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The Lean Six Sigma Black Belt Handbook
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Table of Contents

OVERVIEW OF LEAN SIX SIGMA

Introduction to Lean Six Sigma Methodology
In a Nutshell
Introduction
The Notion of Standing upon the Shoulders of Giants
LSS Cultural Building Blocks
Connecting the Tools with Engineering Goals
What Came First-Six Sigma or Lean?
Technical Competency Levels
LSS Belt Levels
Lean Six Sigma Master Black Belt (LSSMBB)
Lean Six Sigma Black Belt (LSSBB)
Lean Six Sigma Green Belt (LSSGB)
Lean Six Sigma Yellow Belt (LSSYB)
Lean Six Sigma Blue Belt
Five Phases of an LSS Improvement Project
Summary

Process Improvement and Lean Six Sigma
In a Nutshell
Introduction
AN LSS Quality Focus on the Business Process
Some Basic Definitions
Objectives of Process Improvement
Cross-Functional Focus
Critical Success Factors
Nature of LSS Process Improvement
Advantages of LSS Process Improvement
Determining Process Ownership
The Nature of Business Processes
Management's Traditional Focus
Cross-Functional Focus
Process Ownership
The Process Owner
The Process Management Committee
The Process Quality Team
Selection, Responsibilities, and Authority of the Process Owner
Selection of the Process Owner
Responsibilities of the Process Owner
Authority of the Process Owner
Process Definition and the Process Model
Definition of Process Mission and Scope
Summary
Exercise

THE LEAN JOURNEY INTO PROCESS IMPROVEMENT

Waste Identification
In a Nutshell
Overview
What Is Variation?
How Do We Chart Variation?
Why Is Understanding and Controlling Variation So Important?
What Is Waste?
Defining the Value-Added Work Components
How Does Waste Creep into a Process?
The Power of Observation
Seeing with New Eyes
Waste 1: Overproduction
What Causes Overproduction?
How to Identify Overproduction
Waste 2: Excess Inventories
What Causes Excess Inventory?
How to Identify Excess Inventory
Waste 3: Defects
What Causes Defects?
How to Identify Defects
Waste 4: Extra Processing
What Causes Processing Waste?
How to Identify Processing Waste
Waste 5: Waiting
What Causes Waiting Waste?
How to Identify Waiting Waste
Waste 6: Motion
What Causes Motion Waste?
How to Identify Motion Waste
Waste 7: Transportation
What Causes Transportation Waste?
How to Identify Transportation Waste
Waste 8: Underutilized Employees
What Causes Underutilized Employees Waste?
How to Identify Underutilized Employee Waste
Waste 9: Behavior
How to Identify Behavior Waste
Summary

Lean Concepts, Tools, and Methods
Overview
Traditional Organization Operational Philosophy
Lean Operational Philosophy
Lean Management Concepts
Waste
Value-Added Activities
No-Value-Added Activities
Business-Value-Added Activities
Waste Identification
Waste Elimination
Value Stream
Value Stream Management
Continuous Flow
Pull Systems
Point of Use Storage
Quality at the Source
Just-in-Time
Kaizen
5M's-Materials, Machines, Manpower, Method, and Measurements
Key Process Input Variables (KPIVs)
Key Process Output Variables (KPOVs)
Lean Tools
5S Workplace Organization and Standardization
Just the Facts
5S Means Action
Common Omissions When Implementing 5S
Overall Equipment Effectiveness
Just the Facts
How to Use OEE
Applying OEE in Nonmanufacturing Environments
Mistake Proofing
Just the Facts
How to Use Mistake Proofing
Cellular Manufacturing
Just the Facts
How to Create Manufacturing Cells
Kanban
Just the Facts
How to Use Kanban
Value Stream Mapping
Just the Facts
Managing with Maps
Visual Controls
Just the Facts
How to Use Visual Controls
The Power of Lean Concepts and Lean Tools
Composite U-Cell Case Study
Lean Six Sigma Concepts and Tools Used
Summary

Three Faces of Change-Kaizen, Kaikaku, and Kakushin
In a Nutshell
Introduction
Resistance to Change
Fear of the Unknown
Measurement Systems
Beliefs
Overcoming Resistance to Change
Leaving Old Beliefs Behind
Considering New Possibilities
Emergence of LSS
Three Faces of Change
Kaizen-Continuous Improvement
Kaizen and You Method
Kaizen for Process Troubleshooting
Step 1: Go to Gemba
Step 2: Conduct Gembutsu
Step 3: Take Temporary Countermeasures "on the Spot"
Step 4: Find Root Causes
Step 5: Standardize to Prevent Recurrence
Kaizen Teams
Possible Target Areas for Kaizen Teams
Preparing for Kaizen
Team Member Roles in Kaizen
Overcoming Obstacles during Kaizen
Kaikaku-Transformation of Mind
How Do We Recognize Kaikaku (Transformation of Mind)?
Kaikaku in Cell Design
Kaikaku in Facility Layouts
Kakushin (Innovation)
The 20-20 Innovation Process
Summary

SSBB OVERVIEW

On Integrating LSS and DMAIC with DMADV
In a Nutshell
Overview
Goals of Lean DMADV
Lean Design
Goals of DMAIC/DMADV
Overview of How DMAIC Works
Overview of How DMADV Works
Comparing DMAIC and DMADV
Integrating Lean with DMAIC/DMADV
Root Cause Analysis and Lean
Groups of Root Cause Analysis Tools
Summary

LSSBB ADVANCED NONSTATISTICAL TOOLS

Black Belt Nonstatistical Tools (A through M)
Introduction
5S
Just the Facts
Example
Additional Reading
Benchmarking of Processes
Just the Facts
What Will Benchmarking Do for You?
History of Benchmarking
Types of Benchmarking
Internal Benchmarking
External Benchmarking
Guidelines and Tips
What Are the Primary Reasons for Using Process Benchmarking?
The What
The How
The Five Phases of Internal and External Combined Benchmarking Process
Examples
Additional Reading
Bureaucracy Elimination Methods
Just the Facts
Process-Focused Approach
Incident-Focused Approach
Examples
Example 1
Example 2
Example 3
Additional Reading
Conflict Resolution
Just the Facts
Example
Additional Reading
Critical to Quality
Just the Facts
Critical to Quality (CTQ) Characteristics
Example
Additional Reading
Cycle Time Analysis and Reduction
Just the Facts
Applications of Cycle Time Analysis and Reduction
Cycle Time Analysis and Reduction Process
Examples
Additional Reading
Fast-Action Solution Technique (FAST)
Just the Facts
Examples
Additional Reading
Foundation of Six Sigma (Minimizing Variation)
Just the Facts
What Does "Good Enough" Mean?
Example
Additional Reading
Just-in-Time (JIT)
Just the Facts
Example
Additional Reading
Matrix Diagram/Decision Matrix
Just the Facts
L-Shaped Matrix
T-Shaped Matrix
Guidelines and Tips
Examples
Additional Reading
Measurements
Just the Facts
Principles of Good Measure
Examples
Quality Measurement
Additional Reading Black Belt Nonstatistical Tools (O Through Q)
Organizational Change Management (OCM)
Just the Facts
Seven Phases of OCM
Phase I: Defining Current State Pain
Phase II: Establishing a Clear Vision of the Future State Solution
Phase III: Defining Change Roles
Phase IV: Mapping Change Roles
Phase V: Defining the Degree of Change Required
Phase VI: Developing the Organizational Change Management Plan
Phase VII: Implementing the Change Management Plan
Examples
Additional Reading
Pareto Diagrams
Just the Facts
The Pareto Principle (80/20 Rule)
Uses of Pareto Diagrams
Classifications of Data
Constructing a Pareto Diagram
Example
Prioritization Matrix
Just the Facts
Example
Additional Reading
Project Management (PM)
Just the Facts
Project Management Knowledge Areas
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement Management
How OCM Can Help
Estimate Task Effort and Duration
Develop the Schedule
Project Management Software
Project Management Software Selection
PMBOK Tools and Techniques
Examples
Additional Reading
Quality Function Deployment (QFD)
Just the Facts
Using QFD
Voice of the Customer
Part Deployment Phase
The Process Plan and Quality Plan Matrices
The Roof of the House of Quality
Operating Instructions
Summary
Examples
Additional Reading Black Belt Nonstatistical Tools (R through Z)
Introduction
Reliability Management System
Just the Facts
Phase I: Defining Reliability Requirements
Phase II: Designing Reliability into the Item
Phase III: Defining Component Reliability
Phase IV: Calculating the Item's Reliability
Phase V: Minimizing Manufacturing Degradation
Phase VI: Qualifying the Item
Phase VII: Measuring Customer/Consumer Reliability
Phase VIII: Corrective Action and Database Updating
Examples
Additional Reading
Root Cause Analysis
Just the Facts
How to Do a Root Cause Analysis in Six Steps
Examples
Scatter Diagrams
Just the Facts
Steps to Prepare a Scatter Diagram
Guidelines and Tips
Example
Additional Reading
Selection Matrix (Decision Matrix)
Just the Facts
Example
Additional Reading
SIPOC Diagram
Just the Facts
The SIPOC Approach Expanded
Building a SIPOC Diagram
Example: Mama Mia Case Study
Mama Mia's SIPOC-Food Storage Process
Mama Mia's SIPOC-Food Preparation and Order Delivery
SWOT-Strengths, Weaknesses, Opportunities, and Threats
Just the Facts
The SWOT Matrix
Example
Additional Reading
Takt Time
Just the Facts
Example
Additional Reading
Theory of Constraints (TOC)
Just the Facts
Types of (Internal) Constraints
Example
Additional Reading
Tree Diagrams
Just the Facts
Examples
Additional Reading
Value Stream Mapping
Just the Facts
Example
Additional Reading

LSSBB ADVANCED STATISTICAL TOOLS

Advanced Statistical Tools
Analysis of Variance (ANOVA)-One-Way
Just the Facts
Example
Analysis of Variance (ANOVA)-Two-Way
Just the Facts
Major Considerations
Example
Box Plots
Just the Facts
Example
Confidence Intervals
Just the Facts
Example
Confidence Interval for the Mean
Confidence Interval for the Standard Deviation
Confidence Interval for the Proportion Defective
Data Transformations
Just the Facts
Data Transformation Types
Standard Transformation Functions
Example
Application Cookbook
Design of Experiments
Just the Facts
Steps in Designing an Experiment
Principles of an Experimental Design
Setting up the Appropriate Experiment
Analysis (of Means and Variance) Methodologies
Analysis of Means
Paired Comparison
Analysis of Variance Methodology
One-Way and Two-Way ANOVA
One-Way ANOVA
Example Experiment 1
Example Experiment 2
Two-Way ANOVA
Types of Experimental Designs
Applications of DoE
DoE Steps
Experimental Objectives
Select and Scale the Process Variables
Design Guidelines
A Typical DoE Checklist
The Iterative Approach to DoE
Experimental Assumptions
Is the Measurement System Capable?
Is the Process Stable?
Are the Residuals Well Behaved?
Interactions
Categories of Experimental Designs
Three-Factor, Three-Level Experiment
Randomized Block Plans
Latin Square Designs
Graeco-Latin Designs
Plackett-Burman Designs
Taguchi Designs
Mixture Designs
Simplex-Lattice Designs
Steepest Ascent/Descent
Response Surfaces
EVOP Evolutionary Operations
When to Use Which Design
Project Strategies
Data Analysis
Experimental Designs
Response Surface Designs
Project Strategy Decision Table
References
Background References
Measurement Systems Analysis (MSA)
Just the Facts
Example
Approaches to Attribute MSA
Method of Least Squares
Just the Facts
Example
Multivari Charts
Just the Facts
Example
Nonparametric Statistical Tests
Just the Facts
Example
Sign Test for the Median
One-Sided Wilcoxon Test
Two-Sample Mann-Whitney
Kruskal-Wallis
Mood's Median Test
Friedman Test for a Randomized Block Design
Populations and Samples
Just the Facts
Uncertainty in the Mean-Conclusions
Data Defined
Summary of Data Types
Process Measurements Summary
Example
Regression Analysis
Just the Facts
Simple Linear Regression
Multiple Linear Regression
Curvilinear Regression
Other Linear Regression Models
Caution
Example
Rolled-Throughput Yield
Just the Facts
Example
Calculating Process Sigma
Taguchi Method
Just the Facts
Taguchi Quality Definitions
Ideal Quality
Robust Design
Quality Loss Function Fundamental Concepts
Example
Traditional View of the Loss Function
Taguchi Approach
Specify a Target
The Quadratic Loss Function (QFL)
Understanding the Quality Characteristic
Observing the Slope
Determining Customer Impact
The Cost of Not Being on Target
Validation
Just the Facts
The Failure Modalities
Some Risk Assessment Tools
Guidelines and Tips
Example
Appendix A
Glossary
Appendix B
Appendix C: Six Sigma Green Belt Tools

About the Author

Frank Voehl serves as the director of process improvement for Nova Southeastern University, as chairman and president of Strategy Associates, Inc., and as a senior consultant and chancellor for the Harrington Institute. He is also chairman of the board for a number of businesses and is a Grand Master Black Belt instructor and technology advisor at the University of Central Florida in Orlando. He is recognized as one of the world leaders in applying quality measurement and Lean Six Sigma methodologies to business processes. Voehl has extensive knowledge of NRC, FDA, GMP, and NASA quality system requirements. He is an expert in ISO 9000, QS 9000/14000/18000, and integrated Lean Six Sigma quality system standards and processes. He has degrees from St. John's University and advanced studies at New York University, as well as an honorary doctor of divinity degree. Since 1986, he has been responsible for overseeing the implementation of quality management systems with organizations in such diverse industries as telecommunications and utilities, federal, state, and local government agencies, public administration and safety, pharmaceuticals, insurance/banking, manufacturing, and institutes of higher learning. In 2002, he joined the Harrington Group as the chief operating officer and executive vice president. He has held executive management positions with Florida Power and Light and FPL Group, where he was the founding general manager and COO of QualTec Quality Services for seven years. He has written and published/co-published over 35 books and hundreds of technical papers on business management, quality improvement, change management, knowledge management, logistics, and team building, and has received numerous awards for community leadership, service to the third world countries, and student mentoring. The Bahamas National Quality Award was developed in 1991 by Voehl to recognize the many contributions of companies in the Caribbean region, and he is an honorary member of its Board of Judges. In 1980, the city of Yonkers, New York, declared March 7 Frank Voehl Day, honoring him for his many contributions on behalf of thousands of youth in the city where he lived, performed volunteer work, and served as athletic director and coach of the Yonkers-Pelton Basketball Association. In 1985 he was named Father of the Year in Broward County, Florida. He also serves as president of the Miami Archdiocesan Council of the St. Vincent de Paul Society, whose mission is to serve the poor and needy throughout South Florida and the world. Frank's contributions to quality improvement around the world have brought him many honors and awards, including ASQ's Distinguished Service Medal, the Caribbean Center for Excellence Founders Award, the Community Quality Distinguished Service Award, the Czech Republic Outstanding Service Award on behalf of its business community leaders, FPL's Pioneer Lead Facilitator Award, the Florida SFMA Partners in Productivity Award, and many others. He was appointed the honorary advisor to the Bahamas Quality Control Association, and he was elected to the Eastern Europe Quality Hall of Fame. He was also named honorary director of the Association Venezuela de Control de Calidad by Banco Consolidado. Dr. H. James Harrington: In the book Tech Trending, Dr. Harrington was referred to as "the quintessential tech trender." The New York Times noted his "knack for synthesis and an open mind about packaging his knowledge and experience in new ways-characteristics that may matter more as prerequisites for new economy success than technical wizardry." The author Tom Peters stated, "I fervently hope that Harrington's readers will not only benefit from the thoroughness of his effort but will also `smell' the fundamental nature of the challenge for change that he mounts." William Clinton, past president of the United States, appointed Dr. Harrington to serve as an Ambassador of Good Will. It has been said about him, "He writes the books that other consultants use." Harrington Institute was featured on a half-hour TV program, Heartbeat of America, which focuses on outstanding small businesses that make America strong. The host, William Shatner, stated: "You [Dr. Harrington] manage an entrepreneurial company that moves America forward. You are obviously successful." Harrington serves as the chief executive officer for the Harrington Institute and Harrington Middle East. He is also chairman of the board for a number of businesses. Dr. Harrington is recognized as one of the world leaders in applying performance improvement methodologies to business processes. He has an excellent record of coming into an organization, working as its CEO or COO, resulting in a major improvement in its financial and quality performance. In February 2002 Dr. Harrington retired as the COO of Systemcorp A.L.G., the leading supplier of knowledge management and project management software solutions, when Systemcorp was purchased by IBM. Prior to this, he served as a principal and one of the leaders in the Process Innovation Group at Ernst & Young; he retired from Ernst & Young when it was purchased by Cap Gemini. Dr. Harrington joined Ernst & Young when Ernst & Young purchased Harrington, Hurd & Rieker, a consulting firm that Dr. Harrington started. Before that Dr. Harrington was with IBM for over 40 years as a senior engineer and project manager. Dr. Harrington is past chairman and past president of the prestigious International Academy for Quality and of the American Society for Quality Control. He is also an active member of the Global Knowledge Economics Council. Harrington was elected to the honorary level of the International Academy for Quality, which is the highest level of recognition in the quality profession. Harrington is a government-registered quality engineer, a Certified Quality and Reliability Engineer by the American Society for Quality Control, and a Permanent Certified Professional Manager by the Institute of Certified Professional Managers. He is a certified Master Six Sigma Black Belt and received the title of Six Sigma Grand Master. He has an MBA and PhD in engineering management and a BS in electrical engineering. Dr. Harrington's contributions to performance improvement around the world have brought him many honors. He was appointed the honorary advisor to the China Quality Control Association, and was elected to the Singapore Productivity Hall of Fame in 1990. He has been named lifetime honorary president of the Asia-Pacific Quality Control Organization and honorary director of the Association Chilean de Control de Calidad. In 2006 Dr. Harrington accepted the honorary chairman position of Quality Technology Park of Iran. Harrington has been elected a fellow of the British Quality Control Organization and the American Society for Quality Control. In 2008 he was elected to be an honorary fellow of the Iran Quality Association and Azerbaijan Quality Association. He was also elected an honorary member of the quality societies in Taiwan, Argentina, Brazil, Colombia, and Singapore. He is also listed in the "Who'sWho Worldwide" and "Men of Distinction Worldwide." He has presented hundreds of papers on performance improvement and organizational management structure at the local, state, national, and international levels. Recognition: The Harrington/Ishikawa Medal, presented yearly by the Asian Pacific Quality Organization, was named after H. James Harrington to recognize his many contributions to the region. The Harrington/Neron Medal was named after H. James Harrington in 1997 for his many contributions to the quality movement in Canada. Harrington Best TQM Thesis Award was established in 2004 and named after H. James Harrington by the European Universities Network and e-TQM College. Harrington Chair in Performance Excellence was established in 2005 at the Sudan University. Harrington Excellence Medal was established in 2007 to recognize an individual who uses the quality tools in a superior manner. H. James Harrington Scholarship was established in 2011 by the ASQ Inspection Division. Harrington has received many awards, among them the Benjamin L. Lubelsky Award, the John Delbert Award, the Administrative Applications Division Silver Anniversary Award, and the Inspection Division Gold Medal Award. In 1996, he received the ASQC's Lancaster Award in recognition of his international activities. In 2001 he received the Magnolia Award in recognition for the many contributions he has made in improving quality in China. In 2002 Harrington was selected by the European Literati Club to receive a lifetime achievement award at the Literati Award for Excellence ceremony in London. The award was given to honor his excellent literature contributions to the advancement of quality and organizational performance. Also, in 2002 Harrington was awarded the International Academy of Quality President's Award in recognition for outstanding global leadership in quality and competitiveness, and contributions to IAQ as Nominations Committee chair, vice president, and chairman. In 2003 Harrington received the Edwards Medal from the American Society for Quality (ASQ). The Edwards Medal is presented to the individual who has demonstrated the most outstanding leadership in the application of modern quality control methods, especially through the organization and administration of such work. In 2004 he received the Distinguished Service Award, which is ASQ's highest award for service granted by the society. In 2008 Dr. Harrington was awarded the Sheikh Khalifa Excellence Award (UAE) in recognition of his superior performance as an original Quality and Excellence Guru who helped shape modern quality thinking. In 2009 Harrington was selected as the Professional of the Year. Also in 2009 he received the Hamdan Bin Mohammed e-University Medal. In 2010 the Asian Pacific Quality Association (APQO) awarded Harrington the APQO President's Award for his "exemplary leadership." The Australian Organization of Quality NSW's Board recognized Harrington as "the Global Leader in Performance Improvement Initiatives" in 2010. In 2011 he was honored to receive the Shanghai Magnolia Special Contributions Award from the Shanghai Association for Quality in recognition of his 25 years of contributing to the advancement of quality in China. This was the first time that this award was given out. In 2012 Harrington received the ASQ Ishikawa Medal for his many contributions in promoting the understanding of process improvement and employee involvement on the human aspects of quality at the local, national, and international levels. Also in 2012 he was awarded the Jack Grayson Award. This award recognizes individuals who have demonstrated outstanding leadership in the application of quality philosophy, methods and tools in education, health care, public service, and not-for-profit organizations. Harrington also received the A.C. Rosander Award in 2012. This is ASQ Service Quality Division's highest honor. It is given in recognition of outstanding long-term service and leadership resulting in substantial progress toward the fulfillment of the division's programs and goals. Additionally, in 2012 Harrington was honored by the Asia Pacific Quality Organization by being awarded the Armand V. Feigenbaum Lifetime Achievement Medal. This award is given annually to an individual whose relentless pursuit of performance improvement over a minimum of 25 years has distinguished himself or herself for the candidate's work in promoting the use of quality methodologies and principles within and outside of the organization he or she is part of. Charles "Chuck" Mignosa has over 30 years of diversified experience in high technology, biomedical devices, telecommunications, and food processing industries and 25 years of experience in IBM holding patents in solid lubricants. He was a second-level manager in charge of implementing quality systems in five manufacturing areas. He is a certified course developer and has developed courses including Total Quality Management, Continuous Flow Manufacturing, Customer-Driven Quality, Statistical Design and Analysis of Experiments, Team Building, Six Sigma, Conflict Resolution, and Communication Skills. After leaving IBM he worked as an independent consultant doing all of the TQM training for Spectrian telecommunications and facilitating its conversion from a DOD to public sector company and attaining its ISO registration. Mignosa has consulted for and done training with such companies as Siemens Automotive, General Mills, Gatorade, Zea Corporation, Connors Peripherals, HP, IBM, ADAC Labs, Cholestech, Heinz USA, and many more. He has held positions as director of quality for P-com, a telecommunication company, and Cholestech Corporation, a medical device company. Mignosa is currently president of Business Systems Architects (BSA), a Silicon Valley consulting, training, and documentation company specializing in the design and implementation of business and quality management systems and, with Upward Performance, of which he is also president, implementing Six Sigma and Lean Manufacturing programs. In addition to a BS in chemistry, Mr. Mignosa has graduate degrees in statistics, systems research, and management training with IBM and is a senior member of ASQ. Rich Charron is the founder and president of the Lean Manufacturing Group, Inc., a South Florida company that provides a number of "handson" employee learning and Lean implementation programs focused on waste elimination, productivity improvement, and profitability enhancement. He is a Certified Master Black Belt in Lean Six Sigma Excellence from the Harrington Institute. He has trained and coached over 100 teams in Lean Manufacturing, Lean Six Sigma, and Kaizen events, generating savings over $25 million. In conjunction with Strategy Associates he completed a three-part DVD series on Lean concepts for the University of Central Florida. His expertise is in process performance excellence, Lean Six Sigma, Lean Manufacturing, design for manufacturability, problem solving, product and process failure analysis, products development, and performance testing. Mr. Charron holds BS and MS degrees in plastics engineering from the University of Massachusetts. His MS thesis, "Product Liability in the Plastics Industry," is a survey of our legal system and the impacts of unsafe products and legal uncertainties. He is the author of over a dozen technical publications on product quality, products performance testing, and products failure analysis.

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