Introduction      toSIX SIGMA
Main Topics What is Six Sigma, an overview                                   <Process> need for SS, historical perspec...
What is Six Sigma; an overviewSix sigma is a statistically – based process improvement methodology thataims to reduce defe...
What is Six Sigma; an overviewSix Sigma is mainly focused on followingtwo perspectives;Quality perspective is focused to a...
The Need for SS; historical perspectiveSix sigma was developed by Motorola as a way to improve their quality inthe mid-198...
The Need for SS; historical perspectiveThe study points out that Six Sigma quality efforts have shown significantachieveme...
Philosophies; selected quality gurusDeming’s Fourteen Points:1.   Create a consistency of purpose toward the improvement o...
Philosophies; selected quality gurusDeming’s Fourteen Points:8.   Drive out fear. Great economic loss is usually associate...
Philosophies; selected quality gurusThe Juran PhilosophyLike Deming, Joseph M. Juran spent a good bit of time in Japan dur...
Philosophies; selected quality gurusThe IshiKawa PhilosophyWhat must top management do?1. Study quality improvement ahead ...
Knowledge based management (KBM)   Introduction   Questions managers need to answer,   Questions managers need to ask....
Knowledge based management (KBM)Knowledge based management is an extension of the works of Deming,Juran, and Ishikawa.Cont...
Knowledge based management (KBM)Questions managers need to answer1. What is your product or service and who are your custo...
Knowledge based management (KBM)Questions managers need to answer:1. Are your people trained to use the best quality impro...
Knowledge based management (KBM)Questions managers need to ask:1. What processes (activities) are you responsible for? Who...
Knowledge based management (KBM)Questions managers need to ask:1. Are any of the sources of variability supplier dependent...
Knowledge based management (KBM)Modern quality improvement paradigm:Around the world all types of organizations have wrest...
Knowledge based management (KBM)KBM Paradigm for Quality ImprovementThe knowledge Based Management (KBM) paradigm has the ...
Knowledge based management (KBM)A Modern Quality Improvement Paradigm                          SUCCESS                    ...
Basic tools & techniques to     obtain knowledge    Process flow diagram (Flow Chart)    Cause and Effect Diagram    Af...
Basic tools & techniques toobtain knowledgeProcess Flow DiagramIs a visual representation of all the major steps and decis...
Basic tools & techniques toobtain knowledgeBenchmarkingBenchmarking involves gathering information on “best” practices. It...
Basic tools & techniques toobtain knowledgeInput-Process-Output (IPO diagram)Is a visual representation of a process or ac...
Basic tools & techniques toobtain knowledgeNominal Group TechniqueIs a structured method used to generate and rank order a...
Basic tools & techniques toobtain knowledgeRun ChartIs a graphical tool that turns data into information. It helps us to s...
Basic tools & techniques toobtain knowledgeMeasures of dispersionThe three common measures of dispersion are the Range, th...
Advanced tools & techniques    to obtain knowledge   Statistical Process Control (SPC)   Design of Experiments (DOE)    ...
Advanced tools & techniquesto obtain knowledgeControl ChartA control chart is just a run chart which includes statisticall...
Advanced tools & techniquesto obtain knowledgeDesign of experiments, DOETo understand DOE, we must have a good understandi...
The Need for SS; historical perspectiveAchievements / improvements through Crestex Six Sigma quality efforts;Achievement  ...
General Diagram of a ProcessINPUTS                                OUTPUTSPeopleMaterial              PROCESS         Perfo...
Billing Process DiagramINPUTS                               OUTPUTSData entry method                                     T...
Machining Process DiagramINPUTS                          OUTPUTSDrill feedrate                                Inner diamet...
Maintaining Profits in highly competitive Environments                 Total product or service price to customers     Pro...
Thanks for attention!               35              < Menu >
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Six sigma

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Six sigma

  1. 1. Introduction toSIX SIGMA
  2. 2. Main Topics What is Six Sigma, an overview <Process> need for SS, historical perspective The Philosophies; Deming, Juran & Ishikawa Knowledge based management; Basic tools & techniques to obtain knowledge Advanced tools and techniques to obtain knowledge 2 .
  3. 3. What is Six Sigma; an overviewSix sigma is a statistically – based process improvement methodology thataims to reduce defects to a rate of 3.4 defects per million defect opportunitiesby identifying and eliminating causes of variation in business processes. Indefining defects, Six Sigma focuses on developing a very clearunderstanding of customer requirements and is therefore very customerfocused.The Six Sigma methodology is based on a concept called DMAIC: Define,Measure, Analyze, Improve, and Control. The main core of Six Sigmamethodology is the application of statistical and other analytical tools in thecontext of a well disciplined, easy to follow methodology. D Define Define the project goals & customer (internal & external) deliverables M Measure Measure the process to determine current performance A Analyze Analyze & determine the root cause(s) of the defects I Improve Improve the process by eliminating defects 3 C Control Control future process performance < Menu >
  4. 4. What is Six Sigma; an overviewSix Sigma is mainly focused on followingtwo perspectives;Quality perspective is focused to achieve an output of interestfrom a process must produce no more than 3.4 defects per millionopportunities, where an opportunity is defined as a chance fornonconformance, or not meeting the required specifications.Business results perspective is focused that waste generally calledCost of Poor Quality (COPQ) must be reduced in order to improvenet profit margins 20 to 40 % or more. 4 < Menu >
  5. 5. The Need for SS; historical perspectiveSix sigma was developed by Motorola as a way to improve their quality inthe mid-1980s, and became well known after GE’s Jack Welch made it acentral focus of his business strategy in 1995. About 500 companies havestarted Six Sigma initiatives. It is the culmination of many years of work bysome of the best minds in business and management.Over the last several years, many industries and specific companies likeBoeing, IBM, General Dynamics, Johnson & Johnson etc have had severeproblems. As consequences of these problems, the companies had either tolayoff or trim thousands of their workers / employees.If we are to move forward, there needs to be sufficient emphasis onimproved product and service quality. Quality improvement should be acritical part of any business strategy that is designed to generate maximumreturn on investment, ROI. If quality improvement is synonymous withbetter, faster and lower cost products and services, how can you not getreturn on investment? 5 < Menu >
  6. 6. The Need for SS; historical perspectiveThe study points out that Six Sigma quality efforts have shown significantachievements / improvements for; reducing in-process defect levels reducing wastes or COPQ reducing the cost of manufacturing increasing production / yield % increasing stockholders’ share value << Crestex Achievements >> 6 < Menu >
  7. 7. Philosophies; selected quality gurusDeming’s Fourteen Points:1. Create a consistency of purpose toward the improvement of product and service. Consistently aim at improving the design of your products.2. Adopt a new philosophy of rejecting defective products, poor workmanship and inattentive service.3. Do not depend on mass inspection because it is usually too late, too costly and ineffective.4. Do not award business on price tag alone, but consider quality as well.5. Consistently improve the system of production and service. Involve workers in this process, but also use statistical experts who can separate special causes of poor quality from common ones.6. Institute modern training methods. 77. Institute modern methods of supervision. < Menu >
  8. 8. Philosophies; selected quality gurusDeming’s Fourteen Points:8. Drive out fear. Great economic loss is usually associated with fear, when workers are afraid to ask the questions or to take a position.9. Breakdown barriers among the functional areas. Teamwork.10 Eliminate numerical goals, targets and slogans for your workforce. Setting the goals for other people without providing a plan on how to reach it is often counterproductive.11 Eliminate work standards and numerical quotas.12 Remove barriers that discourage the hourly workers from doing their job.13 Institute a vigorous program from training and education. Education in simple, but powerful, statistical techniques should be required by all employees. Knowledge based management is a an extension of the work by Juran, Demings and Ishikawa with a focus on the “HOWs” 8 < Menu >
  9. 9. Philosophies; selected quality gurusThe Juran PhilosophyLike Deming, Joseph M. Juran spent a good bit of time in Japan during theearly 1950’s. Juran developed his philosophy and approach over many yearsand in 1979, he founded the Juran institute.Juran’s 10 steps7. Build awareness of the need and opportunity for improvement.9. Set goals for improvement.11. Organize to reach the goals (have a plan and an organizational structure).13. Provide training.15. Carry out projects to solve problems,17. Report progress.19. Give recognition21. Communicate results.23. Keep score.25. Maintain momentum by making annual improvement part of the regular 9 system and process of the organization. < Menu >
  10. 10. Philosophies; selected quality gurusThe IshiKawa PhilosophyWhat must top management do?1. Study quality improvement ahead of anyone else in your company and understand the issues involved.3. Establish the policies towards promoting quality improvement efforts-what the general attitudes will be.5. Specify the priorities for implementing quality improvement and the short and long term goals.7. Assume a leadership role in making quality improvement happen9. Provide a means for educating the people11. Check to see if quality improvement is implemented as planned13. Make clear the responsibility of top management15. Establish a system or cross functional management17. Drive home the notion that the outputs from your process are inputs to your customers 1019. Provide leadership towards making a “breakthrough” < Menu >
  11. 11. Knowledge based management (KBM) Introduction Questions managers need to answer, Questions managers need to ask. Modern quality improvement paradigm, 11 < Menu >
  12. 12. Knowledge based management (KBM)Knowledge based management is an extension of the works of Deming,Juran, and Ishikawa.Continuous learning leads to knowledge of customerrequirements, products, and processes.Which Steps have you taken? Job Security Long term Success Return on Investment (improved bottom Line) Quality Improvement (Better, Faster, Lower cost) KnowledgeKnowledge Based Management Means, “TAKING THE RIGHT STEPS” 12 < Back > < Menu >
  13. 13. Knowledge based management (KBM)Questions managers need to answer1. What is your product or service and who are your customers?3. What perception do your customers have of your product or service? How do you know?5. Do you know quality issues are important for your company? Which ones?7. What is the company’s current share of the total market? Can quality improvement initiative assist you in increasing the market share and/or increasing profits? How?9. Are you actively pursuing quality improvement in your areas of responsibility? How?11. How many hours have you scheduled that are devoted to the quality issue.13. How often do you get feedback from the people you manage? What kind of feedback that is it? What do you do with that feedback?15. What are the right quality-oriented questions managers need to ask their people. What methods and tools can be used to answer them? 13 < Back > < Menu >
  14. 14. Knowledge based management (KBM)Questions managers need to answer:1. Are your people trained to use the best quality improvement tools? What is your ROI from training?3. Do you have standard procedure for documenting quality improvement efforts? What is it?5. What barrier your people face when trying to do quality improvement efforts? What are you doing to remove them7. What matrices are you evaluated on, that relate to quality issues? Are you held accountable for these matrices? What are the specific improvement goals for these matrices?9. How much waste does your company has? What in $ terms is the company’s Cost of poor quality (COPQ). How much of the total waste is your area responsible for.11. One year from now what evidence will you have to show that you made a difference. 14 < Back > < Menu >
  15. 15. Knowledge based management (KBM)Questions managers need to ask:1. What processes (activities) are you responsible for? Who is the owner of those process? Who are the team members? How well does the team work together?3. Which processes have the highest priority for improvement? How did you come to this conclusion? Where is the data that supports this conclusion? For those processes to be improved,7. How is the process performed?9. What are your process performance measures? Why? How accurate and precise is your measurement system?11. What are the customer-driven specifications for all of your performance measures? How good or bad is the current performance? Show me the data. What are the improvement goals for the process?13. What are all the sources of variability in the process? Show me what they 15 are? < Back > < Menu >
  16. 16. Knowledge based management (KBM)Questions managers need to ask:1. Are any of the sources of variability supplier dependent? If so, what are they, who is the supplier, and what is being done about it?3. What are the key variables that affect the average and variation of the measures of performance? How do you know this? Show me the data.5. What are the relationships between the measures of performance and the key input variables? Do any key variables interact? How do you know for sure? Show me the data.7. What setting for the key variables will optimize the measures of performance? How do you know this? Show me the data.9. For the optimal settings of the key variables, what kind of variability exists in the performance measures? How do you know? Show me the data.11. How much improvement has the process shown in the past six months? How do you know this? Show me the data.13. How much time and/or money have your efforts saved or generated for the company? How did you document all of your efforts? Show me the data. 16 < Back > < Menu >
  17. 17. Knowledge based management (KBM)Modern quality improvement paradigm:Around the world all types of organizations have wrestled with how to make theirproducts, services, and associated process performance better, faster, and atlower cost. The problem in our organizations is how to make it happen. Pastattempts focused on reorganizing or chasing the “fad of the month.” The heightof frustration comes with mandated or regulated supplier quality improvementrequirements like ISO 9001, QS 9000, D1-9000, FDA’s process validation, andQuality Systems (QSR) etc. Many other industries have similar requirements oruse the Malcolm Baldrige criteria for self evaluation. The puzzle appears to begetting more complicated and can cause people to give up in frustration.This paradigm of letting regulations drive quality improvement is like the oldsaying, “ We have put the cart before the horse!A Modern Quality Improvement Paradigm 17 < Back > < Menu >
  18. 18. Knowledge based management (KBM)KBM Paradigm for Quality ImprovementThe knowledge Based Management (KBM) paradigm has the cart andhorse hitched together in a way that will get us safely and efficientlydown the road to success. 18 < Back > < Menu >
  19. 19. Knowledge based management (KBM)A Modern Quality Improvement Paradigm SUCCESS 19 < Back > < Menu >
  20. 20. Basic tools & techniques to obtain knowledge Process flow diagram (Flow Chart) Cause and Effect Diagram Affinity Diagram Benchmarking Common Sense Failure Mode and Effect Analysis (FMEA) Input-Process-Output (IPO) Diagram Quality Function Deployment Nominal Group Technique Pareto Chart Scatter diagram Run Chart Histogram Measures of Central Tendency Measures of dispersion Process Capability Measurements Control Chart 20 Design of Experiment (DOE) < Menu >
  21. 21. Basic tools & techniques toobtain knowledgeProcess Flow DiagramIs a visual representation of all the major steps and decision points in aprocess. It helps us understand the process better, identify critical orproblem areas, and identify where improvement can be made. < Example >Cause and Effect Diagram with CNXIs a graphical representation of the relationship between a given responseand the factors that influence this response. It helps us to identify, display,and examine possible causes of any observed condition. Other names are;Ishikawa, fishbone, tree, and river diagram. < Example >Affinity DiagramIs a technique used to cluster related items into a more general group. Ithelps us to organize verbal information into a visual pattern. Unlike the causeand Effect diagram where we move from the general categories to the morespecific, an affinity diagram starts with specific ideas and helps us worktoward broader categories, each of which contains several of the more 21specific ideas. <Example> < Back > < Menu >
  22. 22. Basic tools & techniques toobtain knowledgeBenchmarkingBenchmarking involves gathering information on “best” practices. It helps toprovide us with knowledge of the following: who the industry leaders are, how we are doing compared to industry leaders, and what our priorities are for process improvement.Common SenseIt may be defined as “good judgment” or “critical thinking” but actually it is acombination of certain traits that someone with common sense shoulddemonstrate. < Example >Failure Mode and Effect Analysis (FMEA)Is a procedure used to identify and assess risks associated with potentialproduct or process failure modes. FMEA is generally accomplished early inthe design phase of a new product or process or when design changes occur. 22< Example > < Back > < Menu >
  23. 23. Basic tools & techniques toobtain knowledgeInput-Process-Output (IPO diagram)Is a visual representation of a process or activity. It lists input variables and output characteristics. It helps us in defining a process and recognizing therelationships between input variables and responses. < Example >Quality Function Deployment (QFD)Is a systematic process used to integrate customer requirements into everyaspect of the design and delivery of the products and services. It helps us toprovide a structure for identifying those design characteristics that contributemost (and least) to customer requirements. 23 < Back > < Menu >
  24. 24. Basic tools & techniques toobtain knowledgeNominal Group TechniqueIs a structured method used to generate and rank order a list of ideas. Ithelps to prioritize a list of items. < Example >Pareto ChartIs a bar chart for non-numerical categories that rank orders the bars fromhighest to lowest. It is based on “Pareto Principle” that says that 80% ofthe effects are due to 20 % of the causes. It helps us to identify the “Heavyhitters”. <Example>Scatter DiagramIs a graphical display of a set of points or ordered pairs. It helps us tovisually study the relationship between two variables. <Example> 24 < Back > < Menu >
  25. 25. Basic tools & techniques toobtain knowledgeRun ChartIs a graphical tool that turns data into information. It helps us to showchanges in a process measure overtime. Variation in the data as well astrends and shifts in the process measure are easily seen. < Example >HistogramA histogram is a bar chart for numerical variables. It gives pictorialrepresentation of how the data are distributed. It helps us for visualizingthe central tendency and variability of a data set.Measures of central tendencyThe two most common measures of central tendency are Mean andMedian. < Example > 25 < Back > < Menu >
  26. 26. Basic tools & techniques toobtain knowledgeMeasures of dispersionThe three common measures of dispersion are the Range, the Variance,and the standard deviation. < Example >Process capability measurementsAre used to describe the capability of a process. There are three matricesthat are used for this purpose, and most are calculated under theassumption that the critical measurements are normally distributed. Themetrics dpm, Cp, and Cpk, all give a numerical value that indicates howwell the process is doing with respect to these specification limits.< Example > 26 < Back > < Menu >
  27. 27. Advanced tools & techniques to obtain knowledge Statistical Process Control (SPC) Design of Experiments (DOE) 27 < Menu >
  28. 28. Advanced tools & techniquesto obtain knowledgeControl ChartA control chart is just a run chart which includes statistically generatedupper and lower control limits. Control limits are not specification limits orobjectives, but are reflections of the natural variability of the process.Several types of control charts have been developed to analyze variablesand attribute data. However, all control charts have the same basicpurpose: to provide evidence of whether a process has been operating in a state of statistical control and to signal the presence of special causes of variation so that corrective action can be taken.< Example > 28 < Back > < Menu >
  29. 29. Advanced tools & techniquesto obtain knowledgeDesign of experiments, DOETo understand DOE, we must have a good understanding of the termprocess. In a general sense, a process is an activity based upon somecombination of inputs (factors), such as people, material, equipment,policies, methods, and environment, which are used together to generateoutputs (responses) related to a product, service, or task. < Example >In conducting a design of experiment, we will purposefully make changes tothe inputs (or factors) in order to observe corresponding changes in theoutputs (or responses). The information gained from DOE helps us toimprove performance characteristics, to reduce costs and time associatedwith product development, design and production, and to optimize theprocess. 29 < Back > < Menu >
  30. 30. The Need for SS; historical perspectiveAchievements / improvements through Crestex Six Sigma quality efforts;Achievement Target saving To date saving S6 Yield Incrs 1% $ 95,675 $ 68,441 Stores Inv Rdctn 15% $ 3,00,000 $ 1,60,000 PG Oprtng Cst Rdctn $ 50,000 $ 4,753 Spare Parts Inv Rdctn 20% $ 50,000 $ 29,649 H Tx Yield Incrs 1% $ 1,20,000 $ 80,385 Proc Fab Rejtn Rdctn 1% $ 2,52,632 $ 92,233 Lm Eff Incrs 1% Lightng Cst Rdctn 10.7% $ 50,000 $ 19,000 Total $ 9,18,307 $ 4,54,461 30 < Back > < Menu >
  31. 31. General Diagram of a ProcessINPUTS OUTPUTSPeopleMaterial PROCESS Perform a serviceEquipment A Blending ofPolicies Inputs to Achieve Produce a productProcedures the DesiredMethods OutputsEnvironment Complete a task 31 < Menu >
  32. 32. Billing Process DiagramINPUTS OUTPUTSData entry method Time to complete a bill BillingAmount of Processpersonnel trainingMethod for obtaining Number of errors/billsbill information 32 < Menu >
  33. 33. Machining Process DiagramINPUTS OUTPUTSDrill feedrate Inner diameter (I.D.)Drill speed Machining ProcessMaterial hardness Outer diameter (O.D.)Type of coolant 33 < Menu >
  34. 34. Maintaining Profits in highly competitive Environments Total product or service price to customers Profits Profits Budget constraints and competition drive a lowered price Total Waste Cost to (COPQ) Produce Profit Profit or Theoretical Costs Provide i.e, Waste COPQ Cost of (COPQ) Doing the Theoretical right things Costs Theoretical right the first time Costs0 a b c d e 34 < Menu >
  35. 35. Thanks for attention! 35 < Menu >

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