Transcript
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Six SigmaOverview
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Six Sigma
A rigorous, focused and highly
effective implementation of provenquality principles and techniques
that aims for virtually error free
business performance.
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Further Defined?
A statistical approach to problem solving
A management culture
A way of thinking
A set of new behaviors
Synonymous with:
Improving quality
Reducing cost
Improving customer loyalty/customersatisfaction
Achieving bottom-line results
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The Six Sigma Methodology
Six Sigma is a structured, DATA DRIVENmanagement methodology that can be applied toall aspects of business.
The application of this methodology eliminates theuse of opinion - I think andI feel - and drivesthe organization to a more scientific means ofdecision-making.
Six Sigma is nota statistics program. Statistics areused solely as tools for interpretation andclarification of data.
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Six Sigmas Modern Evolution
1980 Established by Motorola in response to
foreign competition and Baldridge QualityAward goal.
1990s Focus on process improvement using
statistical tools.
2005
Lean Six Sigma combines the structuredmanagement methodology and problemsolving tools of Six Sigma with the businessstrategy, objectives and goals of Lean
Enterprise.
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The Business Experience
Reduced cycle times, defects and costs
Reduction/elimination of waste
Improved productivity and efficiency Measurable financial results
Increased product quality and reliability
Significant improvement in customersatisfaction!
Directly supports World Class performancegoals.
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$600$500$450$380
$200
$2.5B
$1.2B
$700
$170
Cost Benefit
1996
Cost Benefit
1997
Cost Benefit
1998
Cost Benefit
1999
Cost Benefit
2000
6 Sigma Cost6 Sigma Productivity
Delighting Customers
GE Results from 6 Sigma
$3.5B
$500$500
$3.0B$3.0B
$600
$2.5B$2.5B
$900$900
$3.4B
Cost Benefit
2001
$3.4 Billion in 2001 Customers & Shareholders Love It!
$ in Millions Unless Otherwise Stated
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The Business Experience
*Six Sigma iscurrently activein over 80% ofFortune 500companies.
* Masset, LLC Consulting
Motorola
Johnson & Johnson
Honeywell
TRW
Merrill Lynch
Xerox
McKesson
Sony
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Management and
Project Support
Executives
Senior DeploymentChampion
DeploymentChampion
ProjectChampion
ProcessOwner
FinanceChampion
InformationTechnologyChampion Human
ResourcesChampion
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Management and Project Support Executives
Create the Six Sigma vision and company environment.
Define strategic and business goals.
Senior Deployment Champions
Day-to-Day management of Six Sigma throughout the business.
Reports to and updates the executives on the progress of deployment.
Liaison between the executives and deployment champions.
Deployment Champions or Sponsors
Responsible for the deployment of Six Sigma within the division or
business unit.
Facilitates the identification and prioritization of projects assuring
alignment with the business goals. Establishes and executes training plans.
Selects the project champions.
Removes barriers for the project team.
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Management and Project Support Project Champion
Selects and mentors the Black Belts
Leads in project identification, prioritization, and defining the project scope.
Removes barriers for Black Belts and aligns resources.
Process Owner
Is a team member
Takes ownership of a project when it is complete
Responsible for maintaining the projects gain
Finance Champion
Estimates and certifies project savings
Works with deployment champions to identify potential projectopportunities.
Assigns a finance representative on to each project team.
InformationTechnology Champion
Insures computer and software resourcing.
Works with project teams to access data from existing databases
HR Champion
Works with Black Belts to develop a MBB, BB, and GB selection process.
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Six SigmaRoles and Responsibilities
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Yellow Belt
Green Belt
Black
Belt
MB
B
Data Collection Experts
Assist in Measure & Control.
Part-Time 6 Sigma Leaders
Run Mini 6 Sigma Projects
Full or Part Time 6 Sigma Leaders
Manage 6 Sigma Projects
Instruct & Train GBs & YBs
Full Time 6 Sigma Leaders
Manage BB Projects & Plant 6 Sigma
Run 6 Sigma Projects
Instruct & Train BB, GBs, & YBs
SixSigma
ProjectTeams
define
Measure
Analyze Improve
Control
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Belt Structure
Green Belts: Lead and execute process-level
improvement projects.
Yellow Belts: Entry Level team member. Understands
the fundamentals of Six Sigma. Data collection.
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Belt Structure
Master Black Belts: Successfully completed 20 or
more Six Sigma projects.
Black Belts: Implement the principles, practices, and
techniques of Six Sigma for maximum
cost reductions. (Lead the project teams)
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The Methodologies
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Six Sigma Methodologies
Define Measure Analyze Improve Control
DMAIC (dee-may-ic)Improvement Model:
Define Measure Analyze Design Verify
DMADV (dee-mad-v)(Re)Design Model:
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Six Sigma Methodologies
Define Measure Analyze Improve Control
DMAIC (dee-may-ic)Improvement Model:
Define Measure Analyze Design Verify
DMADV (dee-mad-v)(Re)Design Model:
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The DMAIC Model
At the heart of Six Sigma is a systematic method for
analyzing and improving business processes called
DMAIC. The model includesfive elements:
Define opportunities
Measure performance
Analyze opportunityImprove performance
Control performance
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Define
What is the business case for the
project?
Identify the customer
Current state map
Future state map
What is the scope of this project? Deliverables
Due date
Measure
What are the key metrics for this
business process?
Are metrics valid and reliable?
Do we have adequate data on this
process?
How will I measure progress?
How will I measure project success?
Analyze
Current state analysis
Is the current state as good as the
process can do?
Who will help make the changes?
Resource requirements
What could cause this change effort to
fail?
What major obstacles do I face in
completing this project?
Improve
What is the work breakdown
structure?
What specific activities are necessary
to meet the project's goals?
How will I re -integrate the various
subprojects?
Control
During the project, how will I control
risk, quality, cost, schedule, scope,
and changes to the plan?
What types of progress reports shouldI create?
How will I assure that the business
goals of the project were
accomplished?
How will I keep the gains made?
Next ProjectNext Project
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Project Phase Candidate Six Sigma Tools
Define Project charter
VOC tools (surveys, focus groups, letters, comment cards)
Process map
QFD, SIPOC (suppliers, inputs, process, outputs, customers)
Benchmarking
Measure Measurement systems analysis
Exploratory data analysis
Descriptive statistics
Data mining
Run charts
Pareto analysis
Analyze Cause-and-effect diagrams Tree diagrams
Brainstorming
Process behavior charts (SPC)
Process Maps
Design of Experiments
Enumerative statistics (hypothesis tests)
Inferential statistics (Xs and Ys)
FMEA (failure mode effects analysis)
SimulationImprove Force field diagrams
7M tools
Project planning and management tools
Prototype and pilot studies
Control SPC
FMEA
ISO 900x
Change budgets, bid models, cost estimating models Reporting system
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Six Sigma Methodologies
Define Measure Analyze Improve Control
DMAIC (dee-may-ic)Improvement Model:
Define Measure Analyze Design Verify
DMADV (dee-mad-v)(Re)Design Model:
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The DMADV Model
Systematic method for creating or reinventingbusiness processes is DMADV. Typically use:
New designs
Existing product or process was optimized
however continues not to meet Six Sigmaobjectives.
The model also includesfive elements:
Define opportunities
Measure performanceAnalyze opportunity
(Re) Design opportunity
Verify performance
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DMADV vs. DMAIC
Define
Measure
Existing
Process
Verify
Design
Analyze
Develop
Measurement
Criteria
Remove
Special
Causes
Improve
Control
Capable?
In
Control?
Does a
process
exist?
NO YES
Analyze
NO
DMADV DMAIC
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Tollgate Reviews
Another component of DMADV and DMAIC thathelps to ensure that the requirements of allcustomers are met is the tollgate review.
At the end of each phase of the DMADV or
DMAIC process, all stakeholders meet to ensurethat:
1) The requirements have not changed
2) What is being designed still addresses the requirements.
3) The measurements really address the requirements.
The tollgate review is an excellent tool for keeping allcustomers on the same page, involved in the process andcommunicating requirements.
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The Six Sigma Project
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Typical Project Examples
Thermal insulator pad improvement $207,000Laser test time cycle reduction $500,000
Reduce past due orders, delivery $1,040,000
Reduction of forge cracks$635,046
Reduction of job change down time $900,000
Reduce cycle time of paint batches $119,000
Wash water generation reduction $83,690
Reducing dppm of cell phone mfg. $408,000
Reduce brazing costs of tail cone assy. $194,000
Computer storage component test $1,100,000
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Six Sigma Pitfalls
1. Companies that adopt Six Sigma as there
quality improvement strategy believe thatevery problem should be resolved by a SixSigma project team.
2. Insufficient cross-functional team
representation.3. Inadequate participation by executive
management.
4. Initially a part-time BB requires significant
start-up time to achieve success and mayconflict with other duties.
5. Unrealistic Goals. 3.4 parts per million onEvery Process, Excessive Time and Cost to
Gather Performance Data, etc.
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Questions???
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Six Sigma Processand the Statistical Tools
AnalyzeA
MeasureM
DefineD
ImproveI
ControlC
Voice of the Customer (VOC)- QFD
XY Matrix Process Analysis and FMEA Data Collection Methods Data Integrity and Accuracy Basic Statistics
- Common Distributions- Central Limit Theorem- Sampling Distribution of Mean- Basic Probability Concepts
Decision-Making Non-Normal Data Graphical Short vs. Long Term Capability Data Analysis (B7)
- Cause and Effect Diagram- Check Sheets- Control Charts- Flowcharts- Histogram- Pareto Chart- Scatter Diagram
Measurement System(Gage) Analysis
Process Capability Assessment
Graphic Data Analysis
Multi-Vari Analysis
Inferential Statistics- Confidence Intervals- Sample Size
Hypothesis Tests- Means, Variances and Proportions- ANOVA- T-Tests- Test for Equal Variance- Paired Comparison Tests- Chi-Square- Proportion- Contingency Tables
- Point and Interval Estimation- Non-Parametric Tests Simple Linear Correlation
Regression-Simple and Multiple- Measure and Model Relationships
Between Variables- Binary Logistics
Process Modeling and Simulation
Hypothesis Tests- ANOVA
- Non-Parametric tests- Contingency Tables
Design of Experiments- Terminology- Plan and Organize Experiments- Design Principles- One Factor- Full-Factorial- Two Level Fractional- Mixture Experiments- Taguchi Robustness Concepts
Response Surface Methodology
- Steepest Ascent/Decent- High Order Experiments Evolutionary Optimization (EVOP)
Control Charts- Theory, Objectives, Benefits
- Variable Selection- Rational Sub-grouping- Selection/Application- Analysis- Moving Average- Exponentially Weighted
Moving Average (EWMA)- CuSum
Process CapabilityAssessment
Design for Six Sigma Quality Function Deployment (QFD) Robust Design and Process
- Functional Requirements- Noise Strategies- Tolerance Design- Tolerance and Process Capability
Design Analysis and FMEA
Reliability Fundamentals
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Six Sigma Processand the Management Tools
Business Case Problem/Objective Statement Project Scope Project Goals Project Definition Project Charter Identify Owners and Stakeholders Identify Customers Financial Benefits
Benchmarking Team Leadership Team Dynamics and Performance Change Agent
Performance Measurements Gap Analysis
High Level Process Mapping/ SIPOC(Suppliers, Inputs, Process, Output, and Customers)
Design for Six Sigma
Design for (X)- Manufacturing (DFM)- Cost (DFC)- Test (DFT)- Maintainability (DFMA)- Quality/Reliability (DFQ)
Special Design Tools- Inventive Problem Solving- Axiomatic Design
Lean Enterprise- Lean Thinking- Theory of Constraints- Continuous Flow Manufacturing- Non-Value Added Activities- Cycle Time Reduction- Cost of Quality- Tools
Visual Factory, Kanban, Poka-Yoke
Solution Implementation- Mistake-Proofing (Poka-Yoke)- Visible Enterprise
The Six Sigma Journey Enterprise View Leadership Business Strategy Organizational Goals/Objectives Project Management Tools (N7)
- Activity Network Diagram- Affinity Diagram- Interrelationship Digraph- Matrix Diagram- Prioritization Matrix/Grid- Tree Diagram- Process Decision Program Chart
Whats Next-Six Sigma Evolution
AnalyzeA
MeasureM
DefineD
ImproveI
ControlC
Control Plans
- Training- Documentation- Monitoring- Response- Systems and Structures
Total Productive Maintenance (TPM) Best Practice Sharing/Translation
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