1. Design for Six Sigma ConferenceLas Vegas June 8-10, 2005 Dr. StevenNull Six Sigma Champion & Master Black Belt Northrop Grumman Corporation Seamless Incorporationof DFSS into Work Practice

2. Stretching Six Sigma in Many CLASSICSIX SIGMA LEAN SIXSIGMA DMAIC LEAN DFSS & DMAIC EMBEDDED SIX SIGMA DFSS Lean Consumption Design Directions ENTERPRISE VISION cmmi Stretching Six Sigma Copyright 2004 Northrop Grumman Corporation 3. CLASSICSIX SIGMA LEAN SIXSIGMA DMAIC LEAN DFSS & DMAIC EMBEDDED SIX SIGMA DFSS Lean Consumption Design ENTERPRISE VISION cmmi Embedded Six Sigma in the midst of the Others Copyright 2004 Northrop Grumman Corporation 4.

CMMI

ISO

EMM*

E MBEDDED

SIX SIGMA

AGILE ENGINEERING

ARMOR ENTERPRISE VISION CMMI Rigorous, Heavyweight,One size fits all standard MOBILITY Both are Useful and Support Each Other * EMM Enterprise Maturity Model Embedded Six Sigma Risk-driven combination ofdiscipline & agility Strategy Execution - CMMI & Six Sigma Copyright 2004 Northrop Grumman Corporation 5. What is it and how does it differ from just doing robust design? Embedded Six Sigma is-using sigma tools & methodologiesunder sigmaprogram guidance -productdesign work Discriminators-are aboutdeploymentof embedded sigma-are about what theproject looks like -does not use a different tool set. Embedded, by definition, suggests-primarilyDFSSembedded projects- work is usually more about product design and delivery ,than process design or repair. What is Embedded Six Sigma EMBEDDED SIGMA IS PURE DFSS Copyright 2004 Northrop Grumman Corporation 6. Embedded Sigma can be Key to Making Six Sigma Work in Lean Engineering Environments Copyright Dr. Steven R. Null 5/22/04 ENTERPRISE VISION

• Embedded DFSS makes..

• -Design more Robust

• -Simplicity of Design meansCheaper

• -Product functions drive architecture

• -Less parts & Less processes

• -Modularity means easy customization

• -Better manufacture-ability, maintain-ability, upgrade-ability

• -and more

• Embedded DFSSenables..

• -Opportunities sought and found

• • -Figure out how to think about the problem (A. Einstein)

• • -Innovation success flows from systematic pursuit of opportunities, not genius (P.Drucker)

EMBEDDED SIGMA ANSWERS THE CHALLENGE OF COST EFFECTIVE QUALITY Copyright 2004 Northrop Grumman Corporation 7. Embedded DFSS can be Key to Rapid, High Quality & Cost Effective Engineering Design EMBEDDED SIGMA ANSWERS THE CHALLENGE OF COST EFFECTIVE QUALITY Copyright 2004 Northrop Grumman Corporation Unstable Parts and Material Inadequate Design Margin Insufficient Process Capability DFSS 8. Business Goals Translation and Embedded DFSS Performance Sigma Savings Dollars Program Goals Bus Unit Goals Individual BB Goals Annual ScheduleProject Cycle Time . Embedded projects (DFSS)tend to open and drive DMAIC/DFSS projects via the Design Scorecard ENTERPRISE GOALS TRANSLATION INTO ENGINEERING PRACTICES Business Goals are deployed to the Operating Units Projects DESIGN SCORECARD Tactical Design Targets -Reduce -Integrate -Re-Use -Standardize -more Copyright 2004 Northrop Grumman Corporation 9. New product introduction and product delivery on schedule and budget are the primary engineering and manufacturing concerns. Pure process improvement is wasteful if it is not a paid (contractual) item. The Practice: Embedded Six Sigma & Six Sigmas Paradigm Shift Embedded Sigma delivers engineering value with much less waste than Classic Six Sigma. Six Sigma training, process-project time, and other non-work task activities are waste. Embedded Sigma minimizes these wastes, while employing sigma tools to work tasks. *Process Triage is the most that one should expect from Black Belts aka Project Engineers who are tasked to deliver product DFSS and the Business Efficiencies achieved from process improvements are valuable, but are not the primary concern of designers.* Copyright 2004 Northrop Grumman Corporation 10. Design Score Card Requirements PartsSigma Process Sigma Performance Sigma Software Sigma DesignAnalysis Capability/Defects Data Parts information People/ Process Capability Performance specs simulations Software defect data Embedded DFSS is Good EngineeringDesign Gates EmbeddedDFSS EMBEDDED SIGMA IS ROBUST SYSTEMS ENGINEERING Copyright 2004 Northrop Grumman Corporation 11. Influence of Design On Cost - Value of Embedded DFSS Design Influences70% of Initial Product Cost Courtesy of Munro and Associates % D E S I G N 5 % M A T E R I A L 5 0 % L A B O R 1 5 % MANUFACTURING 3 0 % 5% 5% 15% 75% A D ACTUAL INFLUENCE ON TOTAL COST Copyright 2004 Northrop Grumman Corporation 12. Embedding Sigma in Work WORKING PRACTICE DFSS EMBEDDED SIGMA Schedule Projectfor Training Industry Best Practice:train people withIdentify top priorityprojects, based on gap Assign Green Belts & BlackBelt to Project Scope project / financialbenefit Complete Project Refine Business Case Review Projects Identify KeyOpportunities Nearand Longer Term Schedule Projectfor Training Industry Best Practice:train people withprojects Identify top priorityprojects, based on gap Assign Green Belts & BlackBelt to Project Scope project / financialbenefit Complete Project Refine Business Case Identify KeyOpportunities CLASSIC Schedule Projectfor Training Identify top priorityprojects, based on gap Belt to Project Scope project / financialbenefit Complete Project Refine Business Case Review Projects Identify KeyOpportunities Nearand Longer Term Launch Embedded Sigma ProjectLean DFSS Practice: Identify critical product design tasksTrain Embedded BB Form Work Group Team Scope embedded task / financial benefit Deliver Closure Briefing & Product DFSS Attributes MBB/Champion attend Design Reviews Complete Embedded Project/Work Task Identify Key Products & DeliverablesEMBEDDED The Six Sigma Project Life Cycle Review Projects Copyright 2004 Northrop Grumman Corporation 13. Embedded Project Life Cycle WORKING PRACTICE DFSS EMBEDDED SIGMA 1.Program TaskIdentification & Description 2.Embedded ProjectProgress Gates 3. Solution Options 5. Solution Approach 4.Process Triage Option 7.Embedded ProjectClosure Briefing 6.Work(Embedded Project) Team Composition Copyright 2004 Northrop Grumman Corporation Schedule Projectfor Training Identify top priorityprojects, based on gap Belt to Project Scope project / financialbenefit Complete Project Refine Business Case Review Projects Identify KeyOpportunities Nearand Longer Term Launch Embedded Sigma ProjectLean DFSS Practice:Identify critical product design tasksTrain Embedded BB Form Work Group Team Scope embedded task / financial benefit Deliver Closure Briefing & Product DFSS Attributes MBB/Champion attend Design Reviews Complete Embedded Project/Work Task Identify Key Products & DeliverablesEMBEDDED 14.

• 2.Embedded Project Progress Gates

• • Measurement of net sigma-based gain based upon metrics identified in Step 1

• • Identification of product resulting from embedded project

• • Identification of criticality of task/subtask within project

• • Development of direct charge rationale for project

• • Identify task program reviews and specify as embedded six sigma project gates

• • Development of embedded project closure briefing at end of project life cycle

• 3.Solution Options

• • Identify - Determine methodological approach to job

• • Ensure metrics (from Step 1) can be used to measure job

• • Ensure metrics (from Step 1) are quantifiable/measurable

• • Evaluate & Use DFSS-DIDOV as appropriate

• • Developsolution options / Develop Business Case logic

PROGRAM TASK IDENTIFICATION &DESRIPTION Embedded ProjectProgress Gates Solution Options Process Triage WORKING PRACTICE DFSS EMBEDDED SIGMA

• 4.Process Triage

• Process tinkering is acceptable as required

• Criteria for Process tinkering based upon the need for process improvement to meet schedule or budget requirements

• Process triage should be captured on a viable process mechanism from six sigma toolbox

• Notify Classic BB for you Business Unit of significant process improvement needs

SolutionApproach

• 5 .Solution Approach

• • Description of Design Approach to solution / Document data associated with design

• • Validate that metrics

• • Follow systems engineering conventions for solution approach

• • Follow systems engineering documentation

• 1.Program Task Identification & Description

• Problem within program task identification

• Metric to measure program task

• Metric must be objectively quantifiable

• 6.Embedded Project Closure Briefing

• Addembedded sigma project artifacts to project closure briefing

• Document Program Task Identification & Description

• Document Solution Options / Document any Process Triage Options

• Document Solution Approach / Document Business Case

• Document Work Team Composition

Embedded ProjectClosure Briefing Embedded Project Guideline, Specs & Lifecycle Copyright 2004 Northrop Grumman Corporation 15. Linking the Sigma Tools to the Product DIDOV Systems Engineering Model Common Process Production Operation Embedded DFSS Guidelines Engineering Process Framework

Sigma Tools:

Customer Research Methods

Kano Analysis

Affinity Diagram

Structure Tree

Quality Function Deployment

Tolerance Analysis

Performance Benchmarking

Optimize Scorecard

Functional Analysis

Quality Function Deployment (QFD)

Benchmarking

Pugh Matrix

Technology Visioning

Process Maps

IT Architecture

Layout Diagrams

Organizational Design

EMBEDDED DFSS TRAINING Copyright 2004 Northrop Grumman Corporation 16. DFSS TARGETS THE DESIGN, WHILEBEING CONSCIOUS OF PARTS ANDPROCESS CAPABILITIES DESIGN PROCESS PARTS DFSS Embedded Sigma Works the Design Copyright 2004 Northrop Grumman Corporation 17. Embedded Sigma Works within Engineering DesignRequirements Customer Needs CTQs Functional/Process Requirements Design Requirements Critical Factors Variables Control Plan (Incorporates All Of Above) User Functional RequirementsSynthesisEvaluation Description Rqts Identification Allocation & Decision of System Elements SYSTEMS ENGINEERING MODELEMBEDDED SIX SIGMA New Product Design Optimize Principles Develop Optimize Alternatives Processes REQUIREMENTS 3-CS CUSTOMER COMPETITION CONCEPTUAL DESIGN (FUNCTIONS TO MEET CTQS) DETAILED DESIGN CP OF DESIGN &PROCESSES RISK ASSESSMENT PILOT PLAN EVALUATE & RE-DESIGN PLAN DOCHECK ACT Specific DIDOV Six Sigma Model EMBEDDED DFSS IMPLEMENTATION LEAN DESIGN FOR SIX SIGMA Copyright 2004 Northrop Grumman Corporation O P T I M I Z E D E S I G N D E F I N E I D E N T I F Y V E R I F Y New Product/ServiceConcept

Customer

Research

ID Customers

Build DataCollection Plan

Collect Data

High-Level Customer Needs Risk Management Conceptual Design Measures

Organized

Prioritized

Customer Needs Targets High-Level Design, Design Product/Service Processes Facilities Equipment Materials/Supplies Information Human Pugh Matrix Criteria Alternatives Divide Design Effort Into Manageable Pieces Develop Design Alternatives Processes Choose Best Alternative Act Plan Check Do ResultsOK? Yes No Act Plan Check Do Redesign ResultsOK? Yes No Redesign Evaluation 18. Supporting Tools and Infrastructure DFSS Engineering Model RESOURCE INTEGRATION - MANNAGING AND INTEGRATING YOUR RESOURCES EmbeddedSix Sigma Training Common Sigma Tools, CommonMetrics & Dashboards EmbeddedSix Sigma Design Scorecard DFSS Systems Engineering Model 19. Embedded Cost Effective DFSS - Key to Customer Value

Enterprise Vision and Business Goals -SUPERIOR

CUSTOMER VALUE

Pure DFSS = LOYALTY > COST ADVANTAGE

DFSS Challenge

DO IT RIGHT THE FIRST TIME VIA TOOLS VIA SURPLUS CASH CREATED, REINVESTED IN PRODUCTIVITY

Embedded Approach drives Six Sigma Deployment & DFSS Employment

PRODUCTIVITYAND SUSTAINABLE COMPETITIVE ADVANTAGE IS CREATED VIA PRODUCT VALUE (Quality and Low Price) AS PERCEIVED BY CUSTOMER

Embedded DFSS View & Approach

PRODUCTIVITY AND COMPENSATION ADVANTAGE; NEXT STATION AS CUSTOMER; EMPLOYEE LOYALTY

Six Sigma > DFSS > Embedded DFSS > Competitive Advantage >

Embedded DFSS directly impacts Enterprise Performance

Copyright 2004 Northrop Grumman Corporation Superior Customer Value The Right NewCustomers Customers Loyalty The Right NewEmployees Employees Loyalty Growth Compensation Advantage Superior Productivity Cost Advantage Profile The Right New Investors Investor Loyalty Surplus Cash Reinvested Six Sigma & Embedded DFSS Here