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Six sigma
                                    Orientation




© All Rights Reserved TreQna 2005
expectatio
              ns                    •What is Quality?
                                    •Know Six Sigma
     ...
What is Quality?


© All Rights Reserved TreQna 2005
Evolution of Quality



    Reactive Quality
                                         Proactive Quality
    Quality Checks...
Segments in Quality


    Methodologies                        Standards         Capability Models


•Six Sigma           ...
What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes...
Two Meanings of Sigma



                                     σ
• The term “sigma” is used to designate the distribution o...
Path to Six Sigma


                                           6 Sigma          3.4 Defects


                    Sigma le...
What it means to be @ Six Sigma
       Is 99% (3.8σ) good enough?                            99.99966% Good – At 6σ


    ...
Origin of Six Sigma


                                     Motorola
                       the company that invented Six S...
The Growth of Six Sigma


                                      GE
                      the company that perfected Six Si...
The Growth of Six Sigma


The GE model for process improvements




   Define                            Measure Analyze I...
The Growth of Six Sigma




© All Rights Reserved TreQna 2005
Three Methodologies of Six Sigma


                                           BPMS
                              Business ...
BPMS
                 Business Process Management
                            System




© All Rights Reserved TreQna 2005
The Need of BPMS

• To understand the process; it’s mission, flow and scope


• To know the customers and their expectatio...
The Methodology


                       Map process                         MSA, DCP,                      Service
      ...
DMAIC
                               Six Sigma Improvement
                                     Methodology




© All Righ...
What is DMAIC ?

• A logical and structured approach to problem solving and process
  improvement


• An iterative process...
The Approach

                                    Practical
                                    Problem




              ...
Methodology

       D                            Identify and state the practical problem
     Define

                   ...
Define

       D                            VoC - Who wants the project and why ?
     Define


     M                    ...
Measure

       D                            Ensure measurement system reliability
     Define
                           ...
Analyze

       D                            Understand statistical problem
     Define


     M
   Measure               ...
Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)

• A brainstorming tool that helps define and disp...
Analyze – Identify Drivers of Variation
Control – Impact Matrix

• A visual tool that helps in separating the vital few fr...
Analyze – Identify Drivers of Variation
Pareto Chart

• Pareto principle states that disproportionately large percentage o...
Analyze – Identify Drivers of Variation
Process Map Analysis

• Visually highlights hand off points / working relationship...
Analyze – Identify Drivers of Variation
Hypothesis Testing

• A statistical tool used to validate if two samples are diffe...
Improve

       D                            Map improved process
     Define


     M
   Measure

                       ...
Control

       D
                                    Ensure measurement system reliability for
     Define               ...
Control – Sustenance Plan
Control Plan

• Have the new operating procedures and standards been
  documented ?

• What Stat...
Six Sigma Organization



© All Rights Reserved TreQna 2005
Six Sigma - Three Dimensions
                                                                                             ...
The Quality Team

                  Master Black Belt                - Thought Leadership
                                ...
Six Sigma – Career Option!
                                                     • Basic - Six Sigma Awareness
            ...
Thank You



© All Rights Reserved TreQna 2005
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Six Sigma Orientation

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Transcript of "Six Sigma Orientation"

  1. 1. Six sigma Orientation © All Rights Reserved TreQna 2005
  2. 2. expectatio ns •What is Quality? •Know Six Sigma •Awareness with respect to origin and history of Six Sigma. •The utility and benefits •Introduction to Six Sigma as methodology •The Six Sigma organization © All Rights Reserved TreQna 2005
  3. 3. What is Quality? © All Rights Reserved TreQna 2005
  4. 4. Evolution of Quality Reactive Quality Proactive Quality Quality Checks (QC) - Taking the “Create process that will produce defectives out of what is produced less or no defects” Historically Contemporary © All Rights Reserved TreQna 2005
  5. 5. Segments in Quality Methodologies Standards Capability Models •Six Sigma •ISO 9000, ISO •eSCM •Lean 14000 etc. •CMM •COPC •CMMI •Malcolm Baldrige Sharing Scientific way Best practices Benchmarked to improve to build practices- capability? capability “Standardizing” © All Rights Reserved TreQna 2005
  6. 6. What is Six Sigma? • It is a methodology for continuous improvement • It is a methodology for creating products/ processes that perform at high standards • It is a set of statistical and other quality tools arranged in unique way • It is a way of knowing where you are and where you could be! • It is a Quality Philosophy and a management technique Six Sigma is not: • A standard • A certification • Another metric like percentage © All Rights Reserved TreQna 2005
  7. 7. Two Meanings of Sigma σ • The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure. • For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigma capability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction. © All Rights Reserved TreQna 2005
  8. 8. Path to Six Sigma 6 Sigma 3.4 Defects Sigma levels and Defects per million opportunities (DPMO) 5 Sigma 233 Defects 4 Sigma 6,210 Defects 3 Sigma 66,807 Defects 2 Sigma 308,537 Defects © All Rights Reserved TreQna 2005
  9. 9. What it means to be @ Six Sigma Is 99% (3.8σ) good enough? 99.99966% Good – At 6σ 20,000 lost mails per hour 7 lost mails per hour Unsafe drinking water almost 15 One minute of unsafe drinking minutes each day water every seven months 5,000 incorrect surgical 1.7 incorrect surgical operations operations per week per week 2 short or long landings at most One short or long landing at major major airports daily airports every five years 200,000 wrong drug prescriptions 68 wrong drug prescriptions each each year year Example quoted from GE Book of Knowledge - copyright GE © All Rights Reserved TreQna 2005
  10. 10. Origin of Six Sigma Motorola the company that invented Six Sigma • The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola • Late 1970s - Motorola started experimenting with problem solving through statistical analysis • 1987 - Motorola officially launched it’s Six Sigma program © All Rights Reserved TreQna 2005
  11. 11. The Growth of Six Sigma GE the company that perfected Six Sigma • Jack Welch launched Six Sigma at GE in Jan,1996 • 1998/99 - Green Belt exam certification became the criteria for management promotions • 2002/03 - Green Belt certification became the criteria for promotion to management roles © All Rights Reserved TreQna 2005
  12. 12. The Growth of Six Sigma The GE model for process improvements Define Measure Analyze Improve Control Combination of change management & statistical analysis © All Rights Reserved TreQna 2005
  13. 13. The Growth of Six Sigma © All Rights Reserved TreQna 2005
  14. 14. Three Methodologies of Six Sigma BPMS Business Process Management System DMAIC Six Sigma Improvement Methodology DMADOV Creating new process which will perform @ Six Sigma © All Rights Reserved TreQna 2005
  15. 15. BPMS Business Process Management System © All Rights Reserved TreQna 2005
  16. 16. The Need of BPMS • To understand the process; it’s mission, flow and scope • To know the customers and their expectations • To identify, monitor and improve correct performance measures for the process © All Rights Reserved TreQna 2005
  17. 17. The Methodology Map process MSA, DCP, Service steps, indicators excellence identify and monitors and process input/ output excellence measures Identify Define Process Develop Map Process VOC and VOP Build PMS Improvement Mission Dashboards Opportunities Define Identify Visual purpose of Critical to representatio the process, Quality and n of its goal and Critical to performance its process boundaries The DMAIC cycle © All Rights Reserved TreQna 2005
  18. 18. DMAIC Six Sigma Improvement Methodology © All Rights Reserved TreQna 2005
  19. 19. What is DMAIC ? • A logical and structured approach to problem solving and process improvement • An iterative process (continuous improvement) • A quality tool with focus on change management E = Q x A Effectiveness Quality Acceptance Improvement © All Rights Reserved TreQna 2005
  20. 20. The Approach Practical Problem Statistical Problem Statistical Solution Practical Solution © All Rights Reserved TreQna 2005
  21. 21. Methodology D Identify and state the practical problem Define Validate the practical problem by collecting data M Measure Convert the practical problem to a statistical one, A define statistical goal and identify potential statistical Analyze solution I Confirm and test the statistical solution Improve C Convert the statistical solution to a practical solution Control © All Rights Reserved TreQna 2005
  22. 22. Define D VoC - Who wants the project and why ? Define M The scope of project / improvement Measure A Key team members / resources for the project Analyze I Critical milestones and stakeholder review D Improve C Control Budget allocation © All Rights Reserved TreQna 2005
  23. 23. Measure D Ensure measurement system reliability Define - Is tool used to measure the output variable flawed ? - Do all operators interpret the tool reading in the same M way ? Measure A Prepare data collection plan Analyze - How many data points do you need to collect ? - How many days do you need to collect data for ? I - What is the sampling strategy ? Improve - Who will collect data and how will data get stored ? M - What could the potential drivers of variation be ? C Control Collect data © All Rights Reserved TreQna 2005
  24. 24. Analyze D Understand statistical problem Define M Measure Baseline current process capability A Analyze Define statistical improvement goal I Improve C Control A Identify drivers of variation (significant factors) © All Rights Reserved TreQna 2005
  25. 25. Analyze – Identify Drivers of Variation Root Cause Analysis (fish bone) • A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process • Visualize the potential relationship between causes which may be creating problems or defects Primary Cause Secondary Cause Backbon Proble A e m Root Cause © All Rights Reserved TreQna 2005
  26. 26. Analyze – Identify Drivers of Variation Control – Impact Matrix • A visual tool that helps in separating the vital few from the trivial many Control Vital Few Cost Ineffective High Control – High Low Control – High Impact Impact Impact Cost Ineffective High Control – Low Impact Trivial Many Low Control – Low ImpactA © All Rights Reserved TreQna 2005
  27. 27. Analyze – Identify Drivers of Variation Pareto Chart • Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors) 35 100% 30 80% 25 20 60% 15 40% 10 20% 5 A 0 0% L K A F B C G R D Frequency Cumulative Frequency © All Rights Reserved TreQna 2005
  28. 28. Analyze – Identify Drivers of Variation Process Map Analysis • Visually highlights hand off points / working relationships between people, processes and organizations • Helps identify rework loops and non value add steps Customer Process A Process B Vendor A © All Rights Reserved TreQna 2005
  29. 29. Analyze – Identify Drivers of Variation Hypothesis Testing • A statistical tool used to validate if two samples are different or whether a sample belongs to a given population Null Hypothesis (Ho) is the statement of the status quo Alternate Hypothesis (Ha) is the statement of difference Homogeneity of One way ANOVA Variance Moods Median Chi-Square Regression A © All Rights Reserved TreQna 2005
  30. 30. Improve D Map improved process Define M Measure Pilot solution A Analyze I Improve C Control I Identify operating tolerance on significant factors © All Rights Reserved TreQna 2005
  31. 31. Control D Ensure measurement system reliability for Define significant factors - Is tool used to measure the input / process variables flawed ? - Do all operators interpret the tool reading in the same way ? M Measure Improved process capability A Analyze I Improve Sustenance Plan C Control - Statistical Process Control - Mistake Proofing - Control Plan C © All Rights Reserved TreQna 2005
  32. 32. Control – Sustenance Plan Control Plan • Have the new operating procedures and standards been documented ? • What Statistical Process Control (SPC) tools will be used to monitor the process performance ? • Who will review the performance of the output variable and significant factors on closure of the project and how frequently ? • What is the corrective action or reaction plan if any of the factors were to be out of control ? C © All Rights Reserved TreQna 2005
  33. 33. Six Sigma Organization © All Rights Reserved TreQna 2005
  34. 34. Six Sigma - Three Dimensions Customer Process A Process B Vendor Define Measur Analyze Improve Control e Driven by custom er needs Process Map Analysis LSL US L Methodology Led by Senior Mgmt Upper/Lower • specification • •••• ••••••••••• • Organization Tools limits •••••• ••••• •• Regression 35 100% 30 80% 25 20 60% 15 40% 10 20% 5 Process variation 0 0% Enabled by quality L K A F B C G R D Frequency Cumulative Frequency team. Pareto Chart © All Rights Reserved TreQna 2005
  35. 35. The Quality Team Master Black Belt - Thought Leadership - Expert on Six Sigma - Mentor Green and Black Belts - Backbone of Six Sigma Org Black Belt Black Belt - Mentor Green Belts - Full time resource - Deployed to complex or “high risk” projects Green Belt Green Belt - Part time or full time resource Green Belt - Deployed to less complex projects in areas of functional expertise © All Rights Reserved TreQna 2005
  36. 36. Six Sigma – Career Option! • Basic - Six Sigma Awareness • Green Belt Projects Green Belt (GB) • Participate in Black Belt Projects • Assist business functions with day to day activities • Mentor/Train Green Belts • Black Belt Projects Black Belt (BB) • Change Agents • Work along with the business owners • Mentor/ Train Black Belts • Run Strategic projects Master Black Belt (MBB) • More Strategic than tactical role Highly paid! Work like a Consultant! Huge demand in the industry! Overall…A high flying Career!! © All Rights Reserved TreQna 2005
  37. 37. Thank You © All Rights Reserved TreQna 2005
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