row statistics
Making pattern data
Creating random data from a
distribution
Calculating probabilities from
a distribution, will cover
normal, binomial, and tdistributions
M-99
Rev 04 (13 Aug, 2006)
Menu: Graph
Graph tools are the collection of
visual data analysis tools. These are
similar to Excel graph tools with
many more statistical visual data
analysis tools
GB will cover relevant visual data
analysis tools
M-100
Rev 04 (13 Aug, 2006)
Basic Statistics
Open the Worksheet file practice.mtw
By clicking on the file or
Opening from
File Open Worksheet
It has customer information such as average

number of order per month, average days of
order to delivery, customer satisfaction etc.
M-101
Rev 04 (13 Aug, 2006)
Basic Statistics
Stat Basic Statistics Display Descriptive Statistics
M-102
Rev 04 (13 Aug, 2006)
Basic Statistics
Select Statistics option and

check for the descriptive
information you want
M-103
Rev 04 (13 Aug, 2006)
Basic Statistics
Descriptive Statistics: Avg No. of orders per mo
Variable
Avg No. of order
Total
Count
100
N*
0
Variable
Avg No. of order
Q3
40.05
Maximum
61.90
Mean
34.05
SE Mean
1.02
Range
54.80
StDev
10.19
Minimum
7.10
Q1
26.35
Median
33.75
IQR
13.70
There are 100 data points whose average is 34.05. The

standard deviation of the data is 10.19. Half of the data is
below 33.75 (Median) and other half is above. 50% of the
data is between 26.35 40.05 (Q1, Q3 quartiles)
M-104
Rev 04 (13 Aug, 2006)
Basic Statistics: Graphical Summary

Select Graphical Summary
from Basic Statistics
M-105
Rev 04 (13 Aug, 2006)
Basic Statistics
Summary for Avg No. of orders per mo
A nderson-Darling Normality Test
Histogram of the data,

with a curve fit
10
20
30
40
50
60
A -Squared
P-V alue
0.49
0.216
Mean
StDev
V ariance
Skewness
Kurtosis
N
34.054
10.194
103.924
0.278522
0.291962
100
Minimum
1st Q uartile
Median
3rd Q uartile
Maximum
7.100
26.350
33.750
40.050
61.900
95% Confidence I nterval for Mean
Box plot
32.031
36.077
95% Confidence I nterval for Median

31.048
Confidence
Interval Mean
95% Confidence I ntervals
8.951
Median
31
32
33
34
36.126
95% Confidence I nterval for StDev
35
36
11.842
Additional statistics
M-106
Rev 04 (13 Aug, 2006)
Exercise: Graphical Summary

Objective
To practice generating graphical summary with Minitab
(10 Minutes)
Instructions
1. Using the data collected from your teams catapult exercise,
generate a graphical summary.
2. Is the distribution normal?
3. Is there any outliers?
4. What are the summaries statistics?
Workshop
Refer to workbook
M-107
Rev 04 (13 Aug, 2006)
Summary Statistics
Basic Graphical Tools

Rev 04 (13 Aug, 2006)
Graphical Analysis
Objective:
Introduce the basic graphical analysis. A quick look
at how the data looks
Key Topics
Graphical Analysis
Scatter, dot plots, box plots (single & multiple),
histogram, normality, scatter plot, matrix plot
M-109
Rev 04 (13 Aug, 2006)
Graphical Analysis - Dotplot

Open the worksheet file
Practice.mtw
Dotplot shows the range and
shape of the data similar to
histogram
M-110
Rev 04 (13 Aug, 2006)
M-111
Rev 04 (13 Aug, 2006)

Dotplot of Avg No. of orders per mo
16
24
32
40
Avg No. of orders per mo
48
56
What questions arise after seeing this plot?
M-112
Rev 04 (13 Aug, 2006)
Graphical Analysis - Box Plots

Box Plots
M-113
Rev 04 (13 Aug, 2006)
M-114
Rev 04 (13 Aug, 2006)

Boxplot of Avg No. of orders per mo
A potential outlier
60
50
40
3rd quartile Q3
30
20
Median
10
1st quartile Q1
M-115
Rev 04 (13 Aug, 2006)

Boxplots With Groups
Boxplot of Avg No. of orders per mo vs Size of Customer
60
50
40
30
20
10
0
Large
Small
Size of Customer
M-116
Rev 04 (13 Aug, 2006)
Graphical Analysis - Histogram
Select with
Fit
M-117
Rev 04 (13 Aug, 2006)
M-118
Rev 04 (13 Aug, 2006)

Histogram of Avg No. of orders per mo
Normal
25
Mean
StDev
N
34.05
10.19
100
Frequency
20
15
10
10
20
30
40
50
60
M-119
Rev 04 (13 Aug, 2006)
Graphical Analysis Scatter Plot
Graph Scatter
Plot
Select Simple
M-120
Rev 04 (13 Aug, 2006)

Select Y = Overall
Satisfaction and
X = Responsive to Call
M-121
Rev 04 (13 Aug, 2006)

Scatterplot of Overall Satisfaction vs Responsive to Calls
5.0
Overall Satisfaction
4.5
4.0
3.5
3.0
2.5
2.0
3
Responsive to Calls
Higher responsiveness to call is increasing the overall

satisfaction
M-122
Rev 04 (13 Aug, 2006)
Graphical Analysis Matrix Plot
Graph Matrix Plot

Select Simple
M-123
Rev 04 (13 Aug, 2006)
M-124
Rev 04 (13 Aug, 2006)

Matrix Plot of Avg No. of o, Avg days Ord, Loyalty - Li, ...
40
50
60
2.5
3.5
4.5
50
A
25vg No. of orders per mo
0
60
50
A vg days Order to delivery time
40
5
3
Loyalty - Likely to Recommend
1
4.5
3.5
Overall Satisfaction
2.5
5
3
Responsive to Calls
5
3
Ease of Communications
5
3
Staff Knowledge
1
0
25
50
All possible plots

M-125
Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To develop an understanding of the importance of variation in managing

processes and how to measure variation.
Key Topics
Measuring Variation Summary Statistics
Charting Variation
Workshop
M-126
Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To evaluate the quality of the measurement system for variable (continuous)

and attribute (discrete) data
Key Topics
Measurement Systems Analysis (MSA)

Why Should a Measurement Systems Analysis be Performed?
Stability
Bias and Precision
Repeatability and Reproducibility
MSA Metrics
Attribute MSA
Attribute Agreement Analysis
M-127
Rev 04 (13 Aug, 2006)
Six Sigma
2.4 -- Evaluate Measurement System

Rev 04 (13 Aug, 2006)
Data Collection
Measurement management starts with a data collection methodology.
Data Collection Method
Identify
Measures
Step 1
Develop operational
definitions for measure
Step 2
Develop measurement plan
Step 3
Collect data
Step 4
Display and evaluate data
M-129
Rev 04 (13 Aug, 2006)

Rev 04 (13 Aug, 2006)
What is MSA?
The study of the extent to which systematic and
random factors are affecting our ability to
correctly measure some phenomenon
Observed Result
=
true unknown value
+
error
M-131
Rev 04 (13 Aug, 2006)
Why Is MSA Important?

Incorrect decisions
Greater sample sizes required
Understates capability indices
A bad one
might be
measured as good
A good one
might be
measured as bad
X
LSL
X
USL
M-132
Rev 04 (13 Aug, 2006)
When Is MSA Implemented?

Before data collection
As applicable, prior to a process capability study.
When a key characteristic or process is not capable.
When the measurement system is suspected of
being a significant source of variation.
When there are major changes to the measurement
system.
When preparations are being made to conduct a
Design of Experiment (DOE).
As a criterion to accept new measuring equipment.
M-133
Rev 04 (13 Aug, 2006)
Measurement system variation

Total variation in the observed measurements can be
from two major sources: process and measurement
equipment itself
2
total
2
measurement-system
2
process
If it is confused with process related variation, then

May try to adjust the process when not necessary
Process capability will appear to be worse than it really is
Effort may be wasted on trying to improve a process that
appears not to be capable, when it really is, and other
processes that require improvement are not tackled
M-134
Rev 04 (13 Aug, 2006)
Measurement System Analysis

Depending on the collected data type
Measurement System Analysis (MSA) can be either
one of the following two types
MSA for Continuous (Variable) Data known as Gage
R&R
MSA for Discrete (Attribute) Data known as Attribute
Agreement
M-135
Rev 04 (13 Aug, 2006)

for Variable Data

Rev 04 (13 Aug, 2006)
Characteristics of Measurement
System
We need to assess the capability of the
measurement system in terms of:
Stability
Discrimination
Accuracy (Bias)
Linearity
Precision
M-137
Rev 04 (13 Aug, 2006)
Stability
Stability of a
measurement system is
its ability to perform
consistently over time
(Evaluation of the
difference in accuracy
or precision over time)
Stable
Gage
Not Stable
Gage
Time 1
Time 2
M-138
Rev 04 (13 Aug, 2006)
Stability of the Measurement System

There are many definitions of stability, but a definition
that directly reflects the properties of statistical
control is preferred:
The distribution of the measurements stays

constant over time
average.
standard deviation.
No drifts, sudden shifts, cycles, etc.

Stability can be evaluated using a trend chart or a
control chart.
M-139
Rev 04 (13 Aug, 2006)
Discrimination-Resolution
Capability of the measurement system to
detect and faithfully indicate even small
changes of the measured characteristic
Poor Discrimination
1
Good Discrimination
1
5
M-140
Rev 04 (13 Aug, 2006)
Measurement Discrimination
A general Rule of Thumb:
A measurement tool will have adequate discrimination if the
measurement unit is at most one-tenth of the six sigma spread
of the total process variation,
Measurement Unit (6* Total)/10
M-141
Rev 04 (13 Aug, 2006)
Bias
Location refers to where the measurement system
distribution is centered or average of the measurements.
Bias is the difference between the Location the observed
average - and the reference value.
The term Accuracy is also used:
higher Bias lower Accuracy
Bias
True or
Reference
Value
Distribution of Measurements
M-142
Rev 04 (13 Aug, 2006)
Accuracy - Bias
Accuracy measures the closeness of average
observations to the true value.
Compare average of repeated measurements to
known reference standard (Master Value)
Accurate
Not
Accurate
M-143
Rev 04 (13 Aug, 2006)
Linearity
The difference
between the Bias at
the high and the Bias at
the low range of a gage
is the measure of the
Linearity.
It indicates how good
the gage is in the full
operating range.
Good Linearity
Not Good
Linearity
Low
Range of Operation
High
M-144
Rev 04 (13 Aug, 2006)
Example: Bias and Linearity

Open Linearity-Bias.MTW
Three reference standards
(parts with known true values)
were measured multiple
times
with the same gage.
Table gives the actual and
Measured values.
Evaluate the Linearity of the
Gage.
M-145
Rev 04 (13 Aug, 2006)
M-146
Rev 04 (13 Aug, 2006)
M-147
Rev 04 (13 Aug, 2006)

Linearity (Bias at low and
high range of the gage is
statistically same:
P-value of the slope is
larger than 0.05 slope is
equal to zero.
Average Bias is -0.0029
M-148
Rev 04 (13 Aug, 2006)
Precision
Total observed variation can be partitioned in to two
major groups: Process and Measurement System (MS)
Precision is the measure of the variation that is related
to the measurement system component
Total
Variability
2Total
Process
Variability
2Process
Measurement
System Variability
2MS
M
M M
1
2 3
M-149
Rev 04 (13 Aug, 2006)
Precision: Definition
The standard deviation of the measurement system
is called the precision, MS.
Measurement system variation (2MS) is made up of
two variation components, one called repeatability
(2RPT) and the other called reproducibility (2RPD).
Measurement
System
Reproducibility
Repeatability
2
2
2
MS
Reproducib
ility
Repeatability
2
2
MS Reproducib
ility
Repeatability
M-150
Rev 04 (13 Aug, 2006)
Precision: Repeatability
The inherent variability of the measurement system.
Measured by RPT, the standard deviation of the
repeated measurements.
The variation that results when repeated measurements
are made under as absolutely identical conditions as
possible:
Same operator
Same set up procedure
Same part or reference standard
Same environmental conditions
During a short interval of time
M-151
Rev 04 (13 Aug, 2006)
Precision: Reproducibility
The variation that results when different
conditions are used to make the measurement
Different operators;
Different set up procedures, maintenance
procedures, etc.;
Different algorithm, software load, calculation
method etc.
Different conditions that are controllable
Measured by RPD
M-152
Rev 04 (13 Aug, 2006)
Precision: Gauge Repeatability &

Reproducibility
Gauge Repeatability &
Reproducibility (GR&R):
Precision to Tolerance (P/T)

Ratio:
%GR&R: The fraction of

total variation
consumed by
measurement system
variation
6 MS
x100 %
%GRR
6 Total
%P/T: The fraction of

the tolerance consumed
by measurement system
variation
6 MS
%P / T
x100 %
USL LSL
Tolerance
M-153
Rev 04 (13 Aug, 2006)
Acceptance Criteria
Both %GR&R and %P/T criteria are used to judge a
gages capability
If percentage variation is <10%, OK
If percentage between 10 and 30%
unacceptable for critical measurements
should improve measurement process
If percentage is >30%, measurement process is

unacceptable and needs to be improved
Both %GR&R and %P/T must satisfy the 10%
requirements especially for critical measurements.
M-154
Rev 04 (13 Aug, 2006)
Setting up an MSA Study Gage R&R

If the measurements can be repeated, are not destructive, and do
not change the object or event being measured, then a simple MSA
approach can be used
Aim to have 10 objects to measure (called parts in standard MSA
terminology)
Have 3 appraisers (called operators in standard MSA terminology)
Have each person repeat the measurements 3 times over
Measurements should be made in random order
This is a crossed MSA
M-155
Rev 04 (13 Aug, 2006)
Crossed MSA
The experimental data in table format:
Part
Operator
Operator 1
Operator 2
Operator 3
Part 1
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 2
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 4
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 5
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 6
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 7
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 8
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 9
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
Part 10
Repeat 1, 2, 3
Repeat 1, 2, 3
Repeat 1, 2, 3
M-156
Rev 04 (13 Aug, 2006)
Example: Crossed Measurement Systems

Analysis
3 operators
10 parts
Each operator measures each part twice
LSL = 0.4 and USL = 1.2
File name: MSA_Variable.mtw
M-157
Rev 04 (13 Aug, 2006)
Minitab- Crossed MSA
The experiment is
crossed because all
operators measure
the same parts
Select the relevant

menu option in
Minitab as shown
in the Minitab menu
M-158
Rev 04 (13 Aug, 2006)
Minitab- Menu
Click Options..
M-159
Rev 04 (13 Aug, 2006)
Minitab- Menu
Enter
tolerance
M-160
Rev 04 (13 Aug, 2006)
Minitab- Output
Gage R&R (ANOVA) for Thickness
Reported by:
Tolerance:
Misc:
Gage name:
Date of study:
Components of Variation
Thickness by Part
Percent
160
% Contribution
%StudyVar
% Tolerance
80
1.00
0.75
0.50
Gage R&R
Repeat
Reprod
Part-to-Part
Sample Range
10
Thickness by Operator
UCL=0.1252
0.10
1.00
0.75
_
R=0.0383
0.05
0.00
0.50
LCL=0
2
Operator
Xbar Chart by Operator

1
Operator * Part I nteraction
1.00
_
UCL=0.8796
_
X=0.8075
LCL=0.7354
0.75
0.50
Operator
1
2
3
1.00
Average
Sample Mean
5
Part
R Chart by Operator
1
0.75
0.50
1
5
6
Part
10
M-161
Rev 04 (13 Aug, 2006)
Components of Variation
2
MS
100
2
Total
6 MS
100
6 Total
6 MS
100
USL LSL
Shows %R&R , its components and part to part variation

We want the Gage R&R bars to be as small as possible
M-162
Rev 04 (13 Aug, 2006)
Gage R&R X / R Chart
Control limits based on overall range

points show range due to operator
repeats should be in control. All
operators are approximately similar
Control limits based on measurement

variation points show part to part variation
>50% points should be out of control. All
operators appear to be similar
M-163
Rev 04 (13 Aug, 2006)
X-Chart Indicators
If the averages for each operator is different, the
reproducibility is suspect
We want more averages to fall outside the control limits but
consistently for all operators
This indicates more part-to-part variability which

is what we want
We want to see the majority of the points on the chart outside
the control limits
If this is the case and the R-Chart is in control,

then we will be able to determine the percent of
the process variability that is consumed by the
measurement system
M-164
Rev 04 (13 Aug, 2006)
R-Chart Indicators
Suspect inadequate Discrimination if:
the range chart has less than 5 distinct levels

within the Control Limits
5 or more levels for the range but more than 1/4
of the values are zero
Repeatability is questionable if the range chart shows out-ofcontrol conditions
If the range for an operator is out-of-control and the others are
not, the method is suspect
If all operators have ranges out-of-control, the system is
sensitive to operator technique
M-165
Rev 04 (13 Aug, 2006)
By Operator
Shows the average value and spread for each operator

To have minimum reproducibility, a flat line is expected across
all
three operators
M-166
Rev 04 (13 Aug, 2006)
By Part
Shows the average and spread of the values for each part
To have minimum measurement system variability, we expect to see minimal
spread for each part, but maximum variability between parts
M-167
Rev 04 (13 Aug, 2006)
Operator-Part Interaction Plot
There is no interaction if lines for all the operators for

all parts are parallel
If crossing lines exists between operators, then interaction
between
operator and part exists.
M-168
Rev 04 (13 Aug, 2006)
Use MINITAB to Calculate Ratios
% R&R
% P/T
M-169
Rev 04 (13 Aug, 2006)
Exercise: Gage R&R

Objective
To learn data collection from a crossed gage study, collect data, and do the R&R study by using
Minitab.
Instructions
Each Teams Select
10 M&M
3 operators
Put the M&Ms in a row and label 1, 2,,10

Each operator measures the thickness (or diameter) of each M&M two times
Enter the data in to the Minitab
Analyze the Data with Crossed MSA
Specification: LSL=0.5cm USL=0.8cm
Creating a Gage R&R data collection sheet is shown next slides. GB are strongly encouraged
to consult with BB/MBB to make sure that the data collected with the data collection plan is
random and represent the process. The way the data is collected often determines the
statistical method to be used in analysis.
Time: 45 min to complete
M-170
Rev 04 (13 Aug, 2006)
Creating a Gage R&R Data Collection Sheet

Label columns as shown:
M-171
Rev 04 (13 Aug, 2006)

Calc > Make Patterned Data >
Simple Set of Numbers
M-172
Rev 04 (13 Aug, 2006)
# of Operators
Click OK
M-173
Rev 04 (13 Aug, 2006)
# of Operators
Click OK
M-174
Rev 04 (13 Aug, 2006)
10 times
# of Operators
Click OK
M-175
Rev 04 (13 Aug, 2006)

Calc > Random Data > Normal
M-176
Rev 04 (13 Aug, 2006)
20 times
# of Operators
Click OK
M-177
Rev 04 (13 Aug, 2006)

Data > Sort
M-178
Rev 04 (13 Aug, 2006)

Select
all Columns
Operator
Random
Original
Columns
Click OK
Save worksheet
M-179
Rev 04 (13 Aug, 2006)

for Attribute Data

Rev 04 (13 Aug, 2006)
Attribute MSA
Used to evaluate the measurement system
when the data is discrete or attribute.
Examples:
Determine if the final inspection is effective in
finding defects in cell phones.
Determine the effectiveness of using quality
assurance specialists to assess the suitability of
the advice given to customers in a call center.
M-181
Rev 04 (13 Aug, 2006)
Methods for Attribute MSA

Attribute Agreement Analysis:
Used to determine the consistency within
appraiser, between appraiser and with a standard
(if available).
M-182
Rev 04 (13 Aug, 2006)

The analysis can be done with:
Nominal data
Pass / Fail
Good / Bad
Ordinal data
1. Excellent 2. Good 3. Fair 4. Poor
Employee Rating: 1, 2, 3
M-183
Rev 04 (13 Aug, 2006)

Data collection:
At least 10 samples
2-3 appraisers
Each sample is reviewed 3 times by each appraiser (where
possible).
Include both good and bad samples. As a guideline, select
half good and half bad samples. Include marginally good and
marginally bad samples.
Record the reference value (if available)
Randomization
The samples need to be randomized when the appraiser
reviews them multiple times.
M-184
Rev 04 (13 Aug, 2006)
Analysis
WithinAppraiser
AppraiserA
Appraiservs
Standard
AppraiserB
AppraiserC
BetweenAppraisers
Reference
Value
Part11
Part12
Part21
Part22
Part31
Part32
Etc.
Etc.
Part11
Part12
Part21
Part22
Part31
Part32
Etc.
Etc.
Part11
Part12
Part21
Part22
Part31
Part32
Etc.
Etc.
M-185
Rev 04 (13 Aug, 2006)
Statistical Analysis
Kappa Statistic:
Used for Nominal data
Ranges from -1 to +1
Measures level of agreement
+1 indicates perfect agreement.
-1 indicates perfect disagreement
M-186
Rev 04 (13 Aug, 2006)
Effectiveness of Measurement System
Decision
Effectiveness*
Acceptable
0.90
Marginally acceptable may

need improvement
0.80
Unacceptable needs
improvement
<0.80
* Using either the Kappa Statistic or Kendalls Coefficient of

Concordance
M-187
Rev 04 (13 Aug, 2006)
Example: Attribute Agreement Analysis

Scenario:
Operators in a call center answer questions about
credit card statements.
Four randomly selected operators answered the same
10 questions twice in random order.
Are the operators answering the questions consistently
and correctly?
Open dataset: Attr-gageRRServ.mtw

Minitab Worksheet
Attr-gageRRServ.mtw
M-188
Rev 04 (13 Aug, 2006)

10 questions
4 Operators: Anne,
Brian, Famke and
Mark
2 repeats
M-189
Rev 04 (13 Aug, 2006)

Stat > Quality Tools >
Attribute Agreement
Analysis
M-190
Rev 04 (13 Aug, 2006)
Enter
parameters
Enter column
with standard
value
Check box for ordinal data.
M-191
Rev 04 (13 Aug, 2006)

Within Appraisers: How well does an appraisers answers
match when they measure the same sample?
Each of the appraisers
were consistent when
they read the samples
twice.
Kappa=1;Acceptable
withinappraiserresults
M-192
Rev 04 (13 Aug, 2006)

Between Appraisers: How well do the
appraiser answers agree with each other?
Kappa=0.908;Acceptable
betweenappraiserresults
M-193
Rev 04 (13 Aug, 2006)

Appraisers to the Standard: How well do the
appraiser answers agree with the standard?
Kappa=0.945;Acceptableappraisertostandardresults
M-194
Rev 04 (13 Aug, 2006)
M-195
Rev 04 (13 Aug, 2006)

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To evaluate the quality of the measurement system for variable (continuous)

and attribute (discrete) data
Key Topics

Why Should a Measurement Systems Analysis be Performed?
Stability
Bias and Precision
Repeatability and Reproducibility
MSA Metrics
Attribute MSA
M-196
Rev 04 (13 Aug, 2006)
Six Sigma
2.5 -- Determine Process

Performance

Rev 04 (13 Aug, 2006)
2.5 Determine Process Performance

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To introduce Process Capability and the right method for
calculating Sigma Performance. Calculate process sigma
performance using the appropriate method.
Key Topics
Introduction to Calculating Process Performance
Calculating Sigma Performance
M-198
Rev 04 (13 Aug, 2006)
Introduction to Calculating Sigma

Performance

Rev 04 (13 Aug, 2006)
Process Performance is Based On ...

LSL
USL
Voice of
Customer
Voice of
Process
Voice of
Customer
Defectives
Process Performance = VOC Vs. VOP
Y = CTQ / CTP
M-200
Rev 04 (13 Aug, 2006)
Why do we do Process Performance

Calculation?
Document baseline performance
Provide direction to the project
Compare performance before and after solution
implementation.
M-201
Rev 04 (13 Aug, 2006)
Calculating Sigma Performance with

Discrete Data

Rev 04 (13 Aug, 2006)
Calculating Sigma Performance -Discrete Data

By examining the raw data, we can count the
number of defects that do not meet customer
requirements and translate that directly into a
defect calculation referred to as Defects Per
Million Opportunities, or DPMO.
Based on the DPMO, calculate the sigma quality
level.
M-203
Rev 04 (13 Aug, 2006)
DPMO Defined
DPMO = Defects Per Million Opportunities
= 1M x D
NO
where:
D* = total number of defects counted in the sample: a defect
defined as failure to meet a Critical Customer Requirement
or CCR
N = number of units of product or service inspected
O = number of opportunities per unit of product or service for
a customer defect to occur
M = million
There must be at least 5 defects and 5 non-defects to

use the DPMO formula.
M-204
Rev 04 (13 Aug, 2006)
Determine Sigma with DPMO

Defects
DPMO =
1M
Units X Opportunities
_______ Units
_______ Defects
_______ Opportunities
M-205
Rev 04 (13 Aug, 2006)
Sigma Calculation Table
(Sigma Level assumes a 1.5 Shift)
M-206
Rev 04 (13 Aug, 2006)
DPMO Example
Excellent Sigma Slitted Product Case
Market research has shown that improving
delivery cycle time for slitted product will
increase customer satisfaction.
The project team has collected a random sample
of 60 data.
The team is to determine the capability of the
current process meeting the present 4 weeks
acknowledged lead time committed by customer
service department to customers.
M-207
Rev 04 (13 Aug, 2006)
DPMO Example
Using the slitted product example, lets calculate the DPMO and the process sigma
using this method from the data set on slitted product delivery cycle times:
D = 31
N = 60
O = 1 (There is only one opportunity for a defect. Either the order is
delivered within the acknowledged limits of 4 weeks or it is a defect.)
DPMO =
31 (10 )6
= 516,667
60x1
Using the Sigma Calculation table, enter the DPMO column and look up the process
sigma directly.
Sigma Quality Level is Less than 1.5
Excel Template
Sigmacalculator.xls
M-208
Rev 04 (13 Aug, 2006)
DPMO Example
M-209
Rev 04 (13 Aug, 2006)
Optional Exercise: Sigma Level using DPMO

Objective
To practice calculating sigma level using discrete data

Instructions
1. Using the data collected from your teams catapult exercise, count
the number of defect.
2. Open the file Sigmacalculator.xls.
3. Calculate the process performance in sigma level.
Workshop
Refer to workbook
M-210
Rev 04 (13 Aug, 2006)
Calculating Sigma Performance with

Continuous Data

Rev 04 (13 Aug, 2006)
Process Capability Study

A process capability study is one of the major steps of
the continuous improvement process. It is part of an
overall strategy of Six Sigma and process improvement
that has three objectives:
Obtain Stable processes
Reduce the Variability of key process outputs
Improve the Capability of key processes through the reduction
of variation and the centering of the process on its target
value.
The capability of a process is increased relative to

required tolerances or process specifications by
reducing the variation in the process and centering of
process variables on their respective targets.
M-212
Rev 04 (13 Aug, 2006)
Process Capability Study

A process capability study generally consists of four steps:
Step 1.
Verify that the process is stable.
Step 2.
Determine if the data distribution is normal.
Step 3.
Calculate the Capability Indices Cp and Cpk;

determine Sigma Quality Level.
Step 4. Make recommendations for process

improvement.
M-213
Rev 04 (13 Aug, 2006)
Step 1: Monitoring Process

Stability - Trend Charts
Process Stability: The distribution characteristics of
the measurements (e.g. location, spread, shape)
remain constant over time.
Trend Charts: Time ordered plots of data demonstrate
the stability of the distribution of measurements over
time.
Control Charts: A special case of a Trend Chart that
includes data based control limits. Control Charts are
the primary tools for monitoring the stability of a
process.
Control Limits used to objectively indicate when a
process has become unstable (or out of control).
M-214
Rev 04 (13 Aug, 2006)
Step 1: Monitoring Process

Stability - Trend Charts
Example:
Trend plot of 100
oxide thickness
measurements taken
once per shift over
several weeks.
Are time trends
indicated in the
thickness
measurements?
Is this process
stable?
M-215
Rev 04 (13 Aug, 2006)
Step 2: Determine if the Data

Distribution is Normal
In process capability studies, the correct
interpretation of the capability indices (Step 3)
requires that the underlying measurements have
approximately a normal distribution.
M-216
Rev 04 (13 Aug, 2006)
Step 3: Assessing Process

Capability - Capability Indices
A capable process is one where all the population
measurements fall inside the lower and upper
specification limits.
8
Nominal (3000)
LSL (2700)
USL (3300)
6
Normal Dist.
0
2500
2600
2700
2800
2900
3000
3100
3200
3300
3400
3500
3600
M-217
Rev 04 (13 Aug, 2006)
Capability Indices
Capability is defined as the ability of a process to
produce outputs that meet engineering and/or
customer specifications.
A capable process is one where the distributions of the
process output measurements are centered on the
target, and a very high percentage of the
measurements fall within the specification limits.
Capability indices are introduced as a means of
measuring the capability of a process.
M-218
Rev 04 (13 Aug, 2006)
Uses of Capability Indices

Capability indices can be used to provide:
A method of tracking the relative improvement of an
individual process over time.
A method for estimating the percentage of defects or nonconforming product.
A means of comparing the capability of several processes,
each with different units of measurement and different
specifications.
A means for identifying the processes most in need of
improvement.
One set of acceptance criteria for transferring a process
from a development area to a manufacturing line.
One set of qualification criteria for assessing suppliers.
M-219
Rev 04 (13 Aug, 2006)
Definition of Cp
Definition of Cp
Cp =
Allowable Process Variability

(VOC)
Actual Process Variability
Cp =
Cp =
USL LSL
(VOP)
(population)
6
USL LSL
(sample)
6s
Allowable
LSL
USL
Actual
M-220
Rev 04 (13 Aug, 2006)
Calculation of Cp (continued)
The process must be stable in order to calculate process capability

(continuous method).
The method for determining potential process capability:

1. Determine the process standard deviation.
2. Determine the Upper Specification Limit (USL) and the Lower
Specification Limit (LSL).
3. Calculate the potential process capability (Cp).
This measure tells how much of the process distribution will

potentially fall within the width of the customer specification
limits.
M-221
Rev 04 (13 Aug, 2006)
Interpretation of Cp
Cp
Interpretation
< 1.0
Poor Capability
1.0 - 1.5
Marginal
Capability
> 1.5
Good Capability
> 2.0
Motorola 6
Capability
LSL
USL
M-222
Rev 04 (13 Aug, 2006)
Three Processes
2.0
Figure 3 - Three with
ProcessesCp
with =
Cp =
2.0
Cpk = 1.0
LSL
Cpk = 2.0
Cpk = 1.0
USL
M-223
Rev 04 (13 Aug, 2006)
Definition of Cpk
Capability index - Cpk
Cpk min
USL xbar xbar LSL

,
3s
3s
Cp does not take into account the closeness of the

mean to the target.
Cp by itself is insufficient to describe the capability of
a process to conform to specifications.
An index that does take into account where the mean
of the sample is relative to the specification limits is
Cpk.
M-224
Rev 04 (13 Aug, 2006)
Definition of Cpk: One Sided Specification

Definitions of Cpk - One Sided Specifications
One Sided Specification - Upper Limit (USL)
Cpk = C pu = USL 3
USL
One Sided Specification - Lower Limit (LSL)

Cpk = C pl
- LSL
3
LSL
M-225
Rev 04 (13 Aug, 2006)
Assessing Process
Capability - Capability Indices
LSL
TARGET
USL
Cpk = Cp
LSL
TARGET
USL
If the distribution of measurements is

centered on the target
(i.e., xbar = target), then Cpk = Cp.
Otherwise, Cpk < Cp.
At Motorola, for a process to be at the 6
quality level, it must have a Cp > 2.0 and
a Cpk > 1.5.
LSL
TARGET
USL
Cpk < Cp
Cpk < < < Cp
M-226
Rev 04 (13 Aug, 2006)
What is the Cpk for the data in this figure?

LSL (145)
Nominal (155)
USL (165)
25
20
15
10
135
140
StDev = 3.4115
Mean = 150.26
_
155
160 _
165
USL - x
LSL - x
Cpk = min [ (165 150.26)/3(3.411),(150.26 145)/3(3.411) ]
= min [1.44, 0.513] (Cpu/Cpl)
Cpk = 0.513
145
150
M-227
Rev 04 (13 Aug, 2006)
Common Mistakes with Capability

Indices
Calculating indices on an unstable process.
Calculating standard indices when the distribution is
not normal.
Specifications must be meaningful.
Using too small a set of measurements or over too short
of a time period to calculate . At least 50 are
preferred, although 30 might be okay.
Calculating indices when the individual data values are
not independent (i.e., correlated).
M-228
Rev 04 (13 Aug, 2006)
Step 4: Recommendations for

Process Improvement
It is imperative to make recommendations for improvement
after the completion of a process capability study.
After Step 1, if the process is not stable, this must be the
first action taken. The interpretation of capability indices is
seriously undermined if the process is not stable.
After Step 2, if the distribution of Y data is determined to be
non-normal, then alternatives to the standard calculation of
capability indices must be taken. In particular, a
transformation of the response (e.g., log Y or sqrt(Y)) might
normalize the data.
After Step 3, if the process is incapable, then actions must
be taken to center the process (if needed) and reduce
variability.
M-229
Rev 04 (13 Aug, 2006)
Discussion ...
Short Term (Within) Data

Vs.
Long Term (Overall) Data
M-230
Rev 04 (13 Aug, 2006)
Process Capability Formula Summary

(using MINITAB terminology)
Cp
CPU
CPL
Cpk
m
X-bar
k
Pp
PPU
PPL
Ppk
=
=
=
=
=
=
=
=
=
=
=
(USL-LSL) / (6within)
= (USL- ) / (3within)
( -LSL) / (3within)
min{CPU, CPL}
midpoint between USL, LSL
mean of all the data
process mean
| m - | /(USL-LSL/2)
(USL-LSL) / (6overall)
(USL- ) / (3overall)
( -LSL) / (3overall)
min{PPU, PPL}
Short-term
Long-term
M-231
Rev 04 (13 Aug, 2006)
Process Capability Exercise

1.
Calculate Cp (if possible), Cpk Capability Indices on cycle time

data from Excellent Sigma Ltd. (20 minutes)
Minitab Worksheet
Cycle_Time.mtw
USL=4
- OR 2.
Calculate Cp, Cpk Capability Indices on Catapult Data (45 minutes)
Specifications:
Target = 100
USL = 108
LSL = 92
Workshop
Refer to workbook
M-232
Rev 04 (13 Aug, 2006)
Minitab Activity: Process Capability Analysis
1. Enter data column <C1-Cycle Time>
2. Enter <1> for

Subgroup size
3. Enter <4> for

Upper spec
M-233
Rev 04 (13 Aug, 2006)
Minitab Activity: Process Capability Analysis

Process Capability Sixpack of Cycle Time
I Chart
I ndividual Value
All data points

within UCL and
LCL, individual
measurement is in
control. Process is
stable.
Capability Histogram
USL
UCL=7.264
Specifications
USL 4
6
_
X=4.267
4
2
LCL=1.269
1
13
19
25
31
37
43
49
55
Moving Range Chart

Moving Range
P value > 0.05,

data is normally
distributed.
LCL=0
1
13
19
25
31
37
43
49
55
0.0
Last 25 Observations
2.5
Within
StDev 0.999219
Cp
*
Cpk
-0.09
2
40
45
50
Observation
5.0
7.5
Capability Plot
6
Values
__
MR=1.127
Normal Prob Plot

AD: 0.729, P: 0.054
UCL=3.683
55
60
Within
O verall
Specs
O verall
StDev 0.967253
Pp
*
Ppk
-0.09
Cpm *
One specification
limit, cannot
calculate Pp.
Ppk = -0.09, Sigma
level is 1.23.
Thisisisaastable
stableprocess
processwith
withdata
datanormally
normallydistributed.
distributed.
This
NoCp
Cpbeing
beingcalculated
calculatedasasitit can
canonly
onlybe
becalculated
calculatedfor
foraaprocess
processwith
withtwo
two(2)
(2)specification
specificationlimits.
limits.
No
Cpk==-0.09,
-0.09,indicating
indicatingprocess
processisisnot
notcapable.
capable.
Cpk
Sigma
level
can
be
estimated
with
formula:
3Cpk+1.5ororusing
usingBenchmark
BenchmarkZZ+1.5
+1.5
Sigma level can be estimated with formula: 3Cpk+1.5
Processimprovement
improvementwill
willneed
needtoto(1)
(1)MOVE
MOVEMEAN
MEANand
and(2)
(2)REDUCE
REDUCESPREAD.
SPREAD.
Process
M-234
Rev 04 (13 Aug, 2006)
Sigma Calculation Table
(Sigma Level assumes a 1.5 Shift)
M-235
Rev 04 (13 Aug, 2006)
2.5 Determine Process Performance

2.1
Determine What
to Measure
2.2
Manage
Measurement
2.3
Understand
Variation
2.4
Evaluate
Measurement
Systems
2.5
Determine
Process
Performance
Objective
To introduce Process Capability and the right method for
calculating Sigma Performance. Calculate process sigma
performance using the appropriate method.
Key Topics
Introduction to Calculating Process Performance
Calculating Sigma Performance
M-236
Rev 04 (13 Aug, 2006)
Six Sigma

-- Summary

Rev 04 (13 Aug, 2006)
DMAIC and the Process Improvement

Roadmap
1.0
Define
Opportunities
2.0
Measure
Performance
How are
What is
important? we doing?
3.0
Analyze
Opportunity
What is
wrong?
4.0
5.0
Improve
Performance
Control
Performance
What
needs to
be done?
How do we
guarantee
performance?
M-238
Rev 04 (13 Aug, 2006)
Identify Critical Process

Characteristics
Define
Develop Baseline
Assess Measurement System
Measure
Performance
Measurement
System
Stable and
Capable?
No
Improve
Measurement
System
Yes
Determine Sigma Performance
1.0
Define
Opportunities
2.0
Measure
Performance
3.0
Analyze
Opportunity
Analyze
4.0
Improve
Performance
5.0
Control
Performance
M-239
Rev 04 (13 Aug, 2006)

2.0
1.0
Define
Opportunities
Measure
Performance
Objective
To identify critical
measures that are
necessary to
evaluate the
success, meeting
critical customer
requirements and
begin developing a
methodology to
effectively collect
data to measure
process
performance.
3.0
Analyze
Opportunity
Potential Tools and

Techniques
Main Activities
Identify Input,
To understand the
elements of the six
sigma calculation
and establish
baseline sigma for
the processes the
team is analyzing.
Process, and Output

Indicators
Develop Operational
Definition &
Measurement Plan
Plot and Analyze
Data
Determine if Special
Cause Exists
Determine Sigma
Performance
Collect Other
Baseline
Performance Data
5.0
Control
Performance
4.0
Improve
Performance
Key Deliverables
Input, Process,
Checksheets
Input
Process
Output
CCR
A1
A1
A1
D1
D1
D1
D2
D2
D2
A2
A2
A2
Input
Indicator
A
A
Process Indicator
Process Indicator
UCL
Sigma=
Output Indicator
Sigma=
CCR
LCL
and Output
Indicators
Operational
Definitions
Data Collection
Formats and
Sampling Plans
Measurement
System
Capability
Baseline
Performance
Metrics
Productive Team
Atmosphere
Gap
M-240
Rev 04 (13 Aug, 2006)
Tollgate Review Questions - MEASURE

These questions are intended to prompt discussion between Champions, Black
Belts, Green Belts, and Team members. They are suggested questions only.
Project Definition
1. Have you made any revisions to the charter? How have you changed the objectives? How
has the scope changed?
Methodology
2. What input, process, and output measures are critical to understanding the performance
of this process?
3. What are the definitions of defect, unit, and opportunity that are used to calculate
process sigma levels?
4. What is your data collection plan? How much data did you collect? How did you sample?
What stratifying factors did you consider? Which ones were relevant for your analysis?
5. What have you done to assure the reliability and validity of the measurement process?
6. What is the current process sigma level and goal for this project? What display tools
were used to show the performance of the process?
M-241
Rev 04 (13 Aug, 2006)

4.GB (Manufacturing 00 C4) Measure Class

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Additional Department Info

2.0 Measure Performance -- Overview

Copyright 2006 Motorola. All rights reserved.

DMAIC and the Process Improvement

Six Sigma Green Belt (Manufacturing)

Copyright 2006 Motorola. All rights reserved.

Identify Critical Process

Assess Measurement System

Six Sigma Green Belt (Manufacturing)

Copyright 2006 Motorola. All rights reserved.

2.0 Road To Improvement

Where are we going?

Input, Process, and Output

Copyright 2006 Motorola. All rights reserved.

Additional Department Info

Copyright 2006 Motorola. All rights reserved.

2.1 Determine What to Measure

Copyright 2006 Motorola. All rights reserved.

Additional Department Info

Six Sigma Green Belt

Copyright 2006 Motorola. All rights reserved.

Performance Measures - Customer

Six Sigma Green Belt (Manufacturing)

Copyright 2006 Motorola. All rights reserved.

Process Output Indicators include

VOB - Voice of the Business

VOC - Voice of the Customer

Process Elements and Indicator Relationships

End Boundary ____________

Measures that evaluate the degree to

Measures that evaluate the

Measures that evaluate dimensions of

Type of customer inquiries

Type of position open

Timeliness of the contract

submitted for review

Time required to perform credit

Total cost of service delivery

Total overtime hours

2nd year customer retention

Six Sigma Green Belt (Manufacturing)

Copyright 2006 Motorola. All rights reserved.

Additional Department Info

Input, Process and Output Indicators

Six Sigma Green Belt

Copyright 2006 Motorola. All rights reserved.

Input, Process, and Output Indicators

Six Sigma Green Belt (Manufacturing)

Copyright 2006 Motorola. All rights reserved.

Exercise: Input, Process & Output Indicators

Six Sigma Green Belt (Manufacturing)

Additional Department Info

Six Sigma Green Belt

Copyright 2006 Motorola. All rights reserved.

Cause and Effect Diagram

Cause & Effect Diagram

Cause & Effect Matrix

Determine input indicators

Copyright 2006 Motorola. All rights reserved.

Why are we not

Not enough sales

Copyright 2006 Motorola. All rights reserved.

Six Sigma Green Belt (Manufacturing)

Copyright 2006 Motorola. All rights reserved.