Six Sigma and Continuous Improvement

8/7/2019 Six Sigma and Continuous Improvement

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BY:

Khalid Ahmad


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What Is Six Sigmay Sigma , is a letter in the Greek alphabet used by

statisticians to measure the variability in any processy Rigorous, focused and highly effective implementation of

proven quality principles and techniquesy Aims for virtually error free business performancey Six Sigma asserts the following:Manufacturing and business processes can be measured,

analyzed, improved and controlled.

Continuous efforts to reduce variation in process outputs iskey to business success.Continuous improvement requires commitment from the

entire organization, particularly from top-levelmanagement.


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Six Sigma Terminologyy Each process by itself could be fine; when a series of processes

was involved in the production of a product or service, the netwas much less than the yield at each process.

y A company's performance is measured by the sigma level of theirbusiness processesss

y Defect- any mistake or nonconformity passed on to thecustomer

yUnit ofwork- output of a process or an individual process step

y Defects per unit- a measure of output quality


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MethodologySix Sigma has two key methodologies:

y DMAIC and DMADV

yDMAIC is used to improve an existing business process

y DMADVis used to create new product or process designsfor predictable, defect-free performance.


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DMAICDefine The process improvement goals consistent with customer demands and

enterprise strategy. Describe problem and effect on customer and

stakeholders.

Measure The current process and collect relevant data for future comparison.Describe the opportunity for improvement and quantify the baseline

performance.

Analyze To verify relationship and causality of factors. Determine what the

relationship is, and attempt to ensure that all factors have been

considered.

Improve Optimize the process based upon the analysis using various techniques.

Control Ensure that any variances are corrected before they result in defects.

Set up pilot runs to establish process capability, transition to production

and thereafter continuously measure the process and institute control

mechanisms.


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DMADVDefine. The goals of the design activity that are consistent with

customer demands and enterprise strategy

Measure Identify product capabilities, production process capability,

and risk assessments.

Analyze To develop and design alternatives, create high-level design

and evaluate design capability to select the best design.

Design Details, optimizes the design, and plan for design verification.

This phase may require simulations.

Verify The design, set up pilot runs, implement production process

and handover to process owners.


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Six SigmaMeasurements.y The Six Sigma methodology measures defects in two key ways:1. Defects per Unit (DPU)2. Defects per Million Opportunities (DPMO).

Aunit is defined as the output of a process. TheDPU can be calculated as follows:

DPU = Total number of defectsTotal number of units inspected or verified

Defects PerMillion Opportunities is defined asDPMO=DPU x 1,000,000 opportunities for error

eg: 3 mishandled baggage for 8000 passengers and average baggage per personis 1.6 thenDPMO = (3/(8000)(1.6)) 1,000,000 = 234.375 DPMO

Six sigma refers to a quality level at most 3.4 DPMO(accounting for 1.5 std dev off target)


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Six SigmaMeasurements.y Multivary Analysis. Excellent tool to apportion variance in the area

where opportunities for improvement exist.

y It dissects the variance into: Positional category caused by the variables that affect the process

performance at certain locations within the process or the product.

Cyclical category - attributed to the variables related to the processsetup that cause variation in performance from one process cycle to thenext.

Temporal category attributed to the changes between cycles of aprocess and represents trends over time, i.e., shift to shift, day to day, or

week to week. Related to the maintenance activities


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Six Sigma Infrastructure


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Six Sigma Infrastructure Leadership

Six Sigma must be implemented from the top-down

Champions and Sponsors

Champions are high-level individuals like ExecutiveVP. Also includeinformal leaders who use Six Sigma in their day-to-day work.

Sponsors are owners of processes and systems who help initiate andcoordinate Six Sigma improvement activities in their areas ofresponsibilities

Master Black Belt

Highest level of technical and organizational proficiency.Master BlackBelts must be able to assist Black Belts in applying the methodscorrectly in unusual situations.


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Six Sigma Infrastructure Black Belt Technically oriented individuals held in high regard by their peers.

Actively involved in the process of organizational change and

development. Black Belts receive 160 hours of classroom instruction, plus one-on-one

project coaching fromMaster Black Belts or consultants.

Green Belt P

roject leaders capable of forming and facilitating Six Sigma teams andmanaging Six Sigma projects from concept to completion. Trainingcovers project management, quality management tools, quality controltools, problem solving, and descriptive data analysis.


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Six Sigma at Motorolay In 1981, the company launched an ambitious and innovative quality drive for a

ten-fold improvement in the quality of its products and services, after thecompany lost business to its Japanese competitors.

y Six Sigma translates into a target of no more than 3.4 defects per million

products, customer services included ManufacturingEnd- Robust designs" that accommodate reasonable variation

in component parts while providing consistently uniform final products.

Reducing the "total cycle time"-the time from when aMotorola customerplaces an order until it is delivered.

Demonstration of quality leadership- Top-level meetings to review qualityprograms. Non-executive employees contribute directly through Motorola's

Participative Management Program (PMP).

Motorola spent in excess of $170 million on worker education between 1983 and1987. About 40 percent of the worker training provided by the company isdevoted to quality matters, ranging from general principles of quality

improvement to designing for manufacturability.


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Six Sigma at Motorolay Mistakes ofMotorola

i. Training for quality at the bottom of the company

ii. Not able to innovate the designs needed a revamp of the setting.

Motorola's Six Sigma quality target aimed at achieving not morethan 3.4 defects per million products.The company aimed toachieve total customer satisfaction by providing the best qualityproducts and services.


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CONTINUOUS IMPROVEMENT

THROUGH SIX SIGMA

y Six Sigma approach is a closed loop and continuousimprovement process.

y An integrated Six Sigma structure can be viewed from twodifferent but correlated perspectives:

i. Project

ii. Business


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Challenges Due To Six Sigmay The challenge has been to sustain the rate of improvement

and successes over the long haul.

y P

roblems have occurred because of misalignment ofcorporate strategies and ineffective performancemanagement.

y The hesitancy of leaders to set goals for an aggressive rateof improvement.


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THANK YOU!


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QUESTIONS?

Six Sigma and Continuous Improvement

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