This document describes a team-based variability reduction methodology used by a printing company to improve production processes. The methodology uses basic statistical tools within a 12-week roadmap to help teams reduce variability in key metrics. It was applied across 600+ teams, reducing variability by 2-15% on average. Lessons included the need for supervisor training, consistent auditing, and integrating the methodology into other improvement efforts. The benefits included improved conformance, efficiency gains, and sustained 4-10% increases in manufacturing throughput over four years.

1. Team-based Variability Reduction:
An Application of Statistical
Engineering
Susan O. Schall, SOS Consulting, LLC

2. Objectives
1. Show how to put data and basic problem-
solving tools in the hands of the
workforce to generate improved and
sustainable results
2. Provide a practical example of statistical
engineering.

3. Agenda
• Statistical Engineering
• Background
• VR Roadmap & Tools
• Elements
• Examples
• Lessons Learned
• Benefits
• More Information/Questions

4. Statistical Engineering
• Hoerl & Snee* define statistical engineering
as “the study of how best to use statistical
concepts, methods and tools and integrate
them with information technology and other
relevant sciences to generate improved
results.
* Hoerl, R. W., Snee, R. D. (2010). Closing the Gap: Statistical Engineering
Links Statistical Thinking, Methods, Tools. Quality Progress, 43(5): 52-53.

5. 5 Aspects Underlying Statistical Engineering*
1. A system or strategy to guide the use of
statistical tools is needed to effectively use the
tools.
2. The impact of statistical thinking and methods
can be increased by integrating several
statistical tools, enabling practitioners to deal
with highly complex issues that cannot be
addressed with any one method.
3. Linking and sequencing the use of statistical
tools speeds the learning of the approach,
thereby increasing the impact of the method.
* Hoerl, R. W., Snee, R. D. (2010). Tried and True: Organizations Put
Statistical Engineering to the Test. Quality Progress, 43(6): 58-60.

6. 5 Aspects Underlying Statistical Engineering*
4. Embedding statistical thinking and tools into
daily work institutionalizes their application.
5. Viewing statistical thinking and methods from an
engineering context provides a clear focus on
problem solving to the benefit of humankind.
* Hoerl, R. W., Snee, R. D. (2010). Tried and True: Organizations Put
Statistical Engineering to the Test. Quality Progress, 43(6): 58-60.

7. What is Working in Your
SE/Improvement Efforts?

8. Which Process Would You Rather Have?
Process A Process B
Target

9. Which Process Would You Rather Have?
Process A
• Wide swings in process
performance
– Not predictable
– High costs for labor &
materials
– Constant fire-fighting
– Difficulty maintaining
improvements
Process B
• Swings in process
performance narrowed:
– Predictable
– Lower costs for labor and
materials
– More consistent process
output
– Effective corrective action
– Increased flexibility

10. Background
• Printing company with 20+ facilities in
North America.
• Began continuous improvement journey in
late 1990’s, including ISO 9000, workplace
organization (5S), problem-solving,
employee engagement and Six Sigma.
– Efforts were originally decentralized and
dependent on local leadership.
– Lack of standardization and stabilization
limited impact.

11. VR Methodology
• Design team chartered to develop a
common, team-based variability reduction
(VR) methodology October, 1999.
• Methodology defined as: A structured set
of tools, metrics, processes, and practices
to drive results in one or more parts of a
business.

12. VR Intent
• Squeeze the variability out of the process by
instituting a standard process, identifying and
eliminating sources of variability within the team’s
control, and establishing the daily disciplines
necessary to sustain the improvements over time.

13. Desired Benefits of VR
• Operations teams engaged in improving
and sustaining process performance.
• Standardize and stabilize the process to
yield fast and efficient results.
• Minimize capital expense and risk.
• Lower the “noise” in the processes so more
complex methods of understanding
sources of variation (such as Six Sigma)
can be used to create breakthrough
improvements.

14. VR Roadmap
• Twelve week structured roadmap using
data-based problem solving to reduce
variability in a primary process metric.
• Aligned with Six Sigma DMAIC.

15. Key VR Tools
• Process
Understanding /
Documentation
– Process Map / Flow
Chart
– Work Instructions
– Visual Display
– Workplace Organization
• Team / Stakeholder
– Action Register
– Scorecard
• Process Analysis
– Value-added Analysis
– Check Sheet
– Basic Statistics
– Pareto Chart
– Fishbone Diagram
– Histogram
– Run Chart
– Scatter Plot
Basic
Statistical
Tools

16. What Other Elements Are Needed for
Success?

17. Elements of VR Methodology
• Linkage to business strategy
• Roles & responsibilities
• Performance tracking
• Documentation
• Training
• Coaching/Audits
• Recognition

18. Linkage to Business Strategy
• Opportunities for VR were prioritized based
on savings potential, customer demand
versus current capability, availability of
resources, and other initiatives impacting
the process.
• Led by CI Director for each business unit.

19. Who Needs to be Involved?

20. Roles & Responsibilities
• VR Sponsor: Manufacturing VP
for business unit
• VR Champion: Department
Manager
• VR Team Leader: Process Supervisor
• VR Team: Cross functional process
members
• VR Analyst: Local Six Sigma Green Belt

21. Performance Tracking
• Key Metric: Downtime or Cycle Time
• Visual displays in the process created and updated
daily.
• Automated scorecards developed with assistance
of IT to inform senior leadership of status.

22. Documentation
• VR Implementation Guide
– VR Roadmap
– Tools
– Roles & Responsibilities
– Audit Process
– Certification
– Examples
• Intranet site for sharing best practices and
success stories.

23. Training
• Champion Training
– ½ day focused on basics of VR and Champion role
• VR Team Training
– 2 consecutive days focused on VR roadmap and tools
– ½ day focused on team chartering and project
management
• Provided by plant Certified VR Trainer.

24. • Audits integrated into the VR Roadmap at
4-week intervals.
• Used to assess team progress and provide
firm, honest feedback to the team and
champion.
• Used to coach team and champion on next
steps.
• Conducted by a second party appointed by
the CI Director of the business unit.
Coaching

25. Recognition
• Team recognition at two levels:
–Silver Certification – Granted to teams
that demonstrated effective application of
VR at the completion of 12 weeks.
–Gold Certification – Granted to teams that
demonstrated sustained improvement of
at least 15% in their primary process
metric for a minimum of 90 days.

26. Example: Bindery Line
• VR initiated on bindery line in mid-2000.
• VR Team created flowcharts of line startup and
operation, analyzed for non-value-added
activities and different practices between shifts
and individuals.
• VR Team agreed to standard process for startup
and operation of the line; documented in work
instructions and used to train all operators.
• Defined categories of downtime that negatively
impacted line performance; incorporated into
recently developed downtime reports and
used to create a “delay Pareto.”

27. Example: Initial Bindery Line Delay Pareto
High Book Jam: VR
Team Initial Focus
Missing Signature: Six
Sigma Black Belt Project

28. Example: High Book Jam Root Cause Analysis
C&E DIAGRAM

29. Example: High Book Jam Root Cause Analysis
Effect
Multi-vote
Count
% of Total
Infeed Trough 90 19.48
Not Jogging
Signature 72 15.58
Infeed Pin 68 14.72
Transfer Setting 60 12.99
Curled Paper 56 12.12
Packer Set-up 48 10.39
Feeders 36 7.79
Book Size 32 6.93
The trough found to be defective due to design and
wear. Stainless steel trough eliminated future wear
concern.
C&E MATRIX

30. Example: Bindery Line Missing Sig
• VR Team worked with
Black Belt to identify
critical input: vacuum drop
at the sucker cup.
• New gauging
methodology perfected to
measure and control.
• Control methods for
vacuum drop and other
critical inputs were
transferred to other lines
and plants.

31. Example: Bindery Line Delay Pareto Results
Missing Sig: Two Missing Signatures within Top 10
High Book Jam: Moved From #1 Delay to #3, With
Significant Reduction in Hours & Occurrences

32. Implementation Across the Organization
• Applied to over 600 process teams
– Manufacturing
– Customer Service
– Finance
– Logistics
• Variability reduced 2-15%.
• Average performance improved 4-15%.

33. One Function’s Experience
• 40% reduction in cycle time.
• Error rates reduced 70-89%.
• Rework reduced 25%.
• Over $300,000 annual savings in reduced
spoilages.
• New revenue: Process controls put in place
by VR Team enabled $700,000 of work for
a new customer.

34. Lessons Learned
• The structured roadmap and tool set
allowed most teams to successfully
implement VR in 12-20 weeks.
• Although not originally developed for
nonmanufacturing processes, VR was
found to work in customer service, finance,
and logistics.
– Language and examples in the training
materials and Implementation Guide were
modified to be more “user-friendly” for
both audiences.

35. Lessons Learned
• Process supervisors have not often had
training in teambuilding, conflict resolution or
team dynamics necessary to lead such a team
effort and require additional training and
coaching.
• VR Trainers need the equivalent of Green Belt
training to train and coach teams on the data-
based tools.
• Teams need the discipline to perform root
cause analysis versus jumping to solution.

36. Lessons Learned
• Consistent audit protocols are needed to
ensure consistency from audit to audit,
auditor to auditor. Audit checklists were
developed and used to train auditors. Also,
coaching skills.
• A compliance management system that
provides mechanisms for document
management & control and training & audit
records frees the VR team from these
types of administrative tasks.

37. Benefits of VR
• Operations teams owned daily process
improvement and were more inclined to
sustain the improvements over time.
• Capital expenditures for the improvements
were minimal.
• Conformance to schedule improved with
the reduction in variability. Customer
Service was able to commit to new work
within a specified time period with more
confidence.

38. Benefits of VR
• ISO 9001 activities were integrated into
daily work in VR processes.
• Efficiency of Six Sigma resources
increased.
• The elements of the methodology apply to
other improvement approaches (Six Sigma,
5S, quick changeover, ISO 9001, etc.).
• Over 4 years of implementation, observed
4-10% increase in sustained throughput
of manufacturing assets.

39. How is this Different from Your
Improvement Efforts?

40. How Might This be Applied in Your
Workplace?
What Would be the Challenges?

41. More Information
• Article on VR appeared in recent special
issue of Quality Engineering titled:
Variability Reduction: A Statistical
Engineering Approach to Engage
Operations Teams in Process
Improvement.
• Contact Susan Schall at:
susan@soschall.com or 540-636-1418.

42. Questions?