Using Minitab Tools andSix Sigma for ProcessImprovement

Using Minitab Tools and Six Sigma for Process Improvement Scott Kowalski October 25, 2007 Minitab Inc.

Six Sigma Six Sigma is a strategy that involves the use of statistical and soft tools within a structured methodology for gaining the knowledge needed to achieve better, faster and less expensive products/services than the competition.

The real value of Six Sigma is orchestrating process improvement and reengineering through the implementation of statistical techniques.

Focus of a Six Sigma Project Affecting the success of the organization Affecting costs Affecting employee or customer satisfaction Impacting a Customer (external and/or internal) Not easily or quickly solvable using traditional methods

Six Sigma It is important to understand that many times the variation in the process is more important than the target • Airline passengers want improved on-time performance but are more concerned with eliminating delays > 45 minutes • The raw material received by a customer needs to be consistent in quality so the customer can be consistent • Patient waits 5 minutes one time and 55 minutes the next time probably satisfied with average = 30 minutes but not with variation

MINITAB Software Developed at Penn State in 1972 Began as an Academic Package Used to teach Statistics 1st PC Version in 1983 Now on Version 15

Minitab the Company Incorporated in 1985 Minitab Ltd 1995 – UK Minitab SARL 1998 – France Minitab Pty 2007 -- Australia Minitab Partners throughout the world (Blackberry & Cross)

Six Sigma Industries Industries • • • • • • • • • •

Automotive Financial Healthcare Pharmaceutical Chemical Marketing/Sales Insurance Manufacturing Electronics Food and Beverage

Quality Improvement is Everywhere Variety of customers • Chicken Growing and Processing • Sunglasses Manufacturer • Hospital • Power Tool Manufacturer • Bank

Minitab in Commercial market Demand grew from the commercial market.

Quality focus defined in early 90’s.

Six Sigma commitment in mid 90’s New Products to accommodate the market • Quality Trainer • Quality Companion

Advantages: Minitab Company A proven, stable track record evidenced by market leadership and strategy Aligned with Six Sigma Complete solution providers Exceptional free technical support & customer service Training and Mentoring

Advantages: MINITAB Software Spreadsheet based Compatible with Microsoft products Comprehensive package Unsurpassed ease of use An ideal collection of tools (Quality focus) Multiple Languages

Advantages:Minitab Quality Companion Easy to Use All in one file Soft tools for Six Sigma Easily Customizable Coaching guidelines Integrates with MINITAB

Advantages: Minitab Quality Trainer Web based Multimedia product Self-paced Covers Basics to DOE Uses Real-World scenarios Includes Quizzes to ensure understanding

Six Sigma Easy-to-use statistical software allows more people access to statistical analyses.

“I believe that for a Six Sigma program to be successful, practitioners must have good versatile statistical software readily available.�

Forrest Breyfogle III

Six Sigma Training There is so much to teach in Six Sigma Training Statistics and Software are just one part It is important to understand that to use any statistical software, the user must have some level of competency in Statistics It is important to understand that to unlock the real power of the software, the user must have some training that focuses directly on the software

Some Companies Using MINITAB GE Company Toshiba American Express Ford Motor Company Avery Dennison Corp.

Air Nippon 3M Samsung

Caterpillar Du Pont Honeywell Owens Corning Nissan Posco Sanyo Lear

Some Companies in Costa Rica Hospira Bridgestone/Firestone Bac Credomatic ITCR Earth IREX Corbana Sykes Coca Cola

Laica Baxter HP Bourns TRCH Florida Bebidas Panduit Eaton Intel

DMAIC Model Define – What is your problem? Customer needs?

Measure – How bad are you?

Analyze – What are your sources of defects and variation?

Improve – Make changes.

Control – Permanent change!

Define Phase Determine the process to be improved Identify your problem Identify your customer Soft Tools

Statistical Tools

Process Map

Cause and Effect Diagram

Gantt Chart

Pareto Chart

CT Tree

Descriptive Statistics

Measure Phase Verify the measurement system Determine the extent of your problem Identify the Inputs and Outputs Soft Tools

Statistical Tools

C&E Matrix

Gage R&R

QFD

Capability Analysis

FMEA

Control Charts

Process map

Analyze Phase Screen potential causes Identify sources or root causes of problem Draw conclusions Soft Tools

Statistical Tools

Value Stream Map

Sample Size

Ballot

Hypothesis Testing

FMEA

Regression

C&E Matrix

ANOVA

Improve Phase Identify what improvements to implement Determine optimal settings Confirm results Soft Tools

Statistical Tools

Desirability Matrix

Gage R&R

Ballot

Capability Analysis DOE

Control Phase Sustain gains Permanent change

Soft Tools

Statistical Tools

Control Plan

Control Charts

Audit Plan

Reliability

Example Projects Loan approval process: time and cost

Process map, Pareto chart, Chi-square, Control chart, Cause & Effect, Logistic Regression

Example Projects Other Banking Examples • • • • • •

Wrong account information Wait/Que times Accuracy of reading checks Late payments using online banking Call center data ATM – – – –

Downtime Number of transactions Mistakes Locations

Example Projects Improve performance of a conductive part of a pacemaker Made of precious metals Mixture design used to find the optimal combination • Also useful in Food and Beverage • Making of Concrete • Mixing of chemicals

Example Projects The major use for tantalum, as the metal powder, is in the production of electronic components, mainly capacitors and some high-end audio-grade resistors.

The purity of tantalum is critical to its performance, so suppliers commonly measure trace contaminant levels of elements such as iron to demonstrate process stability and capability to high end customers.

Overall, they had to improve the process to prove that it is capable of staying below the upper specification limit of 20 parts per million.

Example Projects Human Resources within any company • • • • • • • • •

Payroll administration and Benefits Absenteeism Safety Employee handbook publication Employee satisfaction Design of job posting template Application process and retention of information Improving learning modules / evaluations Insurance claims

Example Projects Warehouse project to reduce the number of damaged containers In addition, they looked at the time to process orders

GRACIAS