Using the Six Sigma approach to improve Business processes
Use Six Sigma for: <ul><li>Error prevention </li></ul><ul><li>Waste elimination </li></ul><ul><li>Process improvement </li...
The Five Steps <ul><li>Define </li></ul><ul><li>Measure </li></ul><ul><li>Analyze </li></ul><ul><li>Implement </li></ul><u...
Define <ul><li>Must be well- defined </li></ul><ul><ul><li>Detailed, nothing left out </li></ul></ul><ul><li>Budget </li><...
Communication <ul><li>Regular reports to Involved Managers </li></ul><ul><li>Reports to Team members </li></ul><ul><ul><li...
Measure <ul><li>Use historical measurements only to define the project </li></ul><ul><ul><li>Most historical data is not d...
Analyze <ul><li>Consider what type of data you have </li></ul><ul><ul><li>Discrete </li></ul></ul><ul><ul><li>Continuous <...
Implement <ul><li>Consider causes of root issues </li></ul><ul><li>Determine what will correct the issue </li></ul><ul><li...
Control <ul><li>Develop Control Plan </li></ul><ul><li>Insure Monitoring system is developed </li></ul><ul><li>Determine c...
The Benefits <ul><li>Processes are reliable </li></ul><ul><li>Processes are optimized </li></ul><ul><li>Employee developme...
Rework as % of Direct Labor Increases Six Sigma program in August of year before
Direct Labor Efficiency increases
Rework as % of Direct Labor The Clue Kaizen  lowered  Labor Standard
Drill Down ! The beginning of another correction to make the solution Sustainable
The Answer <ul><li>Employees were paid a bonus based on Direct Labor Efficiency </li></ul><ul><li>As a result of lowered L...
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Using The Six Sigma Approach To Improve Business

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Using The Six Sigma Approach To Improve Business

  1. 1. Using the Six Sigma approach to improve Business processes
  2. 2. Use Six Sigma for: <ul><li>Error prevention </li></ul><ul><li>Waste elimination </li></ul><ul><li>Process improvement </li></ul><ul><li>Cost Savings </li></ul><ul><li>Data collection </li></ul><ul><li>Process Control </li></ul>
  3. 3. The Five Steps <ul><li>Define </li></ul><ul><li>Measure </li></ul><ul><li>Analyze </li></ul><ul><li>Implement </li></ul><ul><li>Control </li></ul>
  4. 4. Define <ul><li>Must be well- defined </li></ul><ul><ul><li>Detailed, nothing left out </li></ul></ul><ul><li>Budget </li></ul><ul><ul><li>Expected expenses </li></ul></ul><ul><li>Team Selected </li></ul><ul><ul><li>Cross-Functional </li></ul></ul><ul><ul><li>Subject Matter experts </li></ul></ul><ul><ul><li>Uninvolved party for fresh ideas </li></ul></ul>
  5. 5. Communication <ul><li>Regular reports to Involved Managers </li></ul><ul><li>Reports to Team members </li></ul><ul><ul><li>Assignments </li></ul></ul><ul><ul><li>Due dates </li></ul></ul><ul><li>Summarize meetings </li></ul><ul><li>Show progress </li></ul><ul><ul><li>Develop pride </li></ul></ul><ul><ul><li>Employee development </li></ul></ul>
  6. 6. Measure <ul><li>Use historical measurements only to define the project </li></ul><ul><ul><li>Most historical data is not directed at the problem </li></ul></ul><ul><li>Collect new data that is pertinent to the project </li></ul><ul><ul><li>Design how data will be taken </li></ul></ul><ul><ul><li>Consider the Analyze section in determining data </li></ul></ul><ul><ul><ul><li>Will Statistics be used? </li></ul></ul></ul>
  7. 7. Analyze <ul><li>Consider what type of data you have </li></ul><ul><ul><li>Discrete </li></ul></ul><ul><ul><li>Continuous </li></ul></ul><ul><li>Quantitatively analyze </li></ul><ul><li>Drill down from high level results to detailed results </li></ul>
  8. 8. Implement <ul><li>Consider causes of root issues </li></ul><ul><li>Determine what will correct the issue </li></ul><ul><li>Develop a plan for implementation </li></ul><ul><li>Measure results </li></ul><ul><ul><li>If not satisfactory revisit the corrections </li></ul></ul><ul><li>Must be Sustainable </li></ul>
  9. 9. Control <ul><li>Develop Control Plan </li></ul><ul><li>Insure Monitoring system is developed </li></ul><ul><li>Determine continuing authority for system maintenance </li></ul>
  10. 10. The Benefits <ul><li>Processes are reliable </li></ul><ul><li>Processes are optimized </li></ul><ul><li>Employee development </li></ul>
  11. 11. Rework as % of Direct Labor Increases Six Sigma program in August of year before
  12. 12. Direct Labor Efficiency increases
  13. 13. Rework as % of Direct Labor The Clue Kaizen lowered Labor Standard
  14. 14. Drill Down ! The beginning of another correction to make the solution Sustainable
  15. 15. The Answer <ul><li>Employees were paid a bonus based on Direct Labor Efficiency </li></ul><ul><li>As a result of lowered Labor standard Employees were vouchering Indirect labor code for Rework to increase their Direct Labor percentage </li></ul><ul><li>First pass yield showed that good product was produced less than 50% on the first try </li></ul><ul><li>Mold had deteriorated causing employees to perfomr extra work </li></ul>

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