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- 1. Module 1: Introduction to Six Sigma SHREYAS QUALITY MANAGEMENT SYSYTEM, NAGPUR,INDIA TRAINING ON SIX SIGMA GREEN BELT
- 2. At the end of the training and certification process, the Six Sigma Green Belt’s will be able to: ◦ Identify, lead breakthrough projects and achieve significant results which impact the bottom-line. ◦ Implement the Six Sigma methodologies. ◦ Use basic statistical tools.
- 3. Keep your mobile on silent mode The training is organized to cover SSGB Tools and provide hands-on experience through syndicated project exercise. No timing for training. It all depends on how well you learn and how fast you work on case study. (You have to carry out exercise in allotted time) At the end of the learning, you have to work on Project and make the presentation on last day. An examination will be conducted on last day
- 4. Six Sigma: The Introduction
- 5. Prevention Cost Appraisal Cost Lost Management Cost Lost Opportunity, Lost Assets Cost Rerun Cost Lost Business, Goodwill cost Maintenance Cost Lost Credibility Cost Organisation Ocean
- 6. Six Sigma Targets on Reducing & Eliminating Cost of Poor Quality
- 7. A Management driven, scientific methodology for product and process improvement which Reduces Cost of Poor Quality, Process Variation & Defect Rates and creates breakthroughs in Quality, Cost performance and Customer satisfaction
- 10. QUALITY?? IS 99% Quality or Performance Good??
- 11. 99% Quality means……… • 5000 incorrect medical treatments per week ! • 200,000 wrong billings each year ! • 2 Short or Long landings at Airport each day ! • Unsafe Domestic Water for 15 min/day ! • 20,000 lost e-mail per hour ! • No electricity for 7 hrs per month !
- 12. Classical view on Quality 99% Good (3.8 Sigma) The Six Sigma view of Quality 99.99966% Good (6 Sigma) 20,000 lost articles of mail per hour Seven articles lost per hour Unsafe drinking water for almost 15 minutes each day One unsafe minute every seven months 5,000 incorrect surgical operations per week 1.7 incorrect operation per week Two short or long landings at most major airports each day One short or long landing every five years 600 new policies / month delivered with errors 1 new policy delivered with errors every 5 months 180,000 lost calls each year 61 lost calls each years No electricity for almost seven hours each month One hours without electricity every 34Years
- 14. Motorola initiated Six Sigma at a time when they were consistently beaten in the competitive market by Japanese firms. These firms were able to produce higher quality products at a lower cost. A Japanese firm took over a Motorola factory that manufactured television sets in the 1970s.
- 15. Under Japanese management, the factory was soon producing TV sets with 1/20th the number of defects they had produced under Motorola management. Japanese did this using the same workforce, technology, product design, making it clear that the problem was in Motorola's way of management.
- 16. Motorola started looking into their way of working. Rework cost - 15% of annual revenue. Bill Smith found a direct correlation of rework with failure at customer site. He suggested the entire process to be viewed in small segments and performance be measured.
- 17. Each process segment is critically examined ◦ What it is supposed to do. ◦ What is the target. ◦ What is actual. Thus it was possible to get quantified performance measure.
- 18. % was not appropriate measure, instead, to compete with Japan, ppm be used. DPMO / Sigma level measurements were devised, so that every process is measured in same scale and are comparable.
- 19. While examining performance of process segments, focus was on removing unnecessary activities. Target was to achieve nearly zero defect out of million “possibilities of defect”. The result we know today is “SIX SIGMA”.
- 20. Mumbai Dubbawalla Case:- ◦ 2,00,000 tiffin boxes per day by 5000 dubbawallas to different parts of Mumbai ◦ Picking up-bus-local-bus-destination ◦ change of hands ◦ Adopted Coding system ◦ Errors reported 1 in 60,00,000 deliveries ◦ 6.6 sigma level ◦ Prince Charles invited the Mumbai’s Duabawalla for marriage in 2005
- 22. A Greek symbol for measuring performance variation Eg. Xi = 10, 12, 14 (Mean) X bar = 12 n: No. of Readings Here: 3 =(Xi-Xbar) Deviation 2 Variation n-1 VarianceStd. Devn. Sigma ()
- 23. Target (Process Mean) LSL USL Parts out of Specs A < 3 Situation Cp<1 LSL: Lower Specification Limit, USL: Upper Specification Limit
- 24. TargetLSL USL All in Specs A 3 Situation Cp=1
- 25. TargetLSL USL Only 50% of tol. used A 6 Situation Cp=2
- 26. LSL USL -6 -2 -1 +1 +2 +3 +4 +5 +6-5 -4 -3 Xbar Spec Limit Percent Defective ppm ± 1 68.27 3,17,300 ± 2 95.45 45,500 ± 3 99.73 2,700 ± 4 99.9937 63 ± 5 99.999943 0.57 ± 6 99.9999998 0.002 Without Process Shift
- 27. What is Six Sigma? 66807 Defects Per Million Opportunities 3.4 Defects Per Million Opportunities Mean / Target Lower Specification Limit Upper Specification Limit High Probability of Failure 66807 Defects Per Million Opportunities Much Lower Probability of Failure 3.4 Defects Per Million Opportunities Higher this number, Lower the chance of producing a defect Higher these numbers, Lower the chance of producing a defect 6 2’s 1 6 2’s 1 3 1’s 3 1’s
- 28. Six Sigma is… Metric Goal Locomotive Way of LifeCulture Benchmark 6
- 29. If the Pilot can always land the Aircraft within 50% of Runway area…… He is of Six Sigma Quality ! LSL USL 50% of Tolerance Band
- 30. 5 April 2017Six Sigma 30 Six Sigma is driven by Customer needs (VOC) Business objective (VOB)Disciplined use of data to : IMPROVE CRITICAL ORGANISATIONAL PROCESSES.
- 31. As the process is not perfect, there is consideration of 1.5 shift. In most cases, the process mean doesn’t stay exactly in the centre of the specification limit. The actual location of the mean is closer to one side than the other. This is called the Shift of the Mean.
- 32. LSL USL -6 -2 -1 +1 +2 +3 +4 +5 +6-5 -4 -3 Xbar Spec Limit Percent Defective ppm ± 1 30.23 6,97,700 ± 2 69.13 3,08,700 ± 3 93.32 66,810 ± 4 99.3790 6,210 ± 5 99.97670 233 ± 6 99.999660 3.4 With ± 1.5 Shift -1.5 +1.5
- 33. SIGMA DEFECT RATE (PPM) COST OF POOR QUALITY(% OF SALES) COMPETITIVE LEVEL 6σ 3.4 < 10% WORLD CLASS 5σ 233 10%- 15% 4σ 6210 15%- 2% INDUSTRY AVERAGE 3σ 66807 20%-30% 2σ 308537 30%-40% NON- COMPETITIVE 1σ 690000 > 40%
- 34. Emphasis of Six Sigma • Emphasis on verifiable financial results. • Full-time Black Belts = $500K to $1M savings/BB/year! • Expected savings after one year > 2% of Gross Revenue. • Green Belt Projects expected value at ~$250K/year • Motorola has documented savings due to Six Sigma at >16 Billion over 12 years!
- 35. It is not ◦ Program of the month / week ◦ Job of Quality department ◦ Magic bullet to solve every problem ◦ Statistical tool ◦ Certification system ◦ ……
- 36. TO REDUCE VARIATION TO REDUCE DEFECTS/DEVIATIONS TO IMPROVE YIELD/PRODUCTIVITY TO ENHANCE CUSTOMER SATISFACTION TO IMPROVE THE BOTTOMLINE SIX SIGMA IMPLEMENTATION HELPS
- 37. Champion Master Black Belt Black Belts Green Belts Yellow Belts
- 38. Roles & Responsibilities Owns vision, direction, integration, results Executive Supports Black Belts by participating on project teams Apply Breakthrough Strategy to specific projects, lead and direct teams to execute projects Green Belts Black Belts Master Black Belt Process Owner Champion All Employees (White Belts) Trains and coaches Black Belts , Green Belts and leaders Owns the process in which GB/BB works Challenges GB findings Develops deployment and Strategy Supports cultural change Support Six Sigma Ensure success of GB/BB projects Understand vision Apply concepts to their job and work area Leads change Yellow Belts
- 39. Champions ◦ Senior management ◦ Promotion and integration of Six Sigma implementation across the organisation. Master Black Belts (Normally Executed/leaded 10+ Projects ) ◦ assist champions and mentor Black Belts and Green Belts. ◦ May be external or Internal consultants ◦ ensuring that Six Sigma techniques are applied consistently and correctly.
- 40. Black Belts (Normally Lead 5+ Projects) ◦ operate under the guidance of a Master Black Belt, delivering the Six Sigma projects. ◦ train and mentor the green belts Green Belts (Normally carry 1-2 Projects) ◦ employees who take up Six Sigma implementation along with their other job responsibilities, ◦ under the guidance of Black Belts as part of the Six Sigma project. ◦ are trained in most of the tools outside of advanced statistical techniques. Yellow Belts ◦ Not always designated, but if so, these are employees within the target areas used to implement, monitor and control the improved processes. ◦ Training in basic Six Sigma awareness
- 41. Six Sigma Benefits • Continuous Defect Reduction in Products & Services. • Enhanced Customer Focus • Process Sustenance • Performance Dashboards & Metrics • Project Based Improvement, with Visible Milestones • Sustainable Competitive Edge • Global Acceptance of the Quality System
- 42. 42 Six- Sigma : DMAIC Cycle & Application
- 43. Dr. Walter A. Shewhart, a statistician with Bell Laboratories, first developed the concept of a ‘continuous improvement cycle’ in the 1920’s. This cycle, which is referred to as the PDSA cycle (or the PDCA cycle as Deming called it), consists of the following steps designed to improve a process: Plan how to make changes in the process based on data that has been collected. Do what you have planned on a trial basis. Study (or Check in PDCA) the results of the trial to determine the effect of the change. Act on the results observed by taking action or by standardizing the improvement. 4 3
- 44. The PDSA cycle was developed to decrease the gap between process performance and customer expectations. Unfortunately, the PDSA cycle lacks tools and methods often needed to tackle more complicated problems.
- 45. The Six-Sigma version of the PDSA cycle is referred to as the DMAIC process. 4 5 Measure Define AnalyzeImprove Control
- 46. Define the Problem/Opportunity Key Steps in the DMAIC process Train the Personnel Define the Team Identify VOC & Convert to CTQ Define Phase
- 47. Analyze Y FocusPhase Identify Variation Sources In Y Validate Measurement System for Y Define Performance Standards For Y Select Product or Process Key Characteristic(s); e.g..., Customer Y Establish Process Capability of Creating Y Define Improvement Objectives For Y Measure Y Y Y Y Y
- 48. Validate Measurement System For xi Establish Operating Tolerances On Vital Few xi Discover Variable Relationships Between Vital Few xi x1, x2, ... xn x1, x2, ... xn Vital Few xi Vital Few xi Vital Few xiDetermine Ability To Control Vital Few xi Vital Few xiImplement Process Control System On Vital Few xi Screen Potential Causes For Change In Y & Identify Vital Few xi Control Improve
- 49. If we cannot define what we know about a process in numbers, we do not know much about it.
- 51. 5 April 2017Six Sigma 51 DMAIC DEFINE What are the opportunities for What is important? improvement that will achieve the organization’s goals and provide the largest payoff. MEASURE What is our current How are we doing? performance level (e.g. Sigma level and/or Cpk)? ANALYZE What are the true root causes What is wrong? for gaps or problems in performance? IMPROVE What are the possible What needs to be done? solutions and how do we implement the best solution? CONTROL How do we maintain the gains How do we guarantee we have achieved? performance?
- 52. The project improves an existing process (a series of activities that creates some sort of output/result for internal or external customers.) The project attacks quality issues ( defects, scrap, rejects, returns, rework, customer complaints, warranty costs, late receivables, lost business, lost time, excess inventory, unplanned expediting, data redundancy, product nonconformance) •
- 53. The project attacks waste issues (excess transportation, inventory, excess motion, excess wait time, over-production, over- processing, defects, underutilized skills of workforce) The project attacks cycle time, throughput, transactional, or hand-off issues The project focuses on processes that affect what the customer views as valuable. The project attacks highly variable process outputs or processes that have excessive “firefighting” by management, or are only resolved by throwing money at the symptoms.
- 54. Increasing yield of product production through sub-process optimization with benefit of Rs. 800,0000 /year by JUL 2018. Reduce products rework/downgraded volume by creating error-proofing device to the process with benefit of Rs.200,0000 /year by JAN 2018.
- 55. Reduce lead time for license registration from 10 working days to 7 working days by streamlining the process with soft benefit of 30 manhour/month by MAR 2018. Reduce number of transaction for HR process from average 2,000 transactions/month to 1,000 transactions/month by streamlining the process with benefit of Rs.2,00000/month by MAY2018.
- 56. Reducing the number of errors for XYZ team to 0.5% Ensure that 90% of the jobs do not require reworking for XYZ team Reduce sloppy errors to 1 per week day Achieve a utilization of 75% across production lines in XYZ Achieve an overall internal quality target 98% for the client in ABC Improve the updating process of the client's databaseAchieve 80% capability among production staff to function at priority level Increase through-put by removing unitization QC process Reducing the timeline of roll-out of new process
- 57. Thank You