Dmadv DFSS Case study Miami Houses PDF

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Designing New Housing aatt the University of Mia Miami: mi: A “Six Sigma” DMADV/DFSS Case Study J. A. Johnson a; H. Gitlow a; S. Widener b; E. Popovich c a Department of Management Science, School of Business Administration, University of Miami, Coral Gables, FL b Department of Industrial Engineering, College of Engineering University of Miami, Coral Gables, FL c Sterling Enterprises International, Inc., Boca Raton, FL

To cite this Article Johnson, J. A., Gitlow, H., Widener, S. and Popovich, E.(2006) 'Designing New Housing at the

University of Miami: A “Six Sigma”DMADV/DFSS Case Study', Quality Engineering, 18: 3, 299 — 323

To link to this Article: DOI: 10.1080/08982110600719399 URL: http://dx.doi.org/10.1080/08982110600719399

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Quality Engineering, 18:299–323, 2006 Copyright # Taylor & Francis Group, LLC ISSN: 0898-2112 print=1532-4222 online DOI: 10.1080/08982110600719399

Designing New Housing at the University of Miami: A ‘‘Six Sigma’’# DMADV/DFSS Case Study J.A. Johnson and H. Gitlow Department of Management Science, School of Business Administration, University of Miami, Coral Gables, FL

S. Widener Department of Industrial Engineering, College of Engineering University of Miami, Coral Gables, FL

E. Popovich

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Sterling Enterprises International, Inc., Boca Raton, FL

The ‘‘Six Sigma’’ management DMADV model is used in this paper to design a new dormitory concept at the University of Miami. It is intended to provide a roadmap for conducting a Design for Six Sigma (DFSS) project. Keywords

Case study; Design for Six Sigma; DFSS; DMADV; Six Sigma.

product, service, or process, while the DMADV method is used primarily for the invention and innovation of modified or new products, services, or processes. This paper focuses on the DMADV method. DEFINE PHASE Introduction

INTRODUCTION ‘‘Six Sigma’’ management is the relentless and rigorous pursuit of the reduction of variation in all critical processes in an organization. Its purpose is to achieve continuous and breakthrough improvements that impact the bottom line and increase customer satisfaction. Six Sigma management is an organizational initiative designed to create processes that produce no more than 3.4 defects per million opportunities. The two methods employed in Six Sigma initiatives to achieve this high standard of quality are called the DMAIC (the Define-Measure-Analyze-ImproveControl) method (Rasis et al., 2002; vol. 15 no. 1 pp. 127–145), and the DMADV (Define-MeasureAnalyze-Design-Verify) method. The DMAIC method is used primarily for improvement of an existing

# ‘‘Six Sigma’’ is a registered trademark of the Motorola Corporation. Address correspondence to Howard Gitlow, Professor of Management Science, School of Business Administration, University of Miami, Coral Gables, FL 33124, USA. E-mail: [email protected]

The Define Phase of the DMADV model has five components: establish the background and business case; assess the risks, benefits, and costs of the project; form the product development team; develop the project plan, and write the project charter. Background and Business Case The University of Miami has experienced rapid growth in student enrollment, a policy that stipulates that all incoming freshmen must live on campus (unless they live with their family), and the wish of the president for a more residential campus created more demand than supply for on-campus housing. This is clearly seen by the portion of the University’s mission and dashboard, shown in Table 1. A partial list of potential projects is shown in the right-most column of Table 1. The potential projects are prioritized for action in a project prioritization matrix (see Table 2). The project relating to the School of Business Administration with the highest weighted average from Table 2 is selected as a ‘‘Six Sigma’’ project, as it has the most impact on the business objectives, in this case,

299

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Table 1 The mission and selected portions of the dashboard for the University of Miami. ‘‘Mission Statement: The University of Miami exists that human knowledge be treasured, preserved, expanded and disseminated and that the human mind, body and spirit be nurtured and strengthened through learning.’’ Content Last Modified on March 28, 2003

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President

Provost

Dean of the school of business

Key objectives

Key indicators

Key objectives

Improve student experiences

Number of students applying

Increase the Number of number of students students living living on campus on campus by semester

Percent of students returning by semester

Increase student resident retention rate

Improve the national ranking of the university

Key indicators Key objectives Key indicators Increase the number of business students living on campus Percentage Increase of students business retained student each semester retention

I-MR chart of national ranking

Number of Improve interdisciplinary interdisciplinary projects research

Increase the university endowment

Total value of the endowment by year

Projects

Number of Create more business on-campus students housing for living business on campus students by semester (new housing) Percentage of Improve onbusiness campus housing students options for retained by business semester students (housing renovation) Improve oncampus housing options for business students (housing renovation) Improve oncampus housing options for business students (housing renovation) Improve oncampus housing options for business students (housing renovation)

Table 2 Six Sigma project prioritization matrix Partial list of potential projects for business school Weight President’s business objectives Improve national ranking Improve interdisciplinary research Increase the endowment Improve student experience Weighted average

Office wing

New housing

Housing renovations

Business library

0.40 0.30

9 9

3 1

3 1

1 3

0.15 0.15 1.00

1 3 6.9

9 9 4.2

1 9 3

1 3 1.9

Designing New Housing at the University of Miami

the Office Wing Construction, with a score of 6.9. However, this project is near completion, so the Dean of the School of Business can start to set up the next project, New Housing Construction.

Popovich), one Black Belt (Professor Howard Gitlow), and one Champion (Dean Paul Sugrue).

Risks, Benefits, and Costs of the Project

The fourth step in the Define Phase is to develop a project plan which has five components: opportunity statement, project objective, project scope, multigenerational product plan, and a Gantt chart. The purpose of the project plan is to define the project.

Risks

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Table 3 shows a failure modes and effects analysis (FMEA) for the new housing project that was created in a brainstorming session by team members. Each individual item was rated by (1) severity, (2) probability of occurrence, and (3) detectability, on a 1 to 10 scale. In each case, the scale is established so that 1 is the ideal state, that is, cheapest or least damaging, least likely to occur, and easiest to detect. Accordingly, a 10 is the most undesirable state, that is, expensive or heavily damaging, likely to occur, and difficult to detect. The three scores for each failure mode are multiplied to get a composite score of the risk, known as the Risk Priority Number (RPN). An RPN can range from 1 (1  1  1) to 1,000 (10  10  10), with higher numbers being more problematic risks. In the dormitory case, team members established a plan to decrease risk. After the plan is put into place, the three component scores are estimated again to compute a revised RPN. The two major risks, obsolescence (RPN ¼ 560) and design team dynamics (RPN ¼ 448), can be avoided by planning flexible interiors that can be easily updated (revised RPN ¼ 210) and maintaining a team environment (revised RPN ¼ 192), respectively. Benefits The measurable benefits of new housing construction can be broken down into two groups, financial and non-financial benefits. Financial benefits include rental of the new rooms. However, the dormitory is planned to be a break-even operation (see Table 4). Non-financial benefits would also be realized, for example, in potentially increased ratings from sources like Business Week and U.S. News and World Report. Another example is the positive feelings evoked from a physically apparent sign of growth, as the new building stimulates interest and excitement. Composition of the Team The team comprised two members (Adam Johnson and Scott Widener), one advisor (Dr. Edward

Project Plan

Opportunity Statement The opportunity statement clarifies the opportunity the project provides toward bottom-line profits or customer satisfaction. It asks: ‘‘What is the pain that will be addressed by the project?’’ In the dormitory example, the University of Miami president stated her desire to create a more residential campus (see the dashboard in Table 1). The Dean of the School of Business would like to establish the School of Business as a top 50 business school. Currently, there is a need to expand the facility and infrastructure to keep up with the escalating competition to become a top 50 business school. Project Objectives The project objective clarifies the goal of the project. In the case of the dormitory example, the project objective is to create a design for a high-class living facility that encourages learning and community aimed at executives-in-residence, MBA students, and junior and senior undergraduate business students. The facility should increase the number of on-campus residents. Project Scope The project scope focuses the opportunity statement by considering the constraints on the project. The first issue considered by the project scope is resource constraints. For the dormitory project, the only constraints are a deadline for completing the design and a particular plot of land. The second issue considered by the project scope is obstacles. For the dormitory project, obstacles include confidentiality about the project, political struggles between key groups with vested interests, and an extremely diverse population that needs to be appeased with any newly designed facilities. The third issue considered by the project scope is financial constraints. Financial constraints for the project are set by the construction

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Table 3 FMEA of the proposed project Likelihood of Likelihood of occurrence Severity detection RPN

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Risk elements

Failure mode

Executives continue to use five star hotels

Executive rooms empty

5

6

1

Building permit Parking required by not issued coral gables housing code Obsolescence High renovation expenses

3

10

1

7

8

10

Project exceeds Other sacrifices or budget unfinished construction Design team dynamic Poor design problems Technical incompetence Poor design

3

7

5

7

8

8

4

8

4

Poor workmanship= broken facilities Poor design Destruction or damage to the building Unfilled rooms

10

3

5

1 1

8 10

8 1

4

7

2

Facilities integration problems

High utility and maintenance costs

3

6

4

Alienation of business students Strained university relationships

Underclass backlash

2

3

3

Political turf battles

5

5

2

Construction defects Rushing to decisions Natural disaster

Lack of student interest

Action

30 Market research and design facilities to better suit executives 30 Add parking to design if dictated by code 560 Plan a flexible interior that can easily be changed 105 Strong planning effort 448 Maintain a team environment 128 Independent consulting of specifications 150 Allocate time and money to fix problems 64 Strong planning effort 10 Properly insure the facility

56 Market research and design facilities to better suit students 72 Specialists create specifications and study integration of systems 18 Market the building properly 50 Define the purpose of the building to the presidential dashboard

Likelihood Likelihood of of occurrence Severity detection RPN 2

6

1

12

1

10

1

10

7

3

10

210

2

5

5

50

4

6

8

192

1

8

4

32

10

1

5

50

1 1

6 3

8 1

48 3

2

7

2

28

1

6

4

24

1

3

3

9

1

5

2

10

303

Designing New Housing at the University of Miami Table 4 Financial estimates by year Revenues by floor Single room rent per student 40 single rentals floor Total rent per floor Debt service by floor 25,137 square feet per floor $200 per square foot construction costs Construction cost per floor ($5,027,400) 30-year bond @ 5% interest rate Net revenue by floor (Revenue less debt service)

$12,000 for year $480,000 per year $480,000 per year

$327,040 per year $480,000 per year $327,040 per year $152,960 per year

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Maintenance by floor 25,137 square feet per floor $6 per square foot Net net revenue by floor (Net revenue less maintenance)

$150,822 per year $152,960 per year $150,822 per year $2,138 per year

Net net revenue for building (7 floors)

budget and the project budget ($1,000). All expenditures must be cleared through the project’s Black Belt.

$14,966 per year

Gantt Chart The final section of the project plan is to lay out the timeframe of the project using a Gantt chart.

Multi-Generational Product Plan (MGPP) A MGPP is a method used to view the ‘‘entire picture’’ of a project. Table 5 illustrates the three categories of MGPPs. In the dormitory project, it can be seen that the new facility is a cross between Generations 1 and 2. It is Generation 1 because there is some bleeding in the housing market as students leave campus to seek offcampus housing. However, it is Generation 2 because it develops and incorporates new technologies into an on-campus living facility. Consequently, the new facility design will be treated as a Generation 2 project.

Project Charter A project charter identifies the market segments for a product, service, or process, as well as the measure(s) of success with direction(s) and target(s), and a deadline. In the dormitory example, the project objective is to create a design for a high-class living facility that encourages learning and community (the product) aimed at executives-in-residence, MBA students, as well as junior and senior undergraduate business students (the market segments) to increase

Table 5 MGPP categories and definitions Generation

MGPP generation 1

MGPP generation 2

MGPP generation 3

Vision

Stop bleeding in existing markets

Take leadership in new markets

Product=service generations Product=service technologies and platforms

Improved or less expensive existing features Current technology

Take offensive action by filling unmet needs of existing markets New major features Current technology with relevant technological enhancements if needed

Current technology and development of new technology if possible

New products or services or processes

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(the direction) the number of on campus residents (the measure of success) by 280 students (the target) by July 15, 2003 (the deadline). MEASURE PHASE Introduction The Measure Phase has three steps: segment the market, design and conduct a Kano Survey, and use the Kano survey results as Quality Function Deployment inputs to find Critical to Quality Characteristics (CTQs).

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Market Segmentation The first step of the Measure Phase is to identify the market segments. In the dormitory example, the Dean of the School of Business Administration identified three distinct market segments for the new on-campus housing. These market segments are executives-inresidence, regular MBA students, and undergraduate business students. Executives-in-residence are individuals that come to campus for one or two weeks to attend a concentrated class. Currently, no regular MBA students live on campus.

Kano Survey A Kano survey (Gitlow, 1999; Kano and Takahashi, 1979) is an instrument that collects data concerning the wants and desires of regular users of a potential product, service, and process and leads to the classification of said needs and wants into tactically important categories. In the dormitory example, several key stakeholders of the current housing system at the University of Miami were interviewed to collect preliminary data on the needs of the proposed housing construction; they included two former Resident Masters (faculty members who live in apartments inside dormitory buildings), the Facilities Director (maintains existing dormitories), the...