01_045191 ffirs.qxd 8/16/06 11:35 PM Page iii by Craig Gygi Bruce Williams Terry Gustafson  Six Sigma Workbook FOR ‰ DUMmIES 01_045191 ffirs.qxd 8/16/06 11:35 PM Page ii 01_045191 ffirs.qxd 8/16/06 11:35 PM Page i  Six Sigma Workbook FOR ‰ DUMmIES 01_045191 ffirs.qxd 8/16/06 11:35 PM Page ii 01_045191 ffirs.qxd 8/16/06 11:35 PM Page iii by Craig Gygi Bruce Williams Terry Gustafson  Six Sigma Workbook FOR ‰ DUMmIES 01_045191 ffirs.qxd 8/16/06 11:35 PM Page iv ® ® Six Sigma Workbook For Dummies Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2006 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. 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Library of Congress Control Number: 2006927762 ISBN-13: 978-0-470-04519-0 ISBN-10: 0-470-04519-1 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 1O/QV/QZ/QW/IN 01_045191 ffirs.qxd 8/16/06 11:35 PM Page v About the Authors Craig Kent Gygi began studying and applying the elements of Six Sigma well before they were formalized into today’s renowned breakthrough method. As an engineering graduate student at Brigham Young University in the early 1990s, he integrated these then-unorganized improvement techniques into his research and coaching of student product development teams. Upon beginning his career in 1994 at Motorola’s Advanced Manufacturing Research Lab in Florida, he was formally introduced to the just-formalizing Six Sigma method. It res- onated deeply with his previous findings. From that time, Craig has applied, taught, and led Six Sigma in all his endeavors, including management and technical capacities at Motorola, Iomega, and General Atomics. In 1998, Craig founded TolStack, Inc., to develop commercial Six Sigma software tools. He also worked for several years as a technical colleague of Dr. Mikel J. Harry, the original consultant of Six Sigma, co-developing and teaching new advances in its theory and application. In 2002, Craig co-founded Savvi International, into which TolStack merged. Savvi provides solutions for business performance improvement using Six Sigma, Lean, and Business Process Management techniques. Craig acted as the director of Savvi’s products, service, and tools. Today, Craig works with companies in the USA and internationally to integrate Six Sigma practices directly into their core operations. A Master Black Belt, Craig has wielded Six Sigma techniques now for over 13 years, spanning projects from design to manufacturing to business management. He is also an expert teacher, having instructed and mentored at all levels of Six Sigma, from executives to White Belts. Bruce David Williams has been fascinated with complex systems since the launch of Sputnik on his third birthday. With undergraduate degrees from the University of Colorado in Physics and Astrophysics, he entered a career in aerospace systems, where he first encountered Six Sigma after Motorola won the inaugural Baldridge Award in 1988. Later, with graduate degrees in technical management and computer science from Johns Hopkins University and Colorado, and as a member of the Hubble Telescope development team, he was intrigued by how breakdowns in the smallest components could lead to colossal system failures. He entered the Six Sigma industry for good in the mid-1990s when he founded a software com- pany to pursue product life-cycle traceability. Bruce has since been founder and CEO of two Six Sigma research and technology firms, and is now Chairman and CEO of Savvi International, a provider of solutions for business perform- ance improvement using Six Sigma, Lean, and Business Process Management techniques. He resides in the highly-variable environment of the desert foothills of North Scottsdale, Arizona, with his wife, two children, and a normal distribution of dogs, cats, birds, and horses. Terry James Gustafson comes out of the world of business and finance, and brings a practi- cal and entrepreneurial perspective to Six Sigma. After an undergraduate degree in finance from Baldwin-Wallace, and an MBA degree from Kent State, he began his career in the field of accounting with KPMG Peat Marwick in 1969, and advanced to a Partner position in auditing. After leaving public accounting in 1990, Terry helped found, build, and operate a series of technology-based entrepreneurial ventures, including venture-backed companies as well as a public company. In 2002, Terry co-founded Savvi International, which provides solutions for business perform- ance improvement using Six Sigma, Lean, and Business Process Management techniques. Terry serves as Savvi’s chief finance and operations officer. Since founding Savvi, Terry has been immersed in Six Sigma techniques, helping to design and develop Savvi’s training courses in Six Sigma and Lean. In addition, he has extensively taught Six Sigma courses, both in a classroom and as an online instructor. 01_045191 ffirs.qxd 8/16/06 11:35 PM Page vi Dedication Craig Gygi: To Darren, a true brother. Bruce Williams: To my mom and dad, Jane and Coe. When it comes to cause and effect, they wrote my book! Terry Gustafson: To my incredible wife, Sherrie, for putting up with all my entrepreneurial nonsense without once using the term “dummy.” Publisher’s Acknowledgments We’re proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register/. Some of the people who helped bring this book to market include the following: Acquisitions, Editorial, and Media Development Composition Project Editor: Natalie Faye Harris Project Coordinator: Jennifer Theriot Acquisitions Editor: Kathy Cox Layout and Graphics: Carrie A. Foster, Denny Hager, Copy Editor: Jessica Smith Stephanie D. Jumper, Lynsey Osborn General Reviewer: Tom Pearson Proofreaders: Debbye Butler, John Greenough Editorial Manager: Christine Beck Indexer: Dakota Indexing Editorial Assistants: Erin Calligan, David Lutton, Nadine Bell Cartoons: Rich Tennant (www.the5thwave.com) Publishing and Editorial for Consumer Dummies Diane Graves Steele, Vice President and Publisher, Consumer Dummies Joyce Pepple, Acquisitions Director, Consumer Dummies Kristin A. Cocks, Product Development Director, Consumer Dummies Michael Spring, Vice President and Publisher, Travel Kelly Regan, Editorial Director, Travel Publishing for Technology Dummies Andy Cummings, Vice President and Publisher, Dummies Technology/General User Composition Services Gerry Fahey, Vice President of Production Services Debbie Stailey, Director of Composition Services 02_045191 ftoc.qxd 8/16/06 11:41 PM Page vii Contents at a Glance Introduction.................................................................................1 Part I: Getting Started in Six Sigma...............................................5 Chapter 1: Getting Ready for Six Sigma: The Effects of Variation ..........................................................7 Chapter 2: Forming a Six Sigma Initiative................................................................................................13 Chapter 3: Leading and Managing a Six Sigma Initiative .......................................................................27 Part II: Defining a Six Sigma Project ...........................................43 Chapter 4: Putting the Right Foot Forward: Defining a Six Sigma Project...........................................45 Chapter 5: Brainstorming the Inputs to Your Process...........................................................................53 Chapter 6: Prioritizing Which Inputs to Address ...................................................................................69 Part III: Mastering Measuring .....................................................85 Chapter 7: Categorizing Data and Calculating Measures of Variation .................................................87 Chapter 8: A Picture’s Worth 1,000 Words: Measuring with Charts and Graphs .............................107 Chapter 9: Yield and Defects: Calculating the Good, the Bad, and the Ugly ....................................129 Part IV: Assessing the Right Approach to Your Analysis ..............141 Chapter 10: Mastering Measurement System Analysis (MSA) ...........................................................143 Chapter 11: Capability: Matching Performance to Need.....................................................................155 Chapter 12: Narrowing Your Inputs with Confidence ..........................................................................169 Part V: Improving and Controlling .............................................183 Chapter 13: Quantifying Variable Relationships...................................................................................185 Chapter 14: Planning and Conducting 2k Factorial Experiments .......................................................209 Chapter 15: Constructing Control Plans and Charts ...........................................................................239 Part VI: The Part of Tens...........................................................281 Chapter 16: Ten Implementation Myths of Six Sigma ..........................................................................283 Chapter 17: Ten Tips for Finishing a Six Sigma Project Successfully.................................................287 Index.......................................................................................291 02_045191 ftoc.qxd 8/16/06 11:41 PM Page viii