Introduction To Six Sigma

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Introduction To Six Sigma

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Introduction To Six Sigma

  1. 1. Introduction To Six Sigma Purpose of six sigma : To make customer happier and increase profits
  2. 2. Origin of Six Sigma <ul><li>1987 Motorola Develops Six Sigma </li></ul><ul><ul><li>Raised Quality Standards </li></ul></ul><ul><li>Other Companies Adopt Six Sigma </li></ul><ul><ul><li>GE </li></ul></ul><ul><ul><ul><li>Promotions, Profit Sharing (Stock Options), etc. directly tied to Six Sigma training. </li></ul></ul></ul><ul><ul><li>Dow Chemical, DuPont, Honeywell, Whirlpool </li></ul></ul>
  3. 3. Time Line 2002 1995 1992 1987 1985 Dr Mikel J Harry wrote a Paper relating early failures to quality Motorola Allied Signal General Electric Johnson & Johnson, Ford, Nissan, Honeywell
  4. 4. Current Leadership Challenges <ul><li>Delighting Customers. </li></ul><ul><li>Reducing Cycle Times. </li></ul><ul><li>Keeping up with Technology Advances. </li></ul><ul><li>Retaining People. </li></ul><ul><li>Reducing Costs. </li></ul><ul><li>Responding More Quickly. </li></ul><ul><li>Structuring for Flexibility. </li></ul><ul><li>Growing Overseas Markets. </li></ul>
  5. 5. Six Sigma— Benefits? <ul><li>Generated sustained success </li></ul><ul><li>Project selection tied to organizational strategy </li></ul><ul><ul><li>Customer focused </li></ul></ul><ul><ul><li>Profits </li></ul></ul><ul><li>Project outcomes / benefits tied to financial reporting system. </li></ul><ul><li>Full-time Black Belts in a rigorous, project-oriented method. </li></ul><ul><li>Recognition and reward system established to provide motivation. </li></ul>
  6. 6. Management involvement? <ul><li>Executives and upper management drive the effort through: </li></ul><ul><ul><li>Understanding Six Sigma </li></ul></ul><ul><ul><li>Significant financial commitments </li></ul></ul><ul><ul><li>Actively selecting projects tied to strategy </li></ul></ul><ul><ul><li>Setting up formal review process </li></ul></ul><ul><ul><li>Selecting Champions </li></ul></ul><ul><ul><li>Determining strategic measures </li></ul></ul>
  7. 7. Management Involvement? <ul><li>Key issues for Leadership: </li></ul><ul><ul><li>How will leadership organize to support Six Sigma ? (6  council, Director 6  , etc) </li></ul></ul><ul><ul><li>Transition rate to achieve 6  . </li></ul></ul><ul><ul><li>Level of resource commitment. </li></ul></ul><ul><ul><li>Centralized or decentralized approach. </li></ul></ul><ul><ul><li>Integration with current initiatives e.g. QMS </li></ul></ul><ul><ul><li>How will the progress be monitored? </li></ul></ul>
  8. 8. What can it do? <ul><li>Motorola: </li></ul><ul><ul><li>5-Fold growth in Sales </li></ul></ul><ul><ul><li>Profits climbing by 20% pa </li></ul></ul><ul><ul><li>Cumulative savings of $14 billion over 11 years </li></ul></ul><ul><li>General Electric: </li></ul><ul><ul><li>$2 billion savings in just 3 years </li></ul></ul><ul><ul><li>The no.1 company in the USA </li></ul></ul><ul><li>Bechtel Corporation: </li></ul><ul><ul><li>$200 million savings with investment of $30 million </li></ul></ul>
  9. 9. GE Six Sigma Economics Source: 1998 GE Annual Report, Jack Welch Letter to Share Owners and Employees - progress based upon total corporation cost/benefits attributable to Six Sigma. 6 Sigma Project Progress 1996 1998 2000 2002 0 500 1000 1500 2000 2500 1996 Cost Benefit (in millions)
  10. 10. Overview of Six Sigma PAIN, URGENCY, SURVIVAL COSTS OUT GROWTH TRANSFORM THE ORGANIZATION CHANGE THE WORLD 6 SIGMA AS A STATISTICAL TOOL 6 SIGMA AS A PHILOSOPHY 6 SIGMA AS A PROCESS
  11. 11. Overview of Six Sigma <ul><li>It is a Philosophy </li></ul><ul><ul><li>Anything less than ideal is an opportunity for improvement </li></ul></ul><ul><ul><li>Defects costs money </li></ul></ul><ul><ul><li>Understanding processes and improving them is the most efficient way to achieve lasting results </li></ul></ul><ul><li>It is a Process </li></ul><ul><ul><li>To achieve this level of performance you need to: </li></ul></ul><ul><ul><li>D efine, M easure, A nalyse, I mprove and C ontrol </li></ul></ul><ul><li>It is Statistics </li></ul><ul><ul><li>6 Sigma processes will produce less than 3.4 defects per million opportunities </li></ul></ul>
  12. 12. Philosophy <ul><li>Know What’s Important to the Customer (CTQ) </li></ul><ul><li>Reduce Defects (DPMO) </li></ul><ul><li>Center Around Target (Mean) </li></ul><ul><li>Reduce Variation (Standard Deviation) </li></ul>
  13. 13. Critical Elements <ul><li>Genuine Focus on the Customer </li></ul><ul><li>Data and Fact Driven Management </li></ul><ul><li>Process Focus </li></ul><ul><li>Proactive management </li></ul><ul><li>Boundary-less Collaboration </li></ul><ul><li>Drive for Perfection; Tolerance for failure </li></ul>
  14. 14. Data Driven Decision <ul><li>Y </li></ul><ul><li>Dependent </li></ul><ul><li>Output </li></ul><ul><li>Effect </li></ul><ul><li>Symptom </li></ul><ul><li>Monitor </li></ul><ul><li>X1 . . . Xn </li></ul><ul><li>Independent </li></ul><ul><li>Input-Process </li></ul><ul><li>Cause </li></ul><ul><li>Problem </li></ul><ul><li>Control </li></ul>f(X) Y= The focus of Six sigma is to identify and control Xs
  15. 15. Two Processes <ul><li>Define </li></ul><ul><li>Measure </li></ul><ul><li>Analyze </li></ul><ul><li>Improve </li></ul><ul><li>Control </li></ul><ul><li>Define </li></ul><ul><li>Measure </li></ul><ul><li>Analyze </li></ul><ul><li>Design </li></ul><ul><li>Verify </li></ul>DMAIC DMADV <ul><li>Existing Processes </li></ul><ul><li>New Processes </li></ul><ul><li>DFSS </li></ul>
  16. 16. <ul><li>Key Concepts </li></ul>
  17. 17. COPQ (Cost of Poor Quality) - Lost Opportunities - The Hidden Factory - More Setups - Expediting Costs - Lost Sales - Late Delivery - Lost Customer Loyalty - Excess Inventory - Long Cycle Times - Costly Engineering Changes Average COPQ approximately 15% of Sales <ul><li>Hidden Costs: </li></ul><ul><li>Intangible </li></ul><ul><li>Difficult to Measure </li></ul><ul><li>Traditional Quality Costs: </li></ul><ul><li>Tangible </li></ul><ul><li>Easy to Measure </li></ul>- Inspection - Warranty - Scrap - Rework - Rejects
  18. 18. COPQ v/s Sigma Level Cost of Quality % Sales Sigma Level
  19. 19. CTQ (Critical-To-Quality) <ul><li>CTQ characteristics for the process, service or process </li></ul><ul><li>Measure of “What is important to Customer” </li></ul><ul><li>6 Sigma projects are designed to improve CTQ </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Waiting time in clinic </li></ul></ul><ul><ul><li>Spelling mistakes in letter </li></ul></ul><ul><ul><li>% of valves leaking in operation </li></ul></ul>
  20. 20. Defective and Defect <ul><li>A nonconforming unit is a defective unit </li></ul><ul><li>Defect is nonconformance on one of many possible quality characteristics of a unit that causes customer dissatisfaction. </li></ul><ul><li>A defect does not necessarily make the unit defective </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Scratch on water bottle </li></ul></ul><ul><ul><li>(However if customer wants a scratch free bottle, then this will be defective bottle) </li></ul></ul>
  21. 21. Defect Opportunity <ul><li>Circumstances in which CTQ can fail to meet. </li></ul><ul><li>Number of defect opportunities relate to complexity of unit. </li></ul><ul><li>Complex units – Greater opportunities of defect than simple units </li></ul><ul><li>Examples: </li></ul><ul><ul><li>A units has 5 parts, and in each part there are 3 opportunities of defects – Total defect opportunities are 5 x 3 = 15 </li></ul></ul>
  22. 22. DPO (Defect Per Opportunity) <ul><li>Number of defects divided by number of defect opportunities </li></ul><ul><li>Examples: </li></ul><ul><ul><li>In previous case (15 defect opportunities), if 10 units have 2 defects. </li></ul></ul><ul><ul><li>Defects per unit = 2 / 10 = 0.2 </li></ul></ul><ul><ul><li>DPO = 2 / (15 x 10) = 0.0133333 </li></ul></ul>
  23. 23. DPMO (Defect Per Million Opportunities) <ul><li>DPO multiplies by one million </li></ul><ul><li>Examples: </li></ul><ul><ul><li>In previous case (15 defect opportunities), if 10 units have 2 defects. </li></ul></ul><ul><ul><li>Defects per unit = 2 / 10 = 0.2 </li></ul></ul><ul><ul><li>DPO = 2 / (15 x 10) = 0.0133333 </li></ul></ul><ul><ul><li>DPMO = 0.013333333 x 1,000,000 = 13,333 </li></ul></ul>Six Sigma performance is 3.4 DPMO 13,333 DPMO is 3.7 Sigma
  24. 24. Yield <ul><li>Proportion of units within specification divided by the total number of units. </li></ul><ul><li>Examples: </li></ul><ul><ul><li>If 10 units have 2 defectives </li></ul></ul><ul><ul><li>Yield = (10 – 2) x 100 /10 = 80 % </li></ul></ul><ul><li>Rolled Through Yield (RTY) </li></ul><ul><ul><li>Y1 x Y2 x Y3 x ……. x Yn </li></ul></ul><ul><ul><li>E.g 0.90 x 0.99 x 0.76 x 0.80 = 0.54 </li></ul></ul>
  25. 25. <ul><li>Forms of Waste </li></ul>
  26. 26. What are the forms of waste? <ul><li>Waste of Correction </li></ul><ul><li>Waste of Overproduction </li></ul><ul><li>Waste of processing </li></ul><ul><li>Waste of conveyance (or transport) </li></ul><ul><li>Waste of inventory </li></ul><ul><li>Waste of motion </li></ul><ul><li>Waste of waiting </li></ul>
  27. 27. 1. Waste of correction <ul><li>Repairing a defect wastes time and resources (Hidden factory) </li></ul>Operation 1 Test Test Product Operation 2 Failure Investigation Rework Failure Investigation Rework Hidden Factory
  28. 28. 2. Waste of Overproduction <ul><li>Producing more than necessary or producing at faster rate than required </li></ul><ul><ul><li>Excess labor, space, money, handling </li></ul></ul>
  29. 29. 3. Waste of processing <ul><li>Processing that does not provide value to the product </li></ul><ul><ul><li>Excess level of approvals </li></ul></ul><ul><ul><li>Tying memos that could be handwritten </li></ul></ul><ul><ul><li>Cosmetic painting on internals of equipment </li></ul></ul><ul><ul><li>Paint thickness more than specific values </li></ul></ul>
  30. 30. 4. Waste of conveyance <ul><li>Unnecessary movement of material from one place to other to be minimized because - </li></ul><ul><ul><li>It adds to process time </li></ul></ul><ul><ul><li>Goods might get damaged </li></ul></ul><ul><li>Convey material and information ONLY when and where it is needed. </li></ul>
  31. 31. 5. Waste of inventory <ul><li>Any excess inventory is drain on an organization. </li></ul><ul><ul><li>Impact on cash flow </li></ul></ul><ul><ul><li>Increased overheads </li></ul></ul><ul><ul><li>Covers Quality and process issues </li></ul></ul><ul><li>Examples </li></ul><ul><ul><li>Spares, brochures, stationary, … </li></ul></ul>
  32. 32. 6. Waste of Motion <ul><li>Any movement of people, equipment, information that does not contribute value to product or service </li></ul>
  33. 33. 7. Waste of Waiting <ul><li>Idle time between operations </li></ul><ul><li>Period of inactivity in a downstream process because an upstream activity does not deliver on time. </li></ul><ul><li>Downstream resources are then often used in activities that do not add value, or worst result in overproduction. </li></ul>
  34. 34. Some more sources of Waste <ul><li>Waste of untapped human potential. </li></ul><ul><li>Waste of inappropriate systems </li></ul><ul><li>Wasted energy and water </li></ul><ul><li>Wasted materials </li></ul><ul><li>Waste of customer time </li></ul><ul><li>Waste of defecting customers </li></ul>
  35. 35. <ul><li>What is Sigma? </li></ul>
  36. 36. Have you ever… <ul><li>Shot a rifle? </li></ul><ul><li>Played darts? </li></ul>What is the point of these sports? What makes them hard?
  37. 37. Have you ever… <ul><li>Shot a rifle? </li></ul><ul><li>Played darts? </li></ul>Who is the better shooter? Jack Jill
  38. 38. Variability <ul><li>Deviation = distance between observations and the mean (or average) </li></ul>Observations Deviations 10 10 - 8.4 = 1.6 9 9 - 8.4 = 0.6 8 8 - 8.4 = -0.4 8 8 - 8.4 = -0.4 7 7 - 8.4 = -1.4 averages 8.4 0.0 Jack 8 7 10 8 9 Jill
  39. 39. <ul><li>Deviation = distance between observations and the mean (or average) </li></ul>Variability Observations Deviations 7 7 - 6.6 = 0.4 7 7 - 6.6 = 0.4 7 7 - 6.6 = 0.4 6 6 - 6.6 = -0.6 6 6 - 6.6 = -0.6 averages 6.6 0.0 Jack Jill 7 6 7 7 6
  40. 40. <ul><li>Variance = average distance between observations and the mean squared </li></ul>Variability Variance Observations Deviations 10 10 - 8.4 = 1.6 9 9 – 8.4 = 0.6 8 8 – 8.4 = -0.4 8 8 – 8.4 = -0.4 7 7 – 8.4 = -1.4 averages 8.4 0.0 Squared Deviations 2.56 0.36 0.16 0.16 1.96 1.0 Jack 8 7 10 8 9 Jill
  41. 41. <ul><li>Variance = average distance between observations and the mean squared </li></ul>Variability Variance Observations Deviations 7 7 - 6.6 = 0.4 7 7 - 6.6 = 0.4 7 7 - 6.6 = 0.4 6 6 – 6.6 = -0.6 6 6 – 6.6 = -0.6 averages 6.6 0.0 Squared Deviations 0.16 0.16 0.16 0.36 0.36 0.24 Jack Jill 7 6 7 7 6
  42. 42. Variability <ul><li>Standard deviation = square root of variance </li></ul>Jack Jill Average Variance Standard Deviation Jack 8.4 1.0 1.0 Jill 6.6 0.24 0.4898979 But what good is a standard deviation ?
  43. 43. Variability The world tends to be bell-shaped Most outcomes occur in the middle Fewer in the “ tails” (lower) Fewer in the “ tails” (upper) Even very rare outcomes are possible Even very rare outcomes are possible
  44. 44. Variability Here is why: Even outcomes that are equally likely (like dice), when you add them up, become bell shaped
  45. 45. Normal distributions are divide up into 3 standard deviations on each side of the mean Once your that, you know a lot about what is going on And that is what a standard deviation is good for ? “ Normal” bell shaped curve
  46. 46. Causes of Variability <ul><li>Common Causes : </li></ul><ul><ul><li>Random variation within predictable range (usual) </li></ul></ul><ul><ul><li>No pattern </li></ul></ul><ul><ul><li>Inherent in process </li></ul></ul><ul><ul><li>Adjusting the process increases its variation </li></ul></ul><ul><li>Special Causes </li></ul><ul><ul><li>Non-random variation (unusual) </li></ul></ul><ul><ul><li>May exhibit a pattern </li></ul></ul><ul><ul><li>Assignable, explainable, controllable </li></ul></ul><ul><ul><li>Adjusting the process decreases its variation </li></ul></ul>
  47. 47. Limits <ul><li>Process and Control limits: </li></ul><ul><ul><li>Statistical </li></ul></ul><ul><ul><li>Process limits are used for individual items </li></ul></ul><ul><ul><li>Control limits are used with averages </li></ul></ul><ul><ul><li>Limits = μ ± 3 σ </li></ul></ul><ul><ul><li>Define usual (common causes) & unusual (special causes) </li></ul></ul><ul><li>Specification limits: </li></ul><ul><ul><li>Engineered </li></ul></ul><ul><ul><li>Limits = target ± tolerance </li></ul></ul><ul><ul><li>Define acceptable & unacceptable </li></ul></ul>
  48. 48. Usual v/s Unusual, Acceptable v/s Defective Another View LSL USL USL LSL Off-Target Large Variation On-Target Center Process Reduce Spread The statistical view of a problem USL LSL LSL = Lower spec limit USL = Upper spec limit
  49. 49. More about limits Good quality: defects are rare (C pk >1) Poor quality: defects are common (C pk <1) C pk measures “Process Capability” If process limits and control limits are at the same location, C pk = 1. C pk ≥ 2 is exceptional. μ target μ target
  50. 50. Process capability <ul><li>Good quality: defects are rare (Cpk>1) </li></ul><ul><li>Poor quality: defects are common (Cpk<1) </li></ul>Cpk = min USL – x 3 σ = x - LSL 3 σ = 3 σ = (UPL – x, or x – LPL) = = 24 – 20 3(2) = = .667 20 – 15 3(2) = = .833 14 20 26 15 24
  51. 51. A Six Sigma Process – Predictably twice as good as what the customer wants 1 12 2 3 4 5 6 7 8 9 10 11 1  1  1  1  1  1  6  LSL USL    
  52. 52. 3  v/s 6  2 3 4 5 6 7 8 9 12 10 16 15 14 13 11 1 LSL USL 6 Sigma curve 3 Sigma curve
  53. 53. Process shift allowed 2 3 4 5 6 7 8 9 12 10 16 15 14 13 11 1 LSL USL SD = 1 1.5 SD 1.5 SD
  54. 54. Six Sigma Measurement On one condition : Calculate the defects and estimate the opportunities in the same way... 3 4 5 6 7 66810 6210 233 3.4  Sigma DPMO
  55. 55. Six Sigma Measurement Sigma Defects numbers per million 1.5s 500,000 2.0s 308,300 2.5s 158,650 3.0s 67,000 3.5s 22,700 4.0s 6,220 4.5s 1,350 5.0s 233 5.5s 32 6.0s 3.4
  56. 56. <ul><li>Components of Six Sigma </li></ul>
  57. 57. Components Two components of Six Sigma 1. Process Power 2. People Power
  58. 58. Process Power
  59. 59. P-D-C-A P D C A Plan Do Check Act Act on what was learned Check the results Plan the change Implement the change on a small scale.
  60. 60. Approach Practical Problem Statistical Problem Statistical Solution Practical Solution
  61. 61. DMAIC - simplified <ul><li>D efine </li></ul><ul><ul><li>What is important? </li></ul></ul><ul><li>M easure </li></ul><ul><ul><li>How are we doing? </li></ul></ul><ul><li>A nalyze </li></ul><ul><ul><li>What is wrong? </li></ul></ul><ul><li>I mprove </li></ul><ul><ul><li>Fix what’s wrong </li></ul></ul><ul><li>C ontrol </li></ul><ul><ul><li>Ensure gains are maintained to guarantee performance </li></ul></ul>
  62. 62. DMAIC approach D Define M Measure A Analyze I Improve C Control Identify and state the practical problem Validate the practical problem by collecting data Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solution Convert the statistical solution to a practical solution
  63. 63. Define D Define M Measure A Analyze I Improve C Control VoC - Who wants the project and why ? The scope of project / improvement (SMART Objective) Key team members / resources for the project Critical milestones and stakeholder review Budget allocation
  64. 64. Measure Ensure measurement system reliability Prepare data collection plan Collect data - Is tool used to measure the output variable flawed ? <ul><li>- How many data points do you need to collect ? </li></ul><ul><li>How many days do you need to collect data for ? </li></ul><ul><li>What is the sampling strategy ? </li></ul><ul><li>Who will collect data and how will data get stored ? </li></ul><ul><li>What could the potential drivers of variation be ? </li></ul>D Define M Measure A Analyze I Improve C Control
  65. 65. Analyze How well or poorly processes are working compared with - Best possible (Benchmarking) - Competitor’s Shows you maximum possible result Don’t focus on symptoms, find the root cause D Define M Measure A Analyze I Improve C Control
  66. 66. Improve <ul><li>Present recommendations to process owner. </li></ul><ul><li>Pilot run </li></ul><ul><li>Formulate Pilot run. </li></ul><ul><li>Test improved process (run pilot). </li></ul><ul><li>Analyze pilot and results. </li></ul><ul><li>Develop implementation plan. </li></ul><ul><li>Prepare final presentation. </li></ul><ul><li>Present final recommendation to Management Team. </li></ul>D Define M Measure A Analyze I Improve C Control
  67. 67. Control Don’t be too hasty to declare victory. How will you maintain to gains made? <ul><li>- Change policy & procedures </li></ul><ul><li>- Change drawings </li></ul><ul><li>Change planning </li></ul><ul><li>Revise budget </li></ul><ul><li>Training </li></ul>D Define M Measure A Analyze I Improve C Control
  68. 68. Omitting a step in DMAIC? Step Consequences if the step is omitted 1. Define 2. Measure 3. Analyze 4. Improve 5. Control
  69. 69. Tools for DMAIC Define What is wrong? Measure Data & Process capability Analyze When and where are the defects Improve How to get to six sigma Control Display key measures <ul><li>Benchmark </li></ul><ul><li>Baseline </li></ul><ul><li>Contract / Charter </li></ul><ul><li>Kano Model </li></ul><ul><li>Voice of the </li></ul><ul><li>Customer </li></ul><ul><li>Quality Function </li></ul><ul><li>Deployment </li></ul><ul><li>Process Flow Map </li></ul><ul><li>Project </li></ul><ul><li>Management </li></ul><ul><li>“ Management by </li></ul><ul><li>Fact” – 4 What’s </li></ul><ul><li>7 Basic Tools </li></ul><ul><li>Defect Metrics </li></ul><ul><li>Data Collection, </li></ul><ul><li>Forms, Plan, </li></ul><ul><li>Logistics </li></ul><ul><li>Sampling </li></ul><ul><li>Techniques </li></ul><ul><li>Cause & Effect </li></ul><ul><li>Diagrams </li></ul><ul><li>Failure Models & </li></ul><ul><li>Effect Analysis </li></ul><ul><li>Decision & Risk </li></ul><ul><li>Analysis </li></ul><ul><li>Statistical Inference </li></ul><ul><li>Control Charts </li></ul><ul><li>Capability </li></ul><ul><li>Reliability Analysis </li></ul><ul><li>Root Cause Analysis </li></ul><ul><li>5 Why’s </li></ul><ul><li>Systems Thinking </li></ul><ul><li>Design of </li></ul><ul><li>Experiments </li></ul><ul><li>Modelling </li></ul><ul><li>Tolerancing </li></ul><ul><li>Robust Design </li></ul><ul><li>Process Map </li></ul><ul><li>Statistical Controls </li></ul><ul><li>Control Charts </li></ul><ul><li>Time Series </li></ul><ul><li>Methods </li></ul><ul><li>Non Statistical </li></ul><ul><li>Controls </li></ul><ul><li>Procedure </li></ul><ul><li>adherence </li></ul><ul><li>Performance </li></ul><ul><li>Mgmt </li></ul><ul><li>Preventive activities </li></ul><ul><li>Poke yoke </li></ul>
  70. 70. Components Two components of Six Sigma 1. Process Power 2. People Power Tell me, I forget. Show me , I remember. Involve me, I understand.
  71. 71. 6  Training Master Black Belt Black Belts Green Belts Team Members / Yellow Belts Champions Mentor, trainer, and coach of Black Belts and others in the organization. Leader of teams implementing the six sigma methodology on projects. Delivers successful focused projects using the six sigma methodology and tools. Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
  72. 72. Six Sigma Organization Champion Black Belt Black Belt Black Belt Green Belt Green Belt Green Belt Green Belt Green Belt Yellow Belt Yellow Belt Yellow Belt Yellow Belt Master Black Belt
  73. 73. 6  Training Senior Executives Champions / Process owners Black-Belt Green Belt Employees (Yellow-Belt) Executive overview 2/3 Days Provide Leadership Champions Training - I 2 days Champions Training –II 3 days Process Mgmt. & Project champion Week 2 Week 3 Week 4 Training / Facilitation skills Project-work Master Black-Belt -As Trainer -Coach teams -Facilitate improvement projects 1 Week Green-Belt Training <ul><li>Part of project teams </li></ul><ul><li>Sometime lead the teams </li></ul>1 / 2 Days core training on Six-Sigma <ul><li>General process control & improvement </li></ul><ul><li>Project Team Member </li></ul>Black-Belt Project work Position in Six Sigma Organisation Typical Training Expected Role Post Training + (Total 5 days) Week 1
  74. 74. Champion <ul><li>Plans improvement projects </li></ul><ul><li>Charters or champions chartering process </li></ul><ul><li>Identifies, sponsors and directs Six Sigma projects </li></ul><ul><li>Holds regular project reviews in accordance with project charters </li></ul><ul><li>Includes Six Sigma requirements in expense and capital budgets </li></ul>
  75. 75. Champion <ul><li>Identifies and removes organizational and cultural barriers to Six Sigma success. </li></ul><ul><li>Rewards and recognizes team and individual accomplishments (formally and informally) </li></ul><ul><li>Communicates leadership vision </li></ul><ul><li>Monitors and reports Six Sigma progress </li></ul><ul><li>Validates Six Sigma project results </li></ul><ul><li>Nominates highly qualified Black Belt and/or Green Belt candidates </li></ul>
  76. 76. Master Black Belt Roles Responsibilities <ul><li>Enterprise Six Sigma expert </li></ul><ul><li>Permanent full-time change agent </li></ul><ul><li>Certified Black Belt with additional specialized skills or experience especially useful in deployment of Six Sigma across the enterprise </li></ul><ul><li>- Highly proficient in using Six Sigma methodology to achieve tangible business results. </li></ul><ul><li>Technical expert beyond Black Belt level on one or more aspects of process improvement (e.g., advanced statistical analysis, project management, communications, program administration, teaching, project coaching) </li></ul><ul><li>Identifies high-leverage opportunities for applying the Six Sigma approach across the enterprise </li></ul><ul><li>Basic Black Belt training </li></ul><ul><li>Green Belt training </li></ul><ul><li>Coach / Mentor Black Belts </li></ul>
  77. 77. Black Belt Roles Responsibilities <ul><li>Six Sigma technical expert </li></ul><ul><li>Temporary, full-time change agent (will return to other duties after completing a two to three year tour of duty as a Black Belt) </li></ul><ul><li>Leads business process improvement projects where Six Sigma approach is indicated. </li></ul><ul><li>Successfully completes high-impact projects that result in tangible benefits to the enterprise </li></ul><ul><li>Demonstrated mastery of Black Belt body of knowledge </li></ul><ul><li>Demonstrated proficiency at achieving results through the application of the Six Sigma approach </li></ul><ul><li>Coach / Mentor Green Belts </li></ul><ul><li>Recommends Green Belts for Certification </li></ul>
  78. 78. Green Belt Roles Responsibilities <ul><li>Six Sigma Project originator </li></ul><ul><li>Part-time Six Sigma change agent. Continues to perform normal duties while participating on Six Sigma project teams </li></ul><ul><li>Six Sigma champion in local area </li></ul><ul><li>Recommends Six Sigma projects </li></ul><ul><li>Participates on Six Sigma project teams </li></ul><ul><li>Leads Six Sigma teams in local improvement projects </li></ul>
  79. 79. Yellow Belt Roles Responsibilities <ul><li>Learns and applies Six Sigma tools to projects </li></ul><ul><li>Actively participates in team tasks </li></ul><ul><li>Communicates well with other team members </li></ul><ul><li>Demonstrates basic improvement tool knowledge </li></ul><ul><li>Accepts and executes assignments as determined by team </li></ul>
  80. 80. Financial Analyst <ul><li>Validates the baseline status for each project. </li></ul><ul><li>Validates the sustained results / savings after completion of the project. </li></ul><ul><li>Compiles overall investment vs. benefits on Six Sigma for management reporting. </li></ul><ul><li>Will usually be the part of Senior Leadership Team. </li></ul>
  81. 81. Thought of the day <ul><li>We don't know what we don't know </li></ul><ul><li>We can't act on what we don't know </li></ul><ul><li>We won't know until we search </li></ul><ul><li>We won't search for what we don't question </li></ul><ul><li>We don't question what we don't measure </li></ul><ul><li>Hence, We just don't know </li></ul>
  82. 82. <ul><li>Project Selection </li></ul>The first step to implement Six Sigma
  83. 83. Sources of Projects <ul><li>External Sources: </li></ul><ul><ul><li>Voice of Customer </li></ul></ul><ul><ul><ul><li>What are we falling short of meeting customer needs? </li></ul></ul></ul><ul><ul><ul><li>What are the new needs of customers? </li></ul></ul></ul><ul><ul><li>Voice of Market </li></ul></ul><ul><ul><ul><li>What are market trends, and are we ready to adapt? </li></ul></ul></ul><ul><ul><li>Voice of Competitors </li></ul></ul><ul><ul><ul><li>What are we behind our competitors? </li></ul></ul></ul>
  84. 84. Sources of Projects <ul><li>Internal Sources: </li></ul><ul><ul><li>Voice of Process </li></ul></ul><ul><ul><ul><li>Where are the defects, repairs, reworks? </li></ul></ul></ul><ul><ul><ul><li>What are the major delays? </li></ul></ul></ul><ul><ul><ul><li>What are the major wastes? </li></ul></ul></ul><ul><ul><li>Voice of Employee </li></ul></ul><ul><ul><ul><li>What concerns or ideas have employees or managers raised? </li></ul></ul></ul><ul><ul><ul><li>What are we behind our competitors? </li></ul></ul></ul>
  85. 85. <ul><li>As a team List down at least 20 improvement projects related to your work areas ……. </li></ul>Project Selection A Problem Statement should be SMART : <ul><ul><li>S pecific - It does not solve world hunger </li></ul></ul><ul><ul><li>M easurable - It has a way to measure success </li></ul></ul><ul><ul><li>A chievable - It is possible to be successful </li></ul></ul><ul><ul><li>R elevant - It has an impact that can be quantified </li></ul></ul><ul><ul><li>T imely - It is near term not off in the future </li></ul></ul>
  86. 86. Harvesting the Fruit of Six Sigma - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Sweet Fruit Design for Repeatability Bulk of Fruit Process Characterization and Optimization Low Hanging Fruit Seven Basic Tools Ground Fruit Logic and Intuition Process Enhancement - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  87. 87. Types of Savings <ul><li>Hard Savings: </li></ul><ul><ul><li>Cost Reduction </li></ul></ul><ul><ul><ul><li>Energy Saving </li></ul></ul></ul><ul><ul><ul><li>Raw Material saving </li></ul></ul></ul><ul><ul><ul><li>Reduced Rejection, Waste, Repair </li></ul></ul></ul><ul><ul><li>Revenue Enhancement </li></ul></ul><ul><ul><ul><li>Increased production </li></ul></ul></ul><ul><ul><ul><li>Yield Improvement </li></ul></ul></ul><ul><ul><ul><li>Quality Improvement </li></ul></ul></ul>
  88. 88. <ul><li>Hard Savings: </li></ul><ul><ul><li>Cash flow improvement </li></ul></ul><ul><ul><ul><li>Reduced cash tied up in inventory </li></ul></ul></ul><ul><ul><ul><li>Reduced late receivables, early payables </li></ul></ul></ul><ul><ul><ul><li>Reduced cycle time </li></ul></ul></ul><ul><ul><li>Cost and Capital avoidance </li></ul></ul><ul><ul><ul><li>Optimizing the current system / resources </li></ul></ul></ul><ul><ul><ul><li>Reduced maintenance costs </li></ul></ul></ul>Types of Savings
  89. 89. <ul><li>Soft Savings: </li></ul><ul><ul><li>Customer Satisfaction / Loyalty </li></ul></ul><ul><ul><li>Employee Satisfaction </li></ul></ul>Types of Savings
  90. 90. Cost of implementing <ul><li>Direct Payroll </li></ul><ul><ul><li>Full time (Black Belts, Master Black Belts) </li></ul></ul><ul><li>Indirect Payroll </li></ul><ul><ul><li>Time by executives, team members, data collection </li></ul></ul><ul><li>Training and Consulting </li></ul><ul><ul><li>Black Belt course, Overview for Mgmt etc. </li></ul></ul><ul><li>Improvement Implementation Costs </li></ul><ul><ul><li>Installing new solution, IT driven solutions etc. </li></ul></ul>
  91. 91. What Qualifies as a Six Sigma Project <ul><li>Three basic qualifications: </li></ul><ul><ul><li>-There is a gap between current and desired / needed performance. </li></ul></ul><ul><ul><li>The cause of problem is not clearly understood. </li></ul></ul><ul><ul><li>The solution is not pre-determined, nor is the optimal solution apparent. </li></ul></ul>How many projects out of 20 now qualify as Six sigma projects?
  92. 92. Way forward <ul><li>Get Started </li></ul><ul><li>Look for low hanging fruits </li></ul><ul><li>Even poor usage of these tools will get results </li></ul><ul><li>Learn more about Six Sigma </li></ul>

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