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Six Sigma Green Belt -6-4-2024 6 Six Sigma Overview - What is Six Sigma?

Mar 26, 2015

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Six Sigma Green Belt -6-4-2024 6 Six Sigma Overview - What is Six Sigma? Slide 2 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take? Slide 3 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take? Slide 4 Six Sigma Green Belt Six Sigma Includes Master Black Belts, Black Belts, Green Belts Training Sponsors/Champions Business Process Council Rewards, Recognition, Promotions, Bonuses: NOT OPTIONAL! Change Acceleration Teams DASHBOARDS that Drive to Achieve Strategy Sigma Calcs ACTIVE Leadership Strategy Processes Projects Six Sigma can seem overwhelming! What IS 6 ? DOE DMAIEC DFSS Lean Sigma Slide 5 Six Sigma Green Belt Sigma Is a Measure of Process Capability... that focuses on the average and variation of the output. Sigma 1 2 3 4 5 6 DPMO 680,000 298,000 67,000 6,000 400 3.4 Customer Requirement 1 2 3 4 5 6 DPMO Defects per Million Opportunities Slide 6 Six Sigma Green Belt Importance of Reducing Variation To increase a process performance, you have to decrease variation Less variation provides Greater predictability in the process Less waste and rework, which lowers costs Products and services that perform better and last longer Happier customers Slide 7 Six Sigma Green Belt What Is the Goal? Six Sigma is about satisfying customer needs profitably From GE Capitals Six Sigma Vision Slide 8 Six Sigma Green Belt Six Sigma Design For Six Sigma DMAIEC Process Management Improve existing processes so that their outputs meet customer requirements Control and Manage cross-functional processes to meet business goals Design new products and processes that meet customer needs Six Sigmas Methodologies Alignment & Linkage to Business Strategy & Transformation Objectives Slide 9 Six Sigma Green Belt How Can Six Sigma Help Us? Provides a standard toolkit to improve business processes Makes processes transparent, manageable Enables fact-based decision making Provides a platform for profitable growth Aligns organizational and process goals Helps establish customer focus Establishes a common language Slide 10 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take? Slide 11 Six Sigma Green Belt What Is Sigma? Sigma is the scale that compares the output of a process to customer or design specifications. 70809095100 FREQUENCY Dimension Getting better requires reducing the variation and moving the average away from the spec limit. 70809095100 FREQUENCY Dimension Customer spec Slide 12 Six Sigma Green Belt Sigma Advantages Which process is performing best? PROCESSPERFORMANCE Call servicing32 seconds vs goal of 35 Manufacturing Cable98% defect free Accounts Receivable33 days average aging vs goal of 40 Customer Service82% rated 4 or 5 on responsiveness The Sigma Scale provides a common metric for comparison. Slide 13 Six Sigma Green Belt Percent 93%3.0 98%3.5 99%4.0 99.87%4.5 99.9997%6.0 DPMO 66,800 22,700 6,210 1,350 3.4 Sigma Advantages 99% seems outstanding; but 6,210 DPMO reveals significant room for improvement. Slide 14 Six Sigma Green Belt Calculating the Sigma Level Counting Defects Approach: A packaging process is required to put at least 5 kg. of fertilizer in each bag. In addition, the fill date must be stamped on the bag. Last weeks performance: Bags produced (units) 10,000 Under-filled bags 62 Fill dates missing 21 Number of defect opportunities - 2 Sigma Calculation: From Sigma Table: Sigma Level ~ 4.1 Slide 15 Six Sigma Green Belt Sigma Conversion Table Long-Term Process Yield (%) Short-Term Sigma DPMO 6.680933,193 8.080.1919,243 9.680.2903,199 11.510.3884,930 13.570.4864,334 15.870.5841,345 18.410.6815,940 21.190.7788,145 24.200.8758,036 27.430.9725,747 30.851691,462 34.461.1655,422 38.211.2617,911 42.071.3579,260 46.021.4539,828 50.001.5500,000 53.981.6460,172 57.931.7420,740 61.791.8382,089 65.541.9344,578 69.152308,538 72.572.1274,253 75.802.2241,964 78.812.3211,855 81.592.4184,060 84.132.5158,655 86.432.6135,666 88.492.7115,070 90.322.896,801 91.922.980,757 93.32366,807 94.523.154,799 95.543.244,565 96.413.335,930 97.133.428,716 97.733.522,750 98.213.617,864 98.613.713,903 98.933.810,724 99.183.98,198 99.3846,210 99.534.14,661 99.654.23,467 99.744.32,555 99.814.41,866 99.874.51,350 99.904.6968 99.934.7687 99.954.8483 99.974.9337 99.985233 99.985.1159 99.9895.2108 99.99275.372 99.99515.448 99.99685.532 99.99795.621 99.998665.713 99.999145.88.5 99.999465.95.4 99.9996663.4 Slide 16 Six Sigma Green Belt Calculating the Sigma Level When Process Data is Continuous: A packaging process is required to put at least 5 kg. of fertilizer in each bag. Last weeks performance: Bags produced (units) 10,000 Mean Fill Weight: 5.1 kg. Standard Deviation of Fill Weight: 0.03 kg. Sigma Calculation: Short-Term Sigma Level Slide 17 Six Sigma Green Belt PRACTICAL PROBLEM PRACTICAL SOLUTION In some cases, effective... But can result in fire fighting and in recurring problems. NEXT PROBLEM Attacking ProblemsPre-Six Sigma Slide 18 Six Sigma Green Belt The Six Sigma Way to Attack Problems NEXT PROBLEM STATISTICAL SOLUTION Analyze PRACTICAL SOLUTION Identify PRACTICAL PROBLEM Define STATISTICAL PROBLEM Measure Control What Factors Drive Performance? How Can We Prevent Problem Reoccurrence? What Factors Drive Performance? How Can We Prevent Problem Reoccurrence? Execute Slide 19 Six Sigma Green Belt The Power of the DMAIEC... Common language and synergy of employing a standard improvement approach DoE Regression ANOVA t-tests Process Analysis Analyze Charter VOC SIPOC CE Matrix Define Data Collection Plan Gage R&R Control Chart Capability Analysis Measure Select Solutions Risk Analysis Improve QC Chart Documentation Monitoring Control Not just an assortment of tools, but what to do at each step of the improvement process. Planning Piloting Planning Implementation Execute Slide 20 Six Sigma Green Belt The DMAIEC Way to Attack Problems PRACTICAL PROBLEM DEFINE: We are not consistently achieving Ready for Control (Y). STATISTICAL PROBLEM MEASURE: There was a lot of variation in Y - poor performance (RFC = 35%, 1.1 ). Determined RFC was a function of (1) boiler tube failures, (2) excessive cooldown (previous shutdown), (3) turbine first-stage metal temperature control, and (4) operator errors. The boiler tube failures and temperature control were major contributors STATISTICAL SOLUTION ANALYZE: Pareto Analysis & Weibull Analysis of boiler tube failures revealed inadequate water/steam flow in the ends of the waterwall tubesheet PRACTICAL SOLUTION IDENTIFY/EXECUTE AND CONTROL: Design changes improving flow distribution were implemented and process is currently achieving RFC 91% of the time (2.7 ) (other countermeasures also contributing). Slide 21 Six Sigma Green Belt Design For Six Sigma (DFSS)What is it?? A process - a more structured approach to design A tool set An enhancement to our current design process A tool for assessing and mitigating risk Teamwork Customer focused A culture change a continuation of the six sigma tool set being applied specifically to process, product, or service design. Slide 22 Six Sigma Green Belt DFSS 50,000 foot View Launch The Project Define Outcomes Scope Project Identify Stakeholders Select Team Determine Project Approach Create Project Plan Define Project Controls Identify Customers Define State of Current Customer Knowledge Develop & Implement Customer Research Plan Translate Customer Needs to Product/ Service CTQs Specify Targets, Tolerance Limits & Sigma Targets Develop Product/ Service Necessary Functions Develop Conceptual Product/ Service Designs Develop High- Level Production Processes Predict Capability & Evaluate Gaps Develop Detailed Product & Service Designs Develop Detailed Production Processes Refine Capability & Gap Evaluation, Perform Tradeoffs Develop Process Control & Validation Plans Build Pilot Processes Validate Pilot Readiness Perform Pilot Testing Analyze Gaps, Determine Root Causes Evaluate Scale- up Potential Develop Implementation & Transition Plans Build Full-Scale Processes, Train Staff Perform Start-up Testing Analyze Gaps, Determine Root Causes Transition to Process Owners Evaluate & Close Design Project Define Measure Explore Design Validate Implement - Design Review Slide 23 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take? Slide 24 Six Sigma Green Belt Six Sigmas Broad Application Sigma often reveals that less than 10% of total service process time is devoted to value-added work. Measuring the soft stuff becomes not only possible but profitable. Quality of Deal teams. VOC says experience in industry and size of deal were the decisive factors in which firm to engage for an IPO. Quantified & easily measured. Quality of Communications in a leasing business. Do you notify me of changes in schedule, do I have a designated rep, do you return calls, emails etc within 8 hours? Quantified & easily measured. Quality of Customer Contact. 10, 5, first and last teller measures. Quantified & easily measured J&J over $1 Billion in 2 years GE Capital over $1 Billion in value in 1996. JP Morgan created $510 Million in value in year one AIG found $38 million in revenue from one of first nine projects Six Sigma Results Slide 25 Six Sigma Green Bel

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