Six Sigma vs. Design for Six Sigma (DFSS)

1. Six Sigma vs. Design for Six Sigma (DFSS) Dr. Suresh C. Rama Senior Manager, Quality Systems Global Engine Manufacturing Alliance (GEMA) Dundee, MI

2. Presentation Overview • Introduction to Quality • Defining Quality • Measuring Quality • Six Sigma • Method • Tools • Design for Six Sigma • Method • Tools • Implementation Enablers • Challenges

3. What are these companies have in common? CUSTOMER LOYALTY PROFITABILITY INNOVATION QUALITY

4. Defining Quality • A study asking Managers from 86 firms in the U.S. to define quality produced several responses including: • Perfection • Consistency • Eliminating Waste • Speed of Delivery • Compliance to procedures, specifications, etc. • Providing good and usable product • Doing it right the first time • Delighting or pleasing customers • Total customer service and satisfaction Extracted from “The Management and Control of Quality”, by Evans and Lindsay

5. Defining Quality • Quality is many things to many people in many parts of the organization • Quality can be defined based following criteria: • Judgmental Criteria • Goodness/Excellence of a Product/Image • Product-Based Criteria • The More the Better • User-Based Criteria • Fitness for intended use • Value-Based Criteria • Relationship to usefulness/satisfaction to price • Manufacturing-Based Criteria • Conformance to specifications Extracted from “The Management and Control of Quality”, by Evans and Lindsay

6. Integrating Perspectives on Quality • David Garvin’s 8 principle quality dimensions • Performance • Features • Reliability • Conformance • Durability • Serviceability • Aesthetics • Perceived Quality Extracted from “The Management and Control of Quality”, by Evans and Lindsay

7. Quality as a Strategy • Competitive Advantage: Firm’s ability to achieve market superiority. • Wheelwright’s 6 characteristics for sustained competitive advantage: • Driven by Voice of the Customer • Contributes to successful business • Uses resources effectively • Difficult for competitors to copy • Basis for continuous improvement • Motivates the entire organization • Does Quality play a role in any of these characteristics? Extracted from “The Management and Control of Quality”, by Evans and Lindsay

8. Quality as a Strategy

9. Target Lower Spec Limit Upper Spec Limit Defects Defects s 3s Measuring Quality-Quality and Sigma • “Quality” is the degree of excellence of a product, process or service from the customer’s viewpoint • Virtually every activity has variation - if the outcome is too far from the target value (beyond a specification limit), a defect occurs • Standard deviation, s,is a measure of variation from the target • Sigma Level, Z, of a process is: (Spec Limit - Target) Z = Std Dev s • Sigma Level measures the probability of achieving a defect-free outcome Sigma Level = 3

10. Allowable Process Mean Shifts with time (±1.5sfrom Design Target) Lower Specification Limit Upper Specification Limit 6s Design Target What is 6 Sigma? • Common definition: 3.4 defects / million opportunities • Applicability: All business processes (Manufacturing , IT, Finance, Marketing) ** Waste due to additional inspection, tests, rework, scrap, customer dissatisfaction, etc. (Source: “Six Sigma” by Mikel Harry)

11. Benefits of 6 Sigma Generic • Sigma Level Defects Per Million Cost % of Sales * 3 66,807 25 - 40% 4 6,210 15 - 25% 5 233 5 - 15% 6 3.4 < 1% Savings (3 to 4.7 Sigma): $250K per project Benefits (4.7 to 6 Sigma): Greater market share Savings Realized • ** – GE: $750M (‘98), $1.5B (‘99) – Motorola: $800-$900M / year ($15B over 11 years) – ABB: $900M / year – Allied Signal: $500M (‘98), $600M (‘99) * Waste due to additional inspection, tests, rework, scrap, customer dissatisfaction, etc. Industry Week ** Quoted savings from the book “Six Sigma” by Mikel Harry & Richard Schroeder; Allied Signal quote from

12. The 6 Sigma Method of Quality Improvement • Structured, data-driven problem-solving method • “DMAIC”: Define, Measure, Analyze, Improve,Control • Based on statistics, process analysis and process control • Developed by Motorola; used successfully by TI, AlliedSignal, GE, ... • Goal: improve the quality of existing processes • Manufacturing, business transactions, etc • Payoffs: • Internal productivity improvement (lean processes) • Capacity gain (lean resource management) Six Sigma: driver for cost savings

13. How does 6 sigma work? • Visualize and Develop a Goal • Obtain a Coach/Mentor • Set the right Metrics • Understand the relationships between influencing factors (x)s and the effects/output (y)s. y = f(x) • Create a standradized process that develops a roadmap to the Goal • Now identify and implement the right Tools Implementing Tools without the right Process, Strategy and Goal

14. The 6 Sigma Focus • Many quality approaches focus on inspecting and fixing outputs (e.g., products) • Six Sigma focuses on fixing and controlling key process variables which cause output defects Output Y = f (Process Variables x1, x2, …, xn) • x’s • Inputs • Root Causes • Problems • Fix & Control • Y • Output • Effect • Symptom • Monitor

15. 6 Redesign Benefit “5s Wall” Sigma Level 5 Process Improvements Plus Product Redesign to Match Improved Process Capability 4 Process Improvements Only 3 Time The “5 Sigma Wall” Break through the “5s wall” by redesign for manufacturability

16. Can 6 Sigma be applied to Engineering? • It is difficult to apply classic Six Sigma to Engineering for new products • Engineering focuses on innovation, not process improvement • Defect baselines not known for new, innovative designs • And, most major new product quality problems are in performanceand reliability, not manufacturability • Engineering should focus on preventing problems • Need Six Sigma extension to new product creation “Design for Six Sigma” - DFSS!

17. Minimize variation (sigma) by process capability improvement Minimize sensitivity to variation by choosing good nominal values for Xs 6 Sigma vs. Design for Six Sigma Traditional 6-Sigma - Reactive Design for Six Sigma - Proactive

18. What is Design For Six Sigma (DFSS)? • Design for Six Sigma (DFSS) is a strategy, a concept, a process and a set of tools • Strategy: To develop new and better products/processes to address the “voice of the customer” • Concept: To drive robust engineering (product & process) and validation with focus on “problem prevention.” • Process: To translate “voice of the customer” to engineering requirements and optimize the relationship between influencing factors and their effects on customers to achieve and sustain high quality levels. • Tools: Enablers for execution of the process to align with the “strategy.”

19. From • Quality “TESTED IN” • Evolving product design requirements • Product team specific design process • Focus on components and subsystems • Performance assessment by “build and test” • Performance & manufacturability problems fixed during and after launch • Difficult system integration • To • Quality “DESIGNED IN” • Customer focused design requirements • Disciplined and standardized design process • Focus on system level designs and functions • Performance predictions using analytical methods • Designed up-front for robust performance & manufacturability • Easier system integration DFSS Strategy: Revolutionize Design & Engineering Reactive Design Quality Proactive Design Quality DFSS FIRE- FIGHTING FIRE- PROOFING

20. Select Projects based on Quality indicators and gap to targets Identify Opportunity Verify predicted Quality and Reliability Verify & Validate Define Requirements Optimize Design Translate Voice of the Customer to Design Requirements Develop Concepts Optimize Quality, Reliability and Durability and improve Robustness Develop, select and synthesize concepts for better designs DFSS Process Happy Customer D. F. S. S.

21. Capture Voice of Customer & Define Eng. Requirements Wants & needs tools Customer use observations Kano Analysis Quality Function Deployment (QFD) Develop Concepts and Select Pugh Matrix Axiomatic Design TRIZ Failure Mode & Effects Analysis (FMEA) Develop Detailed Design Systems Engineering Function Models & FMEAs Transfer Functions Statistical Design Monte Carlo Analysis Design for Robust Performance Design of Experiments Robust Design Design for Reliability Design for Manufacturability Process Capability Databases Statistical Tolerancing Predict Quality DFSS Scorecards Key DFSS Tools

22. Right Execution FMEA: Pro-Active Quality Tool • Purpose of a FMEA: • Risk Reduction to Customer(s) • End user • Manufacturing/Assembly • Service • Risk Reduction to comply with or exceed Government Regulations • Safety • Regulatory Risk Reduction Competitive Advantage

23. Key Successful Factors for DFSS Implementation • Develop a strategy that fits the culture • Obtain true leadership from the top • Execute flawlessly (ownership & accountability) • Create a mentoring infrastructure (x-functional) • Communicate results early and often • Make it a way of doing business (integration)

24. Implementation Challenges • Technical • Paradigm change • Statistical versus deterministic • New methods and tools • Systems engineering • Design of experiments • Robust design • Design for reliability • Statistical tolerancing • Multi-variable optimization • ... • Cultural • Resistance to change: • “Why change our design process?” • “We’re different” • “We already do that” • Cost and disruption of training • Fear that design cycle times will be longer, costs higher • Integrating DFSS with existing development processes Leadership must overcome them

25. Message from Leadership • DFSS must become a religion • Be an embodiment of 6 sigma (be competent) • Radiate (train and spread) DFSS into every business/organization • Be a lunatic on the subject (drive it hard) • Conduct DFSS reviews in the field • Set goals based on 6 sigma metrics • You have my full support to be outrageous on this issue

26. Remember? What are these companies have in common? All of them use Design for Six Sigma - effectively

27. Making Six Sigma/DFSS Successful • Leadership from the top is crucial • Clearly communicate the Quality vision • Demand Quality • Drive discipline • Drive Quality by measurable, “stretch” goals • Alignment of employee goals to organization’s goals • Six Sigma & DFSS are not a “cure-all” for Quality by themselves • Involve everyone • Don’t leave Quality to “quality specialists and professionals” • Train everyone in basic Six Sigma/DFSS competence • Regard Quality as a cultural change, not just a toolset • Make Quality a part of the organization’s DNA

28. THANK YOU! Questions?