Lss explained sigma rules.ppt

1
00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD
GREEN BELT TRAINING

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00 Introduction and Overview.ppt
Let’s Get to Know Each Other ....
First, let us introduce the Instructors and and our
backgrounds ...
Next, please introduce yourself:
 Name
 Business unit/segment
 Job title/function
 Location
 Years of service with CCM
 Previous quality and/or statistics experience
 Expectations from Green Belt Training
SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD
GREEN BELT TRAINING

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Green Belt Training Course Objectives
By the end of this training you will be able to:
 Understand why the business is implementing
Six Sigma
 Learn the Six Sigma Methodology
 Execute steps required to complete your first
Six Sigma project
 Select the appropriate Six Sigma techniques
and tools for future projects
SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN
BELT TRAINING

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GREEN BELT TRAINING
Course Schedule
Week 1
Day 1 Six Sigma Overview, Define & Projects Reviews
Day 2 Define and Measure, Minitab Intro
Day 3 Measure (Data, MSA, Capability)
Day 4 Measure and Analyze (Goal Y, Xs)
Day 5 Analyze (Critical Xs), Project Reviews
Week 2
Day 6 Analyze (Critical Xs, $), Project Reviews
Day 7 Improve (DOE), Project Reviews
Day 8 Improve (Pilots), Project Reviews
Day 9 Control (SPC, Document, Translate), Project Reviews
Day 10 Final workshop, Summary, Project Completion/Certify

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GREEN BELT TRAINING
Greenbelt Certification Requirement
Requirement Responsibility Endorsement
Fullattendance inall
10 days of training
GreenBelt MBB Instructors
Successfulproject
completion
GreenBelt/Team Process Owner
Demonstrationof skills GreenBelt MBB Instructors
FinancialSavings of
$50K/yr
GreenBelt
Process Owner &
MBB mentor

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Ground Rules
 Take responsibility for your own learning
 Every question is a good question
 Honor time limits
 Participate by sharing your opinions and experiences
 Listen and consider the opinions and feedback of others
 If you have to leave, make arrangements
 Computer etiquette
 Help others
 Have fun!!!
GREEN BELT TRAINING

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After this session, you will be able to…
 Describe what Six Sigma is in terms of
 Its philosophy
 Its goal
 Its methodology
 Describe in general terms how the Six Sigma
methodology works
 Explain the business stake and rational for
applying Six Sigma
 Describe your role as
a Green Belt
Beginning with the End in Mind
GREEN BELT TRAINING

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The Big Picture
 WHAT is Six Sigma?
 WHAT is the basic idea behind Six Sigma?
 WHY do Six Sigma?
 HOW does Six Sigma work?
 What’s my role as a Green Belt?
GREEN BELT TRAINING

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GREEN BELT TRAINING
Six Sigma is Excellence
“Six sigma quality means the
virtual elimination of defects from
every process, product and
transaction in our company. … It is a
key part of how we will do business
well into the next century. ...However,
the real impact of Six Sigma is that it
is a business management process
and not just a quality metric.”
Chad Holliday
Chairman & CEO
DuPont Company
February 26, 1999
Excellence

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Six Sigma is A ...
• Vision … $$$ from Zero Defects
• Philosophy … Statistically-based
Decision-Making
• Business Process … How we work
• Goal … 6 Sigma Capable
• Metric … Sigma Level of Process
• Methodology … DMAIC
GREEN BELT TRAINING

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Values of Six Sigma
 Customer focus
 Delight the customer by eliminating
defects
 Variability is the enemy
 Act on fact and data
 Real financial results that impact the
bottom line
Core Values Of Six Sigma
Passion + Execution = Fast and Lasting Results
GREEN BELT TRAINING

12
GREEN BELT TRAINING
2
3
4
5
6
308,537
66,807
6,210
Sigma
level
Defects per
Million
opportunities
233
3.4 .
3s to 6s - 20,000 Times Improvement... A True Quantum Leap
Defect Levels

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GREEN BELT TRAINING
Six Sigma Benchmarking Results
1,000,000
100,000
10,000
1,000
100
10
1
3 4 5 6 7
2
Sigma Scale
Restaurant Bills
Doctor Prescription Writing
Domestic Airline
Fatality Rate
(0.43 PPM)
IRS Tax Advice
(phone in)
Airline Baggage Handling
DuPont
Average
Best-in-Class
DuPont Safety

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GREEN BELT TRAINING
99.99966% Good (6 Sigma)
• 20,000 lost articles of mail per
hour
• Unsafe drinking water for
almost 15 minutes each day
• 5,000 incorrect surgical
operations per week
• Two short or long landings at
most major airports each day
• 200,000 wrong drug
prescriptions each year
• No electricity for almost seven
hours each month
• Seven articles lost per hour
• One unsafe minute every seven
months
• 1.7 incorrect operations per week
• One short or long landing every
five years
• 68 wrong prescriptions per year
• One hour without electricity
every 34 years
99% Good (3.8 Sigma)
Six Sigma -- Practical Meaning

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GREEN BELT TRAINING
Six Sigma Deployment in USA
1992 1995 2000
• 1985 - Motorola starts Six Sigma
• 1992 - Six Sigma founder Mikel Harry
joins ABB and takes Six Sigma
in a new direction.
• 1998 - Dupont’s customers & competitors
are deploying Six Sigma
• ABB
• Motorola
• TI
• IBM
• DEC
• Kodak • AlliedSignal
• Nokia
• Sony
• Navistar
• Whirlpool
• Bombardier
• GenCorp
• Siebe Foxboro
• Lockheed Martin
• John Deere
• Siemens
• Compaq
• Seagate
• PACCAR
• Toshiba
• Dupont
• Dow Chemical
• Air Products
• Honeywell
• Johnson Controls
• Maytag
• Praxair
• Ford
• Johnson & Johnson
• GE

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The Big Picture
GREEN BELT TRAINING

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GREEN BELT TRAINING
Process Variation
The objective is to identify and reduce process
variation and defects to make money!
Center
Process
Reduce
Spread
X
X
X
X
X
X
X X
X
X
X
X
X
X
X
X
XX
X
X
X
X
XX
X XX
X
X
X
XX
X
X
X
X
XX
X XX
X
Off-Center Too Much Spread
Centered
On-Target

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GREEN BELT TRAINING
Process Variation - Another View
Target
USL
LSL
Target
USL
LSL
Target
USL
LSL
Center
Process
Reduce
Spread
Off-Center Too Much Spread
Centered
On-Target
Defects

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GREEN BELT TRAINING
• Characterize
• Optimize
• Breakthrough
The Six Sigma Strategy
Customer Focused - Both Internally & Externally
USL
LSL
USL
LSL
USL’
LSL’
USL
LSL

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The Focus of Six Sigma
• Six Sigma works from right to left!
– Find out what’s critical to the customer (CTQ)
– Define what process output(s) most closely relate to the CTQ
– Determine what process controls and inputs most affect the
output
– Identify new modes of operation in the X’s to dramatically
improve Y and delight the customer
• Final solution = optimal arrangement and control of the X’s
• Old school solution = Inspect Y and throw out the bad!
Process to
be Improved
Controls
X6, X7, X8, …
X1
X2
X3
X4
X5
Inputs
Output Y Critical to the
Customer
GREEN BELT TRAINING

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The Big Picture
GREEN BELT TRAINING

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Six Sigma Eliminates the Hidden Factory through
Defect Reduction and ultimately Design for 6 Sigma
90% Yield After
Inspection or Test
Each defect must be detected, repaired and placed
back in the process. This results in Wasted…
• Time
• Money
• Resources
• Floor Space
Inputs
Scrap
Rework
Hidden Factory
NOT
OK
Operation
First Time
Yield
OK
90%
Customer Quality
Defects and the Hidden Factory
• Fails to account for
the hidden factory.
Typical process that meets a customer need
Inspect
GREEN BELT TRAINING

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GREEN BELT TRAINING
Hidden Factory Hidden Costs
Six Sigma attacks the entire “Iceberg” resulting in:
Higher quality, lower cost, timeliness - Increasing
customer satisfaction
Six Sigma attacks the entire “Iceberg” resulting in:
Higher quality, lower cost, timeliness – Increased customer satisfaction
Scrap
Rework
Inspection
Warranty
Rejects
Hidden Quality Costs
(Difficult to measure)
Lost
Opportunity
Traditional Quality Costs
(Easily identified)
Lost Sales
Engineering Change Orders
Long Cycle Times
Expediting Costs
Productivity Loss
Employee Morale, Productivity, Turnover
Late Delivery
Excess Inventory
Lost Customer Loyalty
Low Customer Satisfaction
Lengthy Installations
Overtime
Late Product Introduction

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GREEN BELT TRAINING
What is Cost of Poor Quality?
• Types of costs
• Direct costs associated with finding and fixing defects
• The hidden cost of failing to meet customer expectations the
first time
• The hidden opportunity for increased efficiency
• The hidden potential for higher profits
• The hidden loss in market share
• The hidden increase in production cycle time
• The hidden labor associated with ordering replacement material
• The hidden costs associated with disposing of defects
• How Big is COPQ?
• Typically, as big as 25 % of sales
• Almost always exceeds the profit margin

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The Big Picture
GREEN BELT TRAINING

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Six Sigma Begins with Leadership
• Necessary foundation for success:
Leadership that is…
– …passionate about excellence
– …willing to change.
• Fundamental Leadership principles in Six
Sigma
– Challenge the process
– Inspire a shared vision
– Enable others to act
– Model the way
– Encourage the heart
• Six Sigma is a catalyst for leaders
GREEN BELT TRAINING

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Your Work Begins With Project Selection:
Criteria for Success
 Historical and Current Data Accessible.
 Good Fit With 6 Sigma Techniques.
 Strong Support/Sponsorship in Place
 Clearly linked to real business need
 Part of your ongoing work
 Not Capital Intensive.
 Achievable in 4 - 5 Months.
 Quantified savings or revenue enhancement
 with clear ownership for delivery
 High Probability of Success.
GREEN BELT TRAINING

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GREEN BELT TRAINING
Identify Customer Needs, and “flow down” to
X’s We Can Control
CTQ = “Critical to Quality”
Key measurable characteristics whose
performance standards must be met in
order to satisfy the customer
Process output that directly relates to the CTQ.
Specifications for this output determine “defects”
Process inputs, controls, and factors
that potentially impact the Project Y.
Those X’s that can be used to achieve
Six Sigma performance
CTQ
Customer
Needs
Project Y’s
Candidate X’s
“Vital Few” X’s

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GREEN BELT TRAINING
CTQ
Customer
Needs
DMAIC Enables the Flowdown
Project Y’s
Candidate X’s
“Vital Few” X’s
Define
Measure
Analyze
Improve
Control

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GREEN BELT TRAINING
DMAIC Methodology
Describe the problem we are working on and
its value to the business; Organize the team
Define
Measure
Analyze
Improve
Control
Define the defect, gather baseline
information about the product/process,
and establish improvement goals.
Determine which process inputs most
influence the key process outputs
Identify routes to improving
performance and confirm that those
changes will achieve the project goals.
Implement the solution and establish
ongoing mechanisms to “lock in” the
improvements and to share them elsewhere






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GREEN BELT TRAINING
DMAIC Process Improvement
Methodology
Although the DMAIC process is often portrayed in a linear
fashion, the phases and steps do not actually occur in such
lock-step sequence. More frequently, as teams begin to
measure they recognize the need to collect additional data,
etc. Teams continually double-back in the DMAIC process to
ensure thoroughness of the previous step.

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GREEN BELT TRAINING
The X’s are the Key
Process to
be Improved
Controls
(X6, X7, X8…)
Critical To
Measures
Quality
Cost
Delivery
X1
X2
X3
X4
X5
Input
Input
Defect
Free!
Change &
Control
$

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GREEN BELT TRAINING
The X’s are the Key!
• By understanding which X’s affect Y and how
– Determine which X’s are important
– Establish how those X’s affect the Y’s
• Then we can control and optimize those X’s and…
– Reduce the variability in Y
– Predict Y without having to rely on inspection and testing
(non value-adding activities)
– Decrease the number of defects
– Eliminate or reduce the hidden factory
• If we don’t know much about our X’s, then…
– We have to rely on inspection and testing (non value added
operations)
Y = f(X1, X2, X3, …Xk)

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What Success Looks Like
S
p
e
c
Project
Y
Improvement
Production Order
Defects
Baseline
GREEN BELT TRAINING

35
GREEN BELT TRAINING
Business Problem Statistical Problem
Statistical Solution
Business Solution
Overall Approach
Define Measure Analyze
Improve
Control
Y = f(X1,X2,X3,…,Xk)

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Robust Problem Solving
Your primary job is to…
• Translate a business challenge to a defect
elimination or variability reduction problem
• Formulate this defect/variability issue as a
statistical problem
• Solve the statistical problem using tools and
techniques taught in this course (or suggested
by your MBB)
• Convert the statistical learning into business
benefits and actions.
• Ensure gains are sustained long after project
completion.
GREEN BELT TRAINING

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GREEN BELT TRAINING
Business Problem
Improve yield
Viscosity out of
specification
Example
Business Problem

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GREEN BELT TRAINING
How can we improve Y such that %
defects due to out-of-specification
viscosity is less than 1%
Statistical Problem
Y = viscosity= f(X1,X2,X3,…,Xk)

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GREEN BELT TRAINING
What are the X's?
What is f ?
What is the optimal setting and
specification limits for each key x?
Y = viscosity= f(X1,X2,X3,…,Xk)

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GREEN BELT TRAINING
Business Solution
Change settings and specification
limits for key variables and
implement a control method
Business Solution

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GREEN BELT TRAINING
Examples of Business Problems to Target
• Low yields
• Energy or raw material
consumption
• Poor equipment life
• Uptime detractors
• High maintenance costs
• Excessive cycle times
• High consumables
usage/costs
• Rework
• Excessive testing and
inspection
• Capacity limitations
• Process defects or
variation
• Excess cycle time in supply
chain operations
• Delivery problems
• Customer complaints
• Excessive Contractor cost
• High FEL cost of capital
• Defects in supplied
materials and services
• Information accuracy,
speed

42
Examples of Performance Improvement
Projects
• Cycle Time Reduction Projects
– Reduce the time required to complete manufacturing
processes or transactional activities. Example: Return
empty railcars to supplier faster to reduce railcar
storage (demurrage) charges.
• Defect Reduction Projects
– Reduce or eliminate defects in quality. Example:
Eliminate defects in pigment color.
• Consumption Reduction Projects
– Reduce or optimize the consumption of costly raw
material, contract service or energy. Example: Reduce
amount of Lime required for neutralization.
GREEN BELT TRAINING

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The Big Picture
GREEN BELT TRAINING

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GREEN BELT TRAINING
Green Belt Roles & Responsibilities
What is a Green Belt ?
Being a Green Belt is not a role, but a competency
A Green Belt will be expected to acquire a certain set of
skills and competencies and then deploy them

45
Green Belt Selection Criteria
• Process/Product knowledge
• Knows the organization
• Self-starter, motivated
• Open minded
• Eager to learn new ideas
• Desire to drive change
through Six Sigma
• Team player
• Willingness to change
• People considered for
future promotions
GREEN BELT TRAINING

46
GREEN BELT TRAINING
Critical Core Skills for Green Belts
 Awareness and understanding of Six Sigma Values
 Understanding of and ability to apply basic 6s
tools and processes
 Adoption of fact based, data driven decision
making

47
GREEN BELT TRAINING
There are many ways, but here are 3 possibilities
 As part of their normal job, apply the 6s tools to
improve quality, output, reduce variability, costs, etc.
 Play a significant active role in BB projects, applying
the tools learned and leveraging the impact
 As a leader, change own behaviours to incorporate 6s
values, and set expectations for others to do the same
How to deploy these skills ?

48
GREEN BELT TRAINING
Roles of the Champion
 Develop Vision for Organization
 Create and maintain passion
 Strategically Apply Six Sigma
- Identification and prioritization of Strategic projects
(Categories)
- Communicate and Market the process and results
program
 Enable Resources
- Recruit, inspire and “free-up” Black Belts
 Champions also….
- Share best practices
- Remove barriers
- Provide the drum beat for results
> Review projects
> Keep score through metrics

49
GREEN BELT TRAINING
Roles of the Master Black Belt
 Expert in the tools and
concepts
 Develop and deliver training to
various levels of the
organization
 Help identify projects
 Coach and support BB/GB
 Participate in project reviews
to offer technical expertise
 Passion around Six Sigma
 Certify the GB’s & Black Belts
in future
 Facilitate sharing of best
practices across the
corporation
 Just in time training/technical
resource
 Take on leadership of major
projects
 Develop new tools or modify
old tools for application and
teaching

50
GREEN BELT TRAINING
Roles for the Black Belt
 Deliver projects; ($1MM/yr
target)
 Expert in the tools of 6-sigma
 Document learning
 Identify barriers
 Lead teams to execute
projects
 Report progress to appropriate
leadership levels
 Influence without direct
authority
 Determine most effective tools
to apply
 Identify project resources
(project management)
 Seek input from knowledgeable
operators/First Line
Supervisors/Team
Leaders/Coaches
 Manage project risk
 Deliver sustainable control
plans

51
The Six Sigma Methodology: Summary
• Disciplined, Data-based approach
• Focuses on the customer and critical metrics
• Works upstream to control process X’s instead of
relying on inspection and testing
• Attacks variation, defects and the “hidden
factory”
• Directly affects quality, cost, cycle time and
financial results
• Ensures a predictable operation
GREEN BELT TRAINING

52
GREEN BELT TRAINING
Table Activity - DMAIC Review
To review the deliverables and steps in the DMAIC
methodology
Objective
Three mistakes that first-time Six Sigma project teams
might make are listed below. In each case:
- Why do you think these are mistakes?
- What are the implications for each one on the project
results?
A. In its rush to start the project, the team does not
execute the DEFINE phase thoroughly.
B. Early in the project, the team comes up with an idea
to improve the process. The team skips from
MEASURE to IMPROVE without conducting any
analysis (ANALYZE).
C. The team rushes to finish the project and does not
execute an effective CONTROL phase.
Document the key points on a flipchart.
Instructions
10 minutes

53
Can you…
 Describe what Six Sigma is in terms of
 Its philosophy?
 Its goal (six-sigma performance)?
 Its methodology (DMAIC)?
 Describe how DMAIC works to translate
customer needs into high-performing processes?
 Explain the business stake in reducing the Cost
of Poor Quality through Six Sigma
 Describe your role as a Green Belt?
Time for a Wrap-up
GREEN BELT TRAINING

Lss explained sigma rules.ppt

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