Ebsl Technologies Six (6) Sigma


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Company Introduction to sIX 6 SIGMA

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Ebsl Technologies Six (6) Sigma

  1. 1. EBSL Intro to Six Sigma EBSL Technologies Int'l www.ebsltechnologies.com internal consultant training IT Operations Training Presented by Jon CRG Shende FBCS CITP Director IT Services October 2008
  2. 2. EBSL Six (6) Sigma- History Sigma as a measurement standard can be traced back to Carl Frederick Gauss (1777-1885). He introduced the concept of the normal curve Sigma as a measurement standard i.e. product variation, can be traced to Walter Shewhart in the 1920's who demonstrated that three sigma from the mean is the point where a process requires correction However credit for coining of the term “Six Sigma” goes to a Motorola engineer named Bill Smith Other prominent contributors to 6 sigma are, Mikel Harry, the Japanese, Unisys Corp in 1988 & Asea Brown Boveri(ABB) in 1993 ABB gave Six Sigma its final finishing touch by putting emphasis on customer satisfaction 2
  3. 3. EBSL What is Six (6) Sigma? Six(6) Sigma is a highly statistical methodology which provide an organization with tools to improve business processes It prioritizes projects and aligning resources to support key strategic initiatives Six (6) Sigma aims to increase performances and decrease process variations leading to - defect reductions - improvement in profits - improved employee morale and - improving an organization's quality of product or services 3
  4. 4. EBSL Six (6) Sigma Six (6) Sigma is a customer-centric process which can 1. Yield major returns on investment from projects 2. Changes how management functions 3. Increase customer satisfaction e.g. a 5% increase in customer retention has shown to increase profits by more than 25% There is an estimate that companies lose 15-20% of revenues each year due to ineffective and inefficient processes 4. Conduct measurable tracking to show what processes are working and which are not – speeding up significant improvement 4
  5. 5. EBSL EBSL & Six (6) Sigma Improve and increase customer acquisition Build a culture of ownership and empowerment Ensure a seamless integration of organizational processes Accelerate revenue growth and sustain our profitability in the long term Implementation Focus on customer driven service and excellence Improve customer satisfaction level Improve customer referral Ensure quality in deliverables Manage cost of quality Six Sigma can be used to achieve a Quality Framework -iQMS 5
  6. 6. EBSL Roles and Responsibility Deployment Identify and Prioritize Projects by Division Manager Assign & review activities of Black Belts Champions/ Facilitate Project Implementation & Key Stakeholder Sponsors Master Black Belts Mentor/coach Black Belts Teach Six Sigma techniques Black Belts Lead 4-6 strategic improvement projects/year Seasoned expert in Six Sigma techniques Help local organization in Six Sigma disciplines Green Belts Domain Experts-Spend 20-30% time on a Project 6
  7. 7. EBSL 6 Sigma Methodologies Two basic methodologies are DMAIC & DMADV Define, Measure, Analyze, Improve and Control most common method DMAIC is robust,provides a framework and checklist to prevent critical steps from being missed. It also defines CTQs 1st CTQs key drivers provides data on process performance This data can be used to improve process performance Define project Measure current situation Analyze to identify causes Improve Control DMAIC Flow Diagram 7
  8. 8. EBSL DMAIC Flow Define Measure Analyze Improve Control Value Stream Map Ops Definitions Pareto Charts Brainstorming Control Charts Financial Analysis Data Collection Plan C&E Matrix Benchmarking Standard Operating Charter Form Pareto Chart Fishbone Diagrams Process Improvement Procedures (SOP’s) Stakeholder Analysis Histogram Brainstorming Techniques Training Plan Communication Plan Box Plot Detailed ‘As-Is’ Process Line Balancing Communication Plan SIPOC Map Stat Sampling Maps Process Flow Implementation Plan High-Level Process Measurement System Basic Statistical Tools Improvement Visual Process Map Analysis Non Value-Added Constraint Control Non-Value Added Setup Reduction Analysis Identification Mistake-Proofing Analysis Kaizen Hypothesis Testing Operations Planning Process Control Plans VOC and Kano Control Charts Confidence Intervals FMEA Project Analysis Process Capability FMEA Solution Selection Commissioning Lean Quality Function Simple & Multiple Matrix Project Replication Deployment (QFD) Regression Process Maps Plan-Do-Check-Act RACI & Quad Charts One way ANOVA Simulation Supply Chain Analysis Piloting Adapted from Lean Six Sigma for Service by Michael George 8
  9. 9. EBSL Some 6 Sigma Tools CTQ Diagram CTQs influenced by VOC and customers view of quality It is specific and measurable Can be defined via specification to determine whether CTQ characteristic has been met VOC CTQ Need CTQ Driver CTQ CTQ CTQ CTQ 9
  10. 10. EBSL Some 6 Sigma Tools Ishikawa (Fishbone) Diagram A visual tool used to logically organize and brainstorm possible causes to address a specific problem or effect. Ishikawa Diagram helps in identifying root causes Primary Cause Secondary Cause Backbone Problem Root Cause 10
  11. 11. EBSL Some 6 Sigma Tools Parento Chart A Parento Chart is a vertical bar graph where the y axis represents the frequency or impact of problems. They are arranged in descending order of height from left to right. This chart addresses Causal Analysis and Resolution and helps to identify vital causes responsible for 80% of the defects 35 100% 30 80% 25 20 60% 15 40% 10 20% 5 0 0% L K A F B C G R D 11 Frequency Cumulative Frequency
  12. 12. EBSL Some 6 Sigma Tools Control Chart: This is a graphical plot of a parameter over time used to identify assignable variations allowing adjustments to the process being monitored They are the primary tools used for Statistical process Control and can be used to quantitatively manage a project’s defined process. This to achieve a project’s established quality and process-performance objectives We can use this in tandem with a Control – Impact Matrix Control Vital Few Cost Ineffective High Control – High Low Control – High Impact Impact Impact Cost Ineffective Trivial Many High Control – Low Impact Low Control – Low Impact 12
  13. 13. EBSL Some 6 Sigma Tools - The Potential-Problem Analysis (PPA) method provides a challenging analysis of a developed idea or action in order to pre-empt any potential for going wrong PPA helps in addressing areas within Risk Management by listing possible causes for each potential problem and developing preventive actions and contingency plans - FMEA helps achieve specific goals of Risk Management. It identifies potential failure modes and rates the severity of their effect. It outputs an objective evaluation of cause occurrence with an ability to detect when those causes occur. It ranks the order of potential product and process deficiencies and focuses on eliminating product and process concerns 13
  14. 14. EBSL FMEA Failure Mode The manner in which a service does not meet a customer’s expectations Effects Analysis A study of the effects of failure on the function or purpose of a service. Increases the likelihood that potential failures, their effects and causes are considered prior to a final execution of product or services, by ensuring proper planning of preventive actions Key to its success are effective time management, focusing on decisions driven by data, using this data to verify the relationships between root causes as well as establishing criteria ratings and mapping effective preventive actions An FMEA can also be used as to gauge the starting point for later control plans, trouble- shooting guides or preventive maintenance plans and is best applied in an iterative process containing detailed information about a product or process 14
  15. 15. EBSL 6 Sigma as a Management System Management should implement 6 Sigma as a means of responding to critical organizational needs by integrating proactive, customer-focused management into our daily routine. Six Sigma as a management system is not owned by senior or middle management It is a discovery processes integrating solutions, ideas, and improvements that take place at the front lines of the organization 15
  16. 16. EBSL Practical Exercise -Define Suppliers-Inputs-Process-Ouputs-Customers ( SIPOC) & CTQs SIPOC can be seen as a high-level process map; process is defined as [Y = f(X)] -Prioritize SIPOC Input & Output Define Processes (Value Added Chain Diagram- VACD / BPMN) Generate RA(S)CI Chart [role and responsibility reporting] -Navigate to Fishbone -Assign & define details for Critical Factor -Allocate Critical Factors to processes (VACD / BPM) -- Design Critical to Quality-Tree(CTQ-Tree) -- Improve processes 16