Design for six sigma for green belts and champions

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Published Date:17-07-2017
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Section Section 1 1 WARWICK MANUFACTURING GROUP Product Excellence using 6 Sigma (PEUSS) Design for Six Design for Six Sigma Sigma Warwick Manufacturing Group DESIGN FOR SIX SIGMA Contents 1 Introduction 1 2 Design for Six Sigma (DFSS) 5 3 DFSS Methodology 9 4 Difference between Six Sigma DMAIC and DFSS 39 5 References 39 6 Appendix 1 40 Copyright © 2007 University of Warwick Warwick Manufacturing Group DFSS Page 1 DFSS 1 Introduction 1.1 Six Sigma basics Six Sigma (SS) is a business process that allows companies to improve their bottom line by designing and monitoring everyday business activities in ways that minimise waste and resources while increasing customer satisfaction. In Six Sigma, the purpose of process improvement is to increase performance and decrease performance variation. This increase in performance and decrease in process variation will lead to defect reduction and improvement in profits, to employee morale and quality of product, and eventually to business excellence. The name “Six Sigma” derives from statistical terminology; Sigma (σ) means standard deviation. For normal distribution, the probability of falling within a ±6 sigma range around the mean is 0.9999966. In a production process, the “Six Sigma standard” means that the defect rate of the process will be 3.4 defects per million units. Clearly Six Sigma indicates a degree of extremely high consistency and extremely low variability. In statistical terms, the purpose of Six Sigma is to reduce variation to achieve very small standard deviations. Compared with other quality initiatives, the key difference of Six Sigma is that it applies not only to product quality but also to all aspects of business operation by improving key processes. For example, Six Sigma may help create well-designed, highly reliable, and consistent customer billing systems; cost control systems; and project management systems. Six Sigma has a broad focus: It provides specific methods to re-create the process so that defects and errors never arise in the first place. Many companies have adopted the Six Sigma philosophy including the following: • AlliedSignal; • General Electric; • Sony; • Honda; • Maytag; • Raytheon, • Texas Instruments, • Bombardier; • Canon; • Hitachi; Warwick Manufacturing Group DFSS Page 2 • Lockhead Martin • Polaroid They have adopted the SS philosophy because they believe that it will help them increase market share, decrease costs, and grow profit margins. As a result they are attempting to tie quality to profit. To increase profitability the SS philosophy is adopted by the whole company, that is, operators, designers, service providers and managers. An internal infrastructure is created to enable all employees to become aware of quality performance and how it affects profitability. The philosophy encourages people to ask questions about every process and every step along the way to creating the final product. It is about asking tougher and tougher questions until quantifiable answer can be achieved that result in a change in behaviour. Such questions cannot be answered without a planned approach to solutions; the SS methodology is therefore designed to pave the way to find the right answers. Organisations need ways of measuring what they claim to value. The foundation of SS uses metrics or measurements to calculate success; a company using the SS methodology must therefore measure all its processes and changes to its processes. There are three components necessary to becoming more effective and efficient using SS, these are: 1. Business Process Management. This strategic component is the responsibility of executive management. 2. A scientific method used to define and measure problems, analyzing root causes, and testing theories of improvement. In essence, this is the methodology used in SS to improve effectiveness and efficiency and encompasses well known and successful statistical tools. 3. Another key component of SS is a cultural one. All employees within a company, from senior executives to operators, must embrace and apply the methodology to ensure a successful outcome. 1.2 Summary of the Six Sigma Methodology Six Sigma is a process-focused approach to business improvement. The key feature is “improving one process at a time.” The process could be a production system, a customer billing system, or a product itself. A process can be defined as a series of activities that takes an input, adds value to it and produces an output for a customer. Processes can be modelled in many ways, for example: an input/output diagram or a supplier-input-process- output- customer (SIPOC) diagram. SIPOC Diagram Warwick Manufacturing Group DFSS Page 3 A SIPOC diagram is one of the most useful models for business and service processes. It can also be used as a model for a manufacturing process. The acronym SIPOC derives from the five elements in the diagram Figure 1.1 below: • Supplier. The person or group that provides key information, materials, and/or other resources to the process • Input. The “thing” provided • Process. The set of steps that transform and, ideally, add value to the input • Output. The final product of the process • Customer. The person, group, or process that received the output Proc Process (x) ess (x) Output Output S Supplier upplier Input Input Customer Customer (y) (y) Figure 1.1: SIPOC diagram For example, a SIPOC diagram for an academic teaching programme could be draw as in figure 1.2 using the following information: • Suppliers: Book publishers and bookstores, university administrators and facility support people, lab equipment suppliers, accreditation board, tuition payers, and so on. • Inputs: Books, classrooms and facilities, labs and facilities, academic program standards, and tuition. • Process: The academic program, includes the curriculum system, degree program setup, courses, professors, and counselors. The process transforms inputs to a system of courses, academic standards (quality control system), and academic records; under this system, incoming students are processed into graduating students in many steps (coursework). • Output: Graduating students with degrees. • Customers: Employers of future students and the students themselves. Key requirements for output: Excellent combination of knowledge for future career, high and consistent learning qualities, and so on. Process Process Input Input Su Supplie pplier r Output Output Customer Customer Acad Academic Prog emic Progr ra am m Books Books Gradu Graduating ating Empl Employers oyers Pu Publi blishers shers Pr Prof ofesso essor rs s, p , pr rog ogr ra am m T Teach eachiing ng St Stud uden entts s Society Society Setup, a Setup, adv dviisor sors s, , Fa Facility cility Ad Admini ministra strato tors rs With With de degr gree ees s Stud Students ents stand standards ards Lab Lab faci facility lity pare paren nts ts H Hiigh gh sch school ools s Stude Students nts Figure 1.2: Example of an Academic Teaching Program of a University Department Warwick Manufacturing Group DFSS Page 4 There are also several other process modelling and analysis methods available, such as process mapping and value stream analysis, which are also widely used in Six Sigma projects. A process map is a schematic model for a process. A process map is considered to be a visual aid for picturing work processes that show how inputs, outputs and tasks are linked. Process mapping can be used to develop a value stream map to analyze how well a process works. Once a process map is established at an appropriate level of detail, the flows of products/programs/services, material, information, money, and time can be mapped. In a Six Sigma project, if the Six Sigma team selects the regular Six Sigma process improvement strategy, then a five-stage process will be used to improve an existing process. These five stages are: • Define the problem and customer requirements • Measure the defects and process operation • Analyze the data and discover causes of the problem • Improve the process to remove causes of defects • Control the process to make sure defects don’t recur This five-step strategy is also called DMAIC (define-measure-analyze-improve-control). The DMAIC methodology is the focus of the six sigma principles however a successful six sigma project requires management commitment and good teamwork. 1.3 Why Six Sigma? The goal of Six Sigma is not to achieve SS levels of quality but is about improving profitability. However, improved quality and efficiency are immediate by-products of SS. While SS is a long-term, forward thinking initiative designed to fundamentally change the way companies do business, it is mainly designed to generate immediate improvements to profit margins. Many large companies have implemented SS because of the focus of profitability improvement and also the claims made on the successes of using SS. SS consultants claim: If a company operating at the three sigma level introduces SS and makes a one sigma shift improvement each year the company will experience: • 20% margin improvement • 12-18% increase in capacity • 12% reduction in the number of employees • 10-30% capital reduction Warwick Manufacturing Group DFSS Page 5 It is also claimed that the profit margin increases from 3 sigma to 4.8 sigma are dramatic and that at 4.8 sigma companies requires a redesigning of processes, known as Design for Six Sigma (DFSS). Design for Six Sigma is therefore recommended when: • A business chooses to replace, rather than repair, one or more core processes • A leadership or Six Sigma team discovers that simply improving an existing process will never deliver the level of quality customers are demanding • The business identifies an opportunity to offer an entirely new product or services DFSS is not a quick fix; it will take more effort in the beginning, but it will pay off better than the regular Six Sigma process improvement in the end. KEY POINTS Six Sigma is a methodology that provides businesses with the tools to improve the capabilities of their business processes. Unlike other quality initiatives that focused just on tools, Six Sigma is based on the active involvement it generates from the management. Using the Six Sgma methodology makes all parties aware of what effects profitability. Six Sigma is concerned with measuring processes and changes to processes. Process is the basic unit for a Six Sigma improvement project. Process could be a product itself, a service/manufacturing process, or an internal business process. Process mapping, value stream mapping, and process management are effective tools for improving overall performance. Six Sigma process improvements strive to improve both process performance and process capability. DFSS is recommended when a company wants to introduce a new product into the marketplace. 2 Design for Six Sigma (DFSS) 2.1 Introduction DFSS is a business process focussed on improving profitability by introducing a methodology that helps companies to generate the right product or service at the right time at the right cost. It is an enhancement to new product development processes and provides the tools and teamwork to develop a successful new product or service. DFSS has its roots in systems engineering and so management of requirements guides and drives the entire lifecycle processes. Thus requirements capture, understanding and flow- down are key elements of DFSS. Warwick Manufacturing Group DFSS Page 6 Customer-oriented design is a development process of transforming customers’ wants into design solutions that are useful to the customer. This process is carried over several phases starting from a conceptual phase. Figure 2.1 shows the product development lifecycle and illustrates the different phases throughout product development Disposal Concept and definition Operation and maintenance Continuous assessment Design and development Installation Manufacturing Figure 2.1: Product development life cycle In the concept phase, conceiving, evaluating, and selecting good design solutions are difficult tasks with enormous consequences. Design and manufacturing companies usually operate in two modes: • fire prevention, conceiving feasible and healthy conceptual entities; • firefighting, problem solving such that the design entity can live up to its committed potentials. Unfortunately, the latter mode consumes the largest portion of the organization’s human and non-human resources; the DFSS methodology therefore aims to encourage companies to focus on translating customer wants and needs into the design process early in the product development lifecycle to reduce the need for costly firefighting activities. Figure 2.2 highlights when DFSS is conducted relative to the product lifecycle. It illustrates the cost impact of making changes throughout the product life cycle and emphasizes the point that making changes early is most cost effective. Warwick Manufacturing Group DFSS Page 7 “Classic” Six Sigma “Classic” Six Sigma 10 1000 00 focuses here focuses here 100 100 DFSS focuses here DFSS focuses here 10 10 1 1 Research Research D Desi esign gn De Dev ve elopm lopment ent Pr Producti oduction on Product Stage Product Stage Figure 2.2: Product lifecycle The major objective of DFSS therefore is to “design it right the first time” to avoid painful downstream experiences. The term “Six Sigma” in the context of DFSS can be defined as the level at which design vulnerabilities are not effective or minimal. Generally, two major design vulnerabilities may affect the quality of a design entity: • Conceptual vulnerabilities that are established because of the violation of design axioms and principles. • Operational vulnerabilities due to the lack of robustness in the use environment. The objective of DFSS when adopted upfront is to “design it right the first time” by anticipating the effect of both sources of design vulnerabilities. This requires that companies be provided with the analytical means to achieve this objective and sustain it. Design for Six Sigma is thus a systematic methodology for designing or redesigning products or services according to customer requirements and expectations. DFSS project teams integrate characteristics of Six Sigma at the outset of development with a disciplined set of tools. DFSS therefore focuses on providing a methodology that systematically integrates tools, methods and processes to: • assess customer needs; • perform functional analysis; Warwick Manufacturing Group Rel Rela ati tiv ve e Cost Cost to Impact Change to Impact ChangeDFSS Page 8 • identify CTQs • select the concept design; • enhance detailed design and processes; and • produce control plans 2.2 Why DFSS? It is said that only about 60% of new products launched in all industries are a success and about 45% of resources allocated to developing and commercialising new products go into products that are killed or fail to provide adequate financial return. Some companies gave the following reasons: • Inadequate market analysis; • Product problems or defects; • Lack of effective marketing effort; • Higher costs than anticipated; • Competitive strength or reaction; • Poor timing of introduction; • Technical or production problems. DFSS is a systematic methodology that optimises the design process to achieve Six Sigma performance and avoid some of the problems that cause new products to fail. Operational vulnerabilities take variability reduction as an objective and are primarily the purpose of Six Sigma. On the contrary, the conceptual vulnerabilities are usually overlooked because of the following: • lack of a compatible systemic approach to find ideal solutions; • ignorance of the designer; • the pressure of schedule deadlines; and • budget limitations. This is because traditional quality methods can be characterized as after-the fact practices. Unfortunately, this practice drives design toward endless cycles of design-test-fix-retest, creating what is broadly known as the “firefighting” mode of operation. Companies who follow these practices usually suffer from high development costs, longer time to market, lower quality levels, and marginal competitive edge. In addition, corrective actions to improve the conceptual vulnerabilities via operational vulnerability improvement means are only marginally effective if at all useful as well as increasingly costly as design entity progresses in the development process. Therefore, implementing DFSS in the conceptual phase is a goal and can be achieved when systematic design methods are integrated with quality concepts and methods upfront, as illustrated in figure 2.2. Warwick Manufacturing Group DFSS Page 9 Currently, industries are being forced to shorten lead times, cut development and manufacturing costs and lower total life-cycle cost (LCC), and thus there is a drive to develop strategies that will ensure good quality designs at the right cost and in the right time frame and DFSS is one of the key strategies. It is often claimed that up to 80 percent of the total cost is committed in the concept development phase as depicted in Fig. 2.3. From figure 2.3 the potential is defined the difference between the impact, the influence, of the design activity at certain design phases and the total development cost up to that phase. The potential is positive, but decreases as design progresses, implying reduced design freedom over time. As financial resources are committed (e.g., buying production machines and facilities, hiring staff), the potential starts changing signs going from positive to negative. In the consumer’s hand, the potential is negative and the cost overcomes the impact tremendously. At this phase, design changes for corrective actions can be achieved only at high cost, including customer dissatisfaction, warranty, and marketing promotions, and in many cases under the scrutiny of the government (e.g., recall costs). Cost Cost vs impac vs impact t cost cost Pot Pote ent ntial is ial is posit positive ive Potential is negativ Potential is negative e Impactcost Impactcost Impactcost Impactcost impact impact Design Design P Pr roduce/buil oduce/build d deliv deliver er Serv Service support ice support ti time me Figure 2.3: cost vs. impact of new product development The DFSS methodology provides a strategy for businesses to follow that will lead them to “designing products and services right first time” and therefore introducing successful new product or services into the market. 3 DFSS Methodology 3.1 DMADV Warwick Manufacturing Group DFSS Page 10 The DFSS methodology begins by finding and analysing the gaps in processes that are negatively affecting new product performance. It also focuses on customer response to the product. Once this has been completed the project to tackle the problems can be established. The process for solving problems is called DMADV i.e. Define, Measure, Analyse, Design and Verify or sometimes it is called PIDOV i.e. Plan, Identify, Design, Optimise and Validate. Other acronyms include: DMADOV; DMCDOV; DCOV; DCCDI; DMEDI; DMADIC; ICOV and RCI. Although these approaches differ in some respects they all basically follow similar steps to achieve similar goals. Essentially they are approaches to designing products, services and processes to reduce delivery time and development costs, increase effectiveness and better satisfy customers. The basic procedure is outlined as follows: • Capture customer requirements; • Analyse and prioritise requirements; • Develop design; • Flow down requirements from the system level to sub-systems, components and processes; • Track the product capability at each step; • Highlight any gaps between requirements and capabilities and make these actionable; and • Establish a control plan. The methodologies mentioned above have the same objectives and are both rigorous in nature; their only real difference is in terminology. Figure 3.1 shows a comparison of the PIDOV and DMADV methodologies highlighting that the differences are mainly in the terminology adopted. These lecture notes will concentrate on the DMADV approach to DFSS. Warwick Manufacturing Group DFSS Page 11 Pl Pl Pla a an n n I I Iden den dent t ti i if f fy y y D D Desi esi esig g gn n n Optimise Optimise Optimise V V Verif erif erify y y Generate Generate, , Detai Detail led ed De Dev ve el lo op p ev eva allu ua at te e,, Demonstrate Demonstrate VOC – VOC – CTQ CTQ d design esign and and proj projec ect t s sel ele ect ct and and s sat atisf isfies ies optimise optimise P Pr rio iorit ritis ise e C CT TQ Q pl plan ans s re rev vi ie ew w req requ uir ireme emen nts ts pe per rf for orm ma an nc ce e conce concept pts s De De Def f fiiin n ne e e Meas Meas Measure ure ure A A Ana na nallly y yze ze ze D D Desi esi esig g gn n n V V Ve e erif rif rify y y Figure 3.1: Comparison of PIDOV and DMADV 3.2 Phase 1: Define The first step in a DFSS project is to establish and maintain a DFSS project team (for both product/service and process) with a shared vision. The purpose is to establish and maintain a motivated team. The success of development activities depends on the performance of this team, which is selected according to the project charter. The team should be fully integrated, including internal and external members (suppliers and customers). Special efforts may be necessary to create a multinational, multicultural team that collaborates to achieve a Six Sigma–level design. Roles, responsibilities, and resources are best defined upfront, collaboratively, by all team members. The black belt is the team leader. Once the team has been established, it is just as important to the black belt to maintain the team so as to continuously improve its performance. The DFSS teams emerge and grow through systematic efforts to foster continuous learning, shared direction, interrelationships, and a balance between intrinsic motivators (a desire which comes from within) and extrinsic motivators (a desire stimulated by external actions). Constant vigilance at improving and measuring team performance throughout a project life cycle will be rewarded with ever-increasing commitment and capability to deliver winning design entities. Figure 3.2 below shows the main activities within the define phase of DMADV. Warwick Manufacturing Group DFSS Page 12 De Dev ve elop lop Re Rev vi ie ew w De Dev ve el lo op p Organ Organiiza za- - Dev Deve ello op p Identi Identify fy T To ollgate llgate Pro Projje ec ct t ti tional onal the the Ri Risks sks Re Require- quire- Charter Charter Pla Plan ns s Ch Chang ange e ments ments Pla Plan n Figure 3.2: Define Phase Project Charter As in the Six Sigma methodology the establishment of the project charter is a key step in the formalisation of the DFSS project. It aims to capture the vision of the project, to set direction for the project team and to define the parameters of the project. A charter is an agreement between the leadership team and the project team about what is expected in the project. It clarifies what is expected of the team, keeps the team focused, transfers the project from the leadership team and sponsor(s) to the project team and keeps the team aligned with organizational priorities The main elements of the project charter include: • Problem Statement - this describes the current situation. This can describe the problems or challenges that customers (internal and external) experience • Opportunity Statement – this describes the market opportunity that the new product/service/process would address and the potential financial opportunity to which it could lead. • Importance – this explains why this project now • Expectations/Deliverables - these define what needs to be designed, but does not specifically describe the product, process, or service which is yet to be developed • Scope - this defines the boundaries of the project • Schedule – this gives details of the timing of actions, milestones, deliverables and reviews as well as the start date and end date. • Team Resources – this identifies team members and technical experts and describes roles and responsibilities on the project • Business case – this gives the financial justification for the project It is important to spend sufficient time discussing and clarifying these charter elements to ensure that all team members, sponsors, and stakeholders understand the project’s focus and scope. The initial charter should utilize whatever relevant data is available at the time. The charter is a living document and will need to be revised as new data is gathered and analyzed as the project progresses. Project Plan The project plan developed should include the usual important elements, such as: Warwick Manufacturing Group DFSS Page 13 • Project schedule and milestones • Organizational change plan • Risk management plan • Review schedule It is usually a good idea to use project management software such as Microsoft Project to help manage complex design projects. Design projects often need to be integrated with other standard organizational processes (e.g. a new product development process, or a software development process). Spending time up front working with others in the organization to integrate the project plan into those existing systems is usually well worth the effort since additional tasks are often identified which need to be built into the project plan. Project plans often start with identifying key milestones. Milestones represent important decision points. The completion of each step in the design process is usually one of the milestones. The whole team should participate in defining and establishing dates for milestones. Once milestones are defined they are grouped into logical sequences and tools such as GANTT charts, PERT charts, or Activity Network Diagrams are then used to show the relationship between milestones, define the critical path, and build the project schedule. After milestones are developed, more detailed task planning begins, including developing the list of activities that must be completed for the project. The list should include these types of activities: • work tasks • Coordination activities • Communication activities • Meetings • Status reports and schedule management • Design reviews • Change management activities • Risk management activities Once the plan is developed it is important to consider how the project will be controlled. Project controls help ensure that planned events occur as planned, and unplanned events don’t occur. They are needed for all complex projects, but what they focus on varies with the project. For example, some projects may need safety and environmental controls while another needs controls for work practices and ethical conduct. The riskiest projects most in need of control mechanisms are those that are involve lots of people, over a long period of time, designing high reliability products or services. Warwick Manufacturing Group DFSS Page 14 Controls need to match project needs. They should be as simple and easy to use as possible. The benefits of the controls should be understood, so that team members will support their use. An example of a control mechanism is an issues board. The board is updated regularly, often daily. The top ten to twenty issues or problems are listed and color coded (green = “under control,” yellow = “I need help,” and red = “emergency”). The person responsible for addressing the issue is listed and the number of days the item has been on the list is also included. In addition, document control is often critical for design projects in order to control and manage design changes when sub-teams are working concurrently. Design teams need to develop a method for organizing project documents; usually some form of centralized repository is used. Moreover since design documents are changed many times during the project, version control is therefore an important issue to consider. Accessibility to the repository by the team members, sponsors, and sometimes stakeholders to locate the most current version of all documents must also be considered. Organizational Change Plan Project plans should include activities related to ensuring that the organization is prepared to support the project. Because design projects require significant organizational commitment and impact many jobs, a change management plan helps ensure resources will be available and willing to help when needed. The change management plan, communication plan, and project plan are clearly linked. The change management plan should think through who will be impacted at which points in the project. Then plan how to prepare people for change well before the dates when they will be impacted. Change strategies for some people will centre primarily on communication. For others, the strategy may include involving them in some of the team’s activities and including them in key design decisions and reviews. Change is difficult for people because the ‘way things are’ is comfortable, familiar, has a history, and often is part of people’s identity. To help people let go of the ‘way things are’ and support change, it is important to • Communicate vividly why things must change (customer demands and dissatisfactions; competitive pressures; technology changes; etc.) • Allow people to express their fears and concerns. Provide mechanisms to solicit opinions and concerns, and to provide answers and address fears. There are many tools that can be used for establishing a change management plan and these include: Warwick Manufacturing Group DFSS Page 15 • Critical constituencies map - identifies the extent to which various organizations are impacted by the change • Organizational change readiness map - identifies the organizational approach to change • Stakeholders support map - articulates key stakeholders’ attitudes towards change • Root cause analysis - Typical analysis examines reasons for change resistance More information on change management can be found in John P. Kotter “Why Transformation Efforts Fail,” Harvard Business Review, March–April 1995 Risk Management A risk management plan is a key activity in controlling any project as all design projects face a number of risks. The team’s job is to anticipate where the key risks of failure are and to develop a plan to address those risks. During the Define phase, the team should: • Identify known and potential risks for the project • Indicate when and how the risks will be addressed When the team is first established, many of the risks are not known because the specific design has not yet been chosen. At the outset of the project, the team should identify any known risks as well as potential risks which they anticipate. The team should also indicate when (at which point in the design process) they expect to have the data to identify the real risks in the project. The risk assessment should be updated as the project moves forward in the form of risk reviews. Common potential risks include: inadequate customer or business information, inadequate measures for the design, rapidly changing environment, scope creep, changing resource availability, complexity, unproven or new technologies, etc. The task of identifying known and potential risks and defining a plan to reduce, minimize or eliminate these is referred to as mitigating risks. When a member of the team identifies any risk a method for mitigating that risk must be sought and costed. During the risk reviews all risks are prioritized so that the mitigating actions can be programmed into the project plan. To prioritize, risks are categorized by their probability of occurrence and their impact on the project. Figure 3.3, below, illustrates the ‘traffic light’ approach to identifying and prioritizing risks. Warwick Manufacturing Group DFSS Page 16 Y Ye ell llo ow w L Li igh ght: t: Re Red L d Liigh ght: t: Re Red L d Liigh ght t: : Pro Procee ceed w d wi it th h A Ad ddres dress b s be efo fore re Do not Do not cau caut tio ion n pro proc ce ee ed ding ing pr proc ocee eed d Y Ye ell llo ow w L Li igh ght: t: Ye Yello llow w L Ligh ight: t: Re Red L d Liigh ght t: : Pro Procee ceed w d wi it th h Pro Procee ceed d w wi it th h R Re ea as sse sess ss cau caut tio ion n cau caut tio ion n pr proje ojec ct t G Gr re ee en n Li Lig ght ht: : Y Ye ellllo ow w Li Lig ght ht: : Re Red L d Liigh ght t: : Pro Procee ceed d w wi it th h A Ad dd dr re ess b ss be efo fore re Pro Procee ceed d cau caut tio ion n pr proc ocee eed di ing ng Lo Low w M Mediu edium m H Hi ig gh h Im Impa pac ct t on P on Pr ro ojje ec ct t Figure 3.3: Traffic light for highlighting risks From figure 3.3, the probability of a risk impacting a project ranges from “Green Light” to “Red Light.” It is the team’s responsibility to identify and assess risks prior to the implementation of a project. Failure to recognize and address a significant risk could jeopardize an entire project. Different responses are appropriate based on the perceived severity of the risk. Risks in the yellow category can be addressed further downstream in the design process. Risks in the red category need to be addressed before proceeding further. Not all risks in the red category result in termination of the project; however, some action must be taken now. Further information on Risk management can be found in the risk management lecture notes. Tollgate review Having established the project charter and plan and reviewed the risks a final tollgate review is carried out before proceeding to the next phase. This review should consist of a meeting with all team members to review the charter, risks and update the project plan. Because design projects are often complex, resource intensive, and linked to accomplishing key business objectives, leadership reviews at the end of each step or phase of work are critical. These milestone or tollgate reviews usually focus on updating everyone’s understanding of how project progress and new information affect the business case, the business strategy to which the design is linked, the schedule, the budget, and other resource needs. Key risk areas are reviewed and plans to eliminate or address the risks are discussed. Warwick Manufacturing Group P Pr roba obability bility of Oc of Occ cu urre rrenc nce e Lo Low w M Medium edium H Hi ig gh hDFSS Page 17 The importance of design efforts makes ongoing communication with leadership essential. These reviews help maintain communication linkages and leadership support. In addition, the sponsor and project leader may meet weekly to discuss progress, changes, surprises, resource issues, etc. This is an opportunity for joint problem-solving. It is also an opportunity to enlist the sponsor’s help in addressing organizational barriers or change issues. Project managers also often hold daily check-ins with team members. These might be 20 minute meetings whose purpose is to surface problems early, review priorities, and answer questions. A tollgate review checklist is established so that checks can be made to ensure that all the relevant stages have bee completed before moving on to the next phase. 3.3 Phase 2: Measure DFSS projects can be categorized as design or redesign of an entity. “Creative design” is the term that we will be using to indicate new design, design from scratch, and incremental design for redesign or design from a datum design. In the latter case, some data can be used to refine design requirements. The degree of deviation of the redesign from datum is the key factor on deciding on the usefulness of relative data. In this phase, customers are fully identified and their needs collected and analyzed, with the help of quality function deployment (QFD) and Kano analysis. Then the most appropriate set of CTQs metrics are determined in order to measure and evaluate the design. Again, with the help of QFD and Kano analysis, the numerical limits and targets for each CTS are established. Figure 3.3, illustrates the main activities in this phase of a DFSS project Un Under ders st ta and nd T Tr ranslate anslate Pr Prio iorit ritiize ze Reassess Reassess Voice of the Voice of the VOC N VOC Needs eeds CTQs CTQs Risk Risk Custom Customer er Into Require- Into Require- me men nt ts s ( (C CTQs TQs) ) Figure 3.3: Measure Phase Essentially this phase is concerned with capturing customer requirements. The DFSS tools used in this phase include: • Data collection plan • Customer research Warwick Manufacturing Group DFSS Page 18 • Interviews • Focus groups • Surveys • Voice of Customer table • Kano model • Affinity diagram • Benchmarking • QFD (Quality Function Deployment) Voice of the customer The term Voice of the Customer (VOC) is used to describe customers’ needs and their perceptions of a product or service and includes all forms of interaction between customers and an organization. The VOC data helps an organization to align design and improvement efforts with business strategy and decide what products, processes and services to offer or enhance. Additionally it helps to identify critical features/performance requirements for products, processes, and services as well identifying the key drivers of customer satisfaction. Data collection and analysis is also a major aspect in collecting VOC data and more information on this can be found in the data collection notes. Affinity diagrams and the Kano model are useful tools for collecting and analyzing VOC data. Noriaki Kano is a renowned Japanese expert in total quality management. His practical experience with understanding customer requirements led him to define three categories of customer needs: • Must Be: These needs are expected by the customer. If they are unfulfilled, the customer will be dissatisfied, and moreover even if they are completely fulfilled the customer would not be particularly satisfied (e.g., airline safety). • Satisfiers: These needs have a linear effect on customer satisfaction—the more these needs are met, the more satisfied these customers are (e.g., cheap airline tickets). • Delighters: These needs do not cause dissatisfaction when not present but satisfy the customer when they are (e.g., airline that serves hot chocolate chip cookies en route). Use of the Kano model is to ensure that no critical needs have been omitted. For example: • List all the needs and categorize them as must-be’s, satisfiers, or delighters • Make sure that no must-be need has been inadvertently missed • If delighters are few, try to identify others, or enhance the VOC study—competitive advantage is gained through delighters Quality Function Deployment (QFD) is the formal tool used to prioritize requirements and uses quantitative importance ratings of needs. The richness of the QFD approach is lost if quantitative prioritization data is not available. Whenever possible, quantitative data should be collected through surveys. See lecture notes on QFD. Once VOC data is collected and prioritized then it needs to be translated into requirements. Warwick Manufacturing Group

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