JWBK119-FM August31,2006 2:52 CharCount=0 Six Sigma SixSigma:AdvancedToolsforBlackBeltsandMasterBlackBelts Edited by L.C.Tang,T.N.Goh,H.S.Yamand T. Yoap © 2006JohnWiley&Sons,Ltd. ISBN: 0-470-02583-2 i JWBK119-FM August31,2006 2:52 CharCount=0 Six Sigma Advanced Tools for Black Belts and Master Black Belts Loon Ching Tang NationalUniversityofSingapore,Singapore Thong Ngee Goh NationalUniversityofSingapore,Singapore Hong See Yam SeagateTechnologyInternational,Singapore Timothy Yoap FlextronicsInternational,Singapore iii JWBK119-FM August31,2006 2:52 CharCount=0 Copyright(cid:2)C 2006 JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester, WestSussexPO198SQ,England Telephone (+44)1243779777 Email(forordersandcustomerserviceenquiries):[email protected] VisitourHomePageonwww.wiley.com AllRightsReserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystemor transmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanningor otherwise,exceptunderthetermsoftheCopyright,DesignsandPatentsAct1988orunderthetermsof alicenceissuedbytheCopyrightLicensingAgencyLtd,90TottenhamCourtRoad,LondonW1T4LP, UK,withoutthepermissioninwritingofthePublisher.RequeststothePublishershouldbeaddressed tothePermissionsDepartment,JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester,West SussexPO198SQ,England,[email protected],orfaxedto(+44)1243770620. 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OtherWileyEditorialOffices JohnWiley&SonsInc.,111RiverStreet,Hoboken,NJ07030,USA Jossey-Bass,989MarketStreet,SanFrancisco,CA94103-1741,USA Wiley-VCHVerlagGmbH,Boschstr.12,D-69469Weinheim,Germany JohnWiley&SonsAustraliaLtd,42McDougallStreet,Milton,Queensland4064,Australia JohnWiley&Sons(Asia)PteLtd,2ClementiLoop#02-01,JinXingDistripark,Singapore129809 JohnWiley&SonsCanadaLtd,6045FreemontBlvd,Mississauga,ONT,L5R4J3 Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprintmay notbeavailableinelectronicbooks. LibraryofCongressCataloging-in-PublicationData Sixsigma:advancedtoolsforblackbeltsandmasterblackbelts/LoonChingTang...[etal.]. p. cm. Includesbibliographicalreferencesandindex. ISBN-13:978-0-470-02583-3(cloth:alk.paper) ISBN-10:0-470-02583-2(cloth:alk.paper) 1.Sixsigma(Qualitycontrolstandard) 2.Totalqualitymanagement. I.Tang,LoonChing. TS156.S5372006 658.5(cid:3)62--dc22 2006023985 BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary ISBN-13 978-0-470-02583-3(HB) ISBN-10 0-470-02583-2(HB) Typesetin10/12ptBookAntiquabyTechBooks,NewDelhi,India PrintedandboundinGreatBritainbyAntonyRoweLtd,Chippenham,Wiltshire Thisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestry inwhichatleasttwotreesareplantedforeachoneusedforpaperproduction. iv JWBK119-FM August31,2006 2:52 CharCount=0 Contents Preface.................................................................................................. xi PARTA: SIXSIGMA:PAST,PRESENTANDFUTURE 1 SixSigma:APreamble..................................................................... 3 H.S.Yam 1.1 Introduction.............................................................................. 3 1.2 SixSigmaRoadmap:DMAIC....................................................... 4 1.3 SixSigmaOrganization.............................................................. 7 1.4 SixSigmaTraining..................................................................... 8 1.5 SixSigmaProjects...................................................................... 10 1.6 Conclusion............................................................................... 17 References....................................................................................... 17 2 AStrategicAssessmentofSixSigma.................................................. 19 T.N.Goh 2.1 Introduction.............................................................................. 19 2.2 SixSigmaFramework................................................................. 20 2.3 SixSigmaFeatures..................................................................... 21 2.4 SixSigma:ContrastsandPotential............................................... 22 2.5 SixSigma:InherentLimitations.................................................... 23 2.6 SixSigmaintheKnowledgeEconomy.......................................... 25 2.7 SixSigma:ImprovingtheParadigm.............................................. 27 References....................................................................................... 28 3 SixSigmaSWOT............................................................................. 31 T.N.GohandL.C.Tang 3.1 Introduction.............................................................................. 31 3.2 OutlineofSixSigma................................................................... 32 3.3 SWOTAnalysisofSixSigma....................................................... 32 3.4 FurtherThoughts....................................................................... 37 References....................................................................................... 39 v JWBK119-FM August31,2006 2:52 CharCount=0 vi Contents 4 TheEssenceofDesignforSixSigma.................................................. 41 L.C.Tang 4.1 Introduction.............................................................................. 41 4.2 TheIDOVRoadmap................................................................... 42 4.3 TheFuture................................................................................ 48 References....................................................................................... 48 5 FortifyingSixSigmawithOR/MSTools............................................. 49 L.C.Tang,T.N.GohandS.W.Lam 5.1 Introduction.............................................................................. 49 5.2 IntegrationofOR/MSintoSixSigmaDeployment.......................... 50 5.3 ANewRoadmapforSixSigmaBlackBeltTraining......................... 52 5.4 CaseStudy:ManpowerResourcePlanning.................................... 58 5.5 Conclusions.............................................................................. 68 References....................................................................................... 68 PARTB: MEASUREPHASE 6 ProcessVariationsandTheirEstimates............................................... 73 L.C.TangandH.S.Yam 6.1 Introduction.............................................................................. 73 6.2 ProcessVariability..................................................................... 76 6.3 NestedDesign........................................................................... 79 References....................................................................................... 83 7 FishboneDiagramsvs.MindMaps.................................................... 85 TimothyYoap 7.1 Introduction.............................................................................. 85 7.2 TheMindMapStepbyStep........................................................ 86 7.3 ComparisonbetweenFishboneDiagramsandMindMaps............... 87 7.4 ConclusionandRecommendations............................................... 91 References....................................................................................... 91 8 CurrentandFutureRealityTrees....................................................... 93 TimothyYoap 8.1 Introduction.............................................................................. 93 8.2 CurrentRealityTree................................................................... 94 8.3 FutureRealityTree(FRT)............................................................ 97 8.4 ComparisonwithCurrentSixSigmaTools..................................... 101 8.5 ConclusionandRecommendations............................................... 105 References....................................................................................... 105 9 ComputingProcessCapabilityIndicesforNonnormalData:AReview andComparativeStudy.................................................................... 107 L.C.Tang,S.E.ThanandB.W.Ang 9.1 Introduction.............................................................................. 107 9.2 SurrogatePCIsforNonnormalData............................................. 108 JWBK119-FM August31,2006 2:52 CharCount=0 Contents vii 9.3 SimulationStudy....................................................................... 113 9.4 DiscussionofSimulationResults.................................................. 127 9.5 Conclusion............................................................................... 128 References....................................................................................... 129 10 ProcessCapabilityAnalysisforNon-NormalDatawithMINITAB........ 131 TimothyYoap 10.1 Introduction............................................................................ 131 10.2 IllustrationoftheTwoMethodologiesUsingaCaseStudyDataSet... 132 10.3 AFurtherCaseStudy............................................................... 141 10.4 MonteCarloSimulation............................................................ 145 10.5 Summary................................................................................ 149 References....................................................................................... 149 PARTC: ANALYZEPHASE 11 Goodness-of-FitTestsforNormality................................................... 153 L.C.TangandS.W.Lam 11.1 Introduction............................................................................ 153 11.2 UnderlyingPrinciplesofGoodness-of-FitTests............................. 154 11.3 PearsonChi-SquareTest............................................................ 155 11.4 EmpiricalDistributionFunctionBasedApproaches....................... 157 11.5 Regression-BasedApproaches.................................................... 163 11.6 Fisher’sCumulantTests............................................................ 167 11.7 Conclusion.............................................................................. 170 References....................................................................................... 170 12 IntroductiontotheAnalysisofCategoricalData.................................. 171 L.C.TangandS.W.Lam 12.1 Introduction............................................................................ 171 12.2 ContingencyTableApproach..................................................... 173 12.3 CaseStudy.............................................................................. 176 12.4 LogisticRegressionApproach.................................................... 181 12.5 Conclusion.............................................................................. 193 References....................................................................................... 193 13 AGraphicalApproachtoObtainingConfidenceLimitsofC .............. 195 pk L.C.Tang,S.E.ThanandB.W.Ang 13.1 Introduction............................................................................ 196 13.2 GraphingC ,kandp................................................................. 197 p 13.3 ConfidenceLimitsfork............................................................. 199 13.4 ConfidenceLimitsForC ......................................................... 201 pk 13.5 ASimulationStudy.................................................................. 203 13.6 IllustrativeExamples................................................................ 206 13.7 ComparisonwithBootstrapConfidenceLimits............................. 207 13.8 Conclusions............................................................................ 209 References....................................................................................... 210 JWBK119-FM August31,2006 2:52 CharCount=0 viii Contents 14 DataTransformationforGeometricallyDistributed QualityCharacteristics..................................................................... 211 T.N.Goh,M.XieandX.Y.Tang 14.1 Introduction............................................................................ 211 14.2 ProblemsofThree-SigmaLimitsfortheGChart........................... 212 14.3 SomePossibleTransformations.................................................. 213 14.4 SomeNumericalComparisons................................................... 216 14.5 SensitivityAnalysisofthe QTransformation................................ 219 14.6 Discussion.............................................................................. 221 References....................................................................................... 221 15 DevelopmentofAMoistureSoakModelForSurface MountedDevices............................................................................. 223 L.C.TangandS.H.Ong 15.1 Introduction............................................................................ 223 15.2 ExperimentalProcedureandResults........................................... 225 15.3 MoistureSoakModel................................................................ 227 15.4 Discussion.............................................................................. 234 References....................................................................................... 236 PARTD: IMPROVEPHASE 16 AGlossaryforDesignofExperimentswithExamples.......................... 239 H.S.Yam 16.1 FactorialDesigns...................................................................... 239 16.2 AnalysisofFactorialDesigns..................................................... 242 16.3 ResidualAnalysis..................................................................... 243 16.4 TypesofFactorialExperiments................................................... 244 16.5 FractionalFactorialDesigns....................................................... 246 16.6 RobustDesign......................................................................... 250 17 SomeStrategiesforExperimentationunderOperationalConstraints..... 257 T.N.Goh 17.1 Introduction............................................................................ 257 17.2 HandlingInsufficientData........................................................ 258 17.3 InfeasibleConditions................................................................ 258 17.4 VariantsofTaguchiOrthogonalArrays........................................ 260 17.5 IncompleteExperimentalData................................................... 262 17.6 AccuracyofLeanDesignAnalysis.............................................. 262 17.7 ANumericalIllustration........................................................... 263 17.8 ConcludingRemarks................................................................ 264 References....................................................................................... 265 18 TaguchiMethods:SomeTechnical,Culturaland PedagogicalPerspectives.................................................................. 267 T.N.Goh 18.1 Introduction............................................................................ 268 JWBK119-FM August31,2006 2:52 CharCount=0 Contents ix 18.2 GeneralApproachestoQuality.................................................. 268 18.3 StagesinStatisticalApplications................................................. 269 18.4 TheTaguchiApproach.............................................................. 272 18.5 Taguchi’s‘StatisticalEngineering’............................................... 273 18.6 CulturalInsights...................................................................... 282 18.7 TrainingandLearning.............................................................. 286 18.8 ConcludingRemarks................................................................ 291 18.9 Epilogue................................................................................. 292 References....................................................................................... 293 19 EconomicalExperimentationvia‘LeanDesign’................................... 297 T.N.Goh 19.1 Introduction............................................................................ 297 19.2 TwoEstablishedApproaches..................................................... 298 19.3 RationaleofLeanDesign........................................................... 298 19.4 PotentialofLeanDesign........................................................... 299 19.5 IllustrativeExample................................................................. 302 19.6 PossibleApplications................................................................ 303 19.7 ConcludingRemarks................................................................ 305 References....................................................................................... 306 20 AUnifiedApproachforDualResponseSurfaceOptimization.............. 307 L.C.TangandK.Xu 20.1 Introduction............................................................................ 307 20.2 ReviewofExistingTechniquesforDualResponse SurfaceOptimization................................................................ 308 20.3 Example1............................................................................... 314 20.4 Example2............................................................................... 319 20.5 Conclusions............................................................................ 320 References....................................................................................... 322 PARTE: CONTROLPHASE 21 EstablishingCumulativeConformanceCountCharts........................... 325 L.C.TangandW.T.Cheong 21.1 Introduction............................................................................ 325 21.2 BasicPropertiesoftheCCCChart............................................... 326 21.3 CCCSchemewithEstimatedParameter....................................... 327 21.4 ConstructingACCCChart........................................................ 330 21.5 NumericalExamples................................................................ 336 21.6 Conclusion.............................................................................. 339 References....................................................................................... 340 22 SimultaneousMonitoringoftheMean,VarianceandAutocorrelation StructureofSeriallyCorrelatedProcesses........................................... 343 O.O.AtienzaandL.C.Tang 22.1 Introduction............................................................................ 344 JWBK119-FM August31,2006 2:52 CharCount=0 x Contents 22.2 TheProposedApproach............................................................ 345 22.3 ARLPerformance..................................................................... 346 22.4 NumericalExample.................................................................. 349 22.5 Conclusion.............................................................................. 351 References....................................................................................... 352 23 StatisticalProcessControlforAutocorrelatedProcesses:ASurveyand AnInnovativeApproach................................................................... 353 L.C.TangandO.O.Atienza 23.1 Introduction............................................................................ 353 23.2 DetectingOutliersandLevelShifts............................................. 355 23.3 BehaviorofλLS,t....................................................................... 358 23.4 ProposedMonitoringProcedure................................................. 363 23.5 Conclusions............................................................................ 366 References....................................................................................... 368 24 CumulativeSumChartswithFastInitialResponse.............................. 371 L.C.TangandO.O.Atienza 24.1 Introduction............................................................................ 371 24.2 FastInitialResponse................................................................. 374 24.3 Conclusions............................................................................ 379 References....................................................................................... 379 25 CUSUMandBackwardCUSUMforAutocorrelatedObservations......... 381 L.C.TangandO.O.Atienza 25.1 Introduction............................................................................ 381 25.2 BackwardCUSUM................................................................... 382 25.3 SymmetricCumulativeSumSchemes.......................................... 387 25.4 CUSUMSchemeforAutocorrelatedObservations......................... 391 25.5 Conclusion.............................................................................. 404 References....................................................................................... 405 Index.................................................................................................... 407 JWBK119-FM August31,2006 2:52 CharCount=0 Preface TheonlyplacewhereQualitycomesbeforeStatisticsisinthedictionary. (T.N.Goh) SixSigmahascomealongwaysinceitsintroductioninthemid-1980s.Ourassociation withthesubjectbeganinthe1990swhenanumberofmultinationalcorporationsin SingaporebegantodeploySixSigmainpursuitofbusinessexcellence.Priortothis, someofushadbeenworkingonstatisticalqualityimprovementtechniquesformore thantwodecades.ItwasapparentattheoutsetthatthestrengthofSixSigmaisnotin introducingnewstatisticaltechniquesasitreliesonwell-establishedandproventools; SixSigmaderivesitspowerfromthewaycorporatemindsetsarechangedtowards theapplicationofstatisticaltools,fromtopbusinessleaderstothoseontheproduction floor.Weareprivilegedtobepartofthisforceforchangethroughourinvolvement inSixSigmaprogramswithmanycompaniesintheAsia-Pacificregion. Overthelastdecade,asSixSigmahastakenrootinanumberofcorporationsinthe region,thelimitationsofexistingtoolshavesurfacedandthedemandforinnovative solutionshasincreased.ThishascoincidedwiththerapidevolutionofSixSigmaas itpermeatedacrossvariousindustries,andinmanycasestheconventionalSixSigma toolsetisnolongersufficienttoprovideadequatesolutions.Thishasopenedupmany researchopportunitiesandmotivatedclosecollaborationsbetweenacademiaandin- dustrialpractitioners.Thisbookrepresentspartofthisefforttobringtogetherpracti- tionersandacademicstoworktowardsthecommongoalofprovidinganadvanced referenceforSixSigmaprofessionals,particularlyBlackBeltsandMasterBlackBelts. Thebookisorganizedintofiveparts,offivechapterseach.Eachofthepartsrep- resentsrespectivelythedefine,measure,analyze,improveandcontrolphasesofthe traditional Six Sigma roadmap. Part A presents a strategic assessment of Six Sigma anditsSWOTanalysis,followedbydiscussionsofcurrentinterestsinSixSigma,in- cludingDesignforSixSigmaaswellasanewimprovementroadmapfortransactional SixSigma. In Part B, basic concepts of variability and some useful qualitative tools such as mindmapsandrealitytreesarepresented.Capabilityanalysisfornon-normaldatais alsodiscussedintwochaptersfocusingrespectivelyonthetheoreticalandpractical aspects. xi
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