Chapter 3 Lean Six Sigma DMAIC Process and Tools

Chapter 3

Lean Six Sigma DMAIC Process and Tools

The LSS framework integrates tools, namely, value stream map, project charter, supplier–input–
process– output– customer (SIPOC) chart, process capability chart, cause-and-effect diagram,
Pareto analysis, change management tools, histograms, project management, cause validation,
control charts etc. within Six Sigma DMAIC methodology to enhance the bottom line result an
customer satisfaction. The use of the comprehensive set of tools helps to reduce all kinds of
waste (rework, overproduction, waiting, idle material, human skills, transportation and
unnecessary movement) and reduce variability from the organization with application of lean and
six sigma tools in DMAIC cycle. The framework explained in the chapter includes methodology
and activities to implement a problem-solving approach and improve manufacturing processes in
the industrial scenario as recently applied in various industries (Vikas and vinodh(2016), Garza-
Reyes et al, (2016), Vinodh et al(2014))

In this context, tools and techniques which can be used to reduce all kinds of waste as
well as variability from the production line are shown with respect to various stages of DMAIC
cycle. The linkage of tools within LSS framework can be done considering actual scenario of the
respective industry to reduce all types of wastes and to bring improvement in key metrics. The
integration of lean tools within the DMAIC cycle shown here is on the basis of various recent
literature reviewed on the application of LSS framework in manufacturing industries as there is
no generic framework for LSS implementation. Research works carried out in the studies were
customized to the problem definition and the organizational needs in which they were
implemented. The framework generally used in these work is on DMAIC Cycle as it provides a
systematic problem formulation and strategic improvement for the concerned system. Figure 3.1
shows the Define-Measure-Analyse-Improve-Control cycle with the integration of lean tools at
the appropriate stages influenced from the studies done majorly on the manufacturing sector.

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Figure 3.1 Lean Six Sigma DMAIC process

3.1 DEFINE PHASE

In this phase, the cause and the boundaries of the problem are established. This phase is used to
picture the process over time and provide insight about where the focus of improvement efforts
should be. Customers, their requirements and expectations are defined in this phase, which are
known as the critical-to-satisfaction (CTS) characteristics.

Define phase is necessary to determine:

• The snapshot of the process through mapping (identifying value added activities and not
value added activities)
• The Customer (external or internal)
• Weakness and critical points of process
• a measureable indicator from Customer point of view, called Critical To Quality (CTQ(G)),
and customer satisfaction analysis through a proactive approach instead of reactive
• An estimation of potential benefit (economic and/or strategic), written inside the summary
document called Project Charter (G))

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3.1.1 Project Charter

A project charter is a statement of the whole project work plan represented in a table form. It
easily defines the whole project plan such as problem description, project objective, scope
deficiencies, benefits and team members, usage of tools and techniques, project schedule and
final product. It also provides the roles and responsibilities of team members; details about
expert, coordinator, suppliers, customers, stakeholders and authority of project manager; project
deadlines; project activities; and project starting and completion date. Project charter can be used
as a reference for defining the project future status.

Table 3.1.Project charter Template

PROJECT TITLE
Business Case Why should you do this project?

What are the benefits of doing this project?

Problem Statement What is the problem, issue and/or concern?
Goal What are your improvement objectives and targets?
Metrics (CTQ's) PRIMARY Metric(s): Key measures to be used for the objectives

SECONDARY Metric(s): Those measures which indicates impacts on

secondary concerns and which indicates that problem is not shifted to
other key areas.

Project Scope What authority do you have?

Which processes/products you are addressing?

What is not within this project?

Project Team Who are the team leader, sponsor, and members?

What are their roles and responsibilities in this project?

Project Plan How and when are you going to get this project done (DMAIC stages)
Communication Plan What are your interfaces with each other?

What are your meeting & reporting times?

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3.1.2 Value Stream Mapping

Value Stream Mapping (VSM) is a diagram of every step involved in the material and
information flow necessary to bring the product/service from the order to delivery phase. Value
Stream Mapping is a very good starting point to identify opportunities for improvements. In a
process it is possible to identify three main kinds of activities:

1. Value Added Activity (VA):

Activity that increases the value of the product/service from the customer’s point of view

2. Not Value Added Activity (NVA):

Activity that does not add any value to the product/service

3. Business Value Added Activity (BVA):

It is an activity that does not add any value to the product/service but is necessary from a
business point of view.Guidelines to build a Value Stream Map:

• Identify the product family to analyze (use, if necessary, the Product Family Matrix)
• Go to the shop floor and begin mapping, starting from the customer, and go back upstream
through the entire flow. Describe step by step processes sand gather information such as:
• Customer information
• Intermediate inventories and their location
• How the information flow runs inside the company
• Production input of the single process
• Process Cycle Time, Set-Up time, Number of operators for each step, WIP
• Lead Time
• Supplier information

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Figure 3.2.Value Stream Mapping (VSM): Roadmap

3.1.3 COPQ: Cost of Poor Quality

Cost of Poor Quality, called COPQ are those costs due to poor performance of manufacturing
and/or transactional processes and include labor costs, energy, materials, depreciation, which
must be sustained to avoid generating non-conformity or in response to their occurrence. Cost of
poor quality classified into cost and of quality and costs of Non-conformity (figure 3.3)

3.1.4 SIPOC chart

In the improvement of various processes, SIPOC is a tool that indicates the whole manufacturing
process for a product from starting to end and is summarized in a table format. The
acronym SIPOC stands for suppliers, inputs, process, outputs, and customers which form the
columns of the table.

A SIPOC is high-level map of a process which provides

 A bird’s eye view

 Team to see their process in relation to all needed inputs, outputs, and suppliers

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o
s
t
C f
C
to
s
o f
C
O
P
n
o
- Q
q
a
u
n
r
o
f
c
Cost of
Co sts of y
t
i
l
y
t
i
m
COPQ
no n-
quality
con fo rmity
Figure 3.3.Cost of poor quality classification

 Shows process boundaries

 Determines key customers

The six steps to construct SIPOC:

 Identify Customers (external and/or internal)

 Identify process Outputs
 .Locate Macro-process boundaries (start and end of process)
 Determine Process Owner
 Define process Inputs and Relative Suppliers
 Repeat the procedure using a “TOP-DOWN” approach (start from the
 Macro process to reach more detailed analysis). During the process mapping, distinguish
value added phases (VA) from not value added ones (NVA)

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Table3. 2. SIPOC chart for an automotive component

Supplie Input Process Output Customer

r
X  Take order from  Inspection of raw Automotive A
customer material (long bars) component
Y B
 Receiving raw  Go through all process
material  Inspection of finished
 from suppliers  goods (End product)
 Dispatch to customer
 location as per order

3.2 MEASURE PHASE

Measure phase is the second step of a Lean Six Sigma project, where:

• A “rational” data collection is performed for the scope chosen: this collection requires
effective and efficient planning in order to create a database of knowledge to record the
process which will highlight the critical issues from an objective standpoint
• The data is interpreted through statistical tools (in case of samples, to test their significance
and how they are seen/shown overviewed)
• The reliability of data is verified
• Process performance is calculated through the proper kpi (oee, takt time, process sigma,
process capability etc.)

3.2.1 Data collection plan

The time data collection is the process of collecting those data which are required for the
construction of current state map. The required data can be collected through interactions of
machine operators and workers of component manufacturing organization. The data based on
standard time of different processes, changeover time, total available time, number of workers
and the machine uptime are collected and recorded systematically. Based on collected data from
the product assembly line, the current state map is prepared to execute the complete ongoing

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process with total processing time, that is, cycle time, changeover time, number of operators,
uptime and total available time of case product.

3.2.2 Basic Statistical analysis

Once quantitative data is collected, statistical analysis of data is done to summarize and organize
it using various tools.

• Summarizing Data-chart and graph

• Location parameters-Mean Mode Median Quartiles Percentiles
The location parameters aim to identify the most frequent values of distributing data
• Dispersion parameters– Range, Standard Deviation, Variance
The dispersion parameters can assess the variability of data
• Shape parameters– Skewness, Kurtosis
The shape parameters are used to assess whether the data collected are arranged according to
a symmetrical distribution

Graphical Summary; The tool aims to give graphical and statistical representation of the
parameters found in the collected data Characteristics:

• Histogram with reference curve

• Normality Test

• Basic Statistics

• Verification of Outliers presence

• Confidence Interval

3.2.3 Capability analysis

Capability Analysis or Process Capability Analysis is a study to determine the ability of current
process to satisfy customer required specifications. Process capability ratio is the statistical
measure of process capability. It is the ability of a process to produce result within limit
specification. In process capability, USL represents upper specification limits and LSL
represents lower specification limits of process, T represents the target mean, μ indicates the

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estimated mean and σ represents the estimated variability of the process, and process capability
is calculated using equation

USL−LSL
CP=
6σ

3.2.4 Process performance indicators

This section includes various indicators which are employed to measure the performance of
process. With the help of these parameters comparison between performance of the current state
and future state of the process can be done. Some measures of performance indicators are

Takt Time

The Takt Time represents the rhythm of production/delivery that a process (workstation, Cell,
etc) must respect to satisfy customer demand. Each step of the process must produce to Takt
Time to ensure a stable flow of outputs to meet customer requirements.

Calculation Method

Available time
TAKT TIME=
pcs
Customer Demand ( )
time

Overall Equipment Effectiveness (OEE)

The OEE (Overall Equipment Effectiveness) is a powerful method to monitor and improve the
efficiency of manufacturing and transactional processes. OEE is frequently used as a key metric
in TPM (Total Productive Maintenance) and Lean programs. One of the main goals is to reduce
what are called the Six Big Losses clustered in three categories: Downtime, Speed and Quality
losses

OEE= Availability x Performance x Quality x 100 %

operating time
Where Availability= ×100 %
scheduled production time

Performance=Total pieces ×theoritical time¿ produce one unit ¿ ×100 %

operating time

Good pieces
Quality= ×100 %
Total pieces

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Figure3.4. Overall Equipment Effectiveness

3.3 ANALYSE PHASE

Analyze is the third step in a Lean Six Sigma project roadmap. In this phase emphasis is to:

• Explore the relationships among variables and start root cause analysis of major problems
• Conduct cause - effect analysis for trouble shooting
• Discover the real root causes rather than take care of symptoms

3.3.1 Cause and effect diagram

The Cause-Effect Diagram is a visual tool that can help to identify the relationship between an
effect and its possible root causes. The Cause-Effect Diagram is also an effective tool for quality
management and Brainstorming. The purpose of cause-and-effect diagram is to observe the
intensity of defects occurring in product and define the actual source of defect from which they

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occurred. It is easy to understand and is a comprehensive graphic template that can logically
display complex cause and effect relationships. It can improve the understanding of a detailed
relationship between cause and effect

To build a Cause-Effect Diagram:

1. Define the problem and identify the effect to be analyzed

2. Identify the categories of possible root causes (commonly used categories: Measurements,
Machines, Man/Personnel, Materials, Methods, Mother Nature/Environment)

3. Identify potential causes and group them into categories. The method of the 5 Whys can be
used to determine the exact relationship between causes and effect

4. Sort the causes according to the possible degree of influence towards the effect

Figure 3.5.Cause and Effect diagram

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3.3.2 Waste categorization

Waste categorization is the process of categorizing wastes occurring in manufacturing

organization. The waste categorization has been done based on their effect on product
manufacturing. The main aim of lean manufacturing is to eliminate waste from the production
process. In any manufacturing organization, seven types of waste generally occur. The main aim
of waste categorization is to observe the majority effects of defects from the appropriate
category.

The 8 Wastes

• Defects
• Overproduction
• Waiting
• Non-Utilized Talent
• Transportation
• Inventory
• Motion
• Extra-Processing

Figure 3.6 .The 8 wastes

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3.3.3 Root causes identification

Statistical hypothesis testing

Statistical Hypothesis Testing is used to make an inference or conclusion for a population,

starting from sample data observation

Typical applications of Hypothesis Testing are:

– The comparison of means between two or more groups

– The comparison of variances between two or more groups

– The comparison of proportions, also extracted from samples of different sizes

There are many types of hypothesis testing. We need to select the right Hypothesis Testing
method for the right problem, as illustrated by the following table

Table 3.3 Types of hypothesis testing

HYPHOTESIS TESTING PURPOSE

Mean 1-Sample t To compare means between a sample
comaparison and a reference known mean

2-Sample t To compare means between two

groups
Paired t-TEST To compare means between two
groups when data are paired

ANOVA (F TEST) To compare means between more

than two groups
Variance Variance Test To compare variances between two
comparison or more groups
Proportion To compare variances To compare proportions between two
comparison between two or more groups or more groups
Regression analysis

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Regression is an analytical tool that can be used to establish, if it exists, a mathematical model
between Input and Output variables.

Fundamental Assumptions:

• Variable Y -Continuous

• Variable X -Continuous

• Residuals -random variable

Figure 3.7.Regression analysis graph

For a Fitted Regression model, there is a commonly used performance indicator that can measure
how good this model fits the data. This indicator, called R-Squared (R-Sq% or R-Sq), tells you
the percentage of variations in data (from 1% to 100%) that can be explained by the regression
model.

3.4 IMPROVE PHASE

The Improve phase is the fourth step of the DMAIC Lean Six Sigma roadmap. In this step the
existing process will be changed and optimized:

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• This process optimization will be based on sound data analysis, a thorough understanding of
the relationship between key process responses/performance metrics and key process
variables, so this process optimization will be more likely to achieve real results backed by
statistical confidence
• The improvement will take into account Lean applications, typical of Lean methodology and
mindset, in order to reduce waste and to increase process efficiency
• The process optimization is based on scientific approach, real and accurate data. It is not
based on subjective judgments
3.4.1 5-S program
The “5S Program” is a system for creating and maintaining a work environment clean, orderly,
efficient and safe. The benefits of this method can be evaluated in terms of Quality, Safety and
Productivity:

Table3.3S program

STEP 5S OBJECTIVE
Identify what is needed and what is not needed
SORT
in the workplace. Eliminate or segregate what
is not necessary
Organize and arrange everything you need in
SET IN ORDER
the workplace so it can be quickly found, and
stored
Clean and maintain order in the workplace,
SHINE
equipment, floors into the shop floor/office
Maintain and improve the standard of the first
STANDARDISE
3S
Make the standard 5S a daily habit and part of
SUSTAIN
everyday work
3.4.2 SMED- single Minute Exchange of dies

The Single Minute Exchange of Die (SMED) is a method that aims to reduce the changeover
time of machine equipment, or in general a production/service process. Changeover time: It is
the time required to prepare a device, machine, process, or system from the last piece of the
previous batch to the first good piece of the next batch

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To perform a SMED activity:

 Analyze actual procedure and elementary steps to realize the changeover (use a videotape if
possible, especially in multi-person changeover)
 Establish goals (WIP; batch size; changeover time reduction, etc.)
 Apply the general procedure for set-up reduction
 Perform a test to validate the new set-up procedure
 Identify new improvement opportunities
 Create a new standard operating procedure

3.4.3 TPM

Total Productive Maintenance (TPM) is a methodology focused on the technical aspects of

manufacturing processes. It aims to increase plant and equipment productive performances
through employees’ empowerment and skills. For that reason the real owner of the methodology
is not only maintenance but all the production system The TPM methodology is represented by a
temple where at the base there are two important points: lean waste culture and 5S approach.

Total Productive Maintenance is based on pillars(Figure3.6)

• Focus improvement
• Autonomous Maintenance
• Early equipment management
• Office TPM
• Planned Maintenance
• Quality maintenance
• Education and training
• Safety, Health and environment

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Figure 3.7 TPM Pillars

3.4.4 FMEA

FMEA( (Failure Modes and Effects Analysis) is used to identify a detailed list of failure modes
of a product or process and their corresponding causes and then rate them with severity level,
likelihood of occurrence and detection in order to manage system risk

In Lean Six Sigma projects, FMEA can be used as a systematic method to link inputs with
outputs, assign priority levels and degree of relationship, or to assess risk associated with
different solutions to be implemented. For these reasons this technique can be applied to
different stages of DMAIC.

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Figure3.9 FMEA Example

3.4.5 DOE
DOE((Design Of Experiments) is a methodology that builds, through well planned experiments
and analysis of the experimental results, the analytical model relating to the cause-effect
relationship between input and output variables. DOE can be used in Analyze Phase to identify
key variables and interactions that influence the output. DOE can also be used in the Improve
Phase to identify best parameter settings (Inputs) to optimize the Output variable

Fundamental Assumptions:

• Residuals (difference between actual response and model prediction) is normally distributed

• Residuals are independent of Xs (Input variables)

• Residuals are independent of predicted Ys (Fitted Value)

• Residuals are independent of time

DOE can be used in Analyze Phase to identify key variables and interactions that influence the
output. DOE can also be used in the Improve Phase to identify best parameter settings (Inputs) to
optimize the Output variable

Steps to conduct DOE

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 Define the problem

 Select output (response) variable y
 Select experimental factors (input variables), their levels and values
 Select the experimental design in order to manage the number of test. Full Factorial Design is
selected, which is a complete combination of all the levels of all factors, or Fractional
Factorial Design, a selected portion of full factorial design.
 Conduct experiments properly (randomization may be needed proper data collection, etc.)
 Analyze the experimental data

3.5 CONTROL PHASE

Control is the final step of Lean Six Sigma roadmap; the objective of this phase is to:

• Test the quality level because it is the result of previous Lean Six Sigma steps
• Validate the method and its effectiveness used in improvement
• Standardize the method if its effectiveness is proven
• Implement control plan to sustain the improved long term performance
• Use visual management and an error proofing system to maintain high level performance
• Verify the applicability and possible extensions of the method for possible problems or
company areas

3.5.1 Control Charts

Control Charts are useful tools that can verify and monitor the stability of performance levels for
manufacturing, transactional and service processesControl Charts are tools that can be used to
identify “special causes’ in the process
Features:
• Common Cause: The cause, random in nature and not related to any special event, is behind
natural inherent variability shown in processes
• Special Cause: The cause is often associated with special events. The result of a Special
Cause is that the process often shows trend seasonality or other non trend, nonrandom
patterns

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Figure 3.10 Control Charts Basics

Control charts are used when it is necessary to monitor individual continuous variables. Control
limits are specified by the Upper Control Limit (UCL) and Lower Control Limit (LCL), They
determine the range for natural variation due to random causes. Any variation beyond UCL or
LCL will be considered as ‘out of control’ and likely caused by a special event.

3.5.2 Poke Yoke

Poka Yoke (or Mistake Proofing) is one of the techniques that aims to reach the “Zero Defect
Quality” through the usage of devices or procedures which allows detection of an error that
could lead to waste (scraps, reworks, breakdowns etc.). Poka Yoke could be a design choice
(Poka Yoke design) or a detection system on the process (Poka Yoke Process).

Poka Yoke basic concept:

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• An error increases its economic impact if the time between when it happens and its discovery
increases
• It is natural that people make mistakes but it is possible to prevent human errors becoming
defects before they happen
• Don’t try to do better next time: act now

Basic Principles of Good Quality Inspections (Shingo):

• Always 100% Inspection

• Judgment about defects should be done objectively
• Inspection should be done automatically at low cost
• When a defect occurs, information should be immediately given as feedback and root causes
immediately investigated
• Discover hidden root causes one at a time, and eliminate them one by one
• It is desirable to track the source of root cause therefore automatic inspection devices should
be installed (Source Inspection)

Poka Yoke System for Perfect Quality Inspection:

 Poka Yoke device should be cheap, able to perform 100% inspection, and gives results
instantly
 Poka Yoke system can detect abnormalities by detection technology and/or process
procedures

3.5.3 Visual Management

Visual Management is a method that makes all processes in a company visual and tangible.
Applying visual management will make the workplace well structured and processes will be
clear to everybody at all levels (from top management to shop floor). In other words “Make it

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Figure 3.11 Poka yoke: Mistake Proofing

visual”. The goal of visual management is the ability to identify, at a glance, how well an area is
operating to its:

• Goals
• Status of production
• Problem solving effectiveness
• Anybody should be able to walk up to ANY cell/work area and immediately know what is

How to implement Visual Management:

1. Decide what message is necessary to send or which mistakes you want to prevent from
happening. During this step it is really important to identify communication at all levels
2. Design a simple visual “tool” to clearly communicate your message (colored lines, colored
bins; visual dashboard; Andon; Kanban card,gage, checklist etc.). It is necessary to involve
people

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Figure 3.12 Visual Management Examples

3. Test the visual impact on people and ask for feedback from those involved
4. Make all the adjustments or changes necessary to improve the communication effects.

Visual Management has many advantages:

• The detection of normal and abnormal operating conditions is easy and rapid
• Time reduction
• Space reduction
• Costs reduction
• waste reduction

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3.6 Summary

Lean Six Sigma is simply a process of solving a problem which is implemented mostly on
DMAIC cycle as seen in the recent trends of LSS application. Six Sigma tools application with
respect to DMAIC cycle is already been categorized and practiced by various researchers.
However, to find lean tools suitability according to DMAIC phases depends upon the research
work intent, problem definition and the organizational goals which are to be met. Various LSS
tools and techniques augmented in the DMAIC cycle are listed and explained in this chapter.

The first phase of LSS framework is the define phase, and the main objective is to define the
goals and value of a project.VSM, a lean tool is added in this phase to analyze the value added
and non value added activities. The second phase of LSS framework is the measure phase, and
baseline data are established in this phase. In measure phase, the factors such as critical to
customer quality and LSS metrics are determined, and these are essential to establish the stability
and capability of organization process.

Third phase of LSS framework is analyze phase, and, in this phase, data analysis is carried
out, from the real situation where problem was occurring. The fourth phase of LSS framework is
improve phase which is the most important phase for identifying the root causes solution
generation and testing the solution. The last phase of LSS framework is the control phase, and, in
this phase, improvements are identified and implemented. In this control phase, whole process is
documented.

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