© Copyright Jean-Marie Cote SIX SIGMA

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  • After the review of the soft tools, the participants will try to map a few processes to get a sense of process mapping.
  • 45 When GE, under Jack Welch commands, embarked in a major re-design of their businesses, GE strategically decided to implement Six Sigma as a tool to turn around the company. People were trained with the methodology, expected to use it in their day to day activities in order to make GE profitable again with the objective to give GE a major competitive advantage over his competitors.
  • Six Sigma is many things. First , its a very rigorous approach to avoiding defects before they are designed into our products or processes. It is also an extremely data driven, analytical approach to eliminating existing defects . Six Sigma is a philosophy that says higher quality drives lower costs by increasing productivity, reduciing cycle times, and improving customer satisfaction. It is a business strategy, that uses quality as a competitive advantage and views quality as a requirement for not only our trucks but all our products, services and business processes in every area of our business In it’s simplest form six sigma is a statistical way to measure quality.
  • Six Sigma is many things. First , its a very rigorous approach to avoiding defects before they are designed into our products or processes. It is also an extremely data driven, analytical approach to eliminating existing defects . Six Sigma is a philosophy that says higher quality drives lower costs by increasing productivity, reduciing cycle times, and improving customer satisfaction. It is a business strategy, that uses quality as a competitive advantage and views quality as a requirement for not only our trucks but all our products, services and business processes in every area of our business In it’s simplest form six sigma is a statistical way to measure quality.
  • A simple example is to compare the lower and upper limit to a the opening of a football goal. If the ball is placed in the center all the time, 100% of the time without touching the post, the ball will pass thru all the time – zero defect. Instructor: move on to the next slide and ask them what this is.
  • Baseline: you know what your starting point is Measure: you can measure the progress and changes Goal: you have an aggressive goal Time Line: the project size is small enough that you can put your arms around and complete it in a timely manner.
  • Process Map: do you remember what Deming was saying: - Quote from W. Edwards Deming: When you measure, you can understand When you understand, you can control When you control, you can improve When you improve, you can achieve your goal
  • I mentioned earlier that the process must be “characterized”. There are two ways of doing that: doing process map and flow is one way. The other way is by qualifying the inputs and the outputs. These characteristics of the inputs and outputs must also be evaluated in relation to the objective or the issue we are trying to resolve. This process is called screening and is mainly based on experience and expertise.
  • Someone may make the remark that the employee is not there as an input. This is done on purpose because the employee is there all the time and part of the entire process. We start the exercise assuming that the employee is not a key input so we can focus on the problem and not the person.
  • I mentioned earlier that the process must be “characterized”. There are two ways of doing that: doing process map and flow is one way. The other way is by qualifying the inputs and the outputs. These characteristics of the inputs and outputs must also be evaluated in relation to the objective or the issue we are trying to resolve. This process is called screening and is mainly based on experience and expertise.
  • The C&E Matrix can be used in the following manner: To assess the baseline: how are you doing now? What should you do? What are the gaps? To assess the “How” that have the most impact on the “What” and also validate what is most significant for your customer. You need to validate your results with the customer (the team or management). It can and most of the time use in the project to assess the importance of the input on the output. This is a screening tool too.
  • Original and raw data used by the CML. This is the measure phase: getting the data
  • This is another way to look at the data: this is the analyze phase.
  • Analyze phase. Another view or way of looking at the data.
  • Using ANOVA – main effect to illustrate what we can learn from the data. This is the analyze phase.
  • 1- Inadequate Information: successful Six Sigma initiatives include streamlined information gathering and retrieval systems that avoid information overload and limit analysis to relevant, accurate data. 2- Picking easy, operational wins, as opposed to zeroing in on projects that advance the business strategy. 3- Almost every implementation plan should include an analysis of the potential problems, their likely causes and preventive and contingent actions. 4- A basic element of all Six Sigma projects involves listening to the VOC. A survey conducted by Greenwich Associated concluded that “Strangely absent from most user responses was any mention of the customer”. 5- Without identifying, verifying and removing the root cause of the problem, teams almost always fall short of reducing variation. 6- To avoid faulty implementation, provide all team members with a common approach to project management. Before starting the execution of a Six Sigma project, make sure that there is a clear definition of the project’s scope and deliverables prior to planning. 7- A common failure is not considering what new skills will be required to sustain the planned improvement.
  • © Copyright Jean-Marie Cote SIX SIGMA

    1. 1. SIX SIGMA A STRATEGIC TOOL SLA – Toronto June 2005 Jean-Marie Cote Master Black Belt
    2. 2. TOPICS <ul><li>Historical Background </li></ul><ul><li>What is Six Sigma? </li></ul><ul><li>The Methodology </li></ul><ul><ul><li>Tools </li></ul></ul><ul><ul><li>Practical Case Study </li></ul></ul><ul><li>Business Strategy </li></ul>
    3. 3. 1. Motorola (1987) 2. Texas Instruments (1988) 3. IBM (1990) 4. ABB (1993) 5. AlliedSignal / Kodak (1994) Historical Background 6. GE (1995) - A decisive turning point!!! 7. Lockheed Martin, Bombardier, & Navistar (1996/97) 8. PACCAR (1998) 9. Amazon.com (1999) 10. Ford Motor Company (2000) “ Six Sigma” as a buzzword can trace its origins to Motorola. The concept that Six Sigma embodies goes back much further. Have they all been successful?
    4. 4. <ul><li>DRIVING BUSINESS EXCELLENCE </li></ul>THE SIX SIGMA UMBRELLA
    5. 5. Different Names But Same Flavor… <ul><li>Operation Excellence </li></ul><ul><li>Lean Manufacturing </li></ul><ul><li>Lean Operations </li></ul><ul><li>Lean Six Sigma </li></ul><ul><li>TPS (Toyota Production System) </li></ul><ul><li>High Impact Kaizen </li></ul><ul><li>Complexity Reduction </li></ul>Six Sigma in its today’s broadest definition means: “ Continuous Improvement in a Structured Approach”
    6. 6. What is Six Sigma? One View. <ul><li>Six Sigma is a comprehensive and flexible system for achieving and sustaining business excellence. </li></ul><ul><li>Six Sigma is uniquely driven by: </li></ul><ul><li>A close understanding of customer needs and wants </li></ul><ul><li>The disciplined use of facts, data and statistical analysis </li></ul><ul><li>Diligent approach in problem solving </li></ul>
    7. 7. Six Sigma in Other Words <ul><li>Quote from W. Edwards Deming: </li></ul><ul><li>When you measure, you can understand </li></ul><ul><li>When you understand, you can control </li></ul><ul><li>When you control, you can improve </li></ul><ul><li>When you improve, you can achieve your goal </li></ul>
    8. 8. What is “Six Sigma”? <ul><li>A Statistical Measure of Performance </li></ul><ul><li>A Rigorous Analytical Approach for: </li></ul><ul><ul><li>Process Variation Reduction </li></ul></ul><ul><ul><li>Complex Problem Solving </li></ul></ul><ul><ul><li>Waste Reduction </li></ul></ul><ul><li>A Philosophy That Higher Quality Results In - Increased Efficiency </li></ul><ul><ul><li>- Business Excellence </li></ul></ul><ul><ul><li>- Enhanced Customer Satisfaction </li></ul></ul>3 Short Definitions:
    9. 9. What “Six Sigma” is NOT <ul><li>It is not just statistics </li></ul><ul><ul><li>Statistics is a tool, not an end in itself </li></ul></ul><ul><li>It is not a rigid, mechanical approach </li></ul><ul><ul><li>Six Sigma is flexible and can adjust to the business needs </li></ul></ul><ul><li>It is not a panacea </li></ul><ul><ul><li>Six Sigma is not suited for every situation </li></ul></ul><ul><li>It is not magic </li></ul>
    10. 10. Why Is It Called “Six Sigma”? <ul><li>Sigma or standard deviation is a statistical term used by statisticians </li></ul><ul><li>It is a measure of process performance </li></ul>6 standard deviations (sigma) from process center to the nearest specification limit Upper Requirement Lower Requirement We are comparing performance to requirements.
    11. 11. Doing It Right the first Time and Every Time
    12. 12. A Six Sigma Process Aims at Zero Defect
    13. 13. Practical Meaning of Six Sigma Performance (Why 99% Good is often not “Good Enough”) 99% Good 99.9997% Good U.S. Postal System 20,000 Lost Articles Of Mail every hour 7 Lost Articles every hour Football Kicker 4,100 misses in 500,000 attempts < 2 misses in 500,000 attempts Baggage Handling System – Houston Airport 20,000 Lost bags per Day < 5 Lost bags per day Delta Airlines (1) : Currently: $100M / year for mishandled luggage (98.75% good) Six Sigma: $25,000 / year (99.9997%) (1) Airport Equipment & Technology, 2005 p.10 by John Croft
    14. 14. The Right People Building Capability to Drive Excellence Six Sigma Champions Master Black Belts Black Belts Black Belts Black Belts Green Belts Green Belts Green Belts Green Belts
    15. 15. Six Sigma Methods Six Sigma Applies Everywhere! MFG. DESIGN SERVICE MAINT. Finance PURCH. ITD QA SALES
    16. 16. The Breakthrough Strategy – DMAIC & DMADV Measure Analyze Improve / Design Control / Validate Define A cookbook for improvement!
    17. 17. DEFINE PHASE <ul><li>Project Selection Must : </li></ul><ul><ul><li>Be in line with the business strategy </li></ul></ul><ul><ul><li>Target customers needs and wants </li></ul></ul><ul><ul><li>Add value to the process </li></ul></ul><ul><ul><li>WELL DEFINED </li></ul></ul><ul><ul><ul><li>Baseline </li></ul></ul></ul><ul><ul><ul><li>Measure </li></ul></ul></ul><ul><ul><ul><li>Goal </li></ul></ul></ul><ul><ul><ul><li>Time Line </li></ul></ul></ul>
    18. 18. PROJECT DEFINITION <ul><li>A PRACTICAL EXAMPLE: </li></ul><ul><li>Issue: The Response Time to Customer Request takes to long </li></ul><ul><li>Problem Statement: Response Time to Customer Request Takes an Average of 3.2 days </li></ul><ul><li>Objective: Average Response Time to Customer Request Must Be 1.2 days (2 days reduction). </li></ul>
    19. 19. MEASURE PHASE <ul><li>Understanding The Process: </li></ul><ul><ul><li>Process Characterization Using Soft Tools </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Gather Data to Create Knowledge </li></ul></ul><ul><ul><li>Refine the Project </li></ul></ul><ul><ul><li>Identify NVA (Non-Valued Added Activities) </li></ul></ul>
    20. 20. MEASURE PHASE <ul><li>Refining the Project: </li></ul><ul><ul><li>Statement: It takes in average 3.2 days to answer customer request. </li></ul></ul><ul><ul><li>Findings: </li></ul></ul><ul><ul><ul><li>10% of the requests are processed within a day </li></ul></ul></ul><ul><ul><ul><li>20% of the requests are incomplete </li></ul></ul></ul><ul><ul><ul><li>70% of the requests are improperly routed through the system </li></ul></ul></ul><ul><li>Defect Definition: Every time a request is improperly routed in the system. </li></ul>
    21. 21. SIX SIGMA TOOLS MEASURE/ANALYSE THE SOFT AND THE TOUGH (1) (1) Translation: “The Beauty and The Beast”
    22. 22. THE SOFT TOOLS <ul><li>Process Map (IPO) </li></ul><ul><ul><li>If you cannot map the process you don’t understand it </li></ul></ul><ul><ul><li>If you don’t understand it, you cannot improve it. </li></ul></ul><ul><li>Cause & Effect Matrix (QFD) </li></ul><ul><ul><li>The “What” and “How” </li></ul></ul><ul><ul><li>“ What” the customer wants and “How” we are addressing it </li></ul></ul><ul><li>Cause & Effect Diagram (Fishbone) </li></ul><ul><ul><li>What we “think” is driving the issue </li></ul></ul><ul><li>Waste Elimination Tools </li></ul><ul><ul><li>Value Stream Map </li></ul></ul><ul><ul><li>Process Flow </li></ul></ul><ul><li>Pareto and Time Charts </li></ul>QFD: Quality Functional Deployment
    23. 23. Process Map Example Information Analysis Books Magazines Web Searches Environment Databases Suppliers Analyst Knowledge Input Output Service
    24. 24. Input/Output Characteristics <ul><li>Input/Output Must Be Characterized </li></ul><ul><ul><li>Each Characteristics Must be Weighted in Relation with the Goal or the Issue. </li></ul></ul><ul><ul><li>Critical Characteristics must be measured. </li></ul></ul><ul><ul><li>The Number of Characteristics Must be Manageable. </li></ul></ul><ul><li>Example: </li></ul><ul><ul><li>Type: electronic or paper </li></ul></ul><ul><ul><li>Shape: round or rectangular </li></ul></ul><ul><ul><li>Volume: small or large </li></ul></ul><ul><ul><li>Color: white or black </li></ul></ul>
    25. 25. EXERCISE <ul><li>A SMALL CAR WASH BUSINESS: </li></ul><ul><ul><li>Issue: Customer’s complaints </li></ul></ul><ul><ul><ul><li>Small damages to their cars </li></ul></ul></ul><ul><ul><ul><li>Streak and dull spot (not very clean) </li></ul></ul></ul><ul><li>The question is: Why? </li></ul><ul><li>Let’s map the process…. </li></ul>
    26. 26. Process Mapping Washing Your Car Prepare Material Rinse Car Wash Car Dry/Polish Car Rag/Sponge Hot Water /Soap Bucket Dirty Car Material Ready Hot Soapy Water Material Ready Hot Soapy Water Clean Soapy Car Cold Dirty Water Dirty Rag Clean Soapy Car Clean Water Clean Wet Car Dirty Rag Dirty Water Clean Wet Car Clean/Dry Rag Clean Dry Car No Damage INPUTS OUTPUTS PROCESS
    27. 27. Input/Output Characteristics <ul><li>Input/Output Must Be Characterized </li></ul><ul><ul><li>Each Characteristics Must be Weighted in Relation with the Goal or the Issue. </li></ul></ul><ul><ul><li>Critical Characteristics must be measured. </li></ul></ul><ul><ul><li>The Number of Characteristics Must be Manageable. </li></ul></ul><ul><li>Example: the bucket to wash the car - </li></ul><ul><ul><li>Material: plastic or steel </li></ul></ul><ul><ul><li>Shape: round or rectangular </li></ul></ul><ul><ul><li>Volume: small or large </li></ul></ul><ul><ul><li>Color: white or black </li></ul></ul>
    28. 30. THE TOOLS <ul><li>THE LOW HANGING FRUIT FIRST: </li></ul><ul><ul><li>VALUE STREAM MAPPING </li></ul></ul><ul><ul><li>KAIZEN APPROACH </li></ul></ul><ul><ul><ul><li>Eliminating waste and non-value activities </li></ul></ul></ul><ul><ul><li>LEAN MANUFACTURING </li></ul></ul><ul><ul><ul><li>Focus on optimizing layout, processes and work sequence </li></ul></ul></ul>
    29. 31. Put Another Way... <ul><li>Value-Added: Activities performed to meet customer requirements. </li></ul><ul><ul><li>“ What the customer values is not the service but what the service does for him” </li></ul></ul><ul><li>Non-Value Added: Activities performed which do not directly contribute to meeting customer requirements. </li></ul><ul><li>Non-Value Added Necessary: Activities that contribute to running the business but do not directly add value to meeting customer requirements. (e.g., legal, regulatory, etc.) </li></ul>
    30. 32. Process Flow Waste
    31. 33. Workflow Diagram - (Spaghetti Diagram) BLDG A Warehouse Walking the process
    32. 34. ANALYSE PHASE <ul><li>Use the Information (data + context) to Create Knowledge (Information + Expertise) </li></ul><ul><li>Draw some conclusions </li></ul><ul><li>Objectives: </li></ul><ul><ul><li>Find the root cause </li></ul></ul><ul><ul><li>Propose “options” </li></ul></ul>
    33. 35. ANALYSE PHASE <ul><li>SIMPLE CHARTS </li></ul><ul><ul><li>Pareto </li></ul></ul><ul><ul><li>Time Line </li></ul></ul>
    34. 36. Practical Example <ul><li>Service: Columbus Metropolitan Libraries </li></ul><ul><ul><li>The issue: The Main Library is not a Destination </li></ul></ul><ul><li>Looking at Data with a different approach </li></ul><ul><ul><li>Data + Context = Information </li></ul></ul><ul><ul><li>Information + Expertise = Knowledge </li></ul></ul>
    35. 37. Looking at Data MEASURE
    36. 38. Data Analysis MEASURE
    37. 39. NW NE SW SE Columbus Metropolitan Library Geographical Distribution
    38. 40. Data Analysis: Anova ANALYSE
    39. 41. THE TOUGH TOOLS <ul><li>Statistical Data Analysis </li></ul><ul><ul><li>Variable Data </li></ul></ul><ul><ul><ul><li>Hypothesis Testing </li></ul></ul></ul><ul><ul><ul><li>Regression </li></ul></ul></ul><ul><ul><ul><li>Weibull & Reliability Analysis </li></ul></ul></ul><ul><ul><li>Attribute Data </li></ul></ul><ul><ul><ul><li>Chi-Square </li></ul></ul></ul><ul><li>Capability Analysis </li></ul><ul><li>Charts </li></ul>
    40. 43. A Six Sigma Process Aims at Zero Defect
    41. 44. Control Charts
    42. 45. IMPROVEMENT / DESIGN <ul><li>IMPROVEMENT: </li></ul><ul><ul><li>The process can be fixed </li></ul></ul><ul><ul><li>Viable options exits </li></ul></ul><ul><li>DESIGN: </li></ul><ul><ul><li>The process is broken </li></ul></ul><ul><ul><li>Old process cannot be more robust </li></ul></ul><ul><ul><li>No valid options </li></ul></ul><ul><li>Goal: Implement Robust Solutions or Design </li></ul>
    43. 46. CONTROL / VALIDATE <ul><li>CHALLENGES: </li></ul><ul><ul><li>Foresee the impact of the changes </li></ul></ul><ul><ul><li>Communication plan </li></ul></ul><ul><ul><li>Validate results </li></ul></ul><ul><ul><li>Achieve planned goals </li></ul></ul><ul><li>Goals: A Stable Process </li></ul><ul><ul><ul><li>A Fix That Works </li></ul></ul></ul><ul><ul><ul><li>Improvements can be sustained </li></ul></ul></ul>
    44. 47. Using the Tools Is Not Linear D M A I C START Loop back regularly to enhance your learning about the process.
    45. 48. The way we do business..... Six Sigma Strategic Tool Jean-Marie Cote MBB
    46. 49. Success <ul><li>What is your Mission? </li></ul><ul><li>What is your Vision? </li></ul><ul><li>Are you generating: </li></ul><ul><ul><li>Data </li></ul></ul><ul><ul><li>Information </li></ul></ul><ul><ul><li>Knowledge </li></ul></ul>Data + Context = Information Information + Expertise = Knowledge THE PROCESS OF CREATING KNOWLEDGE
    47. 50. Six Sigma Success <ul><li>Actions are in Line with the Strategy </li></ul><ul><li>Meet or Exceed Customer Expectations </li></ul><ul><li>Meet Management Expectations </li></ul><ul><li>Adding Value to the Processes </li></ul><ul><li>Doing the Right Thing </li></ul><ul><li>A Clear and Well Defined Strategy </li></ul>
    48. 51. Strategy <ul><li>Strategy as a Bridge : (1) </li></ul><ul><ul><li>Values are the bedrock on which the piers of the bridge are planted. </li></ul></ul><ul><ul><li>The near bank is today’s reality – your baseline. </li></ul></ul><ul><ul><li>The far bank is the vision </li></ul></ul><ul><ul><li>Your strategy is the bridge itself </li></ul></ul>(1) Source:The Bottom Line, Joseph R. Matthews, 2002 Librairies Unlimited
    49. 52. Why Six Sigma Deployment Fails? The 7 Deadly Sins (1) <ul><li>The 7 Deadly Sins: </li></ul><ul><ul><li>Inadequate Information </li></ul></ul><ul><ul><li>Poor Project Selection </li></ul></ul><ul><ul><li>Creating Solution-Caused Problems </li></ul></ul><ul><ul><li>Serving the Wrong Customer </li></ul></ul><ul><ul><li>Leaping to the Fix </li></ul></ul><ul><ul><li>Faulty Implementation </li></ul></ul><ul><ul><li>Failing to Consider the Human Side </li></ul></ul><ul><li>While they can be deadly, redemption is possible. </li></ul>(1) Source: J. Zimmerman and Dr J. Weiss, Quality Magazine Jan 05.
    50. 53. In Other Words <ul><li>“ If you want to start doing something new, you need to stop doing something old” – Peter Drucker . </li></ul><ul><li>Insanity: “Doing the same thing over and over and hoping for a change” </li></ul>
    51. 54. SOME FOOD FOR THOUGHT... SIX SIGMA TRAINING IS NOT THE END, IT IS JUST THE END OF THE BEGINNING SIX SIGMA MENTORING IS ABOUT ASKING QUESTIONS, NOT GIVING ANSWER THE BEST TEACHER IS THE ONE WHO TEACH YOU HOW TO THINK s s s s … WORDS OF WISDOM
    52. 55. Six Sigma ! Dam Good !
    53. 56. Prepared and Presented by : Jean-Marie Cote Six Sigma MBB Work contact: Phone: 740-774-5151 email: [email_address] Personal contact: Home phone: 614-801-2367 email: thefrenchguy@earthlink.net Six Sigma in the Service Sector Special Libraries Association (SLA) Annual Conference, Toronto, June 2005

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