3. Six Sigma Definition Six Sigma is a management philosophy that emphasizes setting extremely high objectives, collecting data, and analyzing results to a fine degree as a way to reduce defects in products and services. The philosophy behind Six Sigma is to measure how many defects are in a process, then figure out how to systematically eliminate them and get as close to perfection as possible. To achieve Six Sigma, a process cannot produce more than 3.4 defects per million opportunities, where an opportunity is defined as a chance for nonconformance.
4. Six Sigma Processes Six Sigma DMAIC is a process that D efines, M easures, A nalyzes, I mproves, and C ontrols existing processes that fall below Six Sigma performance. Six Sigma DMADV D efines, M easures, A nalyzes, D esigns, and V erifies new processes or products that are intended to achieve Six Sigma level quality. All Six Sigma processes are executed by Six Sigma Green Belts or Six Sigma Black Belts, which are then overseen by a Six Sigma Master Black Belt. These terms were created at Motorola.
14. Improving the Process Sigma Define 1D – Define VOC, VOB, and CTQ’s 2D – Define Project Boundaries 3D – Quantify Project Value 4D – Develop Project Mgmt. Plan Measure 5M – Document Process 6M – Prioritize List of X’s 7M – Create Data Collection Plan 8M – Validate Measurement System 9M – Establish Baseline Process Cap. Analyze 10A – Determine Critical X’s Improve 12I – Prioritized List of Solutions 13I – Pilot Best Solution Control 14C – Create Control System 15C – Finalize Project Documentation Green 11G – Identify Root Cause Relationships Project Focus: Y = ƒ(X) Defects Defects Too early Too late Delivery Time Reduce variation Delivery Time Too early Too late
15.
16.
17.
18.
19.
20.
21.
22.
23. If We Focus On Specific Areas Only Financial Performance Community Responsibility Customer Expectations Organizational Effectiveness Not Enough Focus If we do not pay attention to all these areas, we end up with problems. Only focusing on satisfying the customer can result in keeping prices lower than needed, increasing debt to pay for infrastructure and less money to invest in our people
24. Maintain the Balance Financial Performance Community Responsibility Customer Expectations Organizational Effectiveness Balance Balance Balance Balance Balance
25. The Circle of Excellence Jim Dickenson, James Chansler and Paul McElroy developed a visual illustration that represents the balance needed in our organization
26. At the center of our business is our mission statement
27. To achieve our mission, we must balance the four strategic quadrants
28. Each quadrant consists of three important focus areas
29. The outside circle represents the business processes we use to accomplish our mission, satisfy customers and improve our business!
30. 2007 Gaps 30 The EMT reviewed each of these areas and assessed the gap between current performance and desired performance in 2007. The biggest gaps were chosen as strategic focus areas
31. 2008 Gaps The EMT reviewed each of these areas and assessed the gap between current performance and desired performance in 2008. The biggest gaps were chosen as strategic focus areas