LEAN in The Lab 5
LEAN in The Lab 5
LEAN in The Lab 5
Collaborating Around
Six Sigma Innovation & Design
… and …
Innovation Algorithm
DMAIC (Define-Measure-Analyze-Improve-Control)
Design for Six Sigma Algorithm
DMADV (Define-Measure-Analyze-Design-Verify)
While Six Sigma is new at, for example, 3M – its benefits at others of
these organizations is measured in the multi-billions of US dollars.
College of Science Department of
The Villain
S tatistics Cost of Poorly Performing
Processes
σ level DPMO CP3
2 308,537 Not
Applicable
3 66,807 25%-40% of sales
4 6,210 15%-25% of sales
5 233 5%-15% of sales
6 3.4 < 1% of sales
Sigma (σ ) is a measure of “perfection” relating to process
Each sigma shift
performance provides…
capability a 10%
the net income
“bigger improvement
the better.”
A process operating at a “Six Sigma” level produces only
3.4 defects per million opportunities (DPMO) for a defect.
Without dedication of significant and appropriate attention
to a process, most processes in leading U.S. companies
operate at a level between 3 and 4 sigma.
Customers Suppliers
Dr. Rick L. Edgeman, Professor & Chair, Department of Statistics, University of Idaho
Dr. David Bigio, Associate Professor of Mechanical Engineering, University of Maryland
Thomas E. Ferleman, Information Technology Consultant,
Office of the Chief Technology Officer, Government of the District of Columbia
College of Science Department of
Statistics
Imagine … able towaking up and being
Magdalena Forsberg – Swedish
simply do nothing.
Olympian - 2002
This includes, for example, police, fire and other emergency response,
public education, fire, public utilities, and Department of Motor Vehicles.
Capacity Management (CM) ensures constant availability of adequate capacity to meet agency business requirements. CM involves incident
resolution and problem identification for those difficulties related to capacity issues and generates requests for change (RFCs) that ensure
sufficient capacity. RFCs are subject to a change management process and implementation often affects hardware, software and documentation
and requires effective release management.
Availability Management (AM) concerns design, implementation, measurement and management of IT services to ensure that stated
availability requirements are met and requires IT service FMEA and the understanding the time taken to resume service. Incident management
and problem management provide key inputs ensuring that appropriate corrective actions occur. Availability targets specified in SLAs are
monitored as part of the AM process that also supports the SLM process by providing measurements and reporting to support service reviews.
IT Service Continuity Management (SCM) or “Disaster Recovery” manages an organization’s ability to provide a pre-determined agreed
upon level of IT services to support minimum business requirements. Among the means used are resilient systems and recovery options such as
back-up facilities. Configuration management data is required to facilitate this prevention and planning. Infrastructure and business changes
need to be assessed for their potential impact on continuity plans, and IT and business plans are then subject to change management procedures.
Financial Management (FM) accounts for costs and returns of IT service investments and cost recovery from clients. FM requires interfaces
with CM, configuration management, and SLM to identify the true costs of service. FM works together with business relationship management
and the IT organization during the negotiation of IT budgets and client IT expenditures.
KEY: SLA = Service Level Agreement. FMEA = Failure Modes and Effects Analysis. RFC = Request for Change.
Definitions
College of Science Department of
Approach
Charter
Statistics
Description or Example Use
resolution plan.
1
Purpose is to define the business case; project goals and limits; way of working together; and conflictAll
ITIL Areas
Affinity Diagram Uses included associations among OCTO needs (CTQs) All
Interrelationship Digraph Primarily used to explore causal relationships between enablers (“hows”) to capture correlations and formAM, CtM
the roof in the HOQ.
Nominal Group Technique: NGT Nominal Group Technique used as part of QFD / HOQ to prioritize OCTO needs. All
Matrix / Priority Matrix Diagrams Various uses including distribution of tasks to team members and relating OCTO needs (CTQs) to enablersAll
(“hows”) in QFD.
SMART Goals Specific, Measurable, Attainable, Relevant, and Time-Bound goals and problem statements. All
Process Maps Included high-level COPIS maps and detailed process maps. Both “before” and “after” improvementAll
versions were used.
VOC Tools Approaches included surveys, focus groups, customer complaints, and interviews. All
HOQ / QFD House of Quality / Quality Function Deployment. Integrated use of Matrix Diagrams and NGT to assessAM
internal and external customer needs and deploy solutions.
RESULTS Total Savings Estimated by Deputy Director = $2M to $3M from 2003-2007.
ITIL Areas A = Availability Management, CaM = Capacity Management , CtM = Continuity Management,
FM = Financial Management, SLM = Service Level Management
Pareto Chart
Statistics
Description or Example Use
All
ITIL Areas
Fishbone Diagram Also called Cause-and-Effect Diagrams display “effects” representing a problem or an opportunityAll
with the “causes” being real or potential drivers of the effect.
SWOT All ITIL areas were assessed for strengths, weaknesses, opportunities and threats with motivationsAll
being improvement or leverage of strengths, diminution of weaknesses, welcoming opportunities, and
countermanding threats.
Benchmarking Benchmarking of South Dakota Bureau of Information Technology and private sector ISPs. CtM
Chi-Square Tests of homogeneity examined whether differing approaches yielded similar results and tests ofAM, CaM, CtM,
independence explored CTQ-Enabler relationships. SLM
Correlation & Regression Used to explore, assess, characterize and exploit CTQ-Enabler relationships. SLM
Design of Experiments DOE approaches included experiments with operating parameters, critical elements, or both.AM, CtM, SLM
(DOE) Operating parameters are enablers (X’s) that vary in amount while critical elements are enablers (X’s)
that differ in type or categorically. Screening and factorial designs were used.
SPC Charts Statistical Process Control Charts recommended or used included p charts, I-MR charts, and X-barAM, CaM, CtM,
and R charts to (directly) control the X’s, hence indirectly the CTQs. SLM
RESULTS Total Savings Estimated by Deputy Director = $2M to $3M from 2003-2007.
ITIL Areas A = Availability Management, CaM = Capacity Management , CtM = Continuity Management,
FM = Financial Management, SLM = Service Level Management
Six Sigma or Business Excellence: Strategic and Tactical Examination of IT Service Level Management at the
Office of the Chief Technology Officer of Washington, DC. (Invited Contribution)
Quality & Reliability Engineering International, Vol. 21, No. & pp. pending, 2005
Rick L. Edgeman, David Bigio and Thomas Ferleman
Six Sigma Availability Management of Information Technology in the Office of the Chief Technology Officer of
Washington, DC. Total Quality Management, Vol. 15, No. 5/6, 2004.
David Bigio, Rick L. Edgeman and Thomas Ferleman
Klefsjö, B., Wiklund, H., and Edgeman, R. (2001). “Six Sigma Seen as a Methodology for Total Quality Management”,
Measuring Business Excellence, Vol. 5, No. 2, 31-35.
The Six Sigma Handbook Expanded and Revised. Thomas Pyzdek (2003). McGraw-Hill, New York.