Six Sigma Process Simulation And Modeling

Six Sigma has become a buzzword in industry circles since its introduction in the 1990's. The methodology is based on a disciplined and data driven approach and is used for eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. It is being used effectively for managing processes of both, manufacturing and services industry. In the manufacturing industry, it is used for limiting defects in the goods produced whereas in the services sector it is used mainly for reducing transactional errors.

What Is Process Simulation And Modeling?

Simulation software based on Six Sigma methodologies can be used for simulating a wide range of processes in order to eliminate common industry problems related to defects, wastage of productive resources, and quality control. The basic idea governing Six Sigma process simulation is to provide an accurate system of measuring defects in a process, so that these can be eliminated during the actual production. The emphasis is on measurement and statistics for ensuring that the process is properly set up and measured. The methodology is also used for measuring baseline performance, which helps predict the effects of any improvements made in the process. Proper application of Six Sigma methodologies leads to tangible improvements effected by decisions that have been explored and proven in detail.

Scope

The Six Sigma philosophy covers different aspects of industrial processes ranging from pure defect management to process performance improvement. With the increasing use of Six Sigma methodologies, it has become widely accepted that process simulation and modeling techniques can be used for improving almost any type of manufacturing or transactional process. Most of the process simulation and modeling techniques are based on DMAIC (Define, Measure, Analyze, Improve, Control). In the 'Define' phase, the process simulation techniques are used for identifying the changes that would have made the most impact on the outcome. This helps in making the most appropriate changes. Various simulation tools are used throughout the other phases for providing detailed statistical data on the effect of any proposed changes related to throughput, utilization, delays, service levels, and any other factors related to the process.

How The Simulation Model Works

- The simulation software coverts numerical data into graphic representations, which are relatively easier to understand. - Commercial companies that specialize in providing Six Sigma services offer customized services, wherein the simulation model is an exact replica including all the elements used in the actual process such as machines, labor, conveyor and belts. - All these elements are represented by icons and once they are in place, one can define the link between these elements, establish the process flow, and add as much detail as possible for simulating the actual process more accurately and more effectively. - After setting up the simulation, one can simulate an infinite number of hypothetical scenarios both positive and negative that might affect the process. For example with the help of simulation, a manager can know exactly what will happen if a crucial machining tool breaks down or half the labor force does not turn up for work. - All these factors can severely affect production. However if the extent of potential damage is known beforehand, appropriate contingency plans can be put in place for restricting or even eliminating the possible loss of production.

Process simulation and modeling techniques help executives make informed decisions. The data generated by the simulation tools empowers decision makers with a deep insight about the process and procedures, allowing them the ability to make the necessary changes.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts

Data Collection Tools In Six Sigma

You can't imagine being able to organize the enormous amount of data and manipulate them as easily as you would be able to do without data collection tools. Then again, the task is not easily done unless you have selected the right kind of tool appropriate for the project. You need these data collection tools at all steps where you generate numerical data.

Six Sigma Data Collection Tools

The data collection tools are mostly in excel format and come as Macro Plug Ins, barring a few exceptions of stand-alone applications.

Initial Raw Data Collection Tools

1. Operational Definitions Sheet- This sheet defines the metrics so that data collection across the board is consistent. 2. Voice Of The Customer Data Collection Tool- Collect data from internal database, surveys, interviews, listening posts and observations at the point of sales and use and organize them systematically 3. Worksheet For Customer Segmentation- Worksheet for segmentation is essential to identify and concentrate on the demands of main and sub-segments which helps get down to finer details 4. Check Sheets- Very handy in collecting smaller sample data of different attributes or counts for use in defining problem areas or substantiating the outcomes. 5. Data sheets- These plain and simple datasheets are used to gather small amounts of measured or variable data to for the purpose of defining a problem or substantiating the results.

Data Assessment Tools

Data assessment tools are not decision-making tools such as the Ishikawa Fishbone Chart or the Thought Map Relation Diagram.

1. Customer Requirement Translation And Analysis Tool- Analysis of customer requirement is done to translate to an understandable and an unambiguous language. The translated and interpreted customer data converts into measurable functional requirements... thus strengthening the operating team's capability to deliver products and services that customers will immediately identify and really relish. 2. SIPOC Diagram- SIPOC diagram is rather a presentation diagram and an analysis tool at the same time. It provides an "at a glance" like overview of various processes, and helps identify the venders, inputs and outputs of a process and customers by critically contrasting the input data against each other 3. Pareto Chart- A Pareto chart is helpful in identifying those small numbers of problems which cause about 80% of all the troubles. This is a tremendous help in reducing or eliminating the avoidable waste of efforts so that you can channelize your improvement efforts on continuous productive applications. 4. Production Scheduling And Actual Scorecard- The simple production scheduling and actual score card comes handy to evaluate the production schedules and operations & sales planning as opposed to actual results. This is the same template which is used for Pareto chart, 'schedule to actual' comparison and the checklist for quality. 5. QFD House Of Quality Chart- Quality Function deployment house of quality is an all in one tool. It helps identify customer requirements vis-a-vis products or services, develop an effective blueprint, formulate strategies to eliminate faults and failures and finally implement new design.

It would be futile to work without tools, either PC based or otherwise in a Six Sigma environment.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts

Six Sigma Vs ISO 9000

The debate over whether or not to choose Six Sigma over ISO 9000 is getting more interesting with each passing day. In an attempt to determine which of these is the better of the two, it is highly pertinent to discuss that in the context of applicability of them to industries. And there exists a huge amount of difference between the approaches of these two methodologies in tackling the issues.

Six Sigma - A Critical View

Six Sigma utilizes a multi-faceted approach to doing business with total improvement of the end product being the goal. In doing so, Six Sigma defines and analyzes the processes critically almost always focusing on process improvements. The statistical tools used in Six Sigma help not just in the adoption of processes but are also critical tools of Six Sigma implementation.

Process Development Stages

Let us examine the above statement as applicable to a process for easier understanding. While working on process improvement, the Black Belts break up the original sequence of different events that comprise the entire process and each event is further subdivided internally. This enables the "belts" to take an entirely different view of the process via the entire process as a whole. The powerful statistical tools employed at this stage of evaluation make the picture clearer and help the "belts" to arrive at decisions about the value additions those made to the process by different events.

This principle obviously goes beyond standardizing the processes and setting the pathway for being vigilant about adherence to the Six Sigma methodology. Useless values which have lost meaning make way for more meaningful events and eventually more robust and comprehensive processes. In a Six Sigma environment, customer demands will assume a key role in driving the processes towards aligning all activities with the vision of the leader of the company. The approach is "how to" rather than "what to" deliver.

The ISO 9000 Approach

The ISO approach towards quality management concentrates on standardization of the activities of production. The eight quality principles of ISO 9000, along with its twenty-four requirements outline business processes. The emphasis here is on the control of events in each aspect of doing business by documenting evidence and reports. The eight principles of ISO 9000 include prioritizing customer data, purchasing and quality systems, among other critical aspects. ISO 9000 recognizes each process, whose end goals are the same, as an independent entity. Documented quality requirements typically decide, based on set rules, whether or not a particular process adhered to that standard.

Document and Process Control

Maintenance of quality is achieved by adhering to key process and document control. Operating procedures and process control documents restrict deviations outside the concepts of what you should be doing in every process. What-you-should-be-doing is given emphasis under standard conditions rather than dealing with process improvement.

Stalwarts in industry are examining the possibility of merging the best practices of the two. Several industry leaders have already acknowledged the benefits of using both methodologies to compliment each other. Another view is that, as Six Sigma implementation is what you do within your company (unlike the certification in ISO) the company does not get recognition for achieving successful Six Sigma implementation. However, as long as the culmination of a business activity is defined by both methodologies as retaining and improving the customer base along with maximizing the bottom line, rejection of one in favor of other will be hard to justify.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts

Six Sigma Solves Problems With An Unknown Solution

Six Sigma is a powerful business improvement strategy. It helps your organization to identify, reduce, and eliminate defects from any product, process, or transaction. More than a "quality" program, Six Sigma is a flexible and dynamic continuous improvement strategy and process initiative that helps your organization uncover solutions.

For example, you may know that a particular process at your organization is not meeting customer specification or is otherwise not performing adequately. However, the solution is not apparent up front. There are many variables that could be causing the defect in the process. How do you determine what specific action you can take to improve your process and reduce defects? Finding that unknown solution is what Six Sigma does best.

Six Sigma is not a pre-packaged one-fits-all solution. Six Sigma is a process that doesn?t impose a particular outcome but discovers the previously unknown solution to a problem. It uses a structured systems approach to problem solving that achieves strategic business results through an intelligent step-by-step process. A structured thinking process helps solve problems better than an ad hoc, blank page approach.

Six Sigma leads organizations through five-steps of realization:
1. We don't know what we don't know.
2. We can't do what we don't know.
3. We won't know until we measure.
4. We don't measure what we don't value.
5. We don't value what we don't measure.

By using Six Sigma to identify and correct major problems you create real data that uncovers previously unknown solutions to problems ? solutions that you most likely would not be able to discover except through the Six Sigma methodology. What drives this process is the DMAIC method. DMAIC is an acronym for five interconnected phases of a Six Sigma project: Define, Measure, Analyze, Improve, Control. By going through the structured phases you discover the unknown solution to your quality problem.

First you identify the problem you need to solve. At the Define stage of a project, you should have a defined issue or problem you wish to overcome and improve. Once a process is selected as a candidate for improvement, a problem statement is developed and the objective or desired outcome is defined. Progress measures are established and a cost/benefit analysis is performed. Also during the Define phase, you highlight what the project is supposed to do and how it is supposed to do it and what metrics apply. With a clear measurable set of indicators, the Measure phase studies the process to determine the key process steps and variables to determine the potential ways the process could be going wrong.

After measurements are gathered, the data is analyzed to discover what is causing process variation. Once problem causes are determined in the Analyze phase, you find, evaluate through testing, and decide on creative new improvement solutions. As you move through the Analyze and Improve stages of the process you will identify various process improvement scenarios, and determine which solution has the best net benefit impact to the company. Most likely, the variation is from a completely unknown source. Without going through the Analyze and Improve stages you would not have known what improvement was required, much less what categories of variables were being affected!

Six Sigma is about tackling problems with an unknown solution. Six Sigma experts know that there are no one-size-fits-all solutions. Six Sigma training provides participants with enhanced problem-solving skills, with an emphasis on the methodology for identifying and creating solutions. As Six Sigma practitioners, you need to be agnostic. Use the best tools from all of the various methods and apply the right solution to the right problem. Through being agnostic and open-minded you will discover solutions through observation and data rather than just impose solutions from the outside. This enables you to use the best from all of the various methods and tools available and apply the right solution to the right problem. You will be amazed at how well THAT works! Peter Peterka.. http://www.6sigma.us/ Peter Peterka is the Principal Consultant in practice areas of DMAIC and DFSS. Peter has eleven years of experience performing as a Master Black Belt, and has over 15 years experience in industry as an improvement specialist and engineer working with numerous companies.

Six Sigma Project Selection

Selecting the project becomes the necessary step after identifying the need for process improvement in your business or, for that matter, your department. But selecting a project is a series of complex decision-making processes aided by a variety of tools. A wrong project selection for Six Sigma implementation means the project is not in line with your business. You will end up encountering the same roadblocks and going in circles over and again.

Steps Involved In Six Sigma Project Selection

The steps that need to be taken in selecting a project for Six Sigma vary as per your line of business and the scale of the operation. However, the whole scope of Six Sigma hinges on two key focal points, namely, ‘total customer satisfaction’ and ‘increased return on investment.’ The steps may be formulated, keeping this in view.

1. Put The Customer First: Customer satisfaction being the first focal point, know the critical points to assure quality to drive the project (VOC). Each individual customer has a different point of view about quality and the summation of them can be the first point. Make use of the Pareto Chart for prioritizing the issues.

2. Projects Must Be In Line With Your Business: List the top three roadblocks faced by all the functional heads in your organization. Ensure that the roadblocks are directly concerned with the business. This exercise prioritizes the elimination of such obstacles by everyone.

3. A Good Project Must Be Manageable: A good, realistic project can be actually completed within a reasonable time, say, 6 months. Prolonged projects risk loss of interest and start building frustrations within the team and all the way around. The team also runs the risk of disintegrating.

4. Every Result Must Be Measurable And Tangible: Any project which can’t be measured before and after its completion has no value. Improvement in the bottom line, maximization of customer satisfaction or reduced burden on employees will all be measurable and so will keep the team motivated throughout.

5. Defining The Desired Outcome: This starts by defining the defects first. This also helps keep checks on the project in terms of process capability. This is one way of making the project measurable by progress.

Brainstorming And Using A Questionnaire

Brainstorming by the key personnel and functional heads in your organization is a good idea. Although there is no hard and fast rule as to whether this should precede or follow the internal and external (VOC) survey, it critically examines the steps involved in the process of project selection. However, the questionnaire itself can contain questions, critical of the prevalent scenario. You may include questions on external and internal defects in addition to questions on capacity and efficiency issues. Not the least important questions are the ones on less obvious cost drivers such as wastage.

Process Variation

Take a bite at the variation in process too. Whether it is possible to streamline the process variation and whether understanding the variation help you produce better quality and defect free parts with less input upon completion of the project? Where is the variation originating from, suppliers end or internal?

Wastage can give a deathblow if they are not dealt with properly. Materials, under-utilization of capacity and unreasonable inventory fall into the wastage category.

The sole consideration must be the vision and the dream to realize it. Care must be exercised to avoid wrong selection of the project which can only aggravate the situation and waste the resources of the organization.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma Project Management

Employing Six Sigma for the business environment is for achieving well-defined goals. The project selected for deploying Six Sigma is not self-sustaining and can develop tendencies to get off target following even the slightest let up in its management. The focus of the Six Sigma management committee is to steer the project implementation to meet those stated goals within budget and time constraints.

Six Sigma Project Management Stages

Project management in Six Sigma begins even before selecting a project. In the run up to the implementation, the right kinds of people, who have proven track records, are selected for Black Belt positions. Since Black Belts are the pillars of managing six sigma, it essential that candidates have proven qualities such as attention to detail, tendency toward problem solving and a proclivity for dedicated work.

Organizational clearances, essential for project implementation, have to be sorted out at this stage. Project selection that has a potential for a high payoff cannot be missed out on any account. For example, because of lack of funds or because of organizational stumbling blocks.

Defining Project Goals And ROI

Defining project goals and estimating pragmatic ROI is essential at this stage to set the course for project implementation and for bringing it back to course if an audit shows that deviations occurred during the implementation. This is really important - if deviations are missed it will produce endless financial and customer base losses to the company. Another key aspect is setting practical ROI targets without getting carried away. The bar shouldn’t be set too high and certainly what has not evolved from the “Voice of the Customer”.

Getting Down To Measurements

Measurements are the watchdogs of a project and demand total integrity. This is the area where Master Black Belts and Champions need to concentrate completely. Black Belts can encounter undesirable pressures for misrepresenting facts, which would otherwise expose a few poor performances.

Another issue that needs to be tackled is of a more serious nature. The consultant teams have their interests in keeping the project going on for as long as possible. This fact may be seen in the fact that Black Belts employed at the company do not measure up to the reputation of the consulting firm. From this point of view, it becomes important to double check and get back to the basics to negotiate the names of professionals who are going to be deployed.

Six Sigma Audit By Internal Committee

The internal audit committee must not the audit exercise lightly, as there is much at stake. The audit committee, besides inspecting process records and documented measurements, must place a lot of emphasis on interviewing the internal customers. The interviews should focus on finding the status of efforts at minimizing customer complaints. This is clearly an exercise of contrasting the condition ‘as is’ against ‘should be’, which is the goal. The Champion will then take over the matter for brainstorming with the Master Black Belts and Black Belts. The agenda of the brainstorming session should not deviate from discussing the findings of the audit committee.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.