Six sigma-basics


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Six sigma-basics

  1. 1. Six Sigma Overview Roma Mohanti, 04/2008
  2. 2. Sigma as a Business Strategy  Focused on customer requirements o Internal, and external customers o Root cause of defects that impact satisfaction, loyalty, revenue, market share  A disciplined, fact-based approach to managing a business and its processes  A way to assess performance of a process o Devised at Motorola in 1987 o Higher the process sigma, the fewer the defects  Comparison of differing processes o Marketing, Finance, Manufacturing, Order Fulfillment, Service Delivery in common terms o Adjust for complexity of the work, product, service 2Six Sigma Overview Page 2
  3. 3. Six Sigma 3Six Sigma Overview Page 3
  4. 4. Deployment  Six Sigma is deployed by individuals certified in the methodology including: • Master Black Belt - certified to train and certify others • Black Belt - certified to train and lead Six Sigma projects • Green Belt - certified to train and participate in the process 4Six Sigma Overview Page 4
  5. 5. Six Sigma Methods  DMAIC • Define, Measure, Analyze, Improve, Control • Used to improve existing processes  DMADV / DFSS • Define, Measure, Analyze, Design, Verify • Used to develop new processes or implement new technologies • May be referred to as DFSS  Process Management • Reviewing and analyzing E2E of work processes 5Six Sigma Overview Page 5
  6. 6. Methodology Integration 6Six Sigma Overview Page 6
  7. 7. DMAIC Cycle - Define  Select specific problem/opportunity − An appropriate DMAIC project − Meaningful and Manageable  Create a Project Charter − Validated by leadership − Identifying key contributors  Define the process and customer(s) 7Six Sigma Overview Page 7
  8. 8. Define Stage Activities  Define Critical Customer Requirements  Develop Team Charter  Map “As Is” Business Process  Complete SIPOC  Develop the Business Case including high level project plan 8Six Sigma Overview Page 8
  9. 9. SIPOC A document that defines the context, specifics and plans of an improvement or design project  Define (and narrow) the project’s focus  Clarify the results being sought  Confirm value to the business  Establish boundaries and resources for the team  Communicate goals and plans 9Six Sigma Overview Page 9
  10. 10. Example - SIPOC A SIPOC will allow your project team to put parameters around the process being reviewed and identify the areas impacted both up and down stream SIPOC Suppliers Input Process Output Customer Clients Requirements Profile Client Sales People Resumes Interview Summaries Sales People Candidates Profiles Offer Letters Delivery Management Web Site Margin Template Candidate/Employee Recruiting Data Base Get Search for Screen Present Make Offer Fill Requirement Requirement Candidate Candidate Candidate  Suppliers – who feeds the process  Inputs – what do they feed  Process – steps in the process  Outputs – outputs of the process  Customer – who pulls from the process 10Six Sigma Overview Page 10
  11. 11. DMAIC Cycle - Measure  Determine what to measure and why  Prepare plans to collect output, process and/or input data  Construct forms and test data collection procedures  Refine data collection  Refine DMAIC Charter 11Six Sigma Overview Page 11
  12. 12. Measure Stage Activities  Identify Key Measurements  Data Collection Plan  Data Collection Execution  Document Process Variations  Establish Performance Baseline 12Six Sigma Overview Page 12
  13. 13. Input – Process – Output Measures  A DMAIC team must get Output measures to baseline the process/problem • Focus on your Goal target or “Project Y”  Output measures can be taken before or after the product or service is delivered to the customer • Defects caught in-house prior to shipment vs. on delivery or inservice  Use SIPOC diagram and sub-process maps to help select measures and ensure “balance”  Consider possible “X” measures early in the project to help get some initial data for the Analyze phase 13Six Sigma Overview Page 13
  14. 14. Review Y and X Measures 14Six Sigma Overview Page 14
  15. 15. Process Measurement Example Critical Customer Requirement = 9.4 days Variation in results Number Orders Filled Defects: Service unacceptable to customer 1 2 3 4 5 6 7 8 9 10 11 12 Delivery Time in Days 15Six Sigma Overview Page 15
  16. 16. DMAIC Cycle - Analyze  Current state analysis  Is the current state as good as the process can do?  Who will help make the changes?  Resource requirements  What could cause this change effort to fail?  What major obstacles do I face in completing the project? 16Six Sigma Overview Page 16
  17. 17. Analyze Stage Activities  Validate “As Is” Process Map  Complete Root Cause Analysis • Fishbone Diagram • House of Quality  Develop “To Be” Process Map  Complete Gap Analysis 17Six Sigma Overview Page 17
  18. 18. Process Analysis Look for points in the process that generate defects or where work may be disrupted or delayed  Disconnects  Bottlenecks  Redundancies  Rework loops  Decisions/Inspections  Moves 18Six Sigma Overview Page 18
  19. 19. Analyze Current Process Use symbols and colors to help you analyze the current state 19Six Sigma Overview Page 19
  20. 20. DMAIC Cycle - Improve  Create innovative ideas for improvement  Funnel and select best solution possibilities  Understand best practices for process workflow  Develop pilot and define implementation strategies • Work breakdown structure • Specific activities to meet the project goals • Alignment or re-integration of various subprojects 20Six Sigma Overview Page 20
  21. 21. Improve Stage Activities  Define Solution • Include IT when defining technical solutions  Develop Work Breakdown Structure  Develop Implementation Plan  Complete FMEA 21Six Sigma Overview Page 21
  22. 22. Generate and Select Solutions 22Six Sigma Overview Page 22
  23. 23. FMEA Failure Modes & Effects Analysis  Method to assess and plan for problems which could impact safety, reliability, customer satisfaction, profits, etc. • Failure Modes = types of possible error or defect • Looks at common or rare events and relative risk  A tool for process owners to allocate measurement and prevention resources (Control) 23Six Sigma Overview Page 23
  24. 24. Example - FMEA 24Six Sigma Overview Page 24
  25. 25. DMAIC Cycle - Control  How will I control risk, quality, cost, schedule, scope and changes to the plan?  What types of progress reports should I create?  How will I assure that the business goals of the project were accomplished?  How will I keep the gains made? 25Six Sigma Overview Page 25
  26. 26. Control Stage Activities  Complete Process Standardization • Validate Process Map • Develop Process Documentation  Develop Monitoring Plan  Develop Response Plan  Complete Transfer of Ownership 26Six Sigma Overview Page 26
  27. 27. Control Plan Control Plan = FMEA + Monitoring + Response From Improve Phase Dashboard/Control Chart New! VOC Systems 27Six Sigma Overview Page 27
  28. 28. Summary  Six Sigma • 3.4 Defects per Million Opportunities  DMAIC • Define • Measure • Analyze • Improve • Control 28Six Sigma Overview Page 28