Welcome. Six Sigma Lean Green belt training. Copyright 2002 Aon Consulting. All rights reserved.

Transcription

1 Welcome to Six Sigma Lean Green belt training

2 Agenda 1. Introduction 2. Six sigma phases 2.1 Define phase 2.2 Measure phase 2.3 Analyse phase 2.4 Improve phase 2.5 Control phase 3. Six Sigma roles different belts 4. How to identify six sigma projects 5. Typical Lean six sigma projects 5.1 Case study Case study 2

3 Module 1 1. Introduction 2. Six sigma phases 2.1 Define phase 2.2 Measure phase 2.3 Analyse phase 2.4 Improve phase 2.5 Control phase 3. Six Sigma roles different belts 4. How to identify six sigma projects 5. Typical Lean six sigma projects 5.1 Case study Case study 2

4 Introduction to Six Sigma Six sigma has been around for more than a decade and has been tremendously successful in increasing profits in businesses. How? What is six sigma? Different people provide different definitions about six sigma Six Sigma is a rigorous process improvement method for achieving customer satisfaction by focusing on what is important to the customer.

5 What is Six Sigma? Six Sigma statistically implies a process with only 3.4 defects per million But it is beyond just statistics. Six Sigma is a management philosophy and problemsolving method focussing on a) increasing customer satisfaction b) improvements supported by data c) permanent solutions

6 How is Six Sigma useful? What can Six Sigma do for your organization? By using six sigma, you do six sigma projects for your organization periodically. This will result in customer satisfaction and repeat business - and growth in profits. Also, improvements will naturally reduce costs and contribute to profits. PROFIT = Sale price Cost price This is the simple formula for PROFIT. How will Six sigma improve PROFIT?

7 Approach of Six Sigma What is the approach of Six Sigma anyway? Six sigma adopts a two-pronged approach towards process improvement 1. To accurately meet customer needs. 2. To reduce variation in a process

8 Six Sigma Problem Solving Approach 8 Off-Target Center Process On-Target Variation Reduce Spread Six Sigma methodology identifies processes that are off-target, and/or have a high degree of variation, and corrects the process

9 What is Sigma in Six Sigma What is the Sigma of Six Sigma anyway? Sigma Is the symbol for a statistical measure of variation in a process called the standard deviation. When one knows the average ( ) and standard deviation (σ) of a process, one can describe that process quantitatively.

10 What is Six in Six Sigma What is the six in Six Sigma anyway? This six in six sigma implies that there are six standard deviations (also called sigma) between the average of the process and the allowed service level limits by customer. This translates in simple terms to less than 3.4 defects in a million.

11 What is the rigor of Six in Six Sigma 11 Defects per million opportunities 2 308, , ,

12 Compare normal vs Six Sigma process 99% Good (3.8 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 % Good (6 Sigma) 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

13 Six Sigma - Approach 13 A Scientific Management Tool & Philosophy, One Of Its Kind

14 What experts said that supports Six Sigma Six Sigma will bring GE to a whole new level of quality in a fraction of the time it would have taken to climb the learning curve on our own. -Jack Welch Eighty-five percent of the reasons or failure to meet customer expectations are related to deficiencies in systems and process rather than the employee. The role of management is to change the process rather than badgering individuals to do better. If we can t express what we know in the form of numbers, we really don t know much about it. If we don t know much about it, we can t control it. If we can t control it, we are at the mercy of chance. -Mikel J. Harry - W. Edwards Deming 14

15 Success figures of leading six sigma organisations 15 Motorola, which saved $2.2 billion in a four-year time frame as a result of applying Six Sigma to improve the quality of many products. Asea Brown Boveri, which achieved a 68 percent reduction in defect levels and a 30 percent reduction in product costs - resulting in an $898 million savings each year for two years. AlliedSignal, which achieved record operating margins and a savings of more than $2 billion in direct costs. General Electric, which generated $2 billion in financial benefit by year-end five years after it initiated Six Sigma. While no numbers have been published by GE since 1999, former CEO Jack Welch once estimated $5 billion in savings due to Six Sigma for yearend 2000.

16 What is Lean six sigma? LEAN Eliminate waste Increase speed + = SI SIGMA Meet customer needs with fewest errors Reduce variation LEAN SI SIGMA 16

17 Lean & Six Sigma Work Together 17 Process varies too much Too much rework Poor quality Process not in control Unexplainable shifts Ineffective inspection Six Sigma Reduce Unwanted Variation Poor delivery Long customer lead times Capacity problems Too much downtime Improve Process Flow Long internal lead times Changeover time too long Inventories too high Frequent bottlenecks Process doesn t add value Many Issues Require Both Approaches Lean

18 What is DMAIC approach of six sigma? DMAIC stands for the different phases in six sigma. DEFINE the problem of the customer (who could be internal/external) MEASURE ANALYZE IMPROVE CONTROL the current performance of the process and determine the root causes of the defects the process to eliminate the defects the performance of the improved process. DMAIC approach of six sigma is used when there is an existing process with problems and needs improvement. 18

19 DMAIC explained at a glance Control Standardize & Document Evaluate Results & Monitor Performance 4. Improve Generate & Select Solutions Pilot & Implement Solutions DMAIC 3. Analyze Analyze the Process Brainstorm Root Causes Pareto Charts Analyze Cause & Effect 1. Define Define the Problem Capture Voice of Customer Map the Process 2. Measure Gather & Display Data Time Series Plots Histograms Box plot Process sigma