msm 6 sigma

8/4/2019 msm 6 sigma

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Six sigma and methodologies

By

Ajeeth kumar.T 201025003Sivabalan.G 20102500019


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What is Six Sigma?

A methodology to improve a business process by constantlyreviewing, updating and re-tuning the existing process.

Six Sigma improves the process performance, decreases

variation and maintains consistent quality of the processoutput. This leads to defect reduction and improvement inprofits, employee morale, product quality and finally customersatisfaction.

Six Sigma Strives for perfection. It allows for only 3.4 defectsper million opportunities for each product or service

transaction. Six Sigma relies heavily on statistical techniques to reduce

defects and measure quality.


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Evolution of Six Sigma

Japan has been credited with the evolvement of QualitySystems like TQM, Kanban, Kaizen, etc.

Pioneered in the U.S. by Bill Smith at Motorola in 1986;

originally used as a metric for measuring defects forimproving quality; a methodology to reduce defect levels US$17b savings as of 2006.

Early adopters include Bank of America, Caterpillar, HoneywellInternational (previously known as Allied Signal), Raytheon,Merrill Lynch and General Electric.

Six Sigma was originally centered around manufacturingimprovements. The reason for this was knowledge of thestatistical tools in the manufacturing functions and the easewith which we can quantify the benefits.


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Objectives of Six Sigma

At the strategic level, the goal of Six Sigma is to align anorganization to its marketplace and deliver real improvements

(in terms of rupees/dollars) to the bottom line.

At the operational level, the Six Sigma goal is to move thebusiness product or service attributes within the zone of

customer specifications and to significantly shrink process

variation.


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Six Sigma Methodology

Six Sigma relies heavily on advanced statistical methodsthat complement and reduce the process and productvariations. It is a new way of doing business that wouldeliminate the existing defects efficiently and would prevent

defects from occurring.


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Six Sigma levels and Process

The Greek letter for Sigma, , represents one standard deviationfrom the normal or average. The higher the sigma level the better thequality level.

Levels of Sigma Performance


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Six Sigma is a high performance data driven approach focused onanalyzing the root causes of business problems and solving them. It

ties the outputs of a business directly to market place.

How Six Sigma works

Clear focus on the bottom line

Six Sigma places a clear focus on getting the bottom line results along with

the time frame. No Six Sigma project is approved until the bottom line or thesuccess factors are clearly spelt out. Each project must be completed within a

given time frame which is usually 3-6 months.


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Process Management helps

us maintain good results

as we perform our

Mission.

Strategic planning helps us focus

on key projects to reach our

Vision.

Process Improvement

using the DMAICprocess helps us fix work

problems and improve

ourPerformance.

To be successful as an organization, we must learn how to effectively apply ALL three (3)

areas.

StrategicPlanning

ProcessImprovement

ProcessManagement

Six Sigma


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BREAKT

HROUGHSTRAT

EGY

Identification

Characterization

Optimization

Institutionalization

Define

Measure

Analyze

Improve

Control

Standardize

Identify key business

issues

Understand current

performance levels

Achieve breakthrough

improvement

Integrate Six Sigma in

day to day functioning.

Stage Phase Objective

The Six Sigma roadmap- Breakthrough strategy


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Six Sigma Toolbox

CONTENTS

D Define the project goals and customer(internal and

external) deliverables

M Measure the process to determine currentperformance; quantify the problem

A Analyse and determine the root causes of the

defects

I Improve the process by eliminating defects

C Control future process performance


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D Define Phase

Define Customers and Requirements (CTQs) Develop problem Statement, Goals and Benefits

Identify Champion, Process Owner and Team

Define Resources

Evaluate Key Organisational support Project Scope

Develop Project plan and Milestones

Eight steps for project boundaries

Develop High level Process Map Process Management for Projects

Team Dynamics and Performance

Business results for Projects


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Define Phase - Tools

CTQ

Team Charter

Project flowchart

SIPOC Model

Stakeholder Analysis

DMAIC Work Breakdown Structure

VOC

Process Mapping


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M Measure Phase

Define Defect, Opportunity, Unit and Metrics

Detailed Process Map of appropriate areas

Develop Data Collection Plan

Validate the Measurement System

Data Collection Organisation and Presentation of Data

Develop Y=f(x) Relationship

SPC

Process Capability and Performance

Descriptive Statistical Measures

Statistical Interference

Predictive Statistics


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Measure Phase - Tools

Data Collection

QFD

FMEA

Process Flow Chart

CE diagram

Pareto Chart

Benchmarking

Control Chart

PDCA


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A Analyse Phase

Statistical Modeling Procedure

Define Performance Objectives

Identify Value/Non-Value Added Process Steps Identify Sources of Variation

Determine Root Causes

Determine Vital Few xs, Y=f(x) Relationship


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Analyse Phase - Tools

Regression Analysis

5 Whys

Statistical Modeling Procedure

Probabilistic Model

Scatter Plot

Residual Plots

Hypothesis Testing

Non-Normal Data Analysis

ANOVA Table


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I - Improve Phase

Use Improve Phase Tools

Develop Potential Solutions

Define Operating Tolerances of PotentialSystem

Assess Failure Modes of Potential Solutions

Validate Potential Improvement by PilotStudies

Correct/Re-Evaluate Potential Solution


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Improve Phase - Tools

QC problem solving approach

Creative Problem Solving

Brainstorming

Poka Yoke (Mistake Proofing)

DOE

Pugh Matrix

Check sheet

Histogram

Scatter Diagram

Run chart


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C Control Phase

Define and Validate Monitoring and ControlSystem

Develop Standards and Procedures

Implement SPC Determine Process Capability

Develop Transfer Plan, Handoff to Process Owner

Verify Benefits, Cost Savings/Avoidance, ProfitGrowth

Documentation


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Control Phase - Tools

Process Sigma Calculation

Control Charts

Cost Savings Calculations Control Plan

Standardisation


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Case Example

The Call centre had to reduce complaints, shortening the responsetime to answer calls and eliminating the need for some staffpositions, owing to poor performance(registering a lot ofunknowncalls).

A common practice among employees was that if they did not geta clear answer or sounded confused, they would just hang up.Then the customer would immediately call back so they would getrouted to a different call center staffer who almost certainly wouldgive them a different answer. This was a clear indication of

inconsistent service qualityas well as artificial call volumes.

The biggest fault was that the call centre bought a software for$5,00,000 to eliminate this problem, which turned out to beunfruitful.


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DEFINE

a) reduce the average handling time

b) reduce the number of unnecessary calls

c) achieve better consistency in answers given

to the branches.


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MEASURE

a) tracking the duration of every call

Policy & Procedures (P&P)Calls System Support (SS)Calls

b) coding calls according to the type of question


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ANALYSE

The Unknown Call Problem

Average Handling Time (AHT) Versus Percent 'Unknown' Calls


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IMPROVE

a) Three of the top performers were asked to independently write down tips

for coding calls and using the software properly limiting their advice to

both sides of a standard sheet of paper.

b) The team then compared their notes and came up with a single page ofstandard operating procedures.

c) Mentoring:

Each top performer would sit with a poorer performer for a half-hour

and offer suggestions. Then the poorer performer would observe thetop performer for a half-hour to pick up additional insights.


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Contd) The team then brainstormed ideas to reduce the most common

call types.

e) As a result, new documentation was added to products to clarifyinstructions, and information was added to certain computerscreens within the system to reduce questions and confusion.

AHT Improvement Policy and Procedure Calls AHT Improvement System Support Calls

f) Within the first year, the actual cost savings was $732,000, wellabove the initial target of $500,000.


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CONTROL

a) Continued enforcement of the standard operating procedures.

b) Use of control charts by office team leaders, to act if the average handling

time starts to drift upward.

c) The team also created plans for continual monitoring of which call types

consumed the most handling time, along with continuing the collaborative

efforts with branches to address those calls.


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Process Mapping:Top-Down Flowchart The Whatsa. List the fundamental process steps. Limit your list to about five major steps.b. Write these down, in the order they occur, from left to right across the top of a

writing surface.c. Under each major step, list in the order of occurrence, the major sub-processes

that compose the major step (again, only five or six of these).

A B C D E

A.1

A.2

A.3

A.4

B.1

B.2

C.1

C.2

C.3

E.1

E.2

E.3

D.1

D.2

D.3

D.4


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Process Mapping:Deployment Flowchart Whats & Whos

a. List the fundamental process steps in the order they occur.b. Across the top of your writing surface, list the names of the people

or organizations involved in the process.c. Beneath the name(s) of those responsible for the first step, draw a

box and list the step in that box.d. If any other entities assist or advise those with primary responsibility

for that step, list the entity name and draw an oval around it. Connect

these ovals to the box.e. Repeat this process for the second and subsequent steps.

In this way we will have both the what and who listed.


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Flow Diagram

Flow Diagram

A flow diagram is a pictorial representation showing all of

the steps of a process.


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Flow Diagram

Creating a Flow Diagram

First, familiarize the participants with the flow

chart symbols.

Draw the process flow diagram and fill it out indetail about each element.

Analyze the flow diagram. Determine which steps

add value and which dont in the process of

simplifying the work.


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Flow Diagram

Examples of When to Use a Flow diagram

Two separate stages of a process flow diagram

should be considered:

The making of the product

The finished product


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MEASURE

Design Development

Quality function Deployment

Failure Mode Effect Analysis

Poka Yoke (Mistake Proofing )

Cause - Effect Diagram

Pareto Diagram

Flow Diagram

Benchmarking


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Quality Tools for Design

Concept Development Product Functionality determined based on Customerrequirements, Technology capabilities & Economic realities.

Eg. QFDDesign Development Focuses on product & Process performance issues to fulfill the

product and service requirements in Manufacturing/delivery.

Eg. FMEA

Design optimization Minimize the impact of variation in production use ,creating arobust design.

Eg. Optimizing Reliability

Design Verification Capability of the production system meets the appropriatesigma level.

Eg. Process Capability Evaluation

Designing for Six Sigma Consists of Four Principle Activities


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QUALITY FUNCTION DEPLOYMENT

Quality Function Deployment is a design planning process driven by customer requirements.

QFD deploys The Voice of the Customer throughout the organization.

QFD uses planning matrices -- each called The House of Quality.

QFD benefits companies through improved communication and team work between all constituencies inthe value chain, such as between marketing and design, between design & manufacturing, andbetween purchasing & suppliers .

Construction of House of Quality

Identify Customer requirements.

Identify technical requirements.

Customer importance ratings.

Customer Rating of the Competition

Direction of Improvement.

Relationship Matrix.

Technical Analysis of Competitor Products.

Correlation Matrix.

Absolute Importance.


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QFD

QFD is a scientific technique for translating the voice of

the customer into development of products and

services. It is a complete product planning process as

opposed to problem solving and analysis. The techniquewas invented by Akashi Fukuhara of Japan and first

applied with very good results at Toyota.


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Customer RequirementsImportanceon 10 point

scale

Step 1 : List customer requirements and rank

Very Important

Moderately Important

Slightly important


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TechnicalRequirements

Step 2 : List technical requirements to meet customer requirements


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1 2 3 4 5

Customer competitive

evaluation on 5 point scale( 5 high , 1 low )

ActionRank

Competitor product Our product

Customer Requirements

Step 3 : Comparing product with the nearest competitor


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Customer RequirementsRank

Step 4 : Establish relationship between customer requirement

and technical requirements

Strong relation

Moderate relation

Weak relation


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Customer RequirementsRank

Competitive evaluation

QFD matrix overview after step 4


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Customer Requirements Rank


Competitive

Technical

Assessment

5

4

3

2

1

Step 5 : Do competitive technical Assessment

Competitor assessment

Our assessment

Step 6 : Mention operational targets or action points


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Customer Requirements Rank


Competitive

Technical

Assessment

Operational

Targets

Step 6 : Mention operational targets or action points

New Product


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QFD - customers voice

The whole process of the QFD can be linked to GIGO (Garbage in garbage out ). This is because, if the voice of thecustomer has not been captured properly, the final product

will also not be the one actually desired by the marketplace. It is therefore extremely important to capture thecorrect voice of the customer before taking any other stepin the QFD planning process. We will explain this by theforthcoming example of new car development.


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Voice of the Customer

Voice of the Designer


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x = Design Trade-offs


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Benchmarking


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Reverse Engineering


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Deploying the VOC

Technical

Requirements

Customer

Requirements

Product

Requirements

TechnicalRequirements

Process

Requirements

Product

Requirements

Control

Requirements

Process

Requirements


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Cause and Effect Diagram

Cause and Effect Diagram The cause and effect diagram is also called the Ishikawa diagram or the

fishbone diagram.

It is a tool for discovering all the possible causes for a particular effect.

The major purpose of this diagram is to act as a first step in problem solving bycreating a list of possible causes.


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Constructing a Cause and Effect Diagram First, clearly identify and define the problem or effect for which the causes

must be identified. Place the problem or effect at the right or the head of thediagram.

Identify all the broad areas of the problem.

Write in all the detailed possible causes in each of the broad areas. Each cause identified should be looked upon for further more specific causes.

View the diagram and evaluate the main causes.

Set goals and take action on the main causes.


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An Example of When a Cause and Effect Diagram Can be Used

This diagram can be used to detect the problem ofincorrect deliveries.

When a production team is about to launch a new product,

the factors that will affect the final product must berecognized. The fishbone diagram can depict problemsbefore they have a chance to begin.


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Diagram of the Incorrect Deliveries Example:


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Pareto Chart

Pareto Chart

Pareto charts are used to identify and prioritize problems

to be solved.

They are actually histograms aided by the 80/20 rule

adapted by Joseph Juran. Remember the 80/20 rule states that approximately 80% of the problems

are created by approximately 20% of the causes.


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Pareto Chart

Constructing a Pareto Chart

First, information must be selected based on types orclassifications of defects that occur as a result of a process.

The data must be collected and classified into categories.

Then a histogram or frequency chart is constructedshowing the number of occurrences.


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Pareto Chart

An Example of How a Pareto Chart Can Be Used Pareto Charts are used when products are suffering from different

defects but the defects are occurring at a different frequency, or only afew account for most of the defects present, or different defects incurdifferent costs. What we see from that is a product line may

experience a range of defects. The manufacturer could concentrateon reducing the defects which make up a bigger percentage of all thedefects or focus on eliminating the defect that causes monetary loss.


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Pareto Chart


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Control Charts

To Monitor or Evaluate a Process

It is a Time series based

It essentially has control limits and target line

Need for introduction of Control chart may come from:a) Cost control system

b) User complaints

c) Bottlenecks

C t l h t


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UCL Upper control limit

Center line

Control charts:

LCL Lower control limit


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Failure Mode and Effect Analysis

The purpose of design failure mode and effects analysis(DFMEA) is to identify all the ways inwhich a failure can occur, to estimate the effect and seriousness of the failure, and torecommend corrective design actions.

A DFMEA usually consists of specifying the following information of each design element orfunction:

Failure Modes

Effect of the failure on the Customer

Severity, likelihood of occurrence, and detection rating

Potential Causes of failure.

Corrective actions or controls.

Risk Priority Number (RPN) = Severity X Occurrence X Detection (Each measured on a 1 to 10Scale)

It is a measure of Design risk


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Poka Yoke(Mistake Proofing)

Poka Yoke(POH-kah YOH-kay) is an approach for mistake proofing processes usingautomatic devices or methods to avoid simple human error.

Such errors can arise from following factors:

Forgetfulness due to lack of concentration

Misunderstanding because of lack of familiarity with a process or procedures

Poor identification associated with lack of proper attention.

Lack of experience

Absentmindedness

Delays in judgment when a process is automated Equipment malfunctions

Example : Screw Design

There are two types of devices namely prevention and Detection.

The Six Methods of Poka Yoke :

Elimination, Replacement, Prevention, Facilitation, Detection and Mitigation.

IMPROVE


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IMPROVE QC Problem Solving Approach

Creative problem Solving

Brainstorming

Checksheet

Histogram

Scatter Diagram Run Chart

Corrective Actions

The QC 7-Step Problem Solving Approach


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p g pp

1. Select topic

2. Understand Situation and Set targets

3. Plan activities

4. Analyze Causes

5. Consider and Implement

Countermeasures

6. Check Results

7. Standardize & Establish Control

Identify problem

Decide topic

Understand Situation

Collect data

Decide Characteristic to attack set targets

Decide target(value and deadline)

Decide what to do

Decide schedule, division of responsibilities, etc.,

Check present values of cha.

List possible causes

Analyze causes

Decide items to tackleConsider Countermeasures

* Propose ideas for it.

* Discuss how to put countermeasures into effect

Check details of countermeasures

Implement countermeasures

Plan how to implement

Implement countermeasures

Check results of countermeasures

Compare results with targets

Identify tangible & intangible benefits

Standardize

Establish new stds. & revise old

Decide methods of control

Establish control

Familiarize relevant people with new methods

Educate those responsible

Verify that benefits are being maintained

Action ItemsBasic Steps

PDCA Process improvement


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Plan

Do

CheckAct

PlanDo

Check

Act

Plan Do

CheckAct

1 2

3

1. Analyse the process

2. Maintain the process

3. Improve the process

PDCA - Process improvement

C i


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PDCA - Process improvement

1. Analyse the process : 1.1 Supposed to do

1.2 Actually doing

1.3 Things that can go wrong

2. Maintain the process : 2.1 Monitor the performance of the process2.2 Identify process changes using statistical tools

2.3 Effect corrective measures

3. Improve the process : 3.1 Work on variation reduction

3.2 Use advanced statistical tools as required


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DEMING CYCLE

Deming Cycle PDCA


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The Deming cycle focuses on both short term continuous improvement and long term organizational learning.

Steps:

PLAN:

1.Define the process: its start, end, and what it does.

2.Describe process :list the key tasks performed & sequence of steps, people involved, equipment used, environmental

conditions, work methods, and materials used.3.Describe the players: external and internal customers and suppliers, and process operators.

4.Define Customer expectations : what the customer wants, when, and where for both external and internal customers.

5.Determine what historical data are available on process performance or what data need to be collected to betterunderstand the process.

6.Describe the perceived problems associated with the process: Instance failure to meet customer expectations excessivevariation long cycle times and so on.

7. Identify the primary causes of the problems and their impacts on process performance.

8.Develop potential changes or solutions to the process and evaluate how these changes or solutions will address theprimary causes.

9. Select the most promising solution(s).

DO

1.Conduct a pilot study or experiment to test the impact of the potential solution(s) .

2.Identify measures to understand how any changes or solutions are successful in addressing the perceived problems.

Study

1.Examine the results of the pilot study or experiment.

2.Determine whether process performance has improved.

3.Identify further experimentation that may be necessary.

Act

1.Select the best change or solution.2.Develop an implementation plan: what needs to be done, who should be involved, and when the plan should be

accomplished.

3.Standardize the solution, for example, by writing new standard operating procedures.

4.Establish a process to monitor and control process performance.

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