RAM, LLC Six Sigma Intro Awareness Training

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This is one in a series of brief Six Sigma overview presentations.

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RAM, LLC Six Sigma Intro Awareness Training

  1. 1. SIX SIGMA Introduction & Concepts AWARENESS TRAINING - PHASE ONEPresented by:RAM Consulting Group, LLCRisk, Resiliency & Business Continuation PlanningVirginia, Maryland, District of Columbiaramjaxfla@gmail.com RAM
  2. 2. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1Module Objectives: • Introduction to Key Terminology • Review of the Six Sigma DMAIC methodology • Review Six Sigma Data Driven Formula • Real life examples of why Six Sigma matters “A poorly designed project plan is like a bent nail, impossible to drive straight!” RAM Presentation by: RAM Consulting Group, LLC
  3. 3. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 110 Six Sigma Myths  Six Sigma is simply about eliminating defects or errors  Throw enough bodies at it and it will be successful  If you call it Six Sigma, then it must be Six Sigma!  If you don’t call it Six Sigma, then it’s not Six Sigma!  Six Sigma slows down everything!  Six Sigma works only in manufacturing settings  Six Sigma doesn’t include customer requirements  Six Sigma is simply TQM repackaged  Six Sigma uses difficult-to-understand statistics  Six Sigma is an accounting game without real savings  On, and on, and on, and on… Presentation by: RAM Consulting Group, LLC
  4. 4. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1What is Six Sigma? • Six Sigma is a multi-faceted philosophy that is Process- Focused and Data-Driven • Requires a prerequisite understanding of customer needs; disciplined use of facts, data and statistical analysis • Diligent attention to managing, improving and reinventing business processes Presentation by: RAM Consulting Group, LLC
  5. 5. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1What is Six Sigma (cont’d)? • A philosophy focused on reducing variation to meet customer requirements (variation is the enemy!) • Employs the *DMAIC methodology for using data to solve problems • A measure of performance quality equal to 3.4 defectives per 1 million units (also applicable to process defectives) *DMAIC is an acronym for the methodology used to guide all Six Sigma projects Presentation by: RAM Consulting Group, LLC
  6. 6. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1What is Six Sigma (cont’d)?• DMAIC is the basic component of the Six Sigma methodology• The five (5) phases of the DMAIC methodology are: 1. Define 2. Measure Project 3. Analyze Success 4. Improve 5. Control • DMAIC provides a structured approach to improve work processes by eliminating defect and/or error opportunities! Presentation by: RAM Consulting Group, LLC
  7. 7. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1DMAIC Phases Defined Three Types of Six Sigma Projects Phases Improvement DFSS Lean 1. Define and gain approval for the project charter 1. Define and gain 1. Define and gain 2. Identify Voice of Define approval for the approval for the Customer (VOC) project charter project charter 3. Develop Critical to Quality (CTQ) measures 1. Gather information 1. Assess how on the current 1. Deploy the CTQs to efficiently the process design functions product flows to Measure 2. Identify the 2. Identify potential meet the potential vital few concepts and select customer’s inputs (x’s) affecting the potential design demand for value the project (Y) Presentation by: RAM Consulting Group, LLC
  8. 8. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1DMAIC Phases Defined Three Types of Six Sigma Projects Phase Improvement DFSS Lean 1. Create the high 1. Complete and detailed 1. Confirm the impact of detailed analyses levels for the the potential vital few of select Analyze design inputs (x’s) identified in opportunities to 2. Predict the the Measure phase design the future capability of the state design 1. Finalize and pilot 1. Complete detailed 1. Build, test and Solutions analyses of select Improve then pilot the 2. Analyze results opportunities to design design and plan for the future state deployment Presentation by: RAM Consulting Group, LLC
  9. 9. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1DMAIC Phases Defined Three Types of Six Sigma Projects Phase Improvement DFSS Lean Deploy the Deploy the Deploy the selected solution selected solution selected solution and verify that the and verify that Control and verify that the project goals the project goal project goals solutions solutions have solutions have have been achieved been achieved been achieved Presentation by: RAM Consulting Group, LLC
  10. 10. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1Six Sigma Factoids • All processes have variation - variation produces negative outcomes • Variation is the enemy! • To change or improve the end results of a process (the “Y”), you have to identify the critical or vital few inputs (x’s) for that process to have an impact on the “Y” Presentation by: RAM Consulting Group, LLC
  11. 11. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1Six Sigma Data Driven Formula Y = f(x) is a simple mathematical equation that relates inputs to the output of a process. A set of inputs (x’s) are operated on by a process or function (f) that results in (=) an output or outcome (Y). Stated differently, the Y results from, or is a function of the x’s. Presentation by: RAM Consulting Group, LLC
  12. 12. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1Six Sigma Data Driven Formula Y = f(x) Where … Represents… The output or outcome; also called the dependent Y variable = The result of … The function (that is, the way or process) by which f inputs are transformed into the output The inputs that are needed to create the output; (x) also called the independent variable(s) Y = f(x) is a simple mathematical equation that relates inputs to the output of a process. A set of inputs (x’s) are operated on by a process or function (f) that results in (=) an output or outcome (Y). Stated differently, the Y results from, or is a function of the x’s. Presentation by: RAM Consulting Group, LLC
  13. 13. 12/11/2009 INTRODUCTION TO SIX SIGMA – MODULE 1Why Six Sigma Matters Examples 99% is very Good, but… 99.99966% is Better, because… 3.8 Sigma = 10,724 defectives per 6 Sigma = 3.4 defectives per million units million units This would result in: This would result in: • 5,000 surgical errors per week • 1.7 surgical errors per week • 200,000 incorrect prescriptions • 68 incorrect prescriptions per per year year • 20,000 lost items of mail per • 7 lost items of mail per hour hour • 1.3 million defective paper • 200 defective paper transactions transactions per day per day • 10.9 million credit card • 3,700 credit card transactions transactions processed processed incorrectly per year incorrectly per year Presentation by: RAM Consulting Group, LLC
  14. 14. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –Module 2 Objectives: • Explain DMAIC Process Phases • Introduction to Critical To Quality (CTQ) Concepts • The 5 Why Concept “Well throughout and designed processes compliment each other!” RAM Presentation by: RAM Consulting Group, LLC
  15. 15. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –DMAIC Process Phase 1 - Define Each step in the cyclical DMAIC Process is required and should be followed in succession to ensure the best possible results Define •Define the customers, stakeholders and project team •Define customer Critical to Quality (CTQ) issues •Identify any existing appropriate core business processes •Define the requirements for the products or service •Define customer / stakeholder expectations •Define project boundaries ­­ the scope, start/stop constraints •Define the process to be improved or created by mapping the current state process / flow (existing workflows only) Presentation by: RAM Consulting Group, LLC
  16. 16. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –DMAIC Process Phase 2 - Measure Each step in the cyclical DMAIC Process is required and should be followed in succession to ensure the best possible results Measure Measure the performance of the Core Business Process involved. •Develop a data collection plan from the many sources, then use it to determine the types of defects and metrics. •Compare to customer survey results to determine shortfall or deltas Presentation by: RAM Consulting Group, LLC
  17. 17. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –DMAIC Process Phase 3 - Analyze Each step in the cyclical DMAIC Process is required and should be followed in succession to ensure the best possible results Analyze Analyze the data collected and process map developed during the measure phase to determine root causes of defects / errors and opportunities for improvement. •Identify gaps between current performance and goal performance •Identify sources of variation •Prioritize opportunities to improve Presentation by: RAM Consulting Group, LLC
  18. 18. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –DMAIC Process Phase 4 - Improve Each step in the cyclical DMAIC Process is required and should be followed in succession to ensure the best possible results Improve Improve the target process by designing creative solutions to fix and prevent problems. •Create innovative solutions using technology, structured repeatable approaches and disciplined tracking activities •Develop and deploy complimentary implementation plan(s) Presentation by: RAM Consulting Group, LLC
  19. 19. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –DMAIC Process Phase 5 - Control Each step in the cyclical DMAIC Process is required and should be followed in succession to ensure the best possible results Control Control the improvements to keep the process on the new course. •Prevent reverting back to the "old way" •Require the development, documentation and implementation of an ongoing monitoring plan •Institutionalize the improvements through the modification of systems and structures (staffing, training, incentives) Presentation by: RAM Consulting Group, LLC
  20. 20. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –Term Definitions – CTQ/CTC Term Definition Critical To Quality - CTQ • CTQs are the internal critical quality parameters that relate to the wants and needs of the customer • CTQs are whats important to the quality of the process or service to ensure the things that are important to the customer • Term Definition Critical To Customer - CTC • CTCs are what is important to the customer • They are not the same as CTQs ­ the two are often confused Presentation by: RAM Consulting Group, LLC
  21. 21. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –Term Definitions – CTQ/CTC Term Definition Critical To Quality - CTQ • CTQs are the internal critical quality parameters that relate to the wants and needs of the customer • CTQs are whats important to the quality of the process or service to ensure the things that are important to the customer • Term Definition Critical To Customer - CTC • CTCs are what is important to the customer • CTCs are not the same as CTQs ­ the two are often confused Presentation by: RAM Consulting Group, LLC
  22. 22. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –Term Definitions – CTQ Steps Start With The Customer •Before you can define your process defects, units and opportunities, you must understand the needs of your customers. Gather Data •Voice of the Customer (Customer Needs, eSurveys, Focus Groups, Questionnaires, etc.) is the process of gathering customer comments/quotes and translating them into issues and specifications. Compile Data Findings •The output from the comments, issues and specifications translates into the customer CTQ’s. •Typically, a product or service characteristic must be met to satisfy a customer specification or requirement. Presentation by: RAM Consulting Group, LLC
  23. 23. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –CTC Sample Scenario Critical To Customer – CTC Example: For instance, that solid car door sound when closing it might be a CTC issue, while the dimensional tolerances and cushioning techniques needed to produce that satisfying sound are CTQs issues/requirements for the auto maker. Presentation by: RAM Consulting Group, LLC
  24. 24. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –CTQ Sample Scenario Process Area: Call Center • Customer Quote (CTC): “I consistently wait too long to speak to a representative.” • CTQ Name: Representative Responsiveness • CTQ Measure: Time on hold (seconds) • CTQ Specification: Less than 60 seconds from call connection to the automated response system • Defect: Calls with hold time equal and greater than 60 seconds • Unit: Call • Opportunity: 1 per call Presentation by: RAM Consulting Group, LLC
  25. 25. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –The 5 whys Technique • The 5 whys technique refers to the practice of asking, five times, why the failure /error has occurred in order to get to the root cause or causes of the problem. • There can be more than one cause to a problem. • In an organizational context, root cause analysis is generally carried out by a team of persons related to the problem. • No special technique, tools or training is required to effectively use the 5 whys technique. Presentation by: RAM Consulting Group, LLC
  26. 26. 12/11/2009 MODULE 2 INTRODUCTION TO SIX SIGMA CONCEPTS –The 5 whys TechniqueScenario:You are on your way home from work and your car stops:1.Why did your car stop? Because it ran out of gas.2.Why did it run out of gas? Because I didnt buy any gas on the way to work.3.Why didnt you buy any gas this morning? Because I didnt have any money.4.Why didnt you have any money? Because I lost it all last night in a poker game.5.Got to the root cause of the problem in only 4 whys! Presentation by: RAM Consulting Group, LLC
  27. 27. SIX SIGMA Introduction & ConceptsTO BE CONTINUED…Presented by:RAM Consulting Group, LLCRisk, Resiliency & Business Continuation PlanningVirginia, Maryland, District of Columbiaramjaxfla@gmail.com RAM

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