Introduction To Introduction To SIX - SIGMA SIX - SIGMA Presented by : Presented by : http://www.QualityGurus.com
Introduction To Six Sigma
Nov 29, 2014
Introduction To Six Sigma
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Introduction ToIntroduction ToSIX - SIGMASIX - SIGMA
Presented by : Presented by : http://www.QualityGurus.com
QualityGurus.com
AgendaAgenda
0750 - 08000750 - 0800 Participants introductionParticipants introduction
0800 - 09300800 - 0930 Introduction to Six Sigma conceptIntroduction to Six Sigma concept
Key ConceptsKey Concepts0930 - 09450930 - 0945 Tea / Coffee BreakTea / Coffee Break
0945 - 12000945 - 1200 Forms of wasteForms of waste
What is SigmaWhat is Sigma
Components of Six SigmaComponents of Six Sigma1200 - 01001200 - 0100 Lunch Break Lunch Break
0100 - 02000100 - 0200 Selecting a ProjectSelecting a Project
0200- 03000200- 0300 Open session / Q&AOpen session / Q&A
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Participants IntroductionParticipants Introduction
Your NameYour Name
DepartmentDepartment
Your job profileYour job profile
Your exposure to Quality Management/ Your exposure to Quality Management/ Six SigmaSix Sigma
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Ground RulesGround Rules
Program success depends on your participation. Program success depends on your participation. Actively participate.Actively participate.
Please avoid cross-talks.Please avoid cross-talks.
Observe specified timings.Observe specified timings.
Please keep your mobile phones switched off.Please keep your mobile phones switched off.
Feel free to ask question at any point of time.Feel free to ask question at any point of time.
- Restrict question to specific issue being - Restrict question to specific issue being discussed, while generaldiscussed, while general
questions can be discussed during Q & A questions can be discussed during Q & A session.session.
Enjoy the program !Enjoy the program !
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Purpose of six sigma : Purpose of six sigma : To make customer happier and increase To make customer happier and increase
profitsprofits
Introduction to Six SigmaIntroduction to Six Sigma
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Origin of Six SigmaOrigin of Six Sigma
1987 Motorola Develops Six Sigma1987 Motorola Develops Six SigmaRaised Quality StandardsRaised Quality Standards
Other Companies Adopt Six SigmaOther Companies Adopt Six SigmaGEGEPromotions, Profit Sharing (Stock Options), Promotions, Profit Sharing (Stock Options),
etc. directly tied to Six Sigma training.etc. directly tied to Six Sigma training.
Dow Chemical, DuPont, Honeywell, Dow Chemical, DuPont, Honeywell, WhirlpoolWhirlpool
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Time LineTime Line
2002200219951995199219921987198719851985
Dr Mikel J Harry wrote aPaper relating early failures to quality
Motorola
Allied Signal
General Electric
Johnson & Johnson,Ford, Nissan,Honeywell
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Width of landing strip 1/2 Width
of landingstrip
If pilot always lands within 1/2 the landing strip width, we say that he has Six-sigma capability.
Pilot’s Six-Sigma Pilot’s Six-Sigma PerformancePerformance
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Current Leadership ChallengesCurrent Leadership Challenges
Delighting Customers.Delighting Customers.Reducing Cycle Times.Reducing Cycle Times.Keeping up with Technology Keeping up with Technology Advances.Advances.Retaining People.Retaining People.Reducing Costs.Reducing Costs.Responding More Quickly.Responding More Quickly.Structuring for Flexibility. Structuring for Flexibility. Growing Overseas Markets.Growing Overseas Markets.
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Six Sigma— Benefits?Six Sigma— Benefits?Generated sustained successGenerated sustained successProject selection tied to Project selection tied to organizational strategy organizational strategy
Customer focusedCustomer focusedProfitsProfits
Project outcomes / benefits tied to Project outcomes / benefits tied to financial reporting system.financial reporting system.Full-time Black Belts in a rigorous, Full-time Black Belts in a rigorous, project-oriented method.project-oriented method.Recognition and reward system Recognition and reward system established to provide motivation.established to provide motivation.
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Management involvement?Management involvement?
Executives and upper management Executives and upper management drive the effort through:drive the effort through:
Understanding Six SigmaUnderstanding Six Sigma
Significant financial commitmentsSignificant financial commitments
Actively selecting projects tied to Actively selecting projects tied to strategystrategy
Setting up formal review processSetting up formal review process
Selecting ChampionsSelecting Champions
Determining strategic measuresDetermining strategic measures
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Key issues for Leadership:Key issues for Leadership:How will leadership organize to support How will leadership organize to support Six Sigma ? (6 Six Sigma ? (6 council, Director 6 council, Director 6 , , etc)etc)
Transition rate to achieve 6 Transition rate to achieve 6 ..
Level of resource commitment.Level of resource commitment.
Centralized or decentralized approach.Centralized or decentralized approach.
Integration with current initiatives e.g. Integration with current initiatives e.g. QMSQMS
How will the progress be monitored?How will the progress be monitored?
Management Involvement?Management Involvement?
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What can it do?What can it do?Motorola:Motorola:
5-Fold growth in Sales5-Fold growth in Sales
Profits climbing by 20% paProfits climbing by 20% pa
Cumulative savings of $14 billion Cumulative savings of $14 billion over 11 yearsover 11 years
General Electric:General Electric:$2 billion savings in just 3 years$2 billion savings in just 3 years
The no.1 company in the USAThe no.1 company in the USA
Bechtel Corporation:Bechtel Corporation:$200 million savings with $200 million savings with investment of $30 millioninvestment of $30 million
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GE Six Sigma EconomicsGE Six Sigma Economics
1996 1998 20002002
0
500
1000
1500
2000
2500
1996
Cost
Benefit
(in millions)
Source: 1998 GE Annual Report, Jack Welch Letter to Share Owners and Employees - progress based upon total corporation cost/benefits attributable to Six Sigma.
6 Sigma Project Progress
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PAIN, URGENCY, SURVIVAL
COSTS OUT
GROWTH
TRANSFORM THE ORGANIZATION
CHANGE THE
WORLD
6 SIGMA AS ASTATISTICAL
TOOL
6 SIGMA AS APHILOSOPHY
6 SIGMA ASA PROCESS
Overview of Six Overview of Six SigmaSigma
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Overview of Six Overview of Six SigmaSigma
It is a PhilosophyIt is a PhilosophyAnything less than Anything less than ideal is an opportunity ideal is an opportunity for improvementfor improvementDefects costs moneyDefects costs moneyUnderstanding Understanding processes and processes and improving them is the improving them is the most efficient way to most efficient way to achieve lasting resultsachieve lasting results
It is a ProcessIt is a ProcessTo achieve this level of To achieve this level of performance you need performance you need to: to:
DDefine, efine, MMeasure, easure, AAnalyse, nalyse, IImprove and mprove and CControlontrol
It is StatisticsIt is Statistics
6 Sigma processes will 6 Sigma processes will produce less than 3.4 produce less than 3.4 defects per million defects per million opportunitiesopportunities
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PhilosophyPhilosophy
Know What’s Know What’s Important to the Important to the Customer (CTQ)Customer (CTQ)
Reduce Defects Reduce Defects (DPMO) (DPMO)
Center Around Center Around Target (Mean) Target (Mean)
Reduce Variation Reduce Variation (Standard Deviation)(Standard Deviation)
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Critical ElementsCritical Elements
Genuine Focus on the CustomerGenuine Focus on the CustomerData and Fact Driven ManagementData and Fact Driven ManagementProcess FocusProcess FocusProactive managementProactive managementBoundary-less CollaborationBoundary-less CollaborationDrive for Perfection; Tolerance for Drive for Perfection; Tolerance for failurefailure
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Data Driven Data Driven DecisionDecision
• YY• DependentDependent• OutputOutput• EffectEffect• SymptomSymptom• MonitorMonitor
• X1 . . . XnX1 . . . Xn• IndependentIndependent• Input-ProcessInput-Process• CauseCause• ProblemProblem• ControlControl
f(X)f(X)Y=Y=
The focus of Six sigma is to identify and control XsThe focus of Six sigma is to identify and control Xs
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Two ProcessesTwo Processes
• DefineDefine• MeasureMeasure• AnalyzeAnalyze• ImproveImprove• ControlControl
• DefineDefine• MeasureMeasure• AnalyzeAnalyze• DesignDesign• VerifyVerify
DMAICDMAIC DMADVDMADV
• Existing Existing ProcessesProcesses
• New ProcessesNew Processes• DFSSDFSS
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Key ConceptsKey Concepts
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COPQ (Cost of Poor COPQ (Cost of Poor Quality)Quality)
- Lost Opportunities
- The Hidden Factory
- More Setups- Expediting Costs- Lost Sales- Late Delivery- Lost Customer Loyalty- Excess Inventory- Long Cycle Times- Costly Engineering Changes
Average COPQ approximately 15% of Sales
Hidden Costs:- Intangible- Difficult to Measure
Traditional Quality Costs:- Tangible- Easy to Measure
- Inspection- Warranty- Scrap- Rework- Rejects
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0%5%
10%15%20%25%30%35%40%45%50%
2 3 4 5 6
Co
st
of
Qu
alit
y %
Sa
les
Sigma Level
COPQ v/s Sigma COPQ v/s Sigma LevelLevel
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CTQ (Critical-To-CTQ (Critical-To-Quality)Quality)
CTQ characteristics for the process, CTQ characteristics for the process, service or processservice or processMeasure of “What is important to Measure of “What is important to Customer”Customer”6 Sigma projects are designed to 6 Sigma projects are designed to improve CTQimprove CTQExamples:Examples:
Waiting time in clinicWaiting time in clinicSpelling mistakes in letterSpelling mistakes in letter% of valves leaking in operation% of valves leaking in operation
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Defective and DefectDefective and Defect
A nonconforming unit is a defective unitA nonconforming unit is a defective unit
Defect is nonconformance on one of many Defect is nonconformance on one of many possible quality characteristics of a unit possible quality characteristics of a unit that causes customer dissatisfaction.that causes customer dissatisfaction.
A defect does not necessarily make the A defect does not necessarily make the unit defectiveunit defective
Examples:Examples:Scratch on water bottle Scratch on water bottle
(However if customer wants a scratch free (However if customer wants a scratch free bottle, then this will be defective bottle)bottle, then this will be defective bottle)
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Defect OpportunityDefect Opportunity
Circumstances in which CTQ can fail Circumstances in which CTQ can fail to meet.to meet.Number of defect opportunities relate Number of defect opportunities relate to complexity of unit.to complexity of unit.Complex units – Greater Complex units – Greater opportunities of defect than simple opportunities of defect than simple unitsunitsExamples:Examples:
A units has 5 parts, and in each part there are 3 A units has 5 parts, and in each part there are 3 opportunities of defects – Total defect opportunities of defects – Total defect opportunities are 5 x 3 = 15 opportunities are 5 x 3 = 15
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DPO (Defect Per DPO (Defect Per Opportunity)Opportunity)
Number of defects divided by number Number of defects divided by number of defect opportunitiesof defect opportunities
Examples:Examples:In previous case (15 defect opportunities), if 10 In previous case (15 defect opportunities), if 10 units have 2 defects.units have 2 defects.
Defects per unit = 2 / 10 = 0.2Defects per unit = 2 / 10 = 0.2
DPO = 2 / (15 x 10) = 0.0133333DPO = 2 / (15 x 10) = 0.0133333
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DPMO (Defect Per Million DPMO (Defect Per Million Opportunities)Opportunities)
DPO multiplies by one millionDPO multiplies by one million
Examples:Examples:In previous case (15 defect opportunities), if 10 In previous case (15 defect opportunities), if 10 units have 2 defects.units have 2 defects.
Defects per unit = 2 / 10 = 0.2Defects per unit = 2 / 10 = 0.2
DPO = 2 / (15 x 10) = 0.0133333DPO = 2 / (15 x 10) = 0.0133333
DPMO = 0.013333333 x 1,000,000 = 13,333DPMO = 0.013333333 x 1,000,000 = 13,333
Six Sigma performance is 3.4 DPMO
13,333 DPMO is 3.7 Sigma
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YieldYield
Proportion of units within Proportion of units within specification divided by the total specification divided by the total number of units.number of units.
Examples:Examples:If 10 units have 2 defectivesIf 10 units have 2 defectives
Yield = (10 – 2) x 100 /10 = 80 %Yield = (10 – 2) x 100 /10 = 80 %
Rolled Through Yield (RTY)Rolled Through Yield (RTY)Y1 x Y2 x Y3 x ……. x YnY1 x Y2 x Y3 x ……. x Yn
E.g 0.90 x 0.99 x 0.76 x 0.80 = 0.54E.g 0.90 x 0.99 x 0.76 x 0.80 = 0.54
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Forms of WasteForms of Waste
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What are the forms of What are the forms of waste?waste?1.1. Waste of CorrectionWaste of Correction2.2. Waste of OverproductionWaste of Overproduction3.3. Waste of processingWaste of processing4.4. Waste of conveyance (or Waste of conveyance (or
transport)transport)5.5. Waste of inventoryWaste of inventory6.6. Waste of motionWaste of motion7.7. Waste of waitingWaste of waiting
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1. Waste of correction1. Waste of correction
Repairing a defect wastes time Repairing a defect wastes time and resources (Hidden factory)and resources (Hidden factory)
Operation Operation 11
TestTest TestTest ProductProductOperation Operation
22
FailureFailureInvestigationInvestigation
ReworkRework
FailureFailureInvestigationInvestigation
ReworkRework
HiddenHiddenFactoryFactory
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2. Waste of 2. Waste of OverproductionOverproduction
Producing more than necessary or Producing more than necessary or producing at faster rate than requiredproducing at faster rate than required
Excess labor, space, money, handlingExcess labor, space, money, handling
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3. Waste of processing3. Waste of processing
Processing that does not provide Processing that does not provide value to the productvalue to the product
Excess level of approvalsExcess level of approvals
Tying memos that could be handwrittenTying memos that could be handwritten
Cosmetic painting on internals of Cosmetic painting on internals of equipmentequipment
Paint thickness more than specific valuesPaint thickness more than specific values
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4. Waste of conveyance4. Waste of conveyance
Unnecessary movement of material Unnecessary movement of material from one place to other to be from one place to other to be minimized because -minimized because -
It adds to process timeIt adds to process time
Goods might get damagedGoods might get damaged
Convey material and information Convey material and information ONLY when and where it is needed.ONLY when and where it is needed.
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5. Waste of inventory5. Waste of inventory
Any excess inventory is drain on an Any excess inventory is drain on an organization.organization.
Impact on cash flowImpact on cash flow
Increased overheadsIncreased overheads
Covers Quality and process issuesCovers Quality and process issues
ExamplesExamplesSpares, brochures, stationary, …Spares, brochures, stationary, …
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6. Waste of Motion6. Waste of Motion
Any movement of people, equipment, Any movement of people, equipment, information that does not contribute information that does not contribute value to product or servicevalue to product or service
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7. Waste of Waiting7. Waste of Waiting
Idle time between operationsIdle time between operations
Period of inactivity in a downstream Period of inactivity in a downstream process because an upstream activity process because an upstream activity does not deliver on time.does not deliver on time.
Downstream resources are then often Downstream resources are then often used in activities that do not add used in activities that do not add value, or worst result in value, or worst result in overproduction.overproduction.
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Some more sources of Some more sources of WasteWaste
Waste of untapped human potential.Waste of untapped human potential.
Waste of inappropriate systemsWaste of inappropriate systems
Wasted energy and waterWasted energy and water
Wasted materialsWasted materials
Waste of customer timeWaste of customer time
Waste of defecting customersWaste of defecting customers
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What is Sigma?What is Sigma?
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Have you ever…Have you ever…
Shot a rifle?Shot a rifle?
Played darts?Played darts?
What is the point of these sports?What makes them hard?
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Jack
Jill
Who is the better shooter?
Have you ever…Have you ever…
Shot a rifle?Shot a rifle?
Played darts?Played darts?
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VariabilityVariability
Deviation = distance between Deviation = distance between observations and the mean (or observations and the mean (or average)average)
Observations Deviations
1010 - 8.4 =
1.6
9 9 - 8.4 = 0.6
8 8 - 8.4 = -0.4
8 8 - 8.4 = -0.4
7 7 - 8.4 = -1.4
averages 8.4 0.0
Jack
871089
Jill
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Deviation = distance between Deviation = distance between observations and the mean (or observations and the mean (or average)average)
Observations Deviations
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
6 6 - 6.6 = -
0.6
66 - 6.6 = -
0.6
averages 6.6 0.0
Jack
Jill
76776
VariabilityVariability
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Variance = average distance Variance = average distance between observations and between observations and the mean squaredthe mean squared
Observations Deviations
1010 - 8.4 =
1.6
99 – 8.4 =
0.6
88 – 8.4 = -
0.4
88 – 8.4 = -
0.4
77 – 8.4 = -
1.4
averages 8.4 0.0
Squared Deviations
2.56
0.36
0.16
0.16
1.96
1.0
Variance
Jack
871089
Jill
VariabilityVariability
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Variance = average distance Variance = average distance between observations and between observations and the mean squaredthe mean squared
Observations Deviations
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
66 – 6.6 = -
0.6
66 – 6.6 = -
0.6
averages 6.6 0.0
Squared Deviations
0.16
0.16
0.16
0.36
0.36
0.24
Variance
Jack
Jill
76776
VariabilityVariability
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VariabilityVariabilityStandard deviation Standard deviation = square root of = square root of variancevariance
Jack
Jill
AverageAverage VariancVariancee
Standard Standard DeviationDeviation
JackJack 8.48.4 1.01.0 1.01.0JillJill 6.66.6 0.240.24 0.48989790.4898979
But what good is a standard deviation
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The world tends to be bell-shaped
Most outcomes
occur in the middle
Fewer in the “tails”
(lower)
Fewer in the “tails” (upper)
Even very rare outcomes are
possible
Even very rare outcomes are
possible
VariabilityVariability
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Add up the dots on the dice
0
0.05
0.1
0.15
0.2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Sum of dots
Pro
ba
bili
ty 1 die
2 dice
3 dice
Here is why: Here is why: Even outcomes that are equally Even outcomes that are equally likely (like dice), when you add likely (like dice), when you add them up, become bell shapedthem up, become bell shaped
VariabilityVariability
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Normal distributions are divide upinto 3 standard deviations on each side of the mean
Once your that, you know a lot about what is going on
And that is what a standard deviation is good for
““Normal” bell shaped curveNormal” bell shaped curve
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Causes of VariabilityCauses of Variability
Common CausesCommon Causes::Random variation within predictable range Random variation within predictable range (usual)(usual)No patternNo patternInherent in processInherent in processAdjusting the process increases its variationAdjusting the process increases its variation
Special CausesSpecial CausesNon-random variation (unusual)Non-random variation (unusual)May exhibit a patternMay exhibit a patternAssignable, explainable, controllableAssignable, explainable, controllableAdjusting the process decreases its variationAdjusting the process decreases its variation
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LimitsLimits
Process and Control limits:Process and Control limits: StatisticalStatistical
Process limits are used for Process limits are used for individual itemsindividual items
Control limits are used with Control limits are used with averagesaverages
Limits = Limits = μμ ± 3 ± 3σσ
Define usual (common causes) & unusual Define usual (common causes) & unusual (special causes)(special causes)
Specification limits:Specification limits:
EngineeredEngineered
Limits = target ± toleranceLimits = target ± tolerance
Define acceptable & unacceptableDefine acceptable & unacceptable
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Usual v/s Unusual, Usual v/s Unusual, Acceptable v/s DefectiveAcceptable v/s Defective
Another View
LSL USL USLLSL
Off-Target Large Variation
On-Target
CenterProcess
Reduce Spread
The statistical view of a problem
USLLSL LSL = Lower spec limit
USL = Upper spec limit
LSL = Lower spec limit
USL = Upper spec limit
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More about limitsMore about limits
Good quality: defects are rare (Cpk>1)
Poor quality: defects are common (Cpk<1)
Cpk measuresmeasures “Process Capability”
If process limits and control limits are at the same location, Cpk = 1. Cpk ≥ 2 is exceptional.
μtarget
μtarget
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Process capabilityProcess capability
Good quality: defects are rare (Cpk>1)Good quality: defects are rare (Cpk>1)Poor quality: defects are common (Cpk<1)Poor quality: defects are common (Cpk<1)
Cpk = min
USL – x3σ
=
x - LSL3σ
=
3σ = (UPL – x, or x – LPL) = =
14 20 26 15 24
24 – 203(2)
= =.667
20 – 153(2)
= =.833
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1 122 3 4 5 6 7 8 9 10 11
1 1 1 1 116
LSL USL
A Six Sigma Process –A Six Sigma Process – Predictably twice as good as what the Predictably twice as good as what the customer wantscustomer wants
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3 3 v/s 6 v/s 6
2 3 4 5 6 7 8 9 1210 16151413111
LSL USL
6 Sigma curve
3 Sigma curve
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Process shift Process shift allowedallowed
2 3 4 5 6 7 8 9 1210 16151413111
LSL USL
SD = 1
1.5 SD 1.5 SD
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Six Sigma Six Sigma MeasurementMeasurement
34
5
6
7
66810
6210
233
3.4
Sigma
DPMO
On one condition :
Calculate the defects and estimate the opportunities in the same way...
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Six Sigma Six Sigma MeasurementMeasurement
0
100,000
200,000
300,000
400,000
500,000
600,000
1.5 2.5 3.5 4.5 5.5
# of Sigmas
# of
Def
ect p
er M
illio
n
Sigma Defects numbers per million
1.5s 500,000 2.0s 308,300 2.5s 158,650 3.0s 67,000 3.5s 22,700 4.0s 6,220 4.5s 1,350 5.0s 233 5.5s 32 6.0s 3.4
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Components of Six SigmaComponents of Six Sigma
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ComponentsComponents
Two components of Six SigmaTwo components of Six Sigma
1. Process Power1. Process Power
2. People Power2. People Power
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Process PowerProcess Power
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P-D-C-AP-D-C-A
P
DC
APlan
DoCheck
Act
Act on what was learned
Check the results
Plan the change
Implement the change on a small scale.
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ApproachApproach
Practical Problem
StatisticalProblem
Statistical Solution
Practical Solution
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DMAIC - simplifiedDMAIC - simplified
DDefineefineWhat is important?What is important?
MMeasureeasureHow are we doing?How are we doing?
AAnalyzenalyzeWhat is wrong?What is wrong?
IImprovemproveFix what’s wrongFix what’s wrong
CControlontrolEnsure gains are Ensure gains are maintained to guarantee maintained to guarantee performanceperformance
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DMAIC approachDMAIC approach
DDefine
MMeasure
AAnalyze
IImprove
CControl
Identify and state the practical problem
Validate the practical problem by collecting data
Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution
Confirm and test the statistical solution
Convert the statistical solution to a practical solution
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DefineDefine
DDefine
MMeasure
AAnalyze
IImprove
CControl
VoCVoC - Who wants the project and why ?
The scope of project / improvement (SMART Objective)
Key team members / resources for the project
Critical milestones and stakeholder review
Budget allocation
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MeasureMeasure
Ensure measurement system reliability
Prepare data collection plan
Collect data
- Is tool used to measure the output variable flawed ?
- How many data points do you need to collect ?- How many days do you need to collect data for ?- What is the sampling strategy ?- Who will collect data and how will data get stored ? - What could the potential drivers of variation be ?
DDefine
MMeasure
AAnalyze
IImprove
CControl
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AnalyzeAnalyze
How well or poorly processes are working compared with- Best possible (Benchmarking)- Competitor’s
Shows you maximum possible result
Don’t focus on symptoms, find the root cause
DDefine
MMeasure
AAnalyze
IImprove
CControl
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ImproveImprove
Present recommendations to process owner.
Pilot run- Formulate Pilot run.
- Test improved process (run pilot).
- Analyze pilot and results.
Develop implementation plan.
- Prepare final presentation.
- Present final recommendation to Management Team.
DDefine
MMeasure
AAnalyze
IImprove
CControl
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ControlControl
Don’t be too hasty to declare victory.
How will you maintain to gains made?
- Change policy & procedures
- Change drawings- Change planning- Revise budget- Training
DDefine
MMeasure
AAnalyze
IImprove
CControl
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Omitting a step in Omitting a step in DMAIC?DMAIC?
StepStep Consequences if the step is Consequences if the step is omitted omitted
1. Define1. Define
2. Measure2. Measure
3. Analyze3. Analyze
4. Improve4. Improve
5. Control5. Control
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BenchmarkBenchmark BaselineBaseline Contract / Contract / CharterCharter Kano ModelKano Model Voice of the Voice of the
CustomerCustomer Quality FunctionQuality Function
DeploymentDeployment Process Flow MapProcess Flow Map ProjectProject
ManagementManagement ““Management by Management by
FactFact”” –– 4 What 4 What’’ss
7 Basic Tools7 Basic Tools Defect MetricsDefect Metrics Data Collection,Data Collection,
Forms, Plan,Forms, Plan,
LogisticsLogistics SamplingSampling
TechniquesTechniques
Cause & EffectCause & Effect
DiagramsDiagrams Failure Models &Failure Models & Effect AnalysisEffect Analysis Decision & RiskDecision & Risk
AnalysisAnalysis Statistical Statistical InferenceInference Control ChartsControl Charts CapabilityCapability Reliability Reliability AnalysisAnalysis Root Cause Root Cause Analysis Analysis 5 Why5 Why’’ss Systems Systems ThinkingThinking
Design of Design of
ExperimentsExperiments ModellingModelling TolerancingTolerancing Robust DesignRobust Design Process MapProcess Map
Statistical ControlsStatistical Controls Control ChartsControl Charts Time Series Time Series
MethodsMethods
Non Statistical Non Statistical
ControlsControls ProcedureProcedure
adherenceadherence PerformancePerformance
MgmtMgmt Preventive activitiesPreventive activities Poke yokePoke yoke
DefineWhat is wrong?Define
What is wrong?MeasureData & Process
capability
MeasureData & Process
capability
Analyze When and whereare the defects
Analyze When and whereare the defects
ImproveHow to get to six sigma
ImproveHow to get to six sigma
ControlDisplay
key measures
ControlDisplay
key measures
Tools for DMAICTools for DMAIC
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ComponentsComponents
Two components of Six SigmaTwo components of Six Sigma
1. Process Power1. Process Power
2. People Power2. People Power
Tell me, I forget. Show me , I remember. Involve me, I understand.
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Master Black Belt
Black Belts
Green Belts
Team Members / Yellow Belts
Ch
amp
ion
s
Mentor, trainer, and coach of Black Belts and others in the organization.
Leader of teams implementing the six sigma methodology on projects.
Delivers successful focused projects using the six sigma methodology and tools.
Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
6 6 Training Training
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Six Sigma Six Sigma OrganizationOrganization
Champion
BlackBelt
BlackBelt
BlackBelt
GreenBelt
GreenBelt
GreenBelt
GreenBelt
GreenBelt
YellowBelt
YellowBelt
YellowBelt
YellowBelt
MasterBlackBelt
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SeniorExecutives
Champions /Process owners
Black-Belt
Green Belt
Employees(Yellow-Belt)
Executive overview2/3 Days Provide Leadership
Champions Training - I
2 days
Champions Training –II
3 days
Process Mgmt. & Project champion
Week 2
Week 3
Week 4
Training /Facilitation
skills
Project-work
Master Black-Belt-As Trainer-Coach teams-Facilitateimprovement projects
1 Week Green-Belt Training
- Part of project teams- Sometime lead the
teams
1 / 2 Days core training on Six-Sigma
- General process control &
improvement- Project Team
Member
Black-Belt
Project work
Position in Six Sigma Organisation
Typical Training
Expected Role Post Training
+
(Total 5 days)
6 6 Training Training
Week 1
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ChampionChampion
Plans improvement projectsPlans improvement projects
Charters or champions chartering Charters or champions chartering processprocess
Identifies, sponsors and directs Six Identifies, sponsors and directs Six Sigma projectsSigma projects
Holds regular project reviews in Holds regular project reviews in accordance with project chartersaccordance with project charters
Includes Six Sigma requirements in Includes Six Sigma requirements in expense and capital budgetsexpense and capital budgets
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ChampionChampion
Identifies and removes Identifies and removes organizational and cultural barriers organizational and cultural barriers to Six Sigma success.to Six Sigma success.
Rewards and recognizes team and Rewards and recognizes team and individual accomplishments individual accomplishments (formally and informally)(formally and informally)
Communicates leadership visionCommunicates leadership vision
Monitors and reports Six Sigma Monitors and reports Six Sigma progressprogress
Validates Six Sigma project resultsValidates Six Sigma project results
Nominates highly qualified Black Nominates highly qualified Black Belt and/or Green Belt candidatesBelt and/or Green Belt candidates
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Master Black BeltMaster Black BeltRolesRoles ResponsibilitiesResponsibilities
- Enterprise Six Sigma Enterprise Six Sigma expertexpert
- Permanent full-time Permanent full-time change agentchange agent
-Certified Black Belt with Certified Black Belt with additional specialized skills additional specialized skills or experience especially or experience especially useful in deployment of Six useful in deployment of Six Sigma across the Sigma across the enterpriseenterprise
- Highly proficient in using Six - Highly proficient in using Six Sigma methodology to achieve Sigma methodology to achieve tangible business results.tangible business results.
- Technical expert beyond Black Belt Technical expert beyond Black Belt level on one or more aspects of level on one or more aspects of process improvement (e.g., process improvement (e.g., advanced statistical analysis, project advanced statistical analysis, project management, communications, management, communications, program administration, teaching, program administration, teaching, project coaching)project coaching)
- Identifies high-leverage Identifies high-leverage opportunities for applying the Six opportunities for applying the Six Sigma approach across the Sigma approach across the enterpriseenterprise
-Basic Black Belt trainingBasic Black Belt training-Green Belt trainingGreen Belt training-Coach / Mentor Black BeltsCoach / Mentor Black Belts
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RolesRoles ResponsibilitiesResponsibilities- Six Sigma technical expertSix Sigma technical expert- Temporary, full-time change Temporary, full-time change
agent (will return to other agent (will return to other duties after completing a duties after completing a two to three year tour of two to three year tour of duty as a Black Belt)duty as a Black Belt)
- Leads business process Leads business process improvement projects where Six improvement projects where Six Sigma approach is indicated.Sigma approach is indicated.
- Successfully completes high-Successfully completes high-impact projects that result in impact projects that result in tangible benefits to the tangible benefits to the enterpriseenterprise
- Demonstrated mastery of Black Demonstrated mastery of Black Belt body of knowledgeBelt body of knowledge
- Demonstrated proficiency at Demonstrated proficiency at achieving results through the achieving results through the application of the Six Sigma application of the Six Sigma approachapproach
- Coach / Mentor Green BeltsCoach / Mentor Green Belts- Recommends Green Belts for Recommends Green Belts for
CertificationCertification
Black BeltBlack Belt
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Green BeltGreen Belt
RolesRoles ResponsibilitiesResponsibilities- Six Sigma Project originatorSix Sigma Project originator- Part-time Six Sigma change Part-time Six Sigma change
agent. Continues to perform agent. Continues to perform normal duties while normal duties while participating on Six Sigma participating on Six Sigma project teamsproject teams
- Six Sigma champion in local Six Sigma champion in local areaarea
- Recommends Six Sigma projectsRecommends Six Sigma projects- Participates on Six Sigma project Participates on Six Sigma project
teamsteams- Leads Six Sigma teams in local Leads Six Sigma teams in local
improvement projects improvement projects
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Yellow BeltYellow Belt
RolesRoles ResponsibilitiesResponsibilities- Learns and applies Six Learns and applies Six
Sigma tools to projectsSigma tools to projects- Actively participates in team Actively participates in team
taskstasks- Communicates well with other Communicates well with other
team membersteam members- Demonstrates basic improvement Demonstrates basic improvement
tool knowledgetool knowledge- Accepts and executes Accepts and executes
assignments as determined by assignments as determined by teamteam
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Financial AnalystFinancial Analyst
Validates the baseline status for Validates the baseline status for each project.each project.
Validates the sustained results / Validates the sustained results / savings after completion of the savings after completion of the project.project.
Compiles overall investment vs. Compiles overall investment vs. benefits on Six Sigma for benefits on Six Sigma for management reporting.management reporting.
Will usually be the part of Senior Will usually be the part of Senior Leadership Team.Leadership Team.
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Thought of the dayThought of the day
We don't know what we don't knowWe don't know what we don't know
We can't act on what we don't knowWe can't act on what we don't know
We won't know until we searchWe won't know until we search
We won't search for what we don't We won't search for what we don't questionquestion
We don't question what we don't We don't question what we don't measuremeasure
Hence, We just don't knowHence, We just don't know
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Project SelectionProject Selection
The first step to implement Six Sigma
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Sources of ProjectsSources of Projects
External Sources:External Sources:Voice of CustomerVoice of Customer
What are we falling short of meeting What are we falling short of meeting customer needs?customer needs?
What are the new needs of customers?What are the new needs of customers?
Voice of MarketVoice of MarketWhat are market trends, and are we ready What are market trends, and are we ready to adapt?to adapt?
Voice of CompetitorsVoice of CompetitorsWhat are we behind our competitors?What are we behind our competitors?
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Sources of ProjectsSources of Projects
Internal Sources:Internal Sources: Voice of ProcessVoice of Process
Where are the defects, repairs, reworks?Where are the defects, repairs, reworks?
What are the major delays?What are the major delays?
What are the major wastes?What are the major wastes?
Voice of EmployeeVoice of EmployeeWhat concerns or ideas have employees or What concerns or ideas have employees or managers raised?managers raised?
What are we behind our competitors?What are we behind our competitors?
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As a team List down at least 20 As a team List down at least 20 improvement projects related to your work improvement projects related to your work areas …….areas …….
A Problem Statement should be SMART: SSpecific - It does not solve world hunger pecific - It does not solve world hunger MMeasurable - It has a way to measure easurable - It has a way to measure
successsuccess AAchievable - It is possible to be chievable - It is possible to be
successfulsuccessful RRelevant - It has an impact that can be elevant - It has an impact that can be
quantifiedquantified TTimely - It is near term not off in the imely - It is near term not off in the
futurefuture
Project SelectionProject Selection
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Harvesting the Fruit of Six Harvesting the Fruit of Six SigmaSigma
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Sweet FruitSweet Fruit Design for Repeatability
Bulk of FruitBulk of FruitProcess Characterization and Optimization
Low Hanging FruitLow Hanging FruitSeven Basic Tools
Ground FruitGround FruitLogic and Intuition
Process Enhancement
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Types of SavingsTypes of Savings
Hard Savings:Hard Savings: Cost ReductionCost Reduction
Energy SavingEnergy Saving
Raw Material savingRaw Material saving
Reduced Rejection, Waste, RepairReduced Rejection, Waste, Repair
Revenue EnhancementRevenue EnhancementIncreased productionIncreased production
Yield ImprovementYield Improvement
Quality ImprovementQuality Improvement
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Hard Savings:Hard Savings: Cash flow improvementCash flow improvement
Reduced cash tied up in inventoryReduced cash tied up in inventory
Reduced late receivables, early payablesReduced late receivables, early payables
Reduced cycle timeReduced cycle time
Cost and Capital avoidanceCost and Capital avoidanceOptimizing the current system / resourcesOptimizing the current system / resources
Reduced maintenance costsReduced maintenance costs
Types of SavingsTypes of Savings
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Soft Savings:Soft Savings:Customer Satisfaction / LoyaltyCustomer Satisfaction / Loyalty
Employee SatisfactionEmployee Satisfaction
Types of SavingsTypes of Savings
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Cost of implementingCost of implementingDirect PayrollDirect Payroll
Full time (Black Belts, Master Black Full time (Black Belts, Master Black Belts)Belts)
Indirect PayrollIndirect PayrollTime by executives, team members, Time by executives, team members, data collectiondata collection
Training and ConsultingTraining and ConsultingBlack Belt course, Overview for Mgmt Black Belt course, Overview for Mgmt etc.etc.
Improvement Implementation CostsImprovement Implementation CostsInstalling new solution, IT driven Installing new solution, IT driven solutions etc.solutions etc.
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What Qualifies as a What Qualifies as a Six Sigma ProjectSix Sigma Project
Three basic qualifications:Three basic qualifications: -There is a gap between current and -There is a gap between current and desired / needed performance.desired / needed performance.
The cause of problem is not clearly The cause of problem is not clearly understood.understood.
The solution is not pre-determined, The solution is not pre-determined, nor is the optimal solution apparent. nor is the optimal solution apparent.
How many projects out of 20 now qualify as Six sigma projects?
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Way forwardWay forward
Get StartedGet Started
Look for low hanging fruitsLook for low hanging fruits
Even poor usage of these tools will Even poor usage of these tools will get resultsget results
Learn more about Six SigmaLearn more about Six Sigma
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