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  • 1. 0613 Silicon valley Sixsigma Introduction to Six sigma (Presented for Silicon Valley SPIN) Compiled & Presented by Govind Ramu, P.Eng, ASQ CQMgr, CQE, CSSBB, CQA, CSQE, CRE, Senior Member ASQ, QMS 2000 Principal Auditor IRCA (UK) Past Section Chair Ottawa Valley- ASQ Canada http://www.asq.org/sixsigma/about/govind.html Source of the material: Various, mostly web search.
  • 2. Objectives • Gain an introductory-level understanding of Six Sigma methodology. • Brief history of Six sigma • Tools & applications. • Understand the roles and responsibilities of Six Sigma practitioners • Identify some of the benefits of Six Sigma as a business improvement methodology • Global Trends • ASQ Certification/ others – Six sigma
  • 3. What Six Sigma Means “Past definitions of quality focused on conformance to standards, as companies strived to create products and services that fell within certain specification limits.” -Mikel Harry and Richard Schroeder
  • 4. What Six Sigma Does “...this Six Sigma journey will change the paradigm from fixing products so they are perfect to fixing processes so that they produce nothing but perfection, or close to it.” - Jack Welch
  • 5. Performance in Context 99.73% Good (3.0 Sigma) 99.99966% Good (6 Sigma) • 20,000 lost articles of mail per • Seven articles lost per hour hour • Unsafe drinking water for • One unsafe minute every almost 15 minutes each day seven months • 5,000 incorrect surgical • 1.7 incorrect operations per operations per week week • 340 Passengers with • 6 Passengers with Misplaced Misplaced Luggage every day luggage each month • 200,000 wrong drug • 68 wrong prescriptions per prescriptions each year year
  • 6. Basic Six Sigma Philosophy Shift the Focus of Quality from Inspecting the outputs (critical To Quality characteristics) to… Inspecting the Key inputs/controls to the process (critical to Process characteristics) to ensure a high yield output
  • 7. The Focus of Six Sigma Y= f (X) • To get results, should we focus our behavior on the Y or X ? • Y X1 . . . XN Independent • Dependent Input-Process • Output Cause • Effect Problem • Symptom Control • Monitor If we are so good at X, why do we constantly test and inspect Y?
  • 8. Design Opportunity 1000:1 ROBUST 1000:1 TECHNOLOGY PRODUCT 100:1 DEFINITION PRODUCT 10:1 DESIGN PROCESS DESIGN 1:1 PRODUCTION PRODUCT IMPROVEMENT LOW VISIBILITY HIGH VISIBILITY HIGH RETURNS LOW RETURNS
  • 9. Six Sigma - Some Key Players • Pioneered by Motorola in 1980’s – Coined by Bill Smith in 1984 – Developed methodology to focus resources on solving problems to increase customer satisfaction with an emphasis on profits (bottom line) • Some Key Players in Six Sigma History: – Mikel Harry - one of the original Motorola architects who later founded Six Sigma Academy – Jack Welch, CEO General Electric – Larry Bossidy, CEO Allied Signal Mikel Harry – These CEOs are largely responsible for the spread of Six Sigma by embracing the methodology and demonstrating it’s potential in their respective companies
  • 10. Methodologies • Two distinctly different methodologies • DMAIC –Define • DMADV –Measure –Define –Analyze –Measure –Improve –Analyze –Control –Design When a process needs –Verify to be improved When a process needs to be invented (aka. DFSS-Designed For Six Sigma)
  • 11. DMAIC Vs IDOV DMAIC IDOV DEFINE IDENTIFY MEASURE DESIGN ANALYZE OPTIMIZE Is achieving entitlement NO acceptable? NO Process YES Capable IMPROVE YES VALIDATE CONTROL
  • 12. Comparison of Methodologies CI CYCLE SIX SIGMA 8D PLAN Define Establish the Team Measure Describe the Problem Develop an “ICA” DO Analyze Define / Verify Root Causes Choose / Verfiy Permanent STUDY Improve Corrective Action (PCA) ACT Improve Implement / Validate PCA Implement/Validate Control Preventive Action Recognize Team
  • 13. The Normal Probability Distribution µ µ Mean - A measure of the central tendency
  • 14. The Standard Deviation A measure of dispersion or variation 1σ 1σ σ2 = Variance 3σ
  • 15. The Standard Deviation µ µ 1σ 1σ 68% 95% 99.7%
  • 16. The Normal Curve and Capability Probability Probability Probability Probability of Defects of Defects of Defects of Defects LSL USL LSL USL A B Center the Process and Reduce Variability Cp = 2.0, Cpk = 2.0
  • 17. But…..Processes Drift LSL USL Short-Term Capability Long-Term Capability Over time, a process tends to shift by approximately 1.5σ.. Over time, a process tends to shift by approximately 1.5σ
  • 18. Six Sigma - SHIFT HAPPENS !
  • 19. The Improvement Methodology
  • 20. Identify Customer Wants Define Define • Who are your customers? – Internal vs. external customers • Collect VOC-Voice Of Customer data – Interviews – Surveys – Complaints – Focus groups • Define CTQs-Critical To Quality measures – How does the customer judge your product or service?
  • 21. Need Drivers CTQs CTPs Customer Needs Customer Drivers I want… VOC Product CTQs CTP CTQ CTP need Business Drivers CTQ CTP CTQ Business Needs CTP CTP Primary Needs CTQ Secondary Needs CTQ Tertiary Needs General Specific Hard to measure Easy to measure
  • 22. Need Drivers CTQs/ CTCs CTPs Oven Process Control I want… Tempr. X1 deg +/- 5 deg F VOC Taste Raw material Aging (days) Product Vegetable aging (days) Quality Oven Process Control Time. X2 min +/- 2 min need Average Delivery Order Processing time order-delivery Order handling time I want tasty pizza Time I want hot Pizza Cost (By type & volume) Order delivery time Material Cost I want my pizza to be crispy I want my pizza to have Processing Cost fresh toppings Selling Price Service Yield % I want my pizza to be quicker Quality Margin % Every time I get either Quantity & wrong pizza or wrong Right product Order check toppings! Customer Not so expensive Complaint handling Response time Recovery I want to get the replacement time Replacement time for the mistake General Specific Hard to measure Easy to measure
  • 23. Project Charter Define Define • Project scope • Business case • Cost benefit • Roles & responsibilities • Milestones • Deliverables
  • 24. High-level Process Map Define Define PROCESS SIPOC / COPIS INPUTS OUTPUTS 1) Part Request 1) Part Usage 2) Physical Inventory 2) Inventory 3) Call Transfers 3) Credit/Debit to P&L 4) Parts 4) Part 5) Customer/Equipment 5) data Fulfill & Receive Use / Part Required for Create Part Action Part Ship Part to Part Removed Part into Consume a Service Call Request Request Vendor / from WIP WIP Part NPC SUPPLIERS CUSTOMERS 1) Technicians 2) Buyers 1) Finance 3) NPC 2) Technicians 3) Buyers 4) Refurb 4) NPC 5) Vendors 5) Vendors 6) NSC
  • 25. Measure Define Define Measure Measure Analyze Analyze Improve Improve Control Control Deliverables 1. Identify CTQ characteristic 2. Collect data 3. Calculate sigma
  • 26. Measure Measure Identify CTQ Characteristic • Getting down to the thing that the project will target using tools like: – Detailed process mapping – QFD-Quality Functional Deployment – Cause & effect analysis – FMEA-Failure Modes & Effects Analysis
  • 27. Measure Measure Collect Data • Create a data collection plan • Perform a MSA – Measurement Systems Analysis • Gage R & R • Attribute R & R • Test re-test study • Collect data
  • 28. Analyze Define Define Measure Measure Analyze Analyze Improve Improve Control Control Deliverables 1. Identify possible causes 2. Narrow down to root cause 3. Confirm the benefit
  • 29. 15 CTP Vs CTQ Screening Engineering Judgment DOE
  • 30. CTP Vs CTQ Explore Interactions Interrelationships Similar idea Referenced by : Mikel Harry : http://www.isixsigma.com/forum/ask_dr_harry.asp?ToDo=view&questId=82&catId=11
  • 31. Analyze Analyze Identify Possible Causes • Identify sources of variation using: – Process map analysis – Graphical analysis – Brainstorming
  • 32. Analyze Analyze Narrow To Root Causes Regression Plot • Confirm Y = 1026.02 + 98.0500X statistically R-Sq = 87.9 % significant factors through: – Hypothesis testing – DOE-Design Of Experiment P value = 0.000
  • 33. Improve Define Define Measure Measure Analyze Analyze Improve Improve Control Control Deliverables 1. Generate and select solution 2. Implement solution 3. Confirm results
  • 34. Improve Improve Implement Solution • Comprehensive pilot planning – Detailed process maps – SOP-Standard Operating Procedures – Monitoring plans – Contingency planning – Risk management plan
  • 35. Improve Improve Confirm Results • Ensure that an improvement has been made and is consistent with expectations – Learn and adapt – Re-assess measurement systems – Adjust improvements as required – Re-calculate sigma – Confirm improvement is statistically significant
  • 36. Control Define Define Measure Measure Analyze Analyze Improve Improve Control Control Deliverables 1. Standardization and documentation 2. Process monitoring and control 3. Closing the project
  • 37. Control Control Standardize and Document • Rollout confirmed solution across business with updated information from pilot – Detailed process maps – SOP-Standard Operating Procedures – Monitoring plans – Contingency planning – Risk management plan
  • 38. Control Control Monitoring and Control • Ensure project x’s and y’s remain in statistical control – SPC- Statistical Process Control
  • 39. Four Key Phases & Associated Quality Tools Measure Measure Analyze Analyze Improve Improve Control Control Process Maps Process Maps Box plots Box plots DOE DOE SPC SPC Control Charts Control Charts Scatter diagrams Mistakeproofing Control Plans Scatter diagrams Mistakeproofing Control Plans Capability Studies t test Capability Studies t test Basic Tools Basic Tools F test F test fishbone fishbone ANOVA ANOVA checksheet checksheet pareto pareto histograms) histograms) Gage Repeatability and Reproducibility Gage Repeatability and Reproducibility Failure Mode and Effects Analysis Failure Mode and Effects Analysis
  • 40. Enterprise Leadership Understand leadership roles in the deployment of six sigma (e.g. resources, organizational structure) Senior Management – Sponsorship Training Master Black Belt Candidates – MBB Training Management – Executive Training Black Belt Candidates – BB Training Supervisors – Overview Training Green Belt Candidates - BB Training Everyone – Six Sigma Orientation Training
  • 41. Six Sigma Roles & Responsibilities Understand the roles/responsibilities of black belt, master black belt, green belt, champion, executive, process owners Provides strategic direction Champions for project selection & (Leadership Team) monitors program effectiveness Sponsors Six Sigma Projects in area of Process Owner responsibility Facilitates Leadership Team, MASTER BLACK BELT Guides Project and Candidate Selection, Provides Training and Project Mentoring A Certified Skill Set. May also be a full time position. Applies skills on projects, BLACK BELT assists other team members and green belts Works part time on Six Sigma GREEN BELT projects - provides local level support and deployment.
  • 42. Champions & Master Black Belts Champions Master Black Belts • Create the vision of Six Sigma • Understand the big business picture • Define the path to implement Six Sigma • Develop and deliver training to across the organization various levels of the organization • Carefully select high-impact projects • Assist in the identification of projects • Develop a comprehensive training plan for • Coach and support Black Belts in implementing the Six Sigma strategy project work • Ask Black Belts and Green Belts many • Participate in project reviews to offer questions to ensure that they are properly technical expertise focused • Take on leadership of major • Make sure that project opportunities are programs acted upon by organization’s leadership • Facilitate sharing of best practices and the finance department across the corporation • Recognize people for their efforts
  • 43. Black Belts & Green Belts Black Belts Green Belts •Act as Six Sigma experts •Function as Green Belts on a •Lead and direct teams in part-time basis project execution •Participate on Black Belt •Coach and Mentor Green projects as content experts Belts •Lead Green Belt projects •Ensure that the results are •Identify potential Six Sigma sustained projects •Identify potential barriers to project completion •Report progress of both BB and GB projects to appropriate leadership
  • 44. Return on Investment • In 2000 GE’s gross annual benefit was $6.6 billion. • CEO Larry Bossidy brought AlliedSignal back from the verge of bankruptcy. Cumulative benefits $2 billion in direct savings • Raytheon improved its cost of doing business by more than $1 billion annually in 2001. • Average financial benefit per project $120,000 • Motorola claims a Six Sigma ROI of between 10:1 & 50:1
  • 45. Six sigma Certifications • ASQ’s Six sigma Black belt and Greenbelt certifications are the most recognized among Six sigma community. • International Society for Six sigma professionals also offer Six sigma certifications. • International Quality Federation is the another organization that offer Black belt certifications. • Several reputed consultancy offer training and certification. Body of Knowledge is defined by them for their certification.
  • 46. Six sigma Trend • There are over 5000 ASQ Six Sigma Black belt certifications so far with USA having over 4000, India with over 300, Canada close to 300 certifications. Rest of the world share over 400 certifications. • A search in Beta tool of Google trends reveal the key word “Six sigma” is being searched in India than any other country in the world. • In the recent years Six sigma is implemented in combination with Lean Enterprise to get the most benefit to the organizations.