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Kash Masuria Whats Six Simga Presentation


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Six sigma deployment

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Kash Masuria Whats Six Simga Presentation

  1. 1. What is Six Sigma? by Kash Masuria Certified Six Sigma Black Belt (Crane Aerospace 2003) Why you need it and how to make it work…
  2. 2. EXPECTATIONS Why are we here?
  3. 3. What we will learn <ul><li>Why change? </li></ul><ul><li>Introduction </li></ul><ul><ul><li>What is Six Sigma? </li></ul></ul><ul><li>The Six Sigma Methodology </li></ul><ul><li>Deployment </li></ul><ul><li>Parting thoughts </li></ul>
  4. 4. What’s a Business For? TO GENERATE WEALTH
  5. 5. How can we make money? Raise prices Sell more Reduce costs
  6. 6. The Quality Gap Scenario Customer Expectations Baseline Performance Increasingly demanding customer Increasingly difficult to achieve high customer satisfaction (high quality) <ul><li>Quality Metrics </li></ul><ul><li>(Customer Expectations) </li></ul><ul><li>Customer Order Fulfilment </li></ul><ul><li>Elapsed time to repair </li></ul><ul><li>Works completed </li></ul><ul><li>On-time delivery </li></ul><ul><li>Order entry </li></ul><ul><li>Accuracy and condition </li></ul><ul><li>Delivery to customer sites </li></ul>Quality Gap Expectations rise over time
  7. 7. Why reduce cost? PRICE = COST + PROFIT (Demand > Supply) Cost Profit Price Price (Monopolized market only) Price Cost Cost Profit (Highly competitive market) PROFIT = PRICE - COST (Demand < Supply)
  8. 8. Need for change It’s time to… When things get rough CHANGE...
  9. 9. The Renewal Process <ul><li>To be superior competitors </li></ul><ul><ul><li>Attuned to customer requirements </li></ul></ul><ul><ul><li>Able to deliver “ value ” to customers </li></ul></ul><ul><ul><ul><li>With MINIMUM VARIATION </li></ul></ul></ul><ul><ul><ul><li>With MINIMUM WASTE </li></ul></ul></ul><ul><li>To be robust to adverse changes </li></ul><ul><ul><li>By delivering product innovation </li></ul></ul><ul><ul><li>By delivering process innovation </li></ul></ul>The goal is to continuously modifying the processes to met the business needs SIX SIGMA IS THE ANSWER
  10. 10. What does 99% accuracy mean? <ul><li>Implications: </li></ul><ul><li>At least 200,000 wrong drug prescriptions each year. </li></ul><ul><li>Two short or long landings at major airports each day. </li></ul><ul><li>5,000 incorrect surgical procedures every week. </li></ul><ul><li>20,000 lost articles of mail per hour. </li></ul><ul><li>No electricity for almost seven hours each month. </li></ul><ul><li>50 dropped newborn babies each day </li></ul>Simply means: 1% of the times the specifications are not met DEFECTS Conclusion : 99% Accuracy Falls Short
  11. 11. What is Sigma? Sigma (  ) is a symbol that refers to a statistical measure called standard deviation , which is a measure of variation   2  2  LSL USL 6  6  LSL USL Defects Defects
  12. 12. SIX SIGMA The methodology
  13. 13. Six Sigma Tool Map (Say Invoice Payment) <ul><li>Roadmap </li></ul>Next Project <ul><li>Define </li></ul><ul><ul><li>Problem Statement, Scope, Customers </li></ul></ul><ul><ul><li>Charter, Goal, Timeline, Team </li></ul></ul><ul><ul><li>Primary/Secondary & OpEx Metrics </li></ul></ul><ul><ul><li>Current Value Stream Map </li></ul></ul><ul><ul><li>Voice Of Customer (QFD) </li></ul></ul><ul><li>Measure </li></ul><ul><ul><li>Demand (Invoice Payment) </li></ul></ul><ul><ul><li>BACS Process </li></ul></ul><ul><ul><li>BACS Payment Procedures </li></ul></ul><ul><ul><li>Process map, Spaghetti, Time obs. </li></ul></ul><ul><ul><li>Measure OVs & IVs / Queues </li></ul></ul><ul><li>Analyze ( and fix the obvious) </li></ul><ul><ul><li>Root Cause (Pareto, C&E, brainstorm) </li></ul></ul><ul><ul><li>Find all KPOVs & KPIVs </li></ul></ul><ul><ul><li>FMEA, DOE, critical Xs, VA/NVA </li></ul></ul><ul><ul><li>Graphical Analysis, ANOVA </li></ul></ul><ul><ul><li>Future Value Stream Map </li></ul></ul><ul><li>Improve </li></ul><ul><ul><li>Optimize KPOVs & test the KPIVs </li></ul></ul><ul><ul><li>Redesign process, set pacemaker </li></ul></ul><ul><ul><li>5S, Cell design, MRS </li></ul></ul><ul><ul><li>Visual controls </li></ul></ul><ul><ul><li>Value Stream Plan </li></ul></ul><ul><li>Control </li></ul><ul><ul><li>Document process (WIs, Std Work) </li></ul></ul><ul><ul><li>Mistake proof, TT sheet, CI List </li></ul></ul><ul><ul><li>Analyze change in metrics </li></ul></ul><ul><ul><li>Value Stream Review </li></ul></ul><ul><ul><li>Prepare final report </li></ul></ul>Validate Project $ Validate Project $ Validate Project $ Validate Project $ Celebrate Project $
  14. 14. Problem Definition <ul><li>Problem statement is the project foundation </li></ul><ul><li>Sets strategic direction and links with business goals </li></ul><ul><li>Scope definition is critical </li></ul>M easure A nalyze I mprove C ontrol D efine
  15. 15. Quantify the problem <ul><li>GOAL: </li></ul><ul><li>Qualitative understanding of input/output relationships </li></ul><ul><li>Quantitative understanding of data sources </li></ul><ul><li>Understand measurement errors </li></ul><ul><li>Baseline process data </li></ul>A nalyze I mprove C ontrol D efine M easure What you think it is… What it actually is… What you want it to be…
  16. 16. Process Analysis <ul><ul><li>GOAL: </li></ul></ul><ul><ul><li>Quantitative understanding of input/output relationships </li></ul></ul><ul><ul><li>Relationship between process performance and customer requirements </li></ul></ul>Lower Spec Upper Spec Voice of the Process Voice of the Customer M easure I mprove C ontrol D efine A nalyze
  17. 17. Sources of Variation Identify and Quantify the sources of variation M easure I mprove C ontrol D efine A nalyze Cycle time variation Lack of standardization Scalability Transactional
  18. 18. Process Improvement <ul><ul><li>GOAL: </li></ul></ul><ul><ul><li>Quantify input/output relationships </li></ul></ul><ul><ul><li>Prioritize input/output relationships </li></ul></ul><ul><ul><li>Optimal input settings to meet customer expectations </li></ul></ul><ul><li>IMPROVEMENT STRATEGIES </li></ul><ul><li>Control the existing system </li></ul><ul><li>Optimize the existing system </li></ul><ul><li>Redesign the existing system </li></ul><ul><li>Create a new system </li></ul>M easure C ontrol D efine I mprove A nalyze Cost, time, resources, risk all increase with complexity
  19. 19. Control & Sustain <ul><ul><li>GOAL: </li></ul></ul><ul><ul><li>Standardize and institutionalize the improved process configuration </li></ul></ul><ul><ul><li>Implement abnormality management system </li></ul></ul><ul><ul><li>Monitor the performance of key process outputs </li></ul></ul>M easure C ontrol D efine I mprove A nalyze Tools <ul><li>SPC </li></ul><ul><ul><li>Identify Special Causes </li></ul></ul><ul><li>Control Plans </li></ul><ul><ul><li>Abnormality Management </li></ul></ul><ul><li>FMEA </li></ul>Region of non-random variation Region of non-random variation UCL Mean LCL
  20. 20. Resulting Activity Profile
  21. 21. Resulting Breakthrough Improvement Time Performance GOOD BAD 3 Sigma (CpK = 1) 6 Sigma (Cpk = 2) Quantum Improvement
  22. 22. DEPLOYMENT STRATEGY The“How to”
  23. 23. Organizational Alignment <ul><li>Overall Strategic Goals </li></ul><ul><li>Draw the big picture </li></ul><ul><li>Establish Plant/Area productivity baseline </li></ul><ul><li>Prioritize projects based on value, resources req’d, timing </li></ul><ul><li>Select key projects with leadership buy-in </li></ul>Select the Right Projects Form the Right Teams & Train Them Knowledge Centered Activities – Breakthrough Solutions Developed Manage for Excellence in Operations Sustain the Gains <ul><li>Select right players for a team </li></ul><ul><li>Ensure leadership support </li></ul><ul><li>Develop a training plan </li></ul><ul><li>Mentor teams </li></ul><ul><li>Ensure the right support resources are available </li></ul><ul><li>Measure Process </li></ul><ul><li>Analyze Process </li></ul><ul><li>Improve Process </li></ul><ul><li>Control Process </li></ul><ul><li>Stay focused </li></ul><ul><li>Track progress </li></ul><ul><li>Remove barriers </li></ul><ul><li>Continuously communicate </li></ul><ul><li>Link to performance management </li></ul><ul><li>Implement effective control plans </li></ul><ul><li>Review the system effectiveness </li></ul><ul><li>Prime the project pipeline </li></ul>Simple Approach Organizational Goals Organizational Impact
  24. 24. Infrastructure Deployment Activities Five Black Belts 80~100% Consulting/Mentoring/Training/TeamBuilder Master Black Belt Ask the right questions Promote Six Sigma within Workgroups 10% Breakdown barriers; Remove constraints Champions 4-5/ year $0.8 - 30M/ year/LBB Two green belts 10%~20% Lead use of techniques. Change Agent. Black Belt 2 / year $250K/ year/GBB Find one new green belt 2%~5% Utilize Six Sigma Methods Green Belt Related Projects/ Project Savings Mentoring Time on Consulting/ Training Task
  25. 25. Success Stories ©2000-2003 iSixSigma LLC.
  26. 26. Success Factors <ul><ul><li>Strong Commitment </li></ul></ul><ul><ul><li>Shared Vision & Solid Planning </li></ul></ul><ul><ul><li>Infrastructure & Training </li></ul></ul><ul><ul><li>Change Management </li></ul></ul><ul><ul><li>Typically savings $40M – $120M/Year </li></ul></ul><ul><ul><li>Average it takes 8 - 1 0 months to see </li></ul></ul><ul><ul><li>any real savings in first year </li></ul></ul>
  28. 28. Integration NOT Coexistence Coexistence Run the business Six Sigma Integration Run the business, using Six Sigma Change Deployment “ You must be the change you wish to see in the world.” – Mahatma Ghandi
  29. 29. Change deployment is like… Dialing one of the digits wrong is only a 10% error… Dialing a phone number YET IT WILL NOT GET YOU THROUGH , DON’T THROW GOOD MONEY AWAY THE COMPANY FUTURE IS IN YOUR HANDS, DEPLOY SIX SIGMA AND START SAVING (£$£$£)
  30. 30. Questions?