DMAIC & DMADV in Six Sigma: Optimizing Processes & Products

Posted on Jan 24, 2025 in Business Administration and Innovation Management

DMAIC & DMADV in Six Sigma: Optimizing Processes & Products

DMAIC is a structured problem-solving and process improvement methodology used in Six Sigma. The acronym DMAIC stands for Define, Measure, Analyze, Improve, and Control. This approach is widely employed to enhance processes, reduce defects, and improve overall business performance. Let’s delve into each phase of DMAIC:

Define

• Objective: Clearly define the problem or the improvement opportunity. Understand the project’s goals and scope.
• Inputs: Gather input from stakeholders to ensure a comprehensive understanding of the issue.
• Outputs: Develop a project charter that includes objectives, scope, and a high-level project plan.

Tools:

SIPOC (Supplier, Input, Process, Output, Customer): Helps identify and clarify the process elements and their relationships.

Measure

• Objective: Establish a baseline by measuring the current process performance.
• Inputs: Identify critical process variables and metrics. Collect relevant data.
• Outputs: Develop a process map, collect data, and analyze the measurement system’s capability (if applicable).

Tools:

Fishbone Diagram (Ishikawa or Cause-and-Effect Diagram): Identifies potential causes of problems or variation in a process.

Analyze

• Objective: Identify the root causes of the problem or factors contributing to the process variation.
• Inputs: Use statistical analysis and tools to scrutinize data and uncover patterns or trends.
• Outputs: Identify key factors affecting the process, prioritize issues, and determine the relationship between variables.

Tools:

Pareto Analysis: Identifies and prioritizes the most significant causes of problems.

Improve

• Objective: Develop and implement solutions to address the identified root causes and improve the process.
• Inputs: Generate and evaluate potential solutions. Develop a pilot plan for implementation.
• Outputs: Implement the solutions and monitor their impact. Make adjustments as necessary.

Tools:

Failure Mode & Effects Analysis (FMEA): Identifies potential failure modes and their impact, prioritizing them for improvement.

Control

• Objective: Establish controls to sustain the improvements and prevent the recurrence of the problem.
• Inputs: Develop a control plan, which includes monitoring, documentation, and response plans.
• Outputs: Implement the control plan and transfer ownership of the process to the responsible parties. Monitor performance to ensure sustained improvement.

Tools:

Control Plan: Documents the procedures for monitoring and controlling the improved process.

DMADV: A Six Sigma Methodology for New Processes

DMADV is another methodology within Six Sigma that focuses on designing new processes, products, or services. The acronym DMADV stands for Define, Measure, Analyze, Design, and Verify. This methodology is particularly useful when an organization is introducing a new product or service or making significant changes to existing processes.

Define

Objective: Clearly define the goals and scope of the project, considering the needs of customers and stakeholders.

Tools:

• Quality Function Deployment (QFD): Helps translate customer needs into specific product or process requirements.
• Kano Model: Classifies customer requirements into basic needs, performance needs, and excitement needs.

Measure

Objective: Establish measurable specifications and criteria for success based on customer requirements.

Tools:

• Benchmarking: Compares the performance of the new process or product against industry or competitor standards.
• Measurement System Analysis (MSA): Ensures the reliability and accuracy of measurement systems.

Analyze

Objective: Analyze and identify potential risks, opportunities, and critical parameters that may impact the success of the design.

Tools:

• Failure Modes & Effects Analysis (FMEA): Evaluates potential failure modes and their impact on the design.
• Root Cause Analysis: Investigates the causes of potential design issues.

Design

Objective: Develop the detailed design of the new process, product, or service based on the requirements and analyses.

Tools:

• Computer-Aided Design (CAD): Supports the creation of detailed design specifications.
• Prototyping: Builds physical or digital models to validate the design before full-scale implementation.

Verify

Objective: Verify the performance of the new design against the established criteria and gain approval for full-scale implementation.

Tools:

Statistical Process Control (SPC): Monitors and controls the new process to ensure it meets specifications.

DMADV is a disciplined and systematic approach to design and innovation, ensuring that new processes or products meet customer expectations and are robust and reliable.

DMADV Example: Online Banking System Development

Let’s examine the DMADV methodology in the context of developing a new online banking system for a financial institution:

Define

Objective: Develop a modern online banking system that meets the evolving needs of customers, enhances user experience, and ensures secure and efficient financial transactions.

Tools:

• Quality Function Deployment (QFD): Capture customer needs such as easy navigation, secure transactions, 24/7 accessibility, and personalized user interfaces.
• Kano Model: Classify features into basic needs (e.g., secure transactions), performance needs (e.g., user-friendly interfaces), and excitement needs (e.g., innovative features like financial insights).

Measure

Objective: Establish measurable specifications for key features, performance, and security criteria.

Tools:

• Benchmarking: Compare the performance and features of existing online banking systems in the industry.
• Measurement System Analysis (MSA): Ensure that metrics like response time and security features can be reliably measured.

Analyze

Objective: Identify potential risks and opportunities in the design, considering factors like potential security threats, scalability challenges, and user adoption.

Tools:

• Failure Modes & Effects Analysis (FMEA): Assess potential failure modes such as system downtime, data breaches, and user dissatisfaction.
• Root Cause Analysis: Investigate the root causes of potential issues identified in the analysis.

Design

Objective: Develop the detailed design of the new online banking system based on the requirements and analysis.

Tools:

• Computer-Aided Design (CAD): Create detailed system architecture and user interface designs.
• Prototyping: Build a prototype to test and validate the user interface and overall system functionality.

Verify

Objective: Verify that the new online banking system meets the established criteria for performance, security, and user experience.

Tools:

• Statistical Process Control (SPC): Monitor system performance in real-time, identifying and addressing any deviations from specifications.
• Control Plan: Establish procedures for ongoing monitoring, maintenance, and continuous improvement of the online banking system.

By following the DMADV methodology in this example, the financial institution ensures that the new online banking system is designed with a deep understanding of customer needs, is based on robust measurements and analyses, and undergoes thorough verification before full-scale implementation. This approach increases the likelihood of success and customer satisfaction with the new system.

DMAIC Example: Manufacturing Process Improvement

Let’s apply the DMAIC methodology in the context of improving the efficiency of a manufacturing process for a company that produces electronic components:

Define

Problem: The manufacturing process is experiencing a high rate of defects, leading to increased rework and customer complaints.

Objective: Reduce the defect rate by 50% within the next 6 months.

Tools:

• Project Charter: Define the scope, goals, team members, and timeline for the improvement project.
• SIPOC (Supplier, Input, Process, Output, Customer): Map out the key elements of the current manufacturing process.

Measure

Problem Metrics: Collect data on the current defect rate, rework time, and customer complaints.

Objective Metrics: Define specific metrics for measuring improvement, such as reducing defects per unit or increasing the yield percentage.

Tools:

• Process Map: Document the steps of the manufacturing process and identify potential sources of defects.
• Data Collection Plan: Outline how data will be collected, including sampling methods and measurement systems.

Analyze

Identify Root Causes: Analyze data to identify the main factors contributing to defects.

Prioritize Issues: Use Pareto analysis to identify and prioritize the most significant causes of defects.

Tools:

• Fishbone Diagram (Ishikawa): Identify potential causes across categories like equipment, materials, methods, and personnel.
• Statistical Analysis (e.g., Regression, Hypothesis Testing): Analyze data to determine the relationships between variables and identify significant factors.

Improve

Generate Solutions: Brainstorm and evaluate potential solutions to address the identified root causes.

Develop Implementation Plan: Create a plan for implementing the selected solutions on a small scale (pilot).

Tools:

• Failure Mode & Effects Analysis (FMEA): Assess the potential impact of proposed changes and prioritize them.
• Pilot Testing: Implement changes on a limited scale to assess their effectiveness.

Control

Establish Controls: Develop a control plan to ensure the sustained improvement of the manufacturing process.

Monitor Performance: Implement statistical process control (SPC) charts to monitor key process metrics.

Tools:

• Control Plan: Document the procedures for monitoring and maintaining the improved process.
• SPC Charts: Track the stability of the process and detect any deviations from the desired performance.

PDCA Cycle: A Foundation for Continuous Improvement

The PDCA (Plan-Do-Check-Act) cycle is a fundamental concept in quality management and improvement methodologies, including Six Sigma. Six Sigma is a disciplined, data-driven approach for process improvement that seeks to eliminate defects and improve overall efficiency and effectiveness. The PDCA cycle, also known as the Deming Cycle or Shewhart Cycle, is integrated into the Six Sigma methodology to drive continuous improvement. Here’s how PDCA is applied in Six Sigma:

Plan (Define)

• Define the Problem: Clearly articulate the problem or opportunity for improvement.
• Set Objectives: Establish specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
• Plan the Improvement: Develop a detailed plan outlining the steps and resources required to achieve the objectives.

Do (Measure)

• Implement the Plan: Execute the planned improvements on a small scale.
• Collect Data: Gather relevant data to measure the performance and effectiveness of the changes.
• Document Changes: Keep track of any modifications made during the implementation.

Check (Analyze)

• Compare Results: Analyze the collected data and compare it against the objectives set in the planning phase.
• Identify Deviations: Determine whether the implemented changes have resulted in improvements or if there are any unexpected deviations.
• Root Cause Analysis: If deviations occur, perform root cause analysis to identify the underlying issues.

Act (Improve)

• Standardize or Adjust: If the changes are successful, standardize them and integrate them into regular processes. If not, make necessary adjustments.
• Document Lessons Learned: Capture insights gained from the improvement process.
• Plan for the Next Cycle: Use the lessons learned to plan for the next cycle of improvement or further refinement.

The PDCA cycle is a continuous loop, emphasizing the iterative nature of improvement. Each cycle builds upon the knowledge and experience gained from the previous ones, leading to ongoing enhancement of processes and outcomes. The application of PDCA within Six Sigma helps organizations achieve and maintain high levels of quality and efficiency by systematically addressing and refining processes.

PDCA Cycle Example: Reducing Defects in Widget Production

Let’s consider an example of applying the PDCA cycle within a manufacturing process in a company that produces widgets. The goal is to reduce the defect rate in the widget production process.

Plan (Define)

• Problem Identification: The defect rate in widget production is currently at 5%, which is higher than the industry standard of 2%.
• Objective Setting: The goal is to reduce the defect rate to 2% within the next quarter.
• Plan Development: A team is formed to analyze the production process, identify potential causes of defects, and develop a plan to address the issues.

Do (Measure)

• Implementation: The team implements changes to the widget production process based on their analysis and plan.
• Data Collection: During the implementation, data is collected on the defect rates at different stages of production and any other relevant process metrics.
• Documentation: Changes made to the production process are documented, and any unexpected issues encountered are noted.

Check (Analyze)

• Compare Results: The collected data is analyzed to determine the impact of the changes on the defect rate.
• Identify Deviations: Any unexpected deviations or issues are investigated, and root cause analysis is performed.
• Evaluate Effectiveness: Assess whether the implemented changes have brought the defect rate closer to the target of 2%.

Act (Improve)

• Standardize or Adjust: If the changes have successfully reduced the defect rate, they are standardized and integrated into the standard operating procedures.
• Document Lessons Learned: Insights gained from the process, both successes and failures, are documented for future reference.
• Plan for the Next Cycle: Based on the lessons learned, the team plans for the next improvement cycle, which may involve further refinement of the process or addressing additional factors.

The team continues to iterate through the PDCA cycle, making continuous improvements to the widget production process. Over time, the defect rate is reduced, and the process becomes more efficient and effective. This iterative approach allows for ongoing enhancement and adaptation to changing conditions within the organization.

Roles and Responsibilities in Six Sigma

1. Leadership Team

A leadership team or council defines the goals and objectives in the Six Sigma process.

Responsibilities:

• Defines the purpose of the Six Sigma program.
• Explains how the result is going to benefit the customer.
• Sets a schedule for work and interim deadlines.
• Develops a means for review and oversight.
• Supports team members and defends established positions.

2. Sponsor

Six Sigma sponsors are high-level individuals who understand Six Sigma and are committed to its success. The individual in the sponsor role acts as a problem solver for the ongoing Six Sigma project. Sponsors are the owners of processes and systems, who help initiate and coordinate Six Sigma improvement activities in their areas of responsibility.

3. Implementation Leader

The person responsible for supervising the Six Sigma team effort, who supports the leadership council by ensuring that the work of the team is completed in the desired manner, is the Implementation Leader. Ensuring the success of the implementation plan and solving problems as they arise, training as needed, and assisting sponsors in motivating the team are some of the key responsibilities of an implementation leader.

4. Coach

A Coach is a Six Sigma expert or consultant who sets a schedule, defines the result of a project, and mediates conflict or deals with resistance to the program. Duties include working as a go-between for the sponsor and leadership, scheduling the work of the team, identifying and defining the desired results of the project, mediating disagreements, conflicts, and resistance to the program, and identifying success as it occurs.

5. Team Leader

A Team Leader is an individual responsible for overseeing the work of the team and for acting as a go-between with the sponsor and the team members. Responsibilities include communication with the sponsor in defining project goals and rationale, picking and assisting team members and other resources, keeping the project on schedule, and keeping track of steps in the process as they are completed.

6. Team Member

A Team Member is an employee who works on a Six Sigma project, given specific duties within a project, and has deadlines to meet in reaching specific project goals. Team members execute specific Six Sigma assignments and work with other members of the team within a defined project schedule to reach specifically identified goals.

Six Sigma Belts

White Belt

A Six Sigma White Belt is the basic level of certification that provides information about the basic concepts of Six Sigma. White Belts can not only assist with change management within an organization, but they can also participate on local problem-solving teams that support projects.

Yellow Belt

Six Sigma Yellow Belts are those who have basic knowledge of Six Sigma but don’t lead their own projects. While they’re not project leaders, they often start projects using a method known as PDCA, which stands for Plan, Do, Check, and Act. Yellow Belts are responsible for identifying certain processes that need improvement. The Yellow Belt is an introductory position within Six Sigma that is often called upon to assist Green and Black Belts with projects.

Green Belt

Six Sigma Green Belts are skilled team players, and their aim is to improve process quality. They help to bridge the gap between the Six Sigma theory and real-world application. Six Sigma Green Belt candidates play a vital role in improving the process, data inspection, or project management. The Green Belts have two primary tasks: first, to help successfully deploy Six Sigma techniques, and second, to lead small-scale improvement projects within their respective areas.

Black Belt

The person possessing this belt has achieved the highest skill level and is an experienced expert in various techniques. As applied to the Six Sigma program, the individual designated as a Black Belt has completed a thorough internal training program and has the experience of working on several projects. The Black Belt holder is usually given the role of the person who is responsible for execution and scheduling. A certified Black Belt exhibits team leadership, understands team dynamics, and assigns their team members with roles and responsibilities.

Master Black Belt

A Master Black Belt is a Black Belt with additional training and experience. He or she has been able to gain experience managing several projects and has a deep expertise and knowledge base in the tools and methods of Six Sigma. A person who deals with the team or its leadership but is not a direct member of the team itself. The Master Black Belt is available to answer procedural questions and to resolve the technical issues that come up.

Champion

The Six Sigma Champion is a senior or middle-level executive whose role is choosing and sponsoring specific projects. He or she ensures the availability of resources. A Champion is the person on the team who knows the business at hand inside and out as well as the Six Sigma Methodology. They are responsible for ensuring that whatever projects are undertaken mesh well with the goals and intentions of the business or corporation overall.

Failure Mode

A Failure Mode is the way in which the component, subassembly, product, input, or process could fail to perform its intended function. Failure modes may be the result of upstream operations or may cause downstream operations to fail. Things that could go wrong.

Why FMEA?

• Methodology that facilitates process improvement.
• Identifies and eliminates concerns early in the development of a process or design.
• Improves internal and external customer satisfaction.
• Focuses on prevention.
• FMEA may be a customer requirement (likely contractual).
• FMEA may be required by an applicable Quality Management System Standard (possibly ISO).

A structured approach to:

• Identifying the ways in which a product or process can fail.
• Estimating risk associated with specific causes.
• Prioritizing the actions that should be taken to reduce risk.
• Evaluating design validation plan (design FMEA) or current control plan (process FMEA).

When to Conduct an FMEA

• Early in the process improvement investigation.
• When new systems, products, and processes are being designed.
• When existing designs or processes are being changed.
• When carry-over designs are used in new applications.
• After system, product, or process functions are defined, but before specific hardware is selected or released to manufacturing.

Steps to Conduct FMEA

1. For each process input (start with high-value inputs), determine the ways in which the input can go wrong (failure mode).
2. For each failure mode, determine effects.
3. Identify potential causes of each failure mode.
4. List current controls for each cause.
5. Calculate the Risk Priority Number (RPN).
6. Develop recommended actions, assign responsible persons, and take actions.
7. Assign the predicted severity, occurrence, and detection levels and compare RPNs.

What is Sigma (σ)?

• The term ‘Sigma,’ taken from the Greek alphabet, is used to designate the distribution or spread about the mean (average) of any parameter of a product, process, or procedure.
• Six Sigma is a system of practices originally developed by Motorola to systematically improve processes by eliminating defects.
• The process was pioneered by Bill Smith at Motorola in 1986 and was originally defined as a metric for measuring defects and improving quality, and a methodology to reduce defect levels below 3.4 defects per one million opportunities (DPMO).

What is Six Sigma (6σ)?

• The level of process performance equivalent to producing only 3.4 parts per million defects or has a yield of 99.9997%.
• Six Sigma has evolved over the last two decades, and so has its definition. Six Sigma has literal, conceptual, and practical definitions.
• Six Sigma can be taken at three different levels:
  • As a metric
  • As a methodology
  • As a management system

Essentially, Six Sigma is all three at the same time.

Six Sigma as a Metric

• The term “Sigma” is often used as a scale for levels of “goodness” or quality.
• Using this scale, “Six Sigma” equates to 3.4 defects per one million opportunities (DPMO).
• Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.

Six Sigma as a Methodology

• As Six Sigma has evolved, there has been less emphasis on the literal definition of 3.4 DPMO.
• Six Sigma is a business improvement methodology that focuses an organization on:
  • Understanding and managing customer requirements.
  • Aligning key business processes to achieve those requirements.
  • Utilizing rigorous data analysis to minimize variation in those processes.
  • Driving rapid and sustainable improvement to business processes.
• Structured problem-solving techniques and roadmap.
• Two primary sub-methodologies in Six Sigma:
  • DMAIC: Define-Measure-Analyze-Improve-Control — Tool for incremental process improvement of existing processes.
  • DMADV: Define-Measure-Analyze-Design-Verify — Methodology for producing new processes.

5 Whys Analysis

5 Whys Analysis is a simple problem-solving technique that helps users get to the root of the problem quickly. It was made popular in the 1970s by the Toyota Production System. This strategy involves looking at a problem and asking “why” and “what caused this problem”. Often the answer to the first “why” prompts a second “why” and so on—providing the basis for the “5-why” analysis.

It is an iterative interrogative technique used to explore the cause-and-effect relationships underlying a particular problem.

Example:

1. Why didn’t we send the newsletter on time? Updates were not implemented until the deadline.
2. Why were the updates not implemented on time? Because the developers were still working on the new features.
3. Why were the developers still working on the new features? One of the new developers didn’t know the procedures.
4. Why was the new developer unfamiliar with all procedures? He was not trained properly.
5. Why was he not trained properly? Because the chief believes that new employees don’t need thorough training and they should learn while working.

Barrier Analysis

Barrier Analysis is a model used by some organizations to understand both why a problem happened and how it can be prevented. It’s primarily applied to safety incidents, but can be used for other issues as well. The premise of a barrier analysis is that a problem is prevented by having barriers in place to control hazards.

Barrier Analysis is also called Target-Hazard-Barrier analysis.

Barrier analysis is a root cause analysis method that considers the pathways through which a hazard can affect a target.

Failure Mode and Effects Analysis (FMEA)

Failure Mode and Effects Analysis (FMEA) is a structured approach to discovering potential failures that may exist within the design of a product or process.

Failure modes are the ways in which a process can fail.

Effects are the ways that these failures can lead to waste, defects, or harmful outcomes for the customer.

Failure Mode and Effects Analysis is designed to identify, prioritize, and limit these failure modes.

An FMEA is an engineering analysis done by a cross-functional team of subject matter experts that thoroughly analyzes product designs or manufacturing processes early in the product development process and finds and corrects weaknesses before the product gets into the hands of the customer.

Fishbone Diagram

The Fishbone Diagram or Ishikawa Diagram is a cause-and-effect diagram that helps managers to track down the reasons for imperfections, variations, defects, or failures.

The diagram looks just like a fish’s skeleton with the problem at its head and the causes for the problem feeding into the spine. Once all the causes that underlie the problem have been identified, managers can start looking for solutions to ensure that the problem doesn’t become a recurring one.

It is a tool used to visualize all the potential causes of a problem in order to discover the root causes. The fishbone diagram helps one group these causes and provides a structure in which to display them.

Pareto Analysis

Pareto Analysis is a statistical technique in decision-making used for the selection of a limited number of tasks that produce a significant overall effect. It uses the Pareto Principle (also known as the 80/20 rule) the idea that by doing 20% of the work you can generate 80% of the benefit of doing the entire job.

A Pareto Chart is a basic quality tool that helps you identify the most frequent defects, complaints, or any other factor you can count and categorize.

Pareto Analysis is a simple decision-making technique for assessing competing problems and measuring the impact of fixing them. This allows you to focus on solutions that will provide the most benefit.

SIPOC Diagram

• A SIPOC analysis is a simple tool for identifying the Suppliers and their Inputs into a process, the high-level steps of a Process, the Outputs of the process, and the Customer (market) segments interested in the outputs.
• Team members identify relevant suppliers by asking the following questions:
  • Where does information and material come from?
  • Who are the suppliers?
• Team members identify relevant inputs by asking the following questions:
  • What do your suppliers provide?
  • What effect do the inputs or supplies (Xs) have on the process?
  • What effect do the inputs or supplies (Xs) have on the CTQs?
• Team members identify relevant outputs by asking the following questions:
  • What products or services does this process make?
  • What are the CTQs that are critical to the customer’s perception of quality?
• Team members identify the customer (market) segments for the outputs by asking the following questions:
  • Who are the customers or market segments of these outputs?
  • Have you identified the CTQs for each market segment?

Cause and Effect Diagrams (Ishikawa Diagram) (Fishbone Diagram)

• Cause-Effect is also known as Fish-bone diagram as the shape is somewhat similar to the side view of a fish skeleton. During problem-solving, everyone in the team has a different opinion about the root cause of the issue or problem.
• Fish-bone diagram captures all causes, ideas and uses brainstorming method to identify the strongest root cause. Cause-Effect diagram records causes of specific problems or issues related to the processor system. You will get many different causes for a specific problem.
• To start with the fishbone, you need to state your problem as a question, that too in terms of “why”. This will help in brainstorming as each question should have an answer. In the end, the entire team should agree on the problem statement and then place this question at the “head” of the fish-bone.

Normal Probability Plots

• How do we know whether a normal distribution is a reasonable model for data? Probability plotting is a graphical method for determining whether sample data conform to a hypothesized distribution based on a subjective visual examination of the data.
• Probability plotting typically uses special graph paper, known as probability paper, that has been designed for the hypothesized distribution.
• METHODOLOGY
  • To construct a Normal Probability plot, rank order the data from the smallest value to the largest value.
  • Assign probabilities to each value based on rank, the assumed distribution, and the number of samples.
  • Plot the value against its probability on Probability Plot.
  • Draw a line of best fit through the center of data.

Quality Function Deployment (QFD)

Quality Function Deployment (QFD) is a structured approach for integrating the “voice of customer” into the product or service development process.

• Customer requirements are factored into every aspect of the process.
• Structure of QFD is based on set of matrices.
  • Main matrix relates customer requirements (what) and their corresponding technical requirements.
  • Additional features include:
    • Importance weightings
    • Competitive evaluations
  • Correlational matrix is constructed for technical requirements: Reveals conflicting technical requirements.
• Set of matrices referred as HOUSE OF QUALITY