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six sigma

Nov 27, 2014

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AgendaAgenda and ObjectivesWelcome to the Champion training. The goal of this training is to increase your knowledge and application of the six sigma tools to effectively lead your team of Black Belts. The six sigma tools reviewed during this training will enable you to determine the capabilities and current status of a given process as well as assist you in the selection of a Black Belt project. You will gain an understanding of your role and responsibilities as a Champion leader.

ObjectivesAt the end of this training, you will be able to: Identify Champion roles and responsibilities. Lead Black Belts, Green Belts and Yellow Belts in establishing an effective six sigma culture. Describe the six sigma methodologies in the application strategy. Select six sigma projects that can be successful and productive.

Agenda Overview of Six Sigma Roles and Responsibilities Certification Requirements The Successful Project Wrap-up and Summary Glossary Appendix

1999-2001 Six Sigma Qualtec SSQ Champion 385 Version 3.1.0

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Overview of Six SigmaAgenda Overview and Objectives Six Sigma Overview Six Sigma Philosophy How to Analyze Data? The Six Sigma Predictive Equation The Cost Perspective of Y = f(X) Why Use a Strategy? Six Sigma Methodology and its Success Strategy The Six Sigma Application Strategy The Six Sigma Success Approach Benchmarking Standards The Relationship Between Process Complexity and Process Capability What Would You Invest? Cost of Poor Quality (COPQ) Understanding Opportunities Six Sigma vs. Traditional Metrics The Process Learning Strategy Why Use Six Sigma? P-A-L Exercise Exercise: How Does Your Company Compare to Six Sigma Performers? Summary

1999-2001 Six Sigma Qualtec SSQ Champion 385 Version 3.1.0

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Overview of Six SigmaOverviewThis session provides an overview of the six sigma philosophy and success strategy, methodology and design for six sigma (DFSS). You will gain an understanding of the impact of lost opportunities in your business environment due to the cost of poor quality (COPQ).

ObjectivesAt the end of this unit, you will be able to: Identify elements of the six sigma strategy. Identify elements of the six sigma methodology; including the six sigma approach to:

Business strategy. Data-driven decision-making processes. Problem-solving.

State the relevance of a process learning strategy in a business environment. State the variation in processes and COPQ.

1999-2001 Six Sigma Qualtec SSQ Champion 385 Version 3.1.0

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Overview of Six SigmaSix Sigma OverviewSix sigma differs from traditional quality improvement programs by focusing on controlling inputs, as opposed to monitoring outputs. Six sigma incorporates strategic business needs to meet customer requirements. While traditional process improvement methods depend on measuring outputs and establishing control plans to shield customers from organizational defects, a six sigma program demands that problems are addressed at the input root-cause level. This eliminates the need for unnecessary inspection and rework of output products or services. Six sigma requires: Leadership Commitment Achieving six sigma from a cultural point of view is not easy; it requires serious commitments in time, effort and resources. To be successful, the top executive leadership in the organization must initiate such a commitment before the employees are expected to practice it. This commitment is agreed upon and included in the contract before Six Sigma Qualtec schedules its first session. Managing with Data Running a business based on one's experience or tribal knowledge (discussed in more detail later in this unit) is not enough. Businesses that base decision-making on the typical I think and I feel or In my opinion practices have been around for a long time. However, in the long run these decision-making procedures never pay off. Today's information economy makes data available to virtually everyone in the organization-along with the tools to analyze it. Proper usage of data is used to Measure, Analyze, Improve and Control* performanceforming the foundation of the six sigma methodology. Adopting the six sigma philosophy leads to a possible supplement and/or modification of current data collection systems. Training and Cultural Change Improved business performance generally will not happen automatically. If it does, it cannot be sustained for a long term. High-caliber training is required; followed by disciplined implementation. The need for change in organizational behavior must be understood at all levels, while people go about doing their jobs. In short, when implemented correctly, new ways of thinking, communicating, and operating will pervade the entire organization over a period of time.

*

Six Sigma Qualtec has designated the acronym MAIC to signify six sigma perfomance tools: Measure, Analyze, Improve and Control.01_Overview 3

1999-2001 Six Sigma Qualtec SSQ Champion 385 Version 3.1.0

Overview of Six SigmaRequirements of Business ChangeWhile not the silver bullet, the six sigma approach is a very powerful and proven approach; an approach that, when deployed effectively will yield dramatic improvements and change the organizational culture and profitability. What results is increased customer satisfaction and a greater market share. The right training, followed by disciplined implementation creates the change. Champions play a vital motivational role in the deployment of a successful business culture change by communicating six sigma through the following techniques. Revelation: the dramatic disclosure of something previously not known. Inspiration: the effective stimulation of the emotions. Application: the act of putting something to special use. Transformation: the process of reconfiguring the nature of the way you do business.

The Six Sigma Philosophy The Goal: Support/serve customer requirements through transformation of knowledgeenable capabilities and sustain continuous improvement of performance, processes, products, service, people and profit. The Vision: Drive organizations to design and offer products/services at increasing sigma levels of quality. The Strategy: Provide a data-driven structured approach that addresses causes for defects; thereby, improving business processes that meet customer needs. The Tools: Use process/product exploration and data analysis to solve the equation Y = f(X) and translate this solution to practical applications.

The Goal of Six SigmaSince producing goods and services at a six sigma level is our targeted goal through a data-driven problem-solving approach, ultimately product/service performance has less variation and is more predictable. As the organization moves toward six sigma quality...

Defects are eliminated. Production and development costs are reduced. Cycle times and inventory levels are reduced. Profit margin and customer satisfaction are improved. Significant increases in resource costs are not incurred.

1999-2001 Six Sigma Qualtec SSQ Champion 385 Version 3.1.0

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Overview of Six SigmaThe Purpose of an OrganizationInformation

Organization

Value $

Six sigma works regardless of the type of business-a publicly held corporation, a private institution, discrete manufacturing, process or financial services firm-all organizations share a common attribute that six sigma addresses very effectively. This common attribute is the presence of variation.

How Do We Create Value?

Knowledge

Information

Organization

Value $

Once information is input, we react to it by applying our knowledge. Value dollars are derived when a product or service meets customers' requirements while returning a reasonable profit to your stakeholder.

1999-2001 Six Sigma Qualtec SSQ Champion 385 Version 3.1.0

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Overview of Six SigmaHow Does the Organization Deliver More Value to the Customer?Knowledge

Information

Organization

Value $ Control Chart

Champion

System

Organizations are made up of two or more systems and generally, multiple systems. The role of each system is to deliver a product based on the information and knowledge being received.

Examples of Systems: manufacturing, human resource, accounting, information, sales and marketing, and so forth. Inherent within each system is variation.

1999-2001 Six Sigma Qualtec SSQ Champion 385 Version 3.1.0

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Overview of Six SigmaTamperingTampering is changing the operating parameters through the application of experience, intuition, feelings and conventional wisdom. We call this tribal knowledge.

Knowledge

Information

Organization

Value $ Control Chart

Champion

System

Control Chart Black Belts Green Belts Yellow Belts Processes

TaskAlthough we can graphically represent the variation inherent in the system through the use of control charts, the fact is that most organizations do not track this variation. Or, if they do, it is not with enough rigor that the measurements to actually mean something. As a result, they are unable to distinguish between common cause variation and special cause variation. They only know that something is wrong. Most organizations, at this point, begin to tamper with the system. They treat all variation as if it were common cause.

Example: TamperingAn organization that is bridging orders from the field into their order entry system experiences a series of bad transactions from one customer. In order to address the issue and placate the customer, the organization institutes another inspection station to scre