Post on 20-Jan-2015
description
Six Sigma: An Overview
CONTENTS
A
•Why: Six Sigma
B
•What: Six Sigma
C
•How: Six Sigma
D
•6σ Project: Using DMAIC
FOUR
SECTIO
NS
Six Sigma: Why Factor
Why 6σ: An Example !!
• Customers want their pizza delivered fast!
• Guarantee = “30 minutes or less”
• What if we measured performance and found an average delivery time of 23.5 minutes?
– On-time performance is great, right?– Our customers must be happy with us, right?
Why 6σ: An Example !!
How often are we delivering on time?
Answer: Look at the variation!
How often are we delivering on time?
Answer: Look at the variation!
• Managing by the average doesn’t tell the whole story. The average and the variation together show what’s happening.
s
x
30 min. or less
0 10 20 30 40 50
Why 6σ: An Example !!
Reduce Variation to Improve Performance
How many standard deviations can you “fit” within customer expectations?
Reduce Variation to Improve Performance
How many standard deviations can you “fit” within customer expectations?
• Sigma level measures how often we meet (or fail to meet) the requirement(s) of our customer(s).
s
x
30 min. or less
0 10 20 30 40 50
Variation Customer: The Relation
• Variation means that a process does not produce the same result (the “Y”)
every time.
• Some variation will exist in all processes.
• Variation directly affects customer experiences.
Customers do not look at averages!
-10
-5
0
5
10
15
20
Six Sigma: Purpose
A scientific and practical method to achieve improvements in a company
Scientific:• Structured approach.• Assuming quantitative data.
Practical:• Emphasis on financial result.• Start with the voice of the
customer.
“Show me the data”
”Show me the money”
Six Sigma: Advantage
Sigma Level
Defects Per Million Opportunities
Rate of Improvement
1 690,000
2 308,000 2 times
3 66,800 5 times
4 6,210 11 times
5 230 27 times
6 3.4 68 times
99.99966% Good (6 Sigma)
• 20,000 lost articles of mail per hour
• Unsafe drinking water for almost 15 minutes each day
• 5,000 incorrect surgical operations per week
• Two short or long landings at most major airports each day
• 200,000 wrong drug prescriptions each year
• No electricity for almost seven hours each month
• Seven articles lost per hour
• One unsafe minute every seven months
• 1.7 incorrect operations per week
• One short or long landing every five years
• 68 wrong prescriptions per year
• One hour without electricity every 34 years
99% Good (3.8 Sigma)
Six Sigma: Practical MeaningSix Sigma: Practical Meaning
Six Sigma: What Factor
• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola
• Late 1970s - Motorola started experimenting with problem solving through statistical analysis
• 1987 - Motorola officially launched it’s Six Sigma program
Origin of Six Sigma
Motorola the company that invented Six Sigma
Motorola the company that invented Six Sigma
What’s in a name ?
μ
σ
• Sigma is the Greek letter representing the standard deviation of a population of data.
• Sigma is a measureof variation
(the data spread)
Six Sigma: Definition
Six Sigma – The 3 Distinct Elements
• A Measure:
– A Statistical definition of how far a process deviates from
perfection
• A Target:
– 3.4 defects per million opportunities
• A Philosophy:
– A long term business strategy focused on the reduction of
the cost through reduction of variability in product &
process
Six Sigma: Constrains
y
x
Poor Design
Changing Needs
Measurement System
Insufficient Process Capability
Skills & Behaviors
• Characterize
• Optimize
• Breakthrough
USL
T
LSL
USL
T
LSL
T
USLLSL
USL’LSL’
Six Sigma: FocusSix Sigma: Focus
Customer Focused - Both Internally & Externally
Six Sigma: Reality
• Six Sigma through the correct application of statistical tools can reap a company enormous rewards that will have a positive effect for years
Or
• Six Sigma can be a dismal failure if not used correctly
Six Sigma: Spotlight
• Accelerating fast breakthrough performance
• Significant financial results in 4-8 months
• Ensuring Six Sigma is an extension of the
Corporate culture, not the program of month
• Results first, then culture change!
Six Sigma: Reason for Success
• The Success at Motorola, GE and AlliedSignal has been attributed to:
– Strong leadership (Bob Galvin, Jack Welch and Larry Bossidy personally involved)
– Initial focus on operations – Aggressive project selection (potential savings in
cost of poor quality > $50,000/year)– Training the right people
Six Sigma: Normal Distribution
+/ - 3 s
+/ - 6 s
LSL USL
ppm0.001
ppm1350
ppm1350
ppm0.001
Tolerance
Target = m
Six Sigma: Distribution With Correction
LSL
0 ppm ppm3.4
1.5s USL
ppm3.4ppm
66803
m
+/ - 6s
Tolerance
• Six-Sigma allows for un-foreseen ‘problems’ and longer term issues when calculating failure error or re-work rates
• Allows for a +/- 1.5 σ process ‘shift’
Six Sigma: How Factor
Six Sigma – 3 Dimension
ToolsOrganization
Methodology
Process variation
LSL USL
Upper/Lower specification
limits
Regression•••••••• •••• •••
••••
•••• •• ••
••• ••••
••••• ••
•••••
Driven by
customer
needs
Enabled by quality team.
Led by Senior Mgmt
Define Measure
Analyze Improve ControlVendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer
VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer
Process Map Analysis
0
5
10
15
20
25
30
35
L K A F B C G R D
0%
20%
40%
60%
80%
100%
Frequency Cumulative Frequency
Pareto Chart
Six Sigma: Focus Area
Process Management helps us maintain good results
as we perform our Mission.
Strategic planning helps us “focus” on key projects to reach our
Vision.
Process Improvement using the DMAIC process helps us fix work problems and
improve our Performance.
To be successful as an organization, we must learn how to effectively apply ALL three (3) areas.
Strategic Planning
Process Improvement
ProcessManagement
Six Sigma
Two components of Six SigmaTwo components of Six Sigma
1. Process Power
2. People Power
Six Sigma: Process
Design For Six Sigma (DFSS): DMADV
• 6 Sigma uses DMADV method for development of new products
• Define design goals that are consistent with customer demands and the enterprise strategy.
• Measure and identify CTQs
• Analyze to develop and design alternatives,
• Design details, optimize the design,
• Verify the design, set up pilot runs, implement the production process
What is DFSS?What is DFSS?
• Design For Six Sigma (DFSS)– A rigorous approach to the design of a new product or
service– The goals:
• Reduce delivery time and development cost and• Increase the effectiveness of the product or service and hence
customer satisfaction. – Key elements:
• A customer focus and the ability to measure quality using the six sigma metric and philosophy
• Appropriate design that delivers excitement without failure, and does so to budget and expectation
• An overarching business strategy and management that brings out the very best for organic growth, through the repeated and regular launch and successful development of new products and services
What is DFSS?What is DFSS?
DMAIC - SimplifiedDMAIC - Simplified
• Define– What is important?
• Measure– How are we doing?
• Analyze– What is wrong?
• Improve– Fix what’s wrong
• Control– Ensure gains are maintained to
guarantee performance
• A logical and structured approach to problem solving and process improvement
• An iterative process (continuous improvement)
• A quality tool with focus on change management
Six Sigma: DMAIC
Process Improvement utilizes a 5 step problem solving DMAIC process:
2) Measure
5) Control
4) Improve
1) Define
3) Analyze
Display Problem ...
WH
AT
WH
ER
E
WH
EN
WH
O
OU
TC
OM
E
Stratify Problem ...
1. Define 2. Measure
3. Analyze 4. Improve
Results Standardization Future Plans
Checksheetor Spreadsheet Line Graph
Month
GOOD
Target
GAP
%
Histogram
n=63
21 Late
n=21
Pareto
B C A D
PROBLEM STATEMENT
Identify & Verify Root Cause ... Identify & Implement Countermeasures ...Countermeasures MatrixSingle Case Bore Contingency Table
FISHBONE
RE
AS
ON
/F
AC
TO
RA
B
C
1
CASE
2 3 4 5 APresent
AAbsent
EffectCauseProblem
No Problem
35 3
4 25
A
Scatter Diagram
Cause "C"
Eff
ect
B
EFFECT
PROBLEM STATEMENT
ROOT CAUSE
A
C
A1
A2
C1
C2
4 4 16 Y
5 4 20 Y
3 1 3 N
EF
F
FE
AS
OV
RL
AC
TN
?
3 2 6 NCM
BARRIERS AIDS
High A1a A1b
HOW WHO
1. Dev2. Impl
WHEN
CONTROL CHARTS
FLOW CHART
LESSONS LEARNED
WHAT'S NEXT?
GOOD
%
CM IMPL'M
Before After
n=21
n=10
O verallE ffect
B C A D C B A D
Target
Standard
Action Plan
5. Control4. Improve
Focus of Six Sigma
• Y• Dependent• Output• Effect• Symptom• Monitor
• X1 . . . Xn• Independent• Input-Process• Cause• Problem• Control
f(X)Y=
The focus of Six sigma is to identify and control Xs
Path to Six Sigma
Y
Xs
Measure
Analyze
Improve
Control
Pro
cess
Ch
arac
teri
zati
onP
roce
ss
Op
tim
izat
ion
Goal: Y = f ( x )
DefinePractical Problem
Statistical Problem
Statistical Solution
Practical Solution
The Approach to DMAICThe Approach to DMAIC
Practical Problem
StatisticalProblem
Statistical Solution
Practical Solution
MethodologyMethodology
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
DefineDefine
VoC - Who wants the project and why ?
The scope of project / improvement
Key team members / resources for the project
Critical milestones and stakeholder review
Budget allocation
DDefine
MMeasure
AAnalyze
IImprove
CControl
MeasureMeasure
Ensure measurement system reliability
Prepare data collection plan
- Is tool used to measure the output variable flawed ?- Do all operators interpret the tool reading in the same way ?
- 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 Collect data
AnalyzeAnalyze
Understand statistical problem
Baseline current process capability
Define statistical improvement goal
Identify drivers of variation (significant factors)
DDefine
MMeasure
AAnalyze
IImprove
CControl
Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)
• A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process
• Visualize the potential relationship between causes which may be creating problems or defects
Problem
Backbone
Primary Cause Secondary
Cause
Root Cause
Analyze – Identify Drivers of Variation
Control – Impact Matrix
• A visual tool that helps in separating the vital few from the trivial many
Vital FewHigh Control – High
Impact
Cost IneffectiveLow Control – High Impact
Cost IneffectiveHigh Control – Low Impact
Trivial ManyLow Control – Low Impact
Control
Imp
act
Analyze – Identify Drivers of Variation
Pareto Chart
• Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors)
0
5
10
15
20
25
30
35
L K A F B C G R D
0%
20%
40%
60%
80%
100%
Frequency Cumulative Frequency
Analyze – Identify Drivers of Variation
Process Map Analysis
• Visually highlights hand off points / working relationships between people, processes and organizations
• Helps identify rework loops and non value add steps
VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomerVendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer
Improve
Map improved process
Pilot solution
Identify operating tolerance on significant factors
DDefine
MMeasure
AAnalyze
IImprove
CControl
Control
Ensure measurement system reliability for significant factors
Improved process capability
Sustenance Plan
- Is tool used to measure the input / process variables flawed ?
- Do all operators interpret the tool reading in the same way ?
- Statistical Process Control (SPC)
- Mistake Proofing
- Control Plan
DDefine
MMeasure
AAnalyze
IImprove
CControl
Two components of Six SigmaTwo components of Six Sigma
1. Process Power
2. People Power
Six Sigma: People Power
• High Level Executive committed to Six Sigma Success• Knowledgeable in Six Sigma Process• Assign key individuals to the Champion/Sponsor Position.
• High Level Executive • Provide resources for the job• Assist Black Belts to select projects• Benchmark with other organizations
• Resource for the Black Belts-experts • Experts on the Six Sigma process• Works with Champion to select projects
• Leaders of the Six Sigma process• Bring the project vision to reality• Solely dedicated to Six Sigma Program• Oversee Green Belts
• Project Leaders• Support the Black Belt to complete the project
Executive Leader
Champion/Sponsor
Master Black Belt
Black Belt
Green Belt Green Belt Green Belt
Six Sigma: A Project
Six Sigma: A Project
Customer Satisfaction
Through
Claim Amount
DDefine
MMeasure
AAnalyze
IImprove
CControl
Original Project Not Used
(For Reference Purpose Only)
Six Sigma: A Project
DDefine
MMeasure
AAnalyze
IImprove
CControl
Strong Relationship (10)
Some Relationship (5)
Weak relationship (2)
No mark, no relationship (0)
Relative importance
S NO
1 10
2 10
3 8
4 5
5 10
70 150 200 70 150 150 150
3 2 1 3 2 2 2
RELATIONSHIPS
CUSTOMER NEEDS
Absolute
Relative
Driveability Issue
Safety Features Functioning
Part Availability Based On Order
Good Exterior Look
No Rust of Parts
< 100
Technical Importance
Target Value
Pain
t qua
lity
Part
spec
erro
r
Part
mis
s
Forw
ard
driv
ing
gear
Rev
erse
driv
ing
gear
ABS
Airb
ag
Quality Function Deployment (QFD) For Customer Problems
Six Sigma: A Project
S. N CUSTOMER PROBLEM CNTCLAIM AMT /
COUNTTOTAL
CLAIM AMT
1 ABS unit not working 10 $ 300 $ 3000
2 Reverse gear slippage at 30 kph 5 $ 200 $ 1000
3 Paint claims 10 $ 100 $ 1000
4 No air bag label (spec error) 50 $ 10 $ 500
5 Sun visor spec error 5 $ 50 $ 250
TOTAL $ 5750
TOTAL CLAIM AMOUNT
1
2
3
4
5
Top – 5
Claim
Details
DDefine
MMeasure
AAnalyze
IImprove
CControl
Six Sigma: A Project
DDefine
MMeasure
AAnalyze
IImprove
CControl
Cause & Effect Diagram (Fish Borne Diagram)
All the Top-5 Problems
(as per QFD) have been
analyzed through Cause
& Effect Diagram (Fish
Borne Diagram).
Six Sigma: A Project
DDefine
MMeasure
AAnalyze
IImprove
CControl
Cause & Effect Diagram (Fish Borne Diagram)
Cause & Effect Diagram (Fish Borne Diagram)
Six Sigma: A Project
DDefine
MMeasure
AAnalyze
IImprove
CControl
Cause & Effect Diagram (Fish Borne Diagram)
Cause & Effect Diagram (Fish Borne Diagram)
Six Sigma: A Project
DDefine
MMeasure
AAnalyze
IImprove
CControl
• Changing machine procedure to incorporate ABS option in Roll &
Brake machine. (Refer Annexure – A)
• Incorporating Reverse gear checking method at Road Test. (Refer
Annexure – B)
• Creating work standard for all areas to avoid miss outs. (Refer
Annexure – C)
• Training procedure & skill requirement for all areas to identify skill
level of technicians. (Refer Annexure – D)
No Annexure Attached
(For Reference Only)
Six Sigma: A Project
DDefine
MMeasure
AAnalyze
IImprove
CControl
Refer Annexure – E
(Creating Mistake proofs / Updating Work standard for all areas to
avoid miss outs)
Based on the work standard, training given to all technicians who are
working in the designated area. Also in the control plan, multi-
inspection mentioned in some areas to avoid miss out.
No Annexure Attached
(For Reference Only)
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