Tqm - 6 Sigma Basics 2

8/6/2019 Tqm - 6 Sigma Basics 2

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Six SigmaOverview


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Six Sigma

A rigorous, focused and highly

effective implementation of provenquality principles and techniques

that aims for virtually error free

business performance.


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Further Defined?

A statistical approach to problem solving

A management culture

A way of thinking

A set of new behaviors

Synonymous with:

Improving quality

Reducing cost

Improving customer loyalty/customersatisfaction

Achieving bottom-line results


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The Six Sigma Methodology

Six Sigma is a structured, DATA DRIVENmanagement methodology that can be applied toall aspects of business.

The application of this methodology eliminates theuse of opinion - I think andI feel - and drivesthe organization to a more scientific means ofdecision-making.

Six Sigma is nota statistics program. Statistics areused solely as tools for interpretation andclarification of data.


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Six Sigmas Modern Evolution

1980 Established by Motorola in response to

foreign competition and Baldridge QualityAward goal.

1990s Focus on process improvement using

statistical tools.

2005

Lean Six Sigma combines the structuredmanagement methodology and problemsolving tools of Six Sigma with the businessstrategy, objectives and goals of Lean

Enterprise.


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The Business Experience

Reduced cycle times, defects and costs

Reduction/elimination of waste

Improved productivity and efficiency Measurable financial results

Increased product quality and reliability

Significant improvement in customersatisfaction!

Directly supports World Class performancegoals.


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$600$500$450$380

$200

$2.5B

$1.2B

$700

$170

Cost Benefit

1996

Cost Benefit

1997

Cost Benefit

1998

Cost Benefit

1999

Cost Benefit

2000

6 Sigma Cost6 Sigma Productivity

Delighting Customers

GE Results from 6 Sigma

$3.5B

$500$500

$3.0B$3.0B

$600

$2.5B$2.5B

$900$900

$3.4B

Cost Benefit

2001

$3.4 Billion in 2001 Customers & Shareholders Love It!

$ in Millions Unless Otherwise Stated


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The Business Experience

*Six Sigma iscurrently activein over 80% ofFortune 500companies.

* Masset, LLC Consulting

Motorola

Johnson & Johnson

Honeywell

TRW

Merrill Lynch

Xerox

McKesson

Sony


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Management and

Project Support

Executives

Senior DeploymentChampion

DeploymentChampion

ProjectChampion

ProcessOwner

FinanceChampion

InformationTechnologyChampion Human

ResourcesChampion


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Management and Project Support Executives

Create the Six Sigma vision and company environment.

Define strategic and business goals.

Senior Deployment Champions

Day-to-Day management of Six Sigma throughout the business.

Reports to and updates the executives on the progress of deployment.

Liaison between the executives and deployment champions.

Deployment Champions or Sponsors

Responsible for the deployment of Six Sigma within the division or

business unit.

Facilitates the identification and prioritization of projects assuring

alignment with the business goals. Establishes and executes training plans.

Selects the project champions.

Removes barriers for the project team.


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Management and Project Support Project Champion

Selects and mentors the Black Belts

Leads in project identification, prioritization, and defining the project scope.

Removes barriers for Black Belts and aligns resources.

Process Owner

Is a team member

Takes ownership of a project when it is complete

Responsible for maintaining the projects gain

Finance Champion

Estimates and certifies project savings

Works with deployment champions to identify potential projectopportunities.

Assigns a finance representative on to each project team.

InformationTechnology Champion

Insures computer and software resourcing.

Works with project teams to access data from existing databases

HR Champion

Works with Black Belts to develop a MBB, BB, and GB selection process.


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Six SigmaRoles and Responsibilities


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Yellow Belt

Green Belt

Black

Belt

MB

B

Data Collection Experts

Assist in Measure & Control.

Part-Time 6 Sigma Leaders

Run Mini 6 Sigma Projects

Full or Part Time 6 Sigma Leaders

Manage 6 Sigma Projects

Instruct & Train GBs & YBs

Full Time 6 Sigma Leaders

Manage BB Projects & Plant 6 Sigma

Run 6 Sigma Projects

Instruct & Train BB, GBs, & YBs

SixSigma

ProjectTeams

define

Measure

Analyze Improve

Control


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Belt Structure

Green Belts: Lead and execute process-level

improvement projects.

Yellow Belts: Entry Level team member. Understands

the fundamentals of Six Sigma. Data collection.


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Belt Structure

Master Black Belts: Successfully completed 20 or

more Six Sigma projects.

Black Belts: Implement the principles, practices, and

techniques of Six Sigma for maximum

cost reductions. (Lead the project teams)


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The Methodologies


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Six Sigma Methodologies

Define Measure Analyze Improve Control

DMAIC (dee-may-ic)Improvement Model:

Define Measure Analyze Design Verify

DMADV (dee-mad-v)(Re)Design Model:


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The DMAIC Model

At the heart of Six Sigma is a systematic method for

analyzing and improving business processes called

DMAIC. The model includesfive elements:

Define opportunities

Measure performance

Analyze opportunityImprove performance

Control performance


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Define

What is the business case for the

project?

Identify the customer

Current state map

Future state map

What is the scope of this project? Deliverables

Due date

Measure

What are the key metrics for this

business process?

Are metrics valid and reliable?

Do we have adequate data on this

process?

How will I measure progress?

How will I measure project success?

Analyze

Current state analysis

Is the current state as good as the

process can do?

Who will help make the changes?

Resource requirements

What could cause this change effort to

fail?

What major obstacles do I face in

completing this project?

Improve

What is the work breakdown

structure?

What specific activities are necessary

to meet the project's goals?

How will I re -integrate the various

subprojects?

Control

During the project, how will I control

risk, quality, cost, schedule, scope,

and changes to the plan?

What types of progress reports shouldI create?

How will I assure that the business

goals of the project were

accomplished?

How will I keep the gains made?

Next ProjectNext Project


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Project Phase Candidate Six Sigma Tools

Define Project charter

VOC tools (surveys, focus groups, letters, comment cards)

Process map

QFD, SIPOC (suppliers, inputs, process, outputs, customers)

Benchmarking

Measure Measurement systems analysis

Exploratory data analysis

Descriptive statistics

Data mining

Run charts

Pareto analysis

Analyze Cause-and-effect diagrams Tree diagrams

Brainstorming

Process behavior charts (SPC)

Process Maps

Design of Experiments

Enumerative statistics (hypothesis tests)

Inferential statistics (Xs and Ys)

FMEA (failure mode effects analysis)

SimulationImprove Force field diagrams

7M tools

Project planning and management tools

Prototype and pilot studies

Control SPC

FMEA

ISO 900x

Change budgets, bid models, cost estimating models Reporting system


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The DMADV Model

Systematic method for creating or reinventingbusiness processes is DMADV. Typically use:

New designs

Existing product or process was optimized

however continues not to meet Six Sigmaobjectives.

The model also includesfive elements:

Define opportunities

Measure performanceAnalyze opportunity

(Re) Design opportunity

Verify performance


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DMADV vs. DMAIC

Define

Measure

Existing

Process

Verify

Design

Analyze

Develop

Measurement

Criteria

Remove

Special

Causes

Improve

Control

Capable?

In

Control?

Does a

process

exist?

NO YES

Analyze

NO

DMADV DMAIC


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Tollgate Reviews

Another component of DMADV and DMAIC thathelps to ensure that the requirements of allcustomers are met is the tollgate review.

At the end of each phase of the DMADV or

DMAIC process, all stakeholders meet to ensurethat:

1) The requirements have not changed

2) What is being designed still addresses the requirements.

3) The measurements really address the requirements.

The tollgate review is an excellent tool for keeping allcustomers on the same page, involved in the process andcommunicating requirements.


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The Six Sigma Project


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Typical Project Examples

Thermal insulator pad improvement $207,000Laser test time cycle reduction $500,000

Reduce past due orders, delivery $1,040,000

Reduction of forge cracks$635,046

Reduction of job change down time $900,000

Reduce cycle time of paint batches $119,000

Wash water generation reduction $83,690

Reducing dppm of cell phone mfg. $408,000

Reduce brazing costs of tail cone assy. $194,000

Computer storage component test $1,100,000


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Six Sigma Pitfalls

1. Companies that adopt Six Sigma as there

quality improvement strategy believe thatevery problem should be resolved by a SixSigma project team.

2. Insufficient cross-functional team

representation.3. Inadequate participation by executive

management.

4. Initially a part-time BB requires significant

start-up time to achieve success and mayconflict with other duties.

5. Unrealistic Goals. 3.4 parts per million onEvery Process, Excessive Time and Cost to

Gather Performance Data, etc.


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Questions???


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Six Sigma Processand the Statistical Tools

AnalyzeA

MeasureM

DefineD

ImproveI

ControlC

Voice of the Customer (VOC)- QFD

XY Matrix Process Analysis and FMEA Data Collection Methods Data Integrity and Accuracy Basic Statistics

- Common Distributions- Central Limit Theorem- Sampling Distribution of Mean- Basic Probability Concepts

Decision-Making Non-Normal Data Graphical Short vs. Long Term Capability Data Analysis (B7)

- Cause and Effect Diagram- Check Sheets- Control Charts- Flowcharts- Histogram- Pareto Chart- Scatter Diagram

Measurement System(Gage) Analysis

Process Capability Assessment

Graphic Data Analysis

Multi-Vari Analysis

Inferential Statistics- Confidence Intervals- Sample Size

Hypothesis Tests- Means, Variances and Proportions- ANOVA- T-Tests- Test for Equal Variance- Paired Comparison Tests- Chi-Square- Proportion- Contingency Tables

- Point and Interval Estimation- Non-Parametric Tests Simple Linear Correlation

Regression-Simple and Multiple- Measure and Model Relationships

Between Variables- Binary Logistics

Process Modeling and Simulation

Hypothesis Tests- ANOVA

- Non-Parametric tests- Contingency Tables

Design of Experiments- Terminology- Plan and Organize Experiments- Design Principles- One Factor- Full-Factorial- Two Level Fractional- Mixture Experiments- Taguchi Robustness Concepts

Response Surface Methodology

- Steepest Ascent/Decent- High Order Experiments Evolutionary Optimization (EVOP)

Control Charts- Theory, Objectives, Benefits

- Variable Selection- Rational Sub-grouping- Selection/Application- Analysis- Moving Average- Exponentially Weighted

Moving Average (EWMA)- CuSum

Process CapabilityAssessment

Design for Six Sigma Quality Function Deployment (QFD) Robust Design and Process

- Functional Requirements- Noise Strategies- Tolerance Design- Tolerance and Process Capability

Design Analysis and FMEA

Reliability Fundamentals


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Six Sigma Processand the Management Tools

Business Case Problem/Objective Statement Project Scope Project Goals Project Definition Project Charter Identify Owners and Stakeholders Identify Customers Financial Benefits

Benchmarking Team Leadership Team Dynamics and Performance Change Agent

Performance Measurements Gap Analysis

High Level Process Mapping/ SIPOC(Suppliers, Inputs, Process, Output, and Customers)

Design for Six Sigma

Design for (X)- Manufacturing (DFM)- Cost (DFC)- Test (DFT)- Maintainability (DFMA)- Quality/Reliability (DFQ)

Special Design Tools- Inventive Problem Solving- Axiomatic Design

Lean Enterprise- Lean Thinking- Theory of Constraints- Continuous Flow Manufacturing- Non-Value Added Activities- Cycle Time Reduction- Cost of Quality- Tools

Visual Factory, Kanban, Poka-Yoke

Solution Implementation- Mistake-Proofing (Poka-Yoke)- Visible Enterprise

The Six Sigma Journey Enterprise View Leadership Business Strategy Organizational Goals/Objectives Project Management Tools (N7)

- Activity Network Diagram- Affinity Diagram- Interrelationship Digraph- Matrix Diagram- Prioritization Matrix/Grid- Tree Diagram- Process Decision Program Chart

Whats Next-Six Sigma Evolution

AnalyzeA

MeasureM

DefineD

ImproveI

ControlC

Control Plans

- Training- Documentation- Monitoring- Response- Systems and Structures

Total Productive Maintenance (TPM) Best Practice Sharing/Translation

Tqm - 6 Sigma Basics 2

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