ABC s of Six Sigma
Agenda Strategy of Six Sigma DMAIC Deploying Six Sigma Success Factors
Strategy of Six Sigma
What is Six Sigma? Six Sigma is a methodology that allows companies to drastically improve their bottom line by improving processes and monitoring everyday business activities in ways that minimize defects and waste while increasing customer satisfaction.
History Deming Importance of understanding variation processes Role of management in leading for quality Application of statistics Plan-Do-Check-Act Juran Quality by design and planning Breakthrough performance Pareto effect
Crosby Customer requirement is performance standard Preventive action as basic approach Quality maturity is a journey Taguchi Cost of poor quality is loss to society as a whole Robust quality is designed for consistent production Design control is more important than production control
Evolution of Six Sigma Years Companies Period of 1985 1992 Motorola Design 1993 1994 Refinement 1994 1996 General Electric 1996 1997 Competitive Awareness 1997 1998 New Technology 1999 2002 DuPont Broad Acceptance Ford
Six Sigma Emphasizes Customer Satisfaction Customer Requirements High Quality Process Capabilities On-Time Delivery Customer Satisfaction Business Results Input Capabilities Lower Costs Because Customer Satisfaction is a Business Issue
Maximizing Alignment Supplier Do Delivery Cycle Time Price Cost Need Customer Quality Defects Supplier strives for performance on Cycle Time, Cost and Defects to meet Customers expectations on Delivery, Price and Quality.
The Kano Model INNOVATIVE Leadership Performance Competitive Performance Standard Performance COMMODITY Customer Satisfaction Execution Excellence Source: Dr. Noriaki Kano
The Hidden Factory and Rolled Throughput Yield Operation Verify Product Rework Scrap
Six Sigma 3.4 Defects 2 308,537 Process sigma 3 66,807 4 6,210 5 233 6 3.4 Defects Per Million Opportunity
Classic Cost of Poor Quality Rework Scrap Maintenance and service Rejects Warranty claims Additional labor hours Opportunity cost if sales greater than plant capacity Improvement program costs Lost customer loyalty Process control Vendor control Inspection/test (materials, equipment, labor) Cost to customer Expediting Excess inventory Quality engineering and administration Quality audits Longer cycle times
Correlation of COPQ and Sigma Cost of Poor QualityPPM Long-Term Sigma 30-40% revenue 308,537 2 20-30% revenue 66,807 3 15-20% revenue 6,210 4 10-15% revenue 233 5 less than 10% revenue 3.4 6
The Enlightened Perspective! Defects Appraisal and Prevention 4σ 5σ 6σ Quality
Process Capability Sigma indicates how much data is contained within a specific number of standardized units from the mean µ -6σ -3σ +3σ -6σ 93.32% 99.379% 99.99966% * Adjusted for 1.5σ shift
Y = f(x) X X X X Process Y Customer Satisfaction Outside of spec. limits All points in spec.
Define Measure Analyze Improve Control
What Makes Six Sigma Different? Manage Correct (in spec.) Customer Satisfaction KPIV KPIV KPIV KPIV Process KPOV CTQ Manage the INPUTS and good OUTPUTS will follow
Define-Measure-Analyze-Improve- Control (DMAIC) Define Determine the project scope. Assure alignment with strategic plan. Verify compatibility with the Six Sigma methodology. Problem definition Cost benefit analysis Customer requirements
Define-Measure-Analyze-Improve- Control (DMAIC) Measure Map the process, analyze failures, evaluate measurement system, gather data, and estimate process capability. Process map Cause and effect diagram Failure Modes and Effects Analysis Measurement system analysis Capability analysis
Define-Measure-Analyze-Improve- Control (DMAIC) Analyze Statistically describe relationship of the key performance input and output parameters. Key process variables defined Hypothesis testing Correlation/Regression - prediction equation
Define-Measure-Analyze-Improve- Control (DMAIC) Improve Statistically experiment to prove which parameters are influencing the process outcomes and determine optimal process. Designed experiments Prediction equation Optimal process settings identified
Define-Measure-Analyze-Improve- Control (DMAIC) Control Document new process and ensure the improvement is sustainable. Statistical Process Controls Mistake proofing/automation Documentation/training
Six Sigma and Lean Six Sigma s Emphasis Variation Reduction Common Objective Eliminating nonvalue adding activities Lean s Emphasis Speed
Six Sigma and DFSS Design for Six Sigma solutions to new problems Customer Requirements Input Capabilities Customer Satisfaction Current Process Capabilities New Process Capabilities Business Results
Deploying Six Sigma
Deploying Six Sigma Train executives Build support structure Train champions Pick black belts Pick projects Train black belts Manage projects Celebrate success
Executives Establish/communicate direction Provide resources Align support systems Remove roadblocks Monitor progress and results
Champions Maintain passion and urgency Build infrastructure Select black belts and projects Coach and mentor black belts Remove barriers Measure results
Master Black Belts Train/support champions and executives technically Train/coach black belts Review projects from technical perspective Leverage best practices
Black Belts Lead project teams Teach methods and tools Communicate progress Deliver results on time Ensure results are sustainable
Success Factors
Implementation Success Factors Leadership Need for change Metrics with goals Infrastructure Training Project management Success stories