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Introduction Why Six Sigma
Discussion Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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.
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.
What Is Six Sigma? ,[object Object]
Imagine Two Lawns
Can I Measure Each Blade? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Can I Measure Each Blade? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Plot of the Variance ,[object Object]
Customer Perception Threshold  ,[object Object],[object Object],[object Object]
Plot of the Variance ,[object Object],Customer  notices  too short Customer  notices  too long
How Good Are We? ,[object Object],Customer  notices  too short Customer  notices  too long { { 1 σ 1 σ
Examples of Process σ Levels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
A Successful Black Belt ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Process Improvement at JEA  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Process Improvement Roles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Balanced Organization ,[object Object],[object Object],[object Object],[object Object],[object Object]
Financial Performance ,[object Object],[object Object],[object Object],[object Object],[object Object]
Customer Expectations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Organizational Effectiveness ,[object Object],[object Object],[object Object],[object Object],[object Object]
Community Responsibility ,[object Object],[object Object],[object Object],[object Object],[object Object]
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
Maintain the Balance Financial Performance Community Responsibility Customer Expectations Organizational Effectiveness Balance Balance Balance Balance Balance
The Circle of Excellence Jim Dickenson, James Chansler and Paul McElroy developed a visual illustration that represents the balance needed in our organization
At the center of our business is our  mission statement
To achieve our mission, we must balance the four strategic quadrants
Each quadrant  consists of  three important focus areas
The outside circle represents  the business processes we use to accomplish our  mission, satisfy customers  and improve our business!
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
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
Strategic Focus Areas ,[object Object],[object Object],[object Object],[object Object]
Customer Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Electric Quality  (SAIDI, SAIFI, SAIRFI) ,[object Object],[object Object],[object Object]
Workforce Readiness (Right Talent, Right Time, Right Place) ,[object Object],[object Object],[object Object]
Environmental Sustainability (Meeting Future Requirements) ,[object Object],[object Object],[object Object]
What does this mean for me? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Training Goals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning Check ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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D04 Why6Sigma

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  • 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.
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  • 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
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  • 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
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