Six sigma in a nutshell

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Six sigma in a nutshell

  1. 1. Six Sigma In a Nutshell 郭倉義 中山大學 企管系
  2. 2. <ul><li>Six Sigma </li></ul><ul><li>不是 </li></ul><ul><li>國王的新衣 </li></ul>
  3. 3. 另一個『三字經』:六標準差 <ul><li>6  </li></ul><ul><li>TQM </li></ul><ul><li>SPC </li></ul><ul><li>SQC </li></ul><ul><li>QCC </li></ul><ul><li>SCM </li></ul><ul><li>CRM </li></ul><ul><li>ERP </li></ul><ul><li>BPR </li></ul>
  4. 4. <ul><li>Six Sigma </li></ul><ul><li>是 </li></ul><ul><li>專案 </li></ul><ul><li>跨部門 </li></ul><ul><li>Powerful process improvement tools </li></ul>
  5. 5. <ul><li>Six Sigma </li></ul><ul><ul><li>Save General Electric $1.5 billion in 1999 </li></ul></ul><ul><ul><li>Increase the market value of AlliedSignal by 700% </li></ul></ul><ul><ul><li>Boosted sales by more than 300% at Motorola </li></ul></ul>www.traininguniversity.com, 2000, “Training for Excellence”
  6. 6. <ul><li>GE’s annual report 1999 </li></ul><ul><ul><li>Revenues rose 11% to $112 billion </li></ul></ul><ul><ul><li>Earnings increased 15% to $10.7 billion </li></ul></ul><ul><ul><li>Made 134 acquisitions, worth almost $17 billion </li></ul></ul>
  7. 7. Six Sigma moment passed? <ul><li>Robert Nardelli </li></ul><ul><ul><li>CEO, Home Depot </li></ul></ul><ul><ul><ul><li>Six Sigma were used </li></ul></ul></ul><ul><ul><ul><ul><li>streamline the check-out process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>strategically place vacuum-cleaner displays </li></ul></ul></ul></ul><ul><ul><ul><li>Results </li></ul></ul></ul><ul><ul><ul><ul><li>constant data measurement and paperwork sapped time given to customers </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Profitability soared, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>員工士氣低落 , </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>顧客抱怨 </li></ul></ul></ul></ul></ul>Six Sigma: So Yesterday? JUNE 11, 2007, Business Week
  8. 8. <ul><li>Jeff Immelt </li></ul><ul><ul><li>CEO, GE </li></ul></ul><ul><ul><ul><li>reprogram his management ranks to innovate </li></ul></ul></ul><ul><li>James McNerney </li></ul><ul><ul><li>CEO, 3M </li></ul></ul><ul><ul><ul><li>axed 8,000 workers (about 11% of the workforce) </li></ul></ul></ul><ul><ul><ul><li>intensified the performance-review process </li></ul></ul></ul><ul><ul><li>his successors </li></ul></ul><ul><ul><ul><li>relentless emphasis on efficiency had made 3M a less creative company (?) </li></ul></ul></ul>
  9. 9. <ul><li>Six Sigma 真的沒用嘛 </li></ul><ul><ul><li>可能是『沒用對地方』 </li></ul></ul><ul><ul><ul><ul><ul><li>用 Six Sigma 去解決不重要的問題 – 假議題 </li></ul></ul></ul></ul></ul><ul><ul><li>對付腸病毒,「乾洗手」沒效 </li></ul></ul><ul><ul><ul><li>「乾洗手」的成分是酒精 </li></ul></ul></ul><ul><ul><ul><li>酒精會溶解『病毒』的「脂質外套膜」,殺死病毒 </li></ul></ul></ul><ul><ul><ul><li>『腸病毒』沒有外套膜 </li></ul></ul></ul><ul><ul><ul><ul><li>酒精對腸病毒是無效的 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>『漂白水』可以使蛋白質變性,進而殺死腸病毒 </li></ul></ul></ul></ul>
  10. 10. <ul><li>Six Sigma </li></ul><ul><li>目標 </li></ul><ul><li>兩年成長 10 倍 </li></ul><ul><li>The six sigma rate of improvement goal </li></ul><ul><li>is </li></ul><ul><li>a ten-fold improvement every two years </li></ul>
  11. 11. <ul><li>Six Sigma </li></ul><ul><li>不只是 </li></ul><ul><li>DMAIC </li></ul><ul><li>Define-Measurement-Analysis-Improvement-Control </li></ul>
  12. 12. <ul><li>六標準差的失敗 </li></ul><ul><li>不是 </li></ul><ul><li>六標準差的錯 </li></ul><ul><li>是 </li></ul><ul><li>變革管理的錯 </li></ul>
  13. 13. Change Management for transition to six sigma vision Skills Incentive Resources Action plan Change + + + + = Skills Incentive Resources Action plan Confusion + + + = vision Incentive Resources Action plan Anxiety + + + = vision Skills Resources Action plan Graduate Change + + + = vision Skills Incentive Action plan Frustration + + + = vision Skills Incentive Resources False Starts + + + =
  14. 14. <ul><li>How important is </li></ul><ul><li>Six Sigma </li></ul><ul><li>“Within senior management incentive plans, </li></ul><ul><li>A minimum of 30 percent of their bonus potential should be dependent on achieving quality goals.” </li></ul>
  15. 15. Demystifying Six Sigma A company-wide approach to continuous improvement Alan Larson
  16. 16. Six Sigma at a Glance <ul><li>Alan Larson </li></ul><ul><ul><li>One of the original divisional quality directors at Motorola </li></ul></ul><ul><ul><ul><li>Developing </li></ul></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul><ul><ul><ul><li>Deploying </li></ul></ul></ul><ul><ul><li>the culture and methods of Six Sigma </li></ul></ul>
  17. 17. <ul><ul><li>Achievement </li></ul></ul><ul><ul><ul><li>Reduce cost </li></ul></ul></ul><ul><ul><ul><ul><li>Cost of sales by 30 percent </li></ul></ul></ul></ul><ul><ul><ul><li>Improve efficiencies </li></ul></ul></ul><ul><ul><ul><ul><li>Cycle time and cost of administration and service by 90 percent </li></ul></ul></ul></ul><ul><ul><ul><li>Maximize customer satisfaction </li></ul></ul></ul><ul><ul><li>in all operations at Motorola </li></ul></ul>
  18. 18. Why Six Sigma had to be invented <ul><li>In the mid-1980s </li></ul><ul><ul><li>Motorola was losing ground to its Japanese competitors </li></ul></ul><ul><ul><li>Customer’s comments </li></ul></ul><ul><ul><ul><li>“Love, love, love the product; hate, hate, hate the company” </li></ul></ul></ul>
  19. 19. <ul><ul><li>Motorola’s systems for doing business </li></ul></ul><ul><ul><ul><ul><li>Contract review </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Response to requests for quote </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Response to customer complaints </li></ul></ul></ul></ul><ul><ul><ul><ul><li>…… </li></ul></ul></ul></ul><ul><ul><ul><li>Were not designed for customer satisfaction </li></ul></ul></ul><ul><ul><ul><li>The internal bureaucracy fed on itself </li></ul></ul></ul>
  20. 20. <ul><ul><li>Motorola’s product suffers </li></ul></ul><ul><ul><ul><li>Too many out-of-box failures </li></ul></ul></ul><ul><ul><ul><li>High level of early-life failure </li></ul></ul></ul><ul><ul><ul><ul><li>Warranty returns </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Were predominately units that </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Had failed at final test </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Had gone through a rework cycle </li></ul></ul></ul></ul></ul>
  21. 21. <ul><ul><li>Motorola’s reaction </li></ul></ul><ul><ul><ul><li>Benchmark those Japanese companies that were destroying Motorola </li></ul></ul></ul><ul><ul><ul><ul><li>Senior managers and executives sent on a benchmarking tour of Japan </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Operating methods </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Product quality method </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Discovered </li></ul></ul></ul><ul><ul><ul><ul><li>National program for employee involvement </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Use employee’s muscle and their brains and knowledge </li></ul></ul></ul></ul></ul>
  22. 22. The Birth of Six Sigma <ul><li>Motorola learned </li></ul><ul><ul><li>From customers </li></ul></ul><ul><ul><ul><li>Need to change all systems to focus on total customer satisfaction </li></ul></ul></ul><ul><ul><li>From Japanese </li></ul></ul><ul><ul><ul><li>Involvement all employees to increase efficiency and moral </li></ul></ul></ul><ul><ul><ul><li>Simpler designs result higher levels of quality and reliability </li></ul></ul></ul>
  23. 23. <ul><ul><li>From early-life field failure study </li></ul></ul><ul><ul><ul><li>Products need to be built right the first time </li></ul></ul></ul><ul><li>Motorola’s leader pulled this together to </li></ul><ul><ul><li>establish vision and </li></ul></ul><ul><ul><li>set the framework for </li></ul></ul><ul><ul><li>six sigma </li></ul></ul><ul><li>Six Sigma was launched in 1987 </li></ul>
  24. 24. Mathematics of Six Sigma <ul><ul><ul><li>Opportunities-for-error </li></ul></ul></ul><ul><ul><ul><li>DPMO: defect per million opportunity </li></ul></ul></ul><ul><li>A way of leveling the playing field </li></ul><ul><ul><li>Manufacturing operations vs order-entry work </li></ul></ul><ul><li>Account for differing complexities </li></ul><ul><ul><li>An invoice consisting of 40 line items vs 2 line items </li></ul></ul>
  25. 25. Different numbers of Opportunities ... Manufacturing Processes Customers or Suppliers Administrative Areas 6 
  26. 26. <ul><li>Sigma calculations are controversial </li></ul><ul><ul><li>Attribute data </li></ul></ul><ul><ul><ul><ul><li>Go, no-go </li></ul></ul></ul></ul><ul><ul><ul><li>Utilizing normal curve and z-table violates many of the rules of statistics </li></ul></ul></ul><ul><ul><li>Accounting for variation over time by adding 1.5 sigma to the actual z-table </li></ul></ul><ul><li>Sigma calculations are developed empirically </li></ul>
  27. 27. + A Bit of Statistics ... -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 upper spec limit Lower spec limit +1.5 Sigma -1.5 Sigma 3.4 ppm or Zero
  28. 28. <ul><li>Sigma-scale measures </li></ul><ul><ul><li>Optional element of six sigma system </li></ul></ul>The six sigma way – Pande, et al. 良率 DPMO Sigma 6.68 93320 0 六標準差轉換表 標準常態分配表
  29. 29. Black belts and Green belts <ul><li>Local statistical resources (LSR) </li></ul><ul><ul><li>Engineers trained in advanced form </li></ul></ul><ul><ul><ul><li>Experimental design </li></ul></ul></ul><ul><ul><ul><li>Data analysis </li></ul></ul></ul><ul><ul><ul><li>Process control </li></ul></ul></ul><ul><ul><li>Black belt </li></ul></ul>
  30. 30. <ul><li>Total customer satisfaction (TCS) team </li></ul><ul><ul><li>Factory workers </li></ul></ul><ul><ul><li>Received training and couching in problem-solving methods </li></ul></ul><ul><ul><li>Green belt </li></ul></ul><ul><li>“Black belts” and “Green belts” were not applied to six sigma program at Motorola until the 1990s </li></ul>
  31. 31. <ul><li>Avoid special-assignment employee with the title of “Black Belt” </li></ul><ul><ul><li>External to the operations that they support </li></ul></ul><ul><ul><ul><li>Expensive </li></ul></ul></ul><ul><ul><ul><li>Less-than-optimum structure for six sigma </li></ul></ul></ul><ul><ul><ul><ul><li>Disenfranchise most employee </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Convenient way for employee to abandon their responsibility </li></ul></ul></ul></ul><ul><ul><li>Only result in short term benefits </li></ul></ul>

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