Six sigma awareness

Six Sigma Awareness Programme

Contents

• What is Quality

• Why Six Sigma

• What is Six Sigma

• Variation, and Six Sigma basics

• The DMAIC cycle

Completely satisfying agreed customer requirements at the lowest internal cost.

What is quality ?

Customer Focus

Meeting customer requirements

Achieve complete customer satisfaction

Measure level of achievement

Customer is the ultimate judge

Customer Centric Quality

View quality externally

•Customer Perspective

Meet all customer commitments

Continuous improvement•Systematic•Scientific•Fact based

Attitude & Discipline

Quality Culture

ISO 9000

Total Quality Management

Robust Designs

CMM

Six Sigma

Popular Quality Initiatives

What does our customer want from us?

On Time Delivery

Quality

Reliability

Competitive Product

Six sigma - the most effective tool to drive customer benefits

Why Pursue Six Sigma?• Proven

• Motorola (1987)• Texas Instruments (1988)• Asea Brown Boveri (1993)• Allied Signal (1993)• GE

• Comprehensive• Philosophy• Tools• Business Metrics

• Flexible• Finance / Information Management• Manufacturing / Design• Sales / Service

• Consistent

Six Sigma Is A Journey ……. Not A Destination

• Sigma is a statistical unit of measure that reflects on the process capability.

• The “sigma value” is a metric which indicates how well a process is performing -- it measures the capability of a process to perform defect-free work.

• The higher the sigma capability, the better.

• Six Sigma means having as less as 3.4 defects when provided with an opportunity to create one million defects.

• Six Sigma is a rigorous, focused and highly effective implementation of proven quality principles and techniques

What is 6 ?

Six Sigma: Changing Focus from Output to Process

Y = f (X)

Y Effect

Dependent Symptom

Output Monitor

X1…XN Cause

Independent Problem

Input-Process Control

Identifying and fixing root causes will help us obtain the desired output

YDependentOutputEffectSymptomMonitor

X1 . . . XN

Independent Input-Process Cause Problem Control

f(X)Y= To get results, should we focus our efforts on the Y or X ?

The Focus of Six SigmaThe Focus of Six Sigma

From

Pockets of controls

Spotty use of QI tools

Ship & Fix Attitude

Ignore cost of poor Qual.

Function focused values mind set & practices

Guess work in decisions

Change the scene

To

Customer recognized quality at all levels

Disciplined and consistent use of proven tools

Do it right first time

Calculate and communicate to all employees.

Process focused values mind set & practices

Measure and analyze objective data to help decision making.

Eighty-Five percent of the reasons for failure to meet customer expectations are related to

deficiencies in systems and processes … Rather than the Employee.

The role of Management is to change the process rather than badgering individuals to do better.

So says Deming

To

TargetX XXX X XX XX

XXX

XX

XXXX

XX

XX

XX

X

XXX

XX

XX XXX

XXXX X

X

X

X

Every Human Activity Has Variability...

Six Sigma ConceptSix Sigma Concept

CustomerSpecification

defectsdefects

Understanding Variability & Customer Specification

Is The Essence of Six Sigma

Understanding Variability & Customer Specification

Is The Essence of Six Sigma

6 Key TermsConcept

Critical to Quality characteristics (CTQs)

Unit

Defect

Defect Opportunities

Definition

Customer Performance req. of a product or service.

The Item Produced Or Processed

Any event that does not meet the specification of CTQ

Any event that can be measured that provides a chance of not meeting a customer requirement.

DPMO - Defects Per Million Opportunities

Order of MagnitudeSigma

3 Spelling

1.5 misspelled words per page in a book

Money$2.7 million debt per $1 billion assets

Time3 1/2 months per century

DPMO66,807

4 1 misspelled word per 30 pages in a book

$63000 debt per $1 billion assets

2 1/2 days per century 6,210

5 1 misspelled word in the set of encyclopedias

$570 debt per $1 billion assets

30 minutes per century 233

6 1 misspelled word in all the books of a small library

$2 debt per $1 billion assets

6 seconds per century 3.4

6 MetricBenchMark

Vis

ion

Philo

soph

y

Tool

Method

Goal

Value

Symbol

Leaders

Team coaches

Team leaders

Team Members

All Associates

Champions

Master Black Belt

Black Belt

Improvement Team

Awareness

Skills are differentiated for each audienceSkills are differentiated for each audience

Skill Levels

Des

ign

Des

ign

for s

ix si

gma Im

provement

DM

AIC

Management

Process management

Two Ways About it

DefineDefine

MeasureMeasure

AnalyzeAnalyzeImproveImprove

ControlControl

The DMAIC Cycle

Define Measure Analyze Improve Control

Define The Customers, Their CTQs, The Team Charter

And The Core Business Process

•Team charter documented reviewed and reviewed with Sponsor

•Customer CTQs derived and documented

•Validate high level process map completed

Define Measure Analyze Improve Control

Measure the core business process performance

•Identified key measures

•Developed data collection plan

•Executed plan and documented results

•Process variation displayed with various charts

•Calculated baseline sigma performance

Define Measure Analyze Improve Control

Analyze the data to determine the root causes / opportunities

•Complete detailed process maps for sub-processes

•Identify process streamlining opportunities

•Identify, verify and quantify root causes

•Establish improvement targets

•Quantify opportunity

Define Measure Analyze Improve Control

Generate, select, design and implement improvements

•solution design developed and documented

•Solution validated and cost benefit proposal presented to management

•Solution tested on a pilot program

•Implementation plan developed and executed.

Define Measure Analyze Improve Control

Institutionalize the improvement and implement ongoing monitoring

•Developed, documented and implemented ongoing/monitoring plan

•Standardized process

•Procedures documented

•Response plan developed and displayed.

Team Chartering Customer Focus Process mapping

The business case Types of customers Process definition

Problem goal statements Understanding customerneeds

Benefits of process mapping

Project scope Methods of collectingcustomer inputs

The SIPOC model

Mile stones Voice of the customeranalysis

Levels of process

Roles Translate customer needs tospecific requirements

Process boundaries

Prioritizing needs Mapping guidelines

Define Measure Analyze Improve Control

DefineDefine

MeasureMeasure

AnalyzeAnalyzeImproveImprove

ControlControl

The Define Phase

What is A Charter?

A Charter is A DocumentThat Provides Purpose

And Goals For An Improvement Team

Five Major Elements Of A Charter

1. Business Case• Explanation Of Why To Do This Project

2. Problem And Goal Statements• Description Of The Problem/Opportunity And Objective

in Clear, Concise And Measurable Terms

3. Project Scope• Process Dimensions, Available Resources

4. Milestones• Key Steps and Dates To Achieve Goal

5. Roles• People, Expectations, Responsibilities

Problem And Goal Statements

The Purpose Of The Problem Statement Is To Describe What Is Wrong

The Goal Statement Then DefinesThe Team’s Improvement Objective

•What is wrong or not meetingour customer needs?

•When and where doproblems occur?

•How big is the problem?

•What is the impact?

Problem Statement

•Definition of the improvement the team istrying to accomplish.

•Start with a verb (Reduce, Eliminate,Control, Increase)

•Tends to start broadly - eventually shouldinclude measurable target and completion date.

•Must not assign blame, Presume cause, orprescribe solution.

Goal Statement

SMART Problem and Goal Statements

Specific

Measurable

Attainable

Relevant

Time Bound

Poor Example

Our customers are angry with us and late in paying their bill

Better Example

In the last 6 months 20% of our repeat customers are late (over 60 days) in paying our invoices. The current rate of late payments is up from 10% and represents 30% of our outstanding. This negatively affects our cash flow.

Project Scope

What Process Will the Team Focus On?

What Are The Boundaries Of the Process We Are To Improve? Start Point? Stop Point?

What Resources Are Available To The Team?

What (If Anything) Is Out Of Bounds For The Team?

What (If Any) Constraints Must The Team Work Under?

What Is The Time Commitment Expected Of TeamMembers?

What Will Happen To Our “Regular Jobs” While We are DoingThe Project?

Roles

How Do You Want The Champion To Work With The Team?

Is The Team’s Role To Implement Or Recommend?

When Must The Team Go To The Champion For Approval?What Authority Does The Team Have To Act Independently?

What And How Do You Want To Inform The Champion About The Team’s Progress?

What Is The Role Of The Team Leader(Black Belt) And The Team Coach (Master Black Belt)?

Are The Right Members On The Team? Functionally? Hierarchically?

Milestones

A Preliminary, High level Project Plan With Dates Tied To Phases Of DMAIC Process

Should Be Aggressive (Don’t Miss “Window Of Opportunity”)

Should Be Realistic (Don’t Force Yourselves Into “Band-Aid” Solution)

Los Angeles50 Miles

Long Beach30 Miles

DefineDefine

MeasureMeasure

AnalyzeAnalyzeImproveImprove

ControlControl

Obtaining Information On Customer Needs

Focus Groups

Interviews

Customer Observation

Market Research

Be A Customer

Customer Complaints

Surveys (e.g., Walker Surveys)

Voice Of The Customer

Sample Comments/Data

“I’m Tired Of Having To Write A Check For This Loan Every Two Weeks”

“The Survey Shows 47% Of Customers Rate Our Response Time As ‘Fair’ Or ‘Poor’

“Why Don’t You Guys Get Your Act Together?!”

“The Phone Must Have Rung Six Times Before I Got An Answer”

“I’m Not That Satisfied With Your Service”

How Do We Take Action On VOC Input?

Understanding Customer Needs

Gather input on customer needs (Listen to the voice of the Customer)

Analyze and translate VOC input into meaningful terms

Define requirements for the processes, products or service

Process for understanding needs

Translating VOC to requirement

Voice of thecustomer

Key Issues Requirement

I am always on hold ortransferred to wrongperson

Want to talk to rightperson quickly

Add additional menu itemsto voice systemCustomer gets the rightperson the first time.

I am getting my bills atdifferent times of themonth

Consistent monthly bills Customer wants timely billCustomer bill received sameday of the month.

Take too long to processthe application

Speed up loan Customer wants quick loanCustomer receives loanapproval on customerrequest date.

Definition Of A Process

A Process Is A Collection OfActivities That Takes One Or

More Kinds Of Input AndCreates Output That Is OfValue To The Customer

Process Mapping

Objectives

Learn The Definition Of Process Mapping

Understand Business Processing Mapping And ItsApplication To Completely Satisfying Customer Requirements

Learn The Key Process Elements

Learn The Importance Of Process Boundaries And ProcessOwners

Understand The Benefits Of Process Mapping

Understand The Steps Of Process Mapping

Business Process Mapping

Requirements Requirements

S I P O C

Suppliers Inputs Process Outputs Customers

Measures Measures

ProcessMap

Measurement

Objectives

To Understand That The Focus Of The Measure Step Is To Establish The Current Process Defect Level

To Understand The Definition And Rationale For Measures

To Understand The Difference Between Input, Process, And Output Measures And How Different Measures Relate To Each Other

To Understand Effectiveness vs. Efficiency Measures

Input, Process And Output Measures

Input Measures

Process Measures

Output Measures

The Key QualityAnd Delivery

RequirementsPlaced On

Your Suppliers

Measures That AreIntended To Your

Process. They IncludeQuality and Delivery

Measures Important ToYour Internal

Customers As WellAS Waste And CycleTime Measures. They

Are Correlated ToThe Pertinent

Output Measures

Output MeasuresAre Measures UsedTo Determine How

Well Customer Needs And

RequirementsAre Met

Quality Measurement

There Are Two Types Of Measures

Effectiveness Measures:The Degree To Which Customer Needs And Requirements Are Met And Exceeded

Some Examples: Percent Defective Billing Accuracy Response Time

Efficiency Measures:The Amount Of Resources Allocated In MeetingAnd Exceeding Customer Requirements

Some Examples: Cost Per Transaction Time Per Activity

Turnaround Time Amount Of Rework

Principles Of Good Measures

List Of Criteria To Use In Evaluating Measurement

The Measure Must Be Important

The Measure Must Be Easy To Understand

The Measure Is Sensitive To The Right Things And Insensitive To Other Things

The Measure Promotes Appropriate Analysis And Action

Data Needed Must Be “Easy “To Collect

“Data Defined”

Raw Facts - Qualitative Or Quantitative -Obtained By Observing A Population,

Product, Process Or Service

5-Step Data Collection Process

Clarify DataCollection

Goals

DevelopOperational

Definitions AndProcedures

Plan For DataConsistencyAnd Stability

Begin DataCollection

ContinueImproving

MeasurementConsistency

Sampling

Objectives

To Know What Sampling Is And When To Use It

To Recognize When And Where Different Types Of Bias May BeIntroduced Into Common Sampling Situations and Understand The

Importance

To Recognize That There Are Two Different Uses For Sampling,Population And Process, And That The Primary Purpose And Considerations For Sampling Are Different For Each Use

To Have An Awareness Of The Different Types Of Approaches To Random Sampling

To Giant Experience In Asking The Appropriate Questions To Ensure Sampling Is Implemented Effectively And Efficiently

DefineDefine

MeasureMeasure

AnalyzeAnalyzeImproveImprove

ControlControl

Variation

Objectives

Understand That Variation In The Data Represents The Voice Of The Process

Know The Two Types Of Variation - Common Cause And Special Cause And The Implication Of The Different Causes

Use Appropriate Tools To Study Variation In Discrete And Continuous Situations

Know How To Use And Interpret Run Charts And Control Charts And Take Appropriate Action Based On The Charts

5 Ms & 1 P

PROCESS

Machines

Materials

Methods

Measurement

Mother Nature

People

Types Of Data

Anything That Results From Being Measured On A Continuum Or Scale

Example: Continuous measure (Time To process)

Anything That Can Be CategorizedOr Designated As Either/Or

Examples: Male/Female Accept/Reject Off/On Yes/No Defect/No Defect

Democrat/Republican Day Of Week (M/T/W/Th/F)

VariableOr

Continuous

AttributeOr

Discrete

Two Types of Variation

Type Definition

Common Cause No UndueInfluence ByOne Of The5 Ms and 1P

ExpectedNormalRandom

Special Cause UndueInfluenceOf The5Ms and 1P

UnexpectedNot NormalNot Random

-3s -2s -1s X 1s 2s 3s

Normal Curve and Sigma

0.13%

2.14%13.60%

34.13% 34.13%

13.60%2.14%

0.13%

68.26%95.46%99.73%

1 Sigma2 Sigma

3 Sigma

6 Sigma implies+ 6 not + 3

Improvement Focussed Scale

Percent DPMO

93%

98%

99%

99.87%

99.9997%

66,807

22,750

6,210

1,350

3.4

3.0

3.5

4.0

4.5

6.0

Calculating Process Sigma

Number Of Units Processed N = 500

Number Of Defects Made D = 57

Number Of Defect Opportunities Per Unit O = 3

Solve For Defects Per Million Opportunities D * 1000000 N * O

57 * 1000000 500 * 3

38,000

Looked up in Sigma Conversion Table 3.3

Tools of Analysis - Histograms

# OfOccurances

# Of Days

Tools of Analysis - Pareto Chart

# OfOccurances

# Of Days

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•• •

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Tools of Analysis - Run Charts

Voltage

Hour of Day

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Tools of Analysis - Run Charts

Voltage

Hour of Day

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••

• •

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••

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Root Cause Analysis

What Is It?

• Root Cause Analysis Allows The Team To Focus On The ‘Vital Few’

Objectives Of Root Cause Analysis

• Determine, With Reasonable Confidence, What Is Creating The Problem(s) In a Process

• Allows Development Of Focussed Permanent Solutions

Cause & Effect Diagrams

EffectY

Measurement Methods Machinery

Mother Nature People Materials

Potential Causes (Xs)

Value-Added Analysis

What Constitutes Value-Added Work?

1. The Thing Passing Through TheProcess Is Physically Changed

2 The Customer Is Willing To Pay For It.

3. It Is Done Right The First Time

DefineDefine

MeasureMeasure

AnalyzeAnalyzeImproveImprove

ControlControl

Road Map: Improve

GenerateSolutions

SelectSolutions

PlanImplementation

Generate Ideas

Assumption Busting

Synthesize Solutions

Narrow List of Solutions

Solution Criteria

Validated Solution

Piloting

Project Planning

Change Management

Potential Problem Analysis

Improvement Targets

Good Targets Include A Desired PerformanceLevel And Point In Time Frame For Its Achievement

All Targets Are Moving, What Is Good Enough Next Year Probably Will Not Be Good Enough The Following Year

DMAIC OR DFSS

Define

Improve

Verify

Design

Analyze

Measure

Control

Measure

Analyze

Does AProcessExist?

Is Incr.ImprovementEnough?

Yes No

Yes

No

Scamper

S = Substitute

C = Combine

A = Adapt

M = Modify

P = Put To Other Use

E = Eliminate

R = Rearrange

DefineDefine

MeasureMeasure

AnalyzeAnalyzeImproveImprove

ControlControl

Control

Institutionalize The Improvement And Implement

Ongoing Monitoring

Developed, Documented And Implemented An Ongoing Process Monitoring Plan

Standardize The Process

Procedures Documented

Response Plan Developed And Deployed

T h e W a y W e W o r kT h e W a y W e W o r k

Thanks for your time