6725792 Six Sigma Overview

8/7/2019 6725792 Six Sigma Overview

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Six Sigma Overview

Process ImprovementConsultant


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What is Six Sigma?

A Metric

Philosophy

Initiative Method / Tools


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Philosophy

Sources of variation can be

Identified

Quantified Eliminated

Controlled


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Initiative

Breakthrough Improvement

Systematic, Focused Approach

Projects Linked to Business Strategy

Key People Selected & Trained

Project Management & Reviews

Results Strategic Process Improvement

Financial Results

Sustain the Gains


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Method and Tools

Process Thinking

Process Variation

Facts, Figures, Data

Critical Few Drivers

Customer Satisfaction, DPM, COPQ, Cycle Time


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Define-Measure-Analyze-Improve-Control

8 Key Tools

Process Map, C&E Matrix, Gage R&R,

Capability Analysis, Multi-Vari Studies /Hypothesis Testing, FMEA, DOE,SPC/Control Plans


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Define-Measure-Analyze-Improve-Control

Define: Define the problem, measures andprocess associated with the problem; quantifybenefits; and identify project team.

Measure: Determine the capability of the currentprocess and the measurement system.

Analyze: Analyze data to assess patterns andtrends between inputs and outputs.

Improve: Verify critical inputs and determineoptimum settings. Implement.

Control: Implement controls to sustain thegains.


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Overall Approach


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Six Sigma Organization

Champions

Master Black Belts

Black Belts Green Belts


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Champions

Provide direction and resources.

Facilitate the identification and selection

of projects with senior leadership. Track progress of projects.

Breakdown barriers.

Create support systems. Six Sigma Catalysts


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Master Black Belts

Internal experts in Six Sigma methods and tools.

Train and mentor Black Belts.

Develop and deliver training.

Assist Champions.

Leverage best practices.

Six Sigma Experts


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Black Belts

Lead strategic, high impact multi-functional projects

? $175,000 per project 2-4 projects peryear


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Master Six Sigma methods andtools

Mentor and coach Green Belts

Dedicated role for 18 30 months Six Sigma Change Agents


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What Makes a Good Black Belt?

Open mind.

Desire to find out why things happen.

Ability to lead and direct people.

Ability to handle conflict.

Capable of self-directed activity.

Sense of urgency. Good grasp of computer skills and a basic

understanding of math.


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Green Belts

Lead day-to-day functional projects andsupport strategic Black Belt projects

Maintain current role in organization with20-50% of time dedicated to a Six Sigmaproject

$50,000 100,000 per project

Sustain the gains

Six Sigma Institutionalizers


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Characteristics of a GoodProject

Problem is clearly connected to businesspriorities Improvement in process metrics > 50%

Financial impact > $175,000/yr People will support a project they understand and see as

important


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Clear quantitative measures of success

Reasonable scope Do able in 4-6 months

Has the support and approval ofmanagement needed to get resources andremove barriers


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Examples of Black Belt Projects

Increase process throughput $400k

Reduce cycle time of assembly $420k

Reduce process downtime and scrap $320k

Reduce freight costs $700k

Reduce costs of waste disposal $1200k

Reduce bulk material transportation costs $270k


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Reduce amount of accounts receivable$500k

Reduce caustic use of Process Z $2000k Material loss: Reduce scrap & increase

yield $150k

Reduce wet milling operations costs$300k

Reduce warranty costs 50% $500k


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Examples of Black Belt Projects

Reduce road construction change orders 20%.

Improve sewage plant efficiency by 25%.

Reduce lime usage in water softening at city

water plant by 20%. Reduce invoice to cash cycle time by 50%.

Reduce processing time of billing customers for3rd party orders.


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Reduce overpayment of benefits.

Improve mortgage center first call rate

from 76% to 99%. Reduce document retention for legal

cases.

Reduce cycle time of legal transcripttransmittals.


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Six Sigma Applies to AllProcesses in All Industries

CustomerService

Design

Purchasing

Manufacturing Sales

Marketing

Administration


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Manufacturing

Financial

Telecommunications Health Care

Government

Education


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2001 AQC Six Sigma Sessions

United States Mint

El Camino Hospital CNH Capital

DuPont Legal

Albemarle Corporation Froedtert Memorial Lutheran Hospital

American Express Financial Corporation


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What is Different? Why Does SixSigma Work?

Driven by top leadership

Top-down deployment - integrated with businessstrategies

Bottom-line cost-benefit $$$$ Disciplined approach (Define-Measure-Analyze-

Improve-Control)

Sense of urgency (4-6 month projects)

Well defined roles & infrastructure (Champion,MBB, BB, GB, etc)

Statistical and data based decisions

Customer and process focus


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Additional Slides


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Common Define Pitfalls Project Scope

Non-financialObjectives

Boil the Ocean Scope

Reduce waste across manufacturing 50% Improve count control 25%

Micro-focused Scope

Reduce waste for aesthetic defects by50% on parts

sold to MNO Solution in Mind Scope

Add XY123 to product ABC to improve yield


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Common Measure Pitfalls - Tools

Process Map too detailed first time through

Do not see the forest for the trees

Measurement System not capable and no actiontaken to improve

An incapable measurement system must either be

improved

, replaced

, ord

ropped.

No action taken on high RPN items in FMEA


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Initial Process Map Detail

Initial Process Map Detail


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Incapable Measurement System

StdDev Study Var %Study Var %Tolerance

Source (SD) (5.15*SD) (%SV) (SV/Toler)

Total Gage R&R 0.383784 1.9764945.10 197.65

Repeatability 0.331525 1.7073538.96 170.74

Reproducibility 0.193341 0.99571 22.7299.57

OPERATOR 0.193341 0.99571 22.7299.57 Part-To-Part 0.7595823.9118589.25391.18

Total Variation 0.8510324.38281 100.00 438.28


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Common Analyze Pitfalls - Tools

Exclude noise inputs in analysis.

Small sample sizes.

Rely completely on graphical analysisversus hypothesis testing, regressionanalysis, etc.

Choose the wrong tool - confuse tests onthe mean with tests on variance.


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Analyze Tools

Single Output, Single Input


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Common Improve Pitfall DOE Planning

Fail to clearly state experiment objectives andlink to project objectives.

Measurement System(s) not capable. Inadequate resources.

Fail to think through the logistics.

Fail to review experiment proposal with

appropriate personnel. Operations, maintenance, safety, quality,

engineering.


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Common Control Pitfalls OperationalDiscipline

Fail to Incorporate Management of Change

Personnel Technology

Subtle Change

Fail to Link to Existing Systems

ISO / QS 9000 Safety

Training

Procedures

Fail to Audit


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Deployment Elements

Process Performance Metrics

Project Filters/Criteria

Project List / Hopper Champions

Black Belt / Green Belt Selection

Training Plan

Roles & Responsibilities

Project Reporting & Tracking

Reward & Recognition

Communication Plan / Process

Mana ement Review


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Baldrige Performance ExcellenceFramework

Leadership

Set Values, Direction, & Performance Expectations,

Manage Performance Strategic

Planning

Strategy Formulation, Planning, Budgeting &

Resource Allocation Customer

& Market

Focus

Customer & Market Knowledge


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HR

Focus

Belt Selection, Compensation/ R&R, Career

Development, Training Process

Mgmt

Project Selection, Project Assign, Project Tracking &

Review Results

Business, Six Sigma

Deployment

Information and Analysis


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6725792 Six Sigma Overview

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