Six Sigma
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
3,448
On Slideshare
3,443
From Embeds
5
Number of Embeds
2

Actions

Shares
Downloads
728
Comments
1
Likes
3

Embeds 5

http://www.slideshare.net 4
http://www.linkedin.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. creating value for our customers creating value for our customers
  • 2. What is it? creating value for our customers
  • 3. Six Sigma – A Simple Definition
    • Six Sigma is
      • a customer focused,
      • well defined problem solving methodology,
      • supported by a hand full of powerful analytical tools.
    • Continuous improvement is driven by the execution of carefully selected projects.
    • A goal of the six sigma approach is to take small steps forward and no steps backward.
    • Six Sigma is a quality objective that specifies the variability required of a process in terms of the specifications of the product so that product quality and reliability meets and exceeds today's demanding customer requirements.
  • 4. Sigma - the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data. What is Sigma? 
  • 5. What Does the Customer Have To Do With It?
    • “ The best Six Sigma projects begin not inside the business but outside it, focused on answering the question—how can we make the customer more competitive? What is critical to the customer's success? . . . One thing we have discovered with certainty is that anything we do that makes the customer more successful inevitably results in a financial return for us.”
  • 6. The Six Ingredients of Six Sigma
    • Genuine focus on the customer – Voice of the customer
    • Data and fact driven management
    • Process focus, management, and improvement
    • Proactive management
    • Boundryless collaboration
    • Drive for perfection, tolerate failure
  • 7. Where Did the “ Six Sigma ” Quality Program Come From?
    • Key figures in the history of quality:
      • Dr. Deming
      • Dr. Juran
    • A real life quality program derived from TQM – Total Quality Management
      • First formulated and applied in Motorola in the 1980’s
    • Made famous by early adopters including
      • General Electric
      • Allied Signal
      • Lithonia Lighting
  • 8. Organizational View
    • Quality Council
      • Senior Management Team who define Process Improvement projects and prioritizes them
    • Beneficiaries
      • Process Owners who have their processes improved
      • Ultimately the customer is the beneficiary:
        • improved processes yield fewer defects,
        • result in products delivered on time and
        • at a reduced cost.
  • 9. For Six Sigma To Be Effective
    • Processes must exist and be in use.
      • You can’t improve a process that doesn’t exist
    • The processes must be in control statistically.
      • Must have some track record of performance
    • The processes may then be improved
      • Reduce variation in the process
  • 10. Variation – At the Heart of Six Sigma Measurement
    • Any process has variation
    • There are two kinds of variation
      • Common cause variation
      • Special cause variation
    • The amount of variation is measured in terms of sigma or standard deviation.
  • 11. On Your Way To Work
    • What causes variation in your trip time?
      • Stop Signs
      • School bus
      • Red lights
      • People in crosswalks
      • The gas tanker truck that crashed into the bridge on I285
  • 12. Dealing With Variation
    • Eliminate special cause variation by recognizing it and dealing with it outside of the process
    • Reduce common cause variation by improving the process
  • 13. What is the “Methodology”?
    • D efine
    • M easure
    • A nalyze
    • I mprove
    • C ontrol
    D M A I C creating value for our customers
  • 14. Six Sigma Improvement Process – DMAIC
    • Define – Understand the problem and limit scope
    • Measure – Quantify the results of the process
    • Analyze – Understand the causes of variation
    • Improve – Determine how to best reduce variation (And don’t forget to implement the improvements)
    • Control –Measure results of the new process to ensure that the improvements have occurred and benefits are realized
  • 15. The Tools of Six Sigma – The Simple Tools
    • Control Charts
    Adapted from Putting Total Quality Management to Work Marshall Sashkin & Kenneth Kiser
  • 16. The Tools of Six Sigma – The Simple Tools
    • Control Charts
    • Pareto Charts
    Adapted from Putting Total Quality Management to Work Marshall Sashkin & Kenneth Kiser
  • 17. The Tools of Six Sigma – The Simple Tools
    • Control Charts
    • Pareto Charts
    • Cause / Effect diagrams (Fishbone diagrams)
    Adapted from Putting Total Quality Management to Work Marshall Sashkin & Kenneth Kiser
  • 18. The Tools of Six Sigma – The Simple Tools
    • Control Charts
    • Pareto Charts
    • Cause / Effect diagrams (Fishbone diagrams)
    • Run Charts
    Adapted from Putting Total Quality Management to Work Marshall Sashkin & Kenneth Kiser
  • 19. The Tools of Six Sigma – The Simple Tools
    • Control Charts
    • Pareto Charts
    • Cause / Effect diagrams (Fishbone diagrams)
    • Run Charts
    • Histograms
    Adapted from Putting Total Quality Management to Work Marshall Sashkin & Kenneth Kiser
  • 20. The Tools of Six Sigma – The Simple Tools
    • Control Charts
    • Pareto Charts
    • Cause / Effect diagrams (Fishbone diagrams)
    • Run Charts
    • Histograms
    • Scatter Diagrams
    Adapted from Putting Total Quality Management to Work Marshall Sashkin & Kenneth Kiser
  • 21. The Tools of Six Sigma – The Simple Tools
    • Control Charts
    • Pareto Charts
    • Cause / Effect diagrams (Fishbone diagrams)
    • Run Charts
    • Histograms
    • Scatter Diagrams
    • Flow Charts
    Adapted from Putting Total Quality Management to Work Marshall Sashkin & Kenneth Kiser
  • 22. Six Reasons why Leaders Love Six Sigma
  • 23. After implementing Six Sigma in a wide range of processes throughout the organization, one global automotive company added approximately $52 million to the bottom line in 2000 and $300 million in 2001. The company then achieved waste elimination savings of more than $350 million in 2002! Impacts the Bottom Line…
  • 24. Drives Strategy Execution
    • Leaders love Six Sigma because it drives focus on the results that really matter and on high-impact projects and activities
  • 25. Generate Robust Flexible Business Processes
    • Leaders love Six Sigma because it recognizes that mastering process is the best way to accomplish this objective on an ongoing basis.
  • 26. Improves Human Performance
    • Leaders love Six Sigma because it helps their employees improve their performance and impact on the issues that matter most.
  • 27. Highly Scalable
    • Leaders love Six Sigma because it can be applied to tackle a specific problem in a single department or to renew the entire business.
  • 28. Low Risk Investment
    • Leaders love Six Sigma because it delivers financial returns that far outweigh the investments it requires.
    • That's why these Fortune 100 companies have implemented Six Sigma already
  • 29. Who are the other “Key Players”?
    • Senior Champion : Owns Six Sigma for the Business.
    • Champion :
    • The Champion typically has day-to-day responsibility for the business process being improved and their role is to ensure the Six Sigma project team has the resources required to successfully execute the project.
    • Black B elt :
    • A Six Sigma expert highly skilled in the application of rigorous statistical tools and methodologies to drive business process improvement. Leads the project team .
    • Master B lack B elt :
    • A Black Belt achieves "Master" status after demonstrating experience and impact over some period of time. Master Black Belts address the most complex process improvement projects and provide coaching and training to Black Belts and Green Belts.
    creating value for our customers
  • 30. “Key Players”
    • Green B elts :
    • A Six Sigma practitioner trained in the methodology and tools to need to work effectively on a process improvement team. Green Belts may act as team members under the direction of a Black Belt or may lead their own less complex, high impact projects.
    • Project Sponsors :
    • A member of the leadership team that is responsible for selecting Six Sigma projects and is ultimately accountable for a project's results.
    • Consultant:
    • A company or individual with experience and expertise in Six Sigma business improvement implementations who is hired for a limited time to advise and facilitate Six Sigma implementation.
  • 31. Industries using Six Sigma
  • 32. Automotive
    • Six Sigma drives improvements for the automotive industry
    • Consider this example:
    • Since deploying Six Sigma in 1999, one automotive organization has saved about $1 billion in waste elimination globally, achieving year-over-year savings worldwide of $359 million in 2003.
    • This Six Sigma implementation raised customer satisfaction by five percentage points in the company's internal customer satisfaction survey.
  • 33. Chemical
    • Good chemistry results from Six Sigma!
    • In 1999, one large multinational chemical company launched a corporate-wide Six Sigma program across all of its businesses and functions, predicting business improvements totaling $1.5 billion by the end of 2003.
    • In fact, the company achieved its goal at the close of 2002 -- a full year ahead of schedule!
  • 34. Healthcare
    • As an early adopter of Six Sigma, one leading Hospital has reduced:
    • turn around time for intensive care unit lab results from 53 to 22 minutes
    • time elapsed between diagnosis of a heart attack and patient arrival at the hospital for treatment by 60%
  • 35. Hi-Tech
    • Hi-tech boosts business with Six Sigma
    • When customers of one satellite communication links provider became upset with contract approval times, a Six Sigma team solved the problem by changing old assumptions on how much scrutiny was needed for a contract and by deploying new, streamlined procedures.
    • The result? Customer satisfaction increased and revenue was boosted annually by $1 million!
  • 36. Financial
    • Six Sigma in Financial Services leads to higher quality and lower costs
    • When one financial services leader observed that its customers preferred getting account information from its costly call center and not its website, a Six Sigma project team reworked the site content to more effectively answer customer questions.
    • Customers now prefer using the website, saving the company thousands of dollars a year!
  • 37. Retail
    • Six Sigma is a real bargain in Retail!
    • When a leading European retail chain known for providing good bargains to its customers needed to improve its ability to source a diverse range of products within aggressive time and budget dictates, it leveraged Six Sigma to optimize and integrate procurement processes.
    • The result? Savings of 20% over budgeted procurement costs and increased margins.
    • Six Sigma can also help fine tune the marketing mix. By applying experimental design methods, marketers can evaluate many stimulus-response combinations.