1 SIX SIGMA GREEN BELT TRAINING INTRODUCTION TO. 2 Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has literal, conceptual,

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SIX SIGMA GREEN BELT TRAINING

INTRODUCTION TO

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Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has literal, conceptual, and practical definitions.

Six Sigma has three different levels:

1. As a metric 2. As a methodology 3. As a management system

Essentially, Six Sigma is all three at the same time.

WHAT IS SIX SIGMA?

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The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale, "Six Sigma" equates to 3.4 defects per one million opportunities (DPMO). Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.

Six Sigma as a Metric

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SIGMAS

DEFECTS PER MILLION

OPPORTUNITIES (DPMO)

QUALITY %

1 691,463 31

2 308,538 69

3 66,807 93

4 6,210 99.38

5 233 99.977

6 3.4 99.9997

Six Sigma as a Metric

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Six Sigma is a business improvement methodology that focuses an organization on:

Understanding and managing customer requirements Aligning key business processes to achieve those requirements Utilizing rigorous data analysis to minimize variation in those processes Driving rapid and sustainable improvement to business processes

At the heart of the methodology is the DMAIC model for process improvement. DMAIC is commonly used by Six Sigma project teams and is an acronym for:

Define opportunityMeasure performanceAnalyze opportunityImprove performanceControl performance

Six Sigma as a Methodology

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The DMAIC Model

Define Control

Measure ImproveAnalyze

Voice of the Customer

Institutionalization

Six Sigma as a Methodology

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(Six Sigma as a Methodology)

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When practiced as a management system, Six Sigma is a high performance system for executing business strategy.

Six Sigma is a top-down solution to help organizations:

Align their business strategy to critical improvement efforts Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are sustained

The Six Sigma Management System drives clarity around the business strategy and the metrics that most reflect success with that strategy.

It provides the framework to prioritize resources for projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable,

and improved business results.

Six Sigma as a Management System

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Six Sigma as a Management System

PROCESSES

TOOLS

SKILLS

TRAINING

LEAN SIGMA (DMAIC +)

Integrated Improvement

Y1

y1

VOICE OF...• Market

Customer•Employee•

• Business

FEEDBACK

CORE & ENABLING PROCESSES

PROCESSMAPS SYSTEMS

EXECUTION (PROCESS MANAGEMENT)

WORKOUT SIX SIGMALEAN SIGMA

STRATEGY

If new productor process

Big Y’s

Sub Y’s

PROCESS

DFSS (DMADV)Fundamental Redesign

DRIVES

SUPPORTS

Flexible Problem Solving Models

Y1

y1

VOICE OF...• Market• Customer• Employee• Business

BUSINESSOBJECTIVES

RESULTS:Top-LevelIndicators

(Dashboards)

PROCESSMAPS SYSTEMS

PROCESS IMPROVEMENT

STRATEGY

If new productor process

Projects

PROCESS

DFSS

DRIVES

SUPPORTS

PROCESSCONTROL

AL

IGN

ME

NT

SIX SIGMA (DMAIC)

Incremental Improvement

GE WORKOUTQuick Wins

Accelerated Improvement

The power of the Lean Tools &Principles fully integrated intoDMAIC & DFSS

The power of the Lean Tools &Principles fully integrated intoDMAIC & DFSS

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Six Reasons Why Business Leaders Love Six Sigma?

1. Six Sigma impacts the bottom line2. Six Sigma drives strategy execution3. Six Sigma generates robust, flexible business processes4. Six Sigma improves human performance across the

enterprise5. Six Sigma is highly scalable6. Six Sigma is a low risk investment

Note: Robustness is the condition of a product or process design that remains relatively stable with a minimum of variation even though factors that influence operations or usage, such as environment and wear, are constantly changing.

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Six Habits of Six Sigma Leaders

1. Delivering customer value (exhibit passion, listen actively, communicate partnership)

2. Focusing on execution (result-driven, resource conscious, process-oriented)

3. Making sound, data-driven decisions (critical thinking, decisiveness, accountability)

4. Managing performance (set goals, track progress, manage details)

5. Advocating breakthrough improvements (assertiveness, influence, tenacity)

6. Supporting team-based implementations (manage teams, reward teams)

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Six Tools Every SS BB/GB Loves

1. Quality Function Deployment (QFD)—helps to drive customer-focused

development across the design process 2. Cause and Effect (C&E) Matrix—helps to facilitate team decision making

3. Failure Modes and Effects Analysis (FMEA)—helps to identify and address weaknesses in a product or process before they occur

4. Control Charts—helps to assess process stability

5. T-Student Test (t-test)—helps to validate test results using small sample size

6. Design of Experiments (DOE)—helps to make the most of valuable resources Business

and/or CustomerRequirement

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3

45

6

Defects Good

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Six Reason Why Six Sigma Fails?

1. Lack of visible senior leader sponsorhip2. Lack of alignment to a clear organization strategy3. Lack of performance tracking and accountability4. Failure to link projects to bottom-line impact5. Insufficient or ineffective alocation of human resources6. Over-emphasis on rigid approach and technical tools

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SIX SIGMA IMPLEMENTATION AT PT MATTEL INDONESIA

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PT Mattel’s Vision: “A globally competitive manufacturer of premier toy brands through continuous improvement”

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PRACTICAL PROBLEM (PT Mattel’s Needs)

STATISTICAL PROBLEM

STATISTICAL SOLUTION

PRACTICAL SOLUTION (MATTEL’S SMART OBJECTIVES)

PT MATTEL’S VISION

SIX

SIGMA

LEAN

SUPPLY

CHAIN

SMART = Specific, Measurable,

Attainable/Actionable,

Result-oriented, Time-bound

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PT Mattel’s COPIS IDENTIFICATION

Vision: A globally competitive manufacturer of premier toy brands through CI

SMART OBJECTIVES1. To Increase Direct Labor Efficiency from ____% to ____%

2. To Reduce Scrap from _______ PPM to ______ PPM

3. To Improve Production Schedule Adherence from ______ % to ______ %

4. To Improve Daily Schedule Adherence from _____% to ______%

5. To Reduce Lot Buy Off from _____ PPM to ______ PPM

6. To Reduce Containment Audit from _______ PPM to ______ PPM

7. To Maintain Lost Day Incident Case at Zero Level (Always Zero Goal)

Product Type Customers Outputs Processes Inputs Suppliers

#1#2#3#4#5#6etc

Customers’Needs(Voice of Customer =

VOC)

KPOV (Key Per-formance Outputs Variables) –CTQ (Critical To Quality),CTS (CTSchedule, CTC(CT Cost)

ProcessesNeeds(Voice ofProcesses =VOP)

InputsRequi-rements

SuppliersRequire-Ments & Selection

COPIS = Customer, Outputs, Processes, Inputs, Suppliers

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Six Sigma COPIS Model

The Voice of the Customer (VOC) is aggressively evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with.

From Mattel’s Concept to Market: the Voice of the Customer

Customers Suppliers

Outputs InputsProcess

Steps How does Six Sigma Work?

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PT MATTEL’S SIPOC PROJECTS

PT MATTEL’S LEAN SUPPLY CHAINProduct Type

#1#2#3#4etc

Suppliers Inputs Processes Outputs Customers

LEAN-SIX SIGMA PROJECTS(PT MATTEL’S PROJECTS)

APPROACH(DMAIC)

LEAN-SIX SIGMA PROJECTS

DefineMeasureAnalyzeImproveControl

PROJECT’S OBJECTIVES LEAN SIX SIGMA TOOLS

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Six Sigma Way is a best-in-class

change strategy for accelerating

improvements in manufacturing processes and

services.

Six Sigma Way is:

Mindset/Way of thinking

A way of doing manufacturing/service business

Methodology/Tools for continual improvement

Six Sigma Way of Transformation

Six Sigma Way

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