SIX DefineSIGMA Control Measure Six Sigma Improve Analyze Presented By: Mukul, MBA CMP
WHAT IS SIX • Six Sigma is a business management strategy,SIGMA? originally developed by Motorola, USA in 1986. • Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. • It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods.
ABOUT SIX • Six Sigma originated as a set of practicesSIGMA designed to improve manufacturing processes and eliminate defects. • A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). • It has a clear focus on achieving measurable and quantifiable financial returns. • Has an increased emphasis on strong and passionate management leadership and support. • It has a clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork.
Define Measure Analyze Improve Control• Identify, • Collect data • Analyze data, • Improved • Establish evaluate and on size of the establish and strategy standards to select selected confirm the • Develop maintain problem. vital few ideas to process. projects for • Identify key determinants remove root • Design the improvement customer of the causes controls,• Set goals requirements. performance. • Design and implement and• Form teams. • Determine key • Validate carry out monitor. product and hypothesis. experiments • Evaluate process • Optimize the financial impact characteristic. process. of the project.
METHODS OF • Six Sigma projects follow two projectSIX SIGMA methodologies inspired by Plan-Do-Check-Act Cycle. • These methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV. • DMAIC is used for projects aimed at improving an existing business process. • DMADV is used for projects aimed at creating new product or process designs. DMAIC DMADV
DMAIC • Define the problem and the project goals, specifically.MEANING • Measure key aspects of the current process and collect relevant data. • Analyze the data to investigate and verify cause-and- effect relationships. Seek out root cause of the defect under investigation. • Improve or optimize the current process based upon data analysis using techniques such as design of experiments, mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. • Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards , visual workplaces, and continuously monitor the process.
DMADV • The DMADV project methodology, also known as DFSSMEANING ("Design For Six Sigma"), features five phases: • Define design goals that are consistent with customer demands and the enterprise strategy. • Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. • Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. • Design details, optimize the design, and plan for design verification. This phase may require simulations. • Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).
WHO ARE • At least 25% of the fortune 200 claim to have a serious six sigma programIMPLEMENTINGSIX SIGMA • Financial: Bank of America, GE Capital, • Electronics: Allied Signal, Samsung, Sony • Chemicals: DuPont, Dow Chemicals • Manufacturing: GE Plastics, Johnson and Johnson, Motorola, Nokia, Microsoft, Ford. • Airline: Singapore, Lufthansa, Bombardier • And hundreds of others in Americas, Europe, Sub Continent
SIX SIGMARESULTS • Six Sigma Savings as % of revenue vary from 1.2 to 4.5 %. • For $30 million/year sales-- Savings potential $360,000 to $ 1.35 million.
WHAT MAKES • Versatile.SIX SIGMA • Breakthrough improvements.DIFFERENT? • Financial results focus. • Process focus. • Structured & disciplined problem solving methodology using scientific tools and techniques. • Customer centered. • Involvement of leadership is mandatory. • Training is mandatory.
BENEFITS OF • Generates sustained success.SIX SIGMA • Sets performance goal for everyone. • Enhances value for customers. • Accelerates rate of improvement. • Promotes learning across boundaries. • Executes strategic change.