Design for Six Sigma A Key for Growth

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Design for Six Sigma A Key for Growth

  1. 1. Design for Six Sigma: A Key for Growth Martha Gardner, Ph.D. Global Quality Leader GE Global Research © 2006 General Electric Company - All Rights Reserved
  2. 2. 2 / GE /Martha Gardner Agenda >Organic Growth at GE >Lean Six Sigma Focus at Different Stages of the Growth Process >Questions
  3. 3. 3 / GE /Martha Gardner Overall GE Growth Process GE 2005 Annual Report
  4. 4. 4 / GE /Martha Gardner Organic Growth at GE Goal: 2-3X GDP Organic Growth each year Framework of Imagination Breakthrough (IB) projects launched in 2004 - each project has the potential for $100 million of incremental growth over next 3-5 years Currently have > 90 IBs in two basic categories (evenly split): > Technical innovations: create markets and establish leadership by being first with technology and services > Commercial innovations: drive growth by finding new and better ways to accelerate time to market, build incremental share, and bring value to customers and improve price, mix and margins 34 Imagination Breakthrough projects are already in the Market
  5. 5. 5 / GE /Martha Gardner NPI Process Common approach across GE Fundamental process enabling organic growth Lean Six Sigma focus depends on where you are in the process Idea Generation Market/Business Assessment Product Definition Design Prototype And Test Production Ramp Commercialize
  6. 6. 6 / GE /Martha Gardner NPI Process: Up-Front Focus GE CEO … “Technology roadmaps aren’t possible without our researchers and engineers working with marketing to understand the businesses and helping them see where we need to go” - J. Immelt, Sept. 2003 Idea Generation Market/Business Assessment Product Definition Design Prototype And Test Production Ramp Commercialize More emphasis on this part of the process in the Imagination Breakthrough framework
  7. 7. 7 / GE /Martha Gardner Six Sigma in the Up-Front Stages > Focus on both idea creation and opportunity identification – can be iterative > Usage of business strategy tools to understand industry, customers, competition, and internal business capabilities > Develop Multi-Generation Plans
  8. 8. 8 / GE /Martha Gardner NPI Process: Design Focus Idea Generation Market/Business Assessment Product Definition Design Prototype And Test Production Ramp Commercialize Design for Six Sigma (DFSS) is the common process across GE Goal of Six Sigma – Attain Less Than 3.4 Defects per Million Opportunities
  9. 9. 9 / GE /Martha Gardner DFSS Motivation: Cost of Poor Quality and Reliability COPQ/R Difficult to See / Predict Easy to Fix Easy to See Costly to Fix Defects are: Planning R esearch D esign Prototype Production C ustom er / Service DMAIC Mainly Here Leverage & Maximize DFSS Here
  10. 10. 10 / GE /Martha Gardner DFSS Motivation: Break the “3σ – 4σ” wall Process Improvements Plus DFSS Time Z(σ) Process Improvements Only 4 6 2 1 By… . . . > Flowing-up “Downstream” Process Capability, > Taking a Robust Design Approach, > “Designing in” Quality
  11. 11. 11 / GE /Martha Gardner DFSS Paradigm PredictivePredictive Design QualityDesign Quality DFSSDFSS ReactiveReactive Design QualityDesign Quality From • Evolving Design Requirements • Extensive Design Rework • Build and Test • Performance and Producibility Problems Fixed after Product in Use • Quality “tested in” To • Disciplined CTQ Flowdown • Controlled Design Parameters • Modeled and Simulated • Designed for Robust Performance and Producibility • Quality “designed in”
  12. 12. 12 / GE /Martha Gardner DFSS Process 1)Identify Product/ Process Performance & Reliability CTQ’s • Set Quality Goals • VOC / QFD DEFINE 2)CTQ Flowdown to Subsystems & Components 3)Measurement System Analysis & Capability MEASURE 8) Build System & Sub- System Models • Generate Transfer Functions 9) Capability Flow-up for All Subsystems & Gap Identification DESIGN 12)Statistically Confirm that Product / Process Matches Predictions 13)Develop Manufacturing & Supplier Control Plans 14)Document & Transition VERIFY 4) Develop Conceptual Designs 5) Statistical Reliability Analysis 6) Build Scorecards 7) Risk Assessment ANALYZE 10)Optimize Design • Statistical Analysis of Variance Drivers • Robust Design • Error Proofing 11)Tolerance Analysis & Allocation OPTIMIZE GE’s Design for Six Sigma MethodologyGE’s Design for Six Sigma Methodology
  13. 13. 13 / GE /Martha Gardner Where are we headed? Trial & Error Empirical Mathematical Probabilistic Random Experimentation Experience-based Graphical Approaches Systematic Experimentation Computer models based on system physics Point estimates Computer Simulations based on system physics Robust Solutions Deterministic (Factors of Safety) Stochastic (Risk Quantified) `` Ability to answer the question: How much Risk is in my design?
  14. 14. 14 / GE /Martha Gardner NPI Process: Final Steps Lean Manufacturing and Transactional Processes are Critical Idea Generation Market/Business Assessment Product Definition Design Prototype And Test Production Ramp Commercialize
  15. 15. 15 / GE /Martha Gardner Lean Concept Goal: Eliminate Non-Value Added Activity that leads to Waste The Seven Types of Waste… > DEFECTIVE PARTS > OVERPRODUCTION > INVENTORY > MOTION > PROCESSING TRANSACTIONS > TRANSPORTATION > WAITING Waste Exists In Every Process…Eliminate It!
  16. 16. 16 / GE /Martha Gardner Current Focus on Overall NPI Process > Increase Throughput > Decrease Resources per NPI > Improve Quality of Process ….. Application of Lean to NPI Process
  17. 17. 17 / GE /Martha Gardner Lean NPI – The Benefits of Speed • Competitive Advantage – being first in the market yields a higher success rate • Speed Equals Profit – new products often have a fixed window of opportunity • Speed Means Fewer Surprises at Launch – product lifetimes are getting ever shorter
  18. 18. 18 / GE /Martha Gardner * From “Product Leadership” by Robert Cooper, p. 86 Lean NPI – Speed, but not at the expense of Quality Five ways to reduce NPI Cycle Time while not compromising Quality*: > Do it right the first time – quality at every stage > Insist on sharp, early product definition > Continuous VOC – e.g. early prototypes > Parallel Processing – requires effective multifunctional teams > Prioritize and Focus – kill bad projects, which drain resources from good projects
  19. 19. 19 / GE /Martha Gardner QUESTIONS?

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