Final Six Sigma


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Final Six Sigma

  2. 2. What is six sigma? •Sigma is a measure of “goodness: the capability of a process to produce perfect work. • A “defect” is any mistake that results in customer dissatisfaction. • Sigma indicates how often defects are likely to occur. • The higher the sigma level, the lower the defect rate. • The lower the defect rate, the higher the quality.
  3. 3. The Six Sigma Evolutionary Timeline 1818: Gauss uses the normal curve 1924: Walter A. Shewhart introduces to explore the mathematics of error the control chart and the distinction of analysis for measurement, probability special vs. common cause variation as analysis, and hypothesis testing. contributors to process problems. 1736: French 1896: Italian sociologist Vilfredo mathematician Alfredo Pareto introduces the 80/20 Abraham de rule and the Pareto distribution in Moivre publishes Cours d’Economie Politique. an article introducing the normal curve. 1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures 1960: Kaoru Ishikawa for Performing a Failure Mode Effects introduces his now famous and Criticality Analysis. cause-and-effect diagram. 1941: Alex Osborn, head of 1970s: Dr. Noriaki Kano BBDO Advertising, fathers a introduces his two-dimensional widely-adopted set of rules for quality model and the three “brainstorming”. types of quality. 1986: Bill Smith, a senior engineer and scientist introduces 1995: Jack Welch the concept of Six Sigma at launches Six Sigma at GE. Motorola 1994: Larry Bossidy launches Six Sigma at Allied Signal.
  4. 4. Why six sigma? • Sigma allows comparison of products and services of varying complexity • Also, it provides a common basis for benchmarking (competitors and non-competitors). • The higher the sigma level, the better your operation is performing. • Sigma measures how well you’re doing in getting to zero defects.
  5. 5. Cost of poor quality. Traditional Costs Real but Overlooked  Long Cycle Time  Inspection  Cost of Capital  Overtime  Redundant Processes  Defects  Expediting Costs  Idle Time  Lost Sales  Rework  Lost Customer Loyalty  Missed Deadlines  Excessive Planning  Inaccurate Reports
  6. 6. Big Question???  Is it a Goal, a Measure, a Process, or a Tool?  Yes
  7. 7. Customer Focused Our Performance Compared to Competitors • Quality • OTD Importance to Customers High • Training Moderate- • Price • Complaints to-’Low’ We’re Better They’re Better Operational Excellence Training
  8. 8. Breakthrough performance (Distribution Shifted ± 1.5)  PPM 2 308,537 3 66,807 4 6,210 5 233 6 3.4 Process Defects per Million Capability Opportunities
  9. 9. Possible applications •Human Resources: reduce the number of requisitions unfilled after 30 days. •Customer Service: measure the number of calls answered on the first ring. •Order Fulfillment: eliminate Customer returns because of incorrect parts or product being shipped. •Finance: reduce the instances of accounts being paid after a specified time limit has elapsed.
  10. 10. Calculating quality How Six sigma is calculated???..... Mechanically .
  12. 12. DMAIC it is an approach undertaken to improve existing business process Six sigma acronym of 5 interconnected phases of a process improvement project.following are the phases:
  13. 13. Process 1.Define high-level project goals and the current process. 2.Measure key aspects of the current process and collect relevant data. 3.Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. 4.Improve or optimize the process based upon data analysis using various tools 5.Control to ensure that any deviations from target are corrected before they result in defects.
  14. 14. Tools used for dmaic approach define measure 1. Stakeholders analysis 2. VOC 1.FMEA 3. Surveys Improve 2.Pareto analysis 4. CTQ’s 3.Data collection 5. Benchmarking 4.PDSA cycle 5. Run charts Brainstormin g Force Field Analysis Analysis (PDSA) Cycle Control Cause and Effect Chart Team FMEA Brainstorming Performance Control Plans Histogram Improvement Plan, Do, Study, Pareto analysis Act (PDSA) Cycle Scatter Plot Plan Regression Analysis Team FMEA analysis Performance Improvement
  15. 15. DMADV APPROACH This approach is undertaken when there is a need to create new design or product: 5 steps in DMADV approach- Define Measure Analyze Design details Verification
  16. 16. DMADV 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 owners. DMADV is also known as DFSS, an abbreviation of "Design For Six Sigma".
  17. 17. DMAIC DMADV . 1.Define customer needs 1.Defines a 2.Measure business process customer needs & specifications 2.Measuring current process 3.Analyze options to meet customer 3.Identify root cause of the V/S satisfaction 4.Model is recurring problem designed to meet 4.Improvements customer needs made to reduce defects 5.Model put through 5. Keep check on simulation tests future for verification performance
  19. 19. The six sigma organization. The six sigma team has five levels of hierarchy
  20. 20. What is a BELT? Belt refers to the level or the position, of a person in an organization at the time of performing a work or at the time of implementation of a project. There are four “Belt” levels :- 1. Champion 2. Master black belt(MBB) 3. Black belt(BB) 4. Green belt(GB) 5. Yellow belt(YB)
  21. 21. Champion •Lay down policies and guidelines regarding functioning of six sigma teams •Approves six sigma projects •Removes road blocks in the path of six sigma implementation •Receives presentations •Monitors project •Make available necessary resources •Sort out conflicts
  22. 22. Master black belts  The highest level of Six Sigma expertise;  All duties involve implementation of Six Sigma, including statistical analysis, strategic and policy planning and implementation, and training and mentoring of Black Belts.
  23. 23. Black belts a Six Sigma-trained professional who has usually completed an examination and been certified in its methods;  all job duties include implementation of Six Sigma methodology throughout all levels of the business,  leading teams and projects, and providing Six Sigma training and mentoring to Green and Yellow Belts.
  24. 24. Green belt  In many organizations, Six Sigma's "entry level";  a Six Sigma-trained professional who does not work on Six Sigma projects exclusively, but whose duties include leading projects and teams and implementing Six Sigma methodology at the project level
  25. 25. Yellow belt  The lowest level of Six Sigma expertise;  applies to a professional who has a basic working knowledge and who may manage smaller process improvement projects,  but who does not function as a project or team leader.
  26. 26. Number game In hierarchy one 15 - 20 100-5GB 20 Team members
  28. 28. Principles underlying six sigma •Variability is necessary. •Total variability is the result of two types of causes : chance causes and assignable causes . chance causes cant be identified and hence can not b e eliminated while assignable causes can be identified and immediately eliminated. •Process means in real life can shift from the nominal mean by 1.5 times of standard deviation. •Defects are randomly distributed throughout the units, and parts and processes are individual.
  29. 29. Continue……. 6.For execution of any operation certain standard is specified for the output and some variations are allowed from the ideal measure. These requirements are usually stated in terms of USL=upper specification limit LSL=lower specification limit Defects are randomly distributed throughout the units and parts and processes are individual. since measured values follow a normal distribution with mean and standard deviation, the process capability of the process will be equal to mean.
  30. 30. Continue…………. •Since process mean in real life can shift from nominal by 1.5 times the standard deviation due to gradual drift or as a result of sudden drift, defects rates in practice expected at a different sigma levels are higher than in the mean centered process. •Measurements are the key elements
  31. 31. How six sigma can reduce defects? •By reducing the value of variation (standard deviation). •Increasing the design width.
  32. 32. Defects in six sigma. •Six sigma is extracting but not exciting •Detraction from creativity •Six sigma not for small business
  33. 33. Examples : GE 1995 Operating margin—13.5% 1998 Operating margin—16.7% Result: $600million bonus
  34. 34. Example : Dabbawalas
  35. 35. Example : Dabbawalas
  36. 36. Summary