Six sigma


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  • Before I move on – a show of hands Q. Who has heard of Six Sigma? Q. Who is currently using Six Sigma? Q. Who thinks Six Sigma is all about statistics?
  • Data Driven It is NOT:- A get rich quick scheme
  • Applications Cut waiting times "A Six Sigma process improvement team charged with getting heart attack patients from the Emergency Department into the cardiac catheterization lab for treatment faster slashed 41 minutes off the hospital's mean time"
  • Understand what the data is telling you! If it’s not clear … determine what else you need to know. It is not necessary to use expensive statistical software … MS Excel has much of the functionality built in.
  • Monitor that the improvements are being maintained.
  • Customer focus – internal and external customers
  • Six sigma

    1. 1. Six Sigma Presented Munif Ahmad
    2. 2. Introduction <ul><li>What is Six Sigma? </li></ul><ul><li>Three Principles </li></ul><ul><li>Who uses it? </li></ul><ul><li>What are the Benefits </li></ul><ul><li>The Six Sigma Model </li></ul><ul><li>Pitfalls </li></ul>
    3. 3. What is Six Sigma? <ul><li>Definition </li></ul><ul><ul><li>A system that uses data analysis to improve an organisation’s operating performance. </li></ul></ul><ul><ul><li>A system that targets the reduction of variation to improve the outcomes of a process. </li></ul></ul>
    4. 4. What is Six Sigma? <ul><li>Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes . It uses a set of quality management methods, including statistical methods , and creates a special infrastructure of people within the organization (&quot;Black Belts&quot;, &quot;Green Belts&quot;, etc.) </li></ul>
    5. 5. Three Principles <ul><li>Philosophy </li></ul><ul><ul><li>Customer focus, reduce variation, Maintain Standards </li></ul></ul><ul><li>Methodology </li></ul><ul><ul><li>Project management (Step by Step) </li></ul></ul><ul><li>Metrics / Measurements </li></ul><ul><ul><li>Objective data </li></ul></ul>
    6. 6. Who uses it? <ul><li>Manufacturing </li></ul><ul><li>Logistics </li></ul><ul><li>Transport </li></ul><ul><li>Finance </li></ul><ul><li>Health </li></ul><ul><li>Public Service </li></ul><ul><li>Local Governments </li></ul><ul><li>Telecommunications </li></ul><ul><li>I.T services </li></ul><ul><li>Food Industry </li></ul><ul><li>Education </li></ul><ul><li>SME </li></ul><ul><li>And Your Organisation? </li></ul>
    7. 7. What are the Benefits <ul><li>Hard savings </li></ul><ul><ul><li>Increase sales </li></ul></ul><ul><ul><li>Reduce headcount </li></ul></ul><ul><ul><li>Reduce cost </li></ul></ul><ul><ul><li>Improve profit </li></ul></ul><ul><li>Soft savings </li></ul><ul><ul><li>Time </li></ul></ul><ul><ul><li>Quality improvement </li></ul></ul><ul><ul><li>Reliability </li></ul></ul><ul><ul><li>Customer perception </li></ul></ul>Savings typically in the range 1% - 5% of TR
    8. 8. How does it work? <ul><li>Project management methodology </li></ul><ul><li>What tools does it use? </li></ul>Inferential statistics Graphical techniques SIPOC Control Charts Gantt Charts Customer surveys <ul><ul><li>Process Flow Diagrams </li></ul></ul><ul><ul><li>Root cause analysis </li></ul></ul><ul><ul><li>Failure Mode and Effect Analysis </li></ul></ul><ul><ul><li>Cause and Effect Diagrams </li></ul></ul><ul><ul><li>Pareto charts </li></ul></ul><ul><ul><li>Statistical Process Control </li></ul></ul>
    9. 9. The Six Sigma Model <ul><li>D efine </li></ul><ul><li>M easure </li></ul><ul><li>A nalyse </li></ul><ul><li>I mplement </li></ul><ul><li>C ontrol </li></ul>
    10. 10. D MAIC - Define <ul><li>Identify the customers (Satisfier) </li></ul><ul><li>Understand the problem (Target Desire) </li></ul><ul><li>Voice of Customer (VOC) (Feed back) </li></ul><ul><li>What do you want to achieve for the customer? Commitment to Customer (Set Specific Goals) </li></ul>
    11. 11. Example – Define Customer – General Manager (Internal) VOC – Reduce the wastage of raw materials (plastic parts) to 3% of total. (Recycle?) Our Commitment to the Customer To develop and implement operational improvements to achieve a wastage rate of plastic parts to 3% of the total consumption per month within a three month period. (Set Targets/ Time Management)
    12. 12. D M AIC - Measure <ul><li>“ If you can’t measure it you can’t manage it” (Understanding key issues) </li></ul><ul><li>What to measure? (Describe) </li></ul><ul><li>How to measure? (Provide training/Hand-on) </li></ul>
    13. 13. Example - Measure <ul><li>At commencement of project it is known that the total wastage of plastic components is 11% per month </li></ul><ul><li>The quantities attributable to different sources is not yet known </li></ul><ul><li>Data collection is required (Coordinate amongst all Production wings/Section) </li></ul>
    14. 14. DM A IC - Analyse <ul><li>What does my data mean? (Understand and compare) </li></ul><ul><li>How much mathematics do I really need? (Check the loop holes) </li></ul><ul><li>What tools can I use? (Set new targets) </li></ul>
    15. 15. DMA I C - Improve <ul><li>Improve the target process by designing creative solutions to fix or prevent problems. (Be Proactive) </li></ul><ul><li>Create innovative solutions using technology and discipline (Share the ideas) </li></ul><ul><li>Develop and deploy implementation plan (Maintain and Retain) </li></ul>
    16. 16. DMAI C - Control <ul><li>Control the improvements to keep the process on the new course. (Maintain them) </li></ul><ul><li>Prevent reverting t o the &quot;old way&quot; (Avoid old thumb roles) </li></ul><ul><li>Require the development, documentation and implementation of an ongoing monitoring plan </li></ul><ul><li>Institutionalize s e the improvements through the modification of systems and structures (specialised staffing, training, incentives) </li></ul>
    17. 17. R DMAIC R <ul><li>R ecognise the need for improvement </li></ul><ul><li>R ealize the benefits!! </li></ul>
    18. 18. Pitfalls <ul><li>Leadership commitment </li></ul><ul><li>Not identifying the “customer” </li></ul><ul><li>Not understanding VOC </li></ul><ul><li>Too many projects </li></ul><ul><li>Over-analysis </li></ul><ul><li>Statistics v results </li></ul><ul><li>Impatience </li></ul><ul><li>Poor team selection </li></ul><ul><li>Lack of a mentor </li></ul><ul><li>Additional activities </li></ul><ul><li>Insufficient project monitoring and review </li></ul><ul><li>Organisation’s influencers not on board </li></ul>
    19. 19. Two Key Points <ul><li>Customer Focus </li></ul><ul><li>Reduce Variation </li></ul>
    20. 20. Conclusions <ul><li>Six Sigma is a system that can be used effectively to grab the easy Targets as well as that which is harder to achieve . </li></ul>