Downloaded 468 times
More Related Content
Similar to Six sigma an overview | Online Mini MBA (Free)
Six sigma an overview | Online Mini MBA (Free)
- 1. Six Sigma: AnOverview
- 2. CONTENTS A • Why: SixSigma B • What: Six Sigma C • How: Six Sigma D • 6σ Project: Using DMAIC FOUR SECTIONS
- 3. Six Sigma: WhyFactor
- 4. Why 6σ: AnExample !! • Customers want their pizza delivered fast! • Guarantee = “30 minutes or less” • What if we measured performance and found an average delivery time of 23.5 minutes? – On-time performance is great, right? – Our customers must be happy with us, right?
- 5. Why 6σ: AnExample !! How often are we delivering on time? Answer: Look at the variation! • Managing by the average doesn‟t tell the whole story. The average and the variation together show what‟s happening. s x 30 min. or less 0 10 20 30 40 50
- 6. Why 6σ: AnExample !! Reduce Variation to Improve Performance How many standard deviations can you “fit” within customer expectations? • Sigma level measures how often we meet (or fail to meet) the requirement(s) of our customer(s). s x 30 min. or less 0 10 20 30 40 50
- 7. Variation Customer:The Relation • Variation means that a process does not produce the same result (the “Y”) every time. • Some variation will exist in all processes. • Variation directly affects customer experiences. Customers do not look at averages! -10 -5 0 5 10 15 20
- 8. Six Sigma: Purpose Ascientific and practical method to achieve improvements in a company Scientific: • Structured approach. • Assuming quantitative data. Practical: • Emphasis on financial result. • Start with the voice of the customer. “Show me the data” ”Show me the money”
- 9. Six Sigma: Advantage Sigma Level DefectsPer Million Opportunities Rate of Improvement 1 690,000 2 308,000 2 times 3 66,800 5 times 4 6,210 11 times 5 230 27 times 6 3.4 68 times
- 10. 99.99966% Good (6Sigma) • 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
- 11. Six Sigma: WhatFactor
- 12. • The term“Six Sigma” was coined by Bill Smith, an engineer with Motorola • Late 1970s - Motorola started experimenting with problem solving through statistical analysis • 1987 - Motorola officially launched it’s Six Sigma program Origin of Six Sigma Motorola the company that invented Six Sigma
- 13. What‟s in aname ? μ σ • Sigma is the Greek letter representing the standard deviation of a population of data. • Sigma is a measure of variation (the data spread)
- 14. Six Sigma: Definition SixSigma – The 3 Distinct Elements • A Measure: – A Statistical definition of how far a process deviates from perfection • A Target: – 3.4 defects per million opportunities • A Philosophy: – A long term business strategy focused on the reduction of the cost through reduction of variability in product & process
- 15. Six Sigma: Constrains y x PoorDesign Changing Needs Measurement System Insufficient Process Capability Skills & Behaviors
- 16. • Characterize • Optimize •Breakthrough USL T LSL USL T LSL T USLLSL USL’LSL’ Six Sigma: Focus Customer Focused - Both Internally & Externally
- 17. Six Sigma: Reality •Six Sigma through the correct application of statistical tools can reap a company enormous rewards that will have a positive effect for years Or • Six Sigma can be a dismal failure if not used correctly
- 18. Six Sigma: Spotlight •Accelerating fast breakthrough performance • Significant financial results in 4-8 months • Ensuring Six Sigma is an extension of the Corporate culture, not the program of month • Results first, then culture change!
- 19. Six Sigma: Reasonfor Success • The Success at Motorola, GE and AlliedSignal has been attributed to: – Strong leadership (Bob Galvin, Jack Welch and Larry Bossidy personally involved) – Initial focus on operations – Aggressive project selection (potential savings in cost of poor quality > $50,000/year) – Training the right people
- 20. Six Sigma: NormalDistribution +/ - 3 +/ - 6 LSL USL ppm 0.001 ppm 1350 ppm 1350 ppm 0.001 Tolerance Target = m
- 21. Six Sigma: DistributionWith Correction LSL 0 ppm ppm 3.4 1.5 USL ppm 3.4ppm 66803 m +/- 6 Tolerance • Six-Sigma allows for un-foreseen „problems‟ and longer term issues when calculating failure error or re-work rates • Allows for a +/- 1.5 σ process „shift‟
- 22. Six Sigma: HowFactor
- 23. Six Sigma –3 Dimension ToolsOrganization Methodology Process variation LSL US L Upper/Lower specification limits Regression ••••••• ••••• ••••••• ••••• ••• • •• Driven by customer needs Enabled by quality team. Led by Senior Mgmt Define Measure Analyze Improve Control VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer Process Map Analysis 0 5 10 15 20 25 30 35 L K A F B C G R D 0% 20% 40% 60% 80% 100% Frequency Cumulative Frequency Pareto Chart
- 24. Six Sigma: FocusArea Process Management helps us maintain good results as we perform our Mission. Strategic planning helps us “focus” on key projects to reach our Vision. Process Improvement using the DMAIC process helps us fix work problems and improve our Performance. To be successful as an organization, we must learn how to effectively apply ALL three (3) areas. Strategic Planning Process Improvement Process Management Six Sigma
- 25. Two components ofSix Sigma 1. Process Power 2. People Power
- 26.
- 27. Design For SixSigma (DFSS): DMADV • 6 Sigma uses DMADV method for development of new products • Define design goals that are consistent with customer demands and the enterprise strategy. • Measure and identify CTQs • Analyze to develop and design alternatives, • Design details, optimize the design, • Verify the design, set up pilot runs, implement the production process
- 28. What is DFSS? •Design For Six Sigma (DFSS) – A rigorous approach to the design of a new product or service – The goals: • Reduce delivery time and development cost and • Increase the effectiveness of the product or service and hence customer satisfaction. – Key elements: • A customer focus and the ability to measure quality using the six sigma metric and philosophy • Appropriate design that delivers excitement without failure, and does so to budget and expectation • An overarching business strategy and management that brings out the very best for organic growth, through the repeated and regular launch and successful development of new products and services
- 29.
- 30. DMAIC - Simplified •Define – What is important? • Measure – How are we doing? • Analyze – What is wrong? • Improve – Fix what‟s wrong • Control – Ensure gains are maintained to guarantee performance • A logical and structured approach to problem solving and process improvement • An iterative process (continuous improvement) • A quality tool with focus on change management
- 31. Six Sigma: DMAIC ProcessImprovement utilizes a 5 step problem solving DMAIC process: 2) Measure 5) Control 4) Improve 1) Define 3) Analyze Display Problem ... WHAT WHERE WHEN WHO OUTCOME Stratify Problem ... 1. Define 2. Measure 3. Analyze 4. Improve Results Standardization Future Plans Checksheet or Spreadsheet Line Graph Month GOOD Target GAP % Histogram n=63 21 Late n=21 Pareto B C A D PROBLEM STATEMENT Identify & Verify Root Cause ... Identify & Implement Countermeasures ... Countermeasures MatrixSingle Case Bore Contingency Table FISHBONE REASON/ FACTORA B C 1 CASE 2 3 4 5 A Present A Absent EffectCause Problem No Problem 35 3 4 25 A Scatter Diagram Cause "C" Effect B E F F E C T PROBLEM STATEMENT ROOT CAUSE A C A1 A2 C1 C2 4 4 16 Y 5 4 20 Y 3 1 3 N EFF FEAS OVRL ACTN? 3 2 6 N CM BARRIERS AIDS High A1a A1b HOW WHO 1. Dev 2. Impl WHEN CONTROL CHARTS FLOW CHART LESSONS LEARNED WHAT'S NEXT? GOOD % CM IMPL'M Before After n=21 n=10 OverallEffect B C A D C B A D Target Standard Action Plan 5. Control 4. Improve
- 32. Focus of SixSigma • Y • Dependent • Output • Effect • Symptom • Monitor • X1 . . . Xn • Independent • Input-Process • Cause • Problem • Control f(X)Y= The focus of Six sigma is to identify and control Xs
- 33. Path to SixSigma Y Xs Measure Analyze Improve Control Process Characterization Process Optimization Goal: Y = f ( x ) DefinePractical Problem Statistical Problem Statistical Solution Practical Solution
- 34. The Approach toDMAIC Practical Problem Statistical Problem Statistical Solution Practical Solution
- 35. Methodology D Define M Measure A Analyze I Improve C Control Identify and statethe practical problem Validate the practical problem by collecting data Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solution Convert the statistical solution to a practical solution
- 36. Define VoC - Whowants the project and why ? The scope of project / improvement Key team members / resources for the project Critical milestones and stakeholder review Budget allocation D Define M Measure A Analyze I Improve C Control
- 37. Measure Ensure measurement systemreliability Prepare data collection plan - Is tool used to measure the output variable flawed ? - Do all operators interpret the tool reading in the same way ? - How many data points do you need to collect ? - How many days do you need to collect data for ? - What is the sampling strategy ? - Who will collect data and how will data get stored ? - What could the potential drivers of variation be ? D Define M Measure A Analyze I Improve C Control Collect data
- 38. Analyze Understand statistical problem Baselinecurrent process capability Define statistical improvement goal Identify drivers of variation (significant factors) D Define M Measure A Analyze I Improve C Control
- 39. Analyze – IdentifyDrivers of Variation Root Cause Analysis (fish bone) • A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process • Visualize the potential relationship between causes which may be creating problems or defects ProblemBackbone Primary Cause Secondary Cause Root Cause
- 40. Analyze – IdentifyDrivers of Variation Control – Impact Matrix • A visual tool that helps in separating the vital few from the trivial many Vital Few High Control – High Impact Cost Ineffective Low Control – High Impact Cost Ineffective High Control – Low Impact Trivial Many Low Control – Low Impact Control Impact
- 41. Analyze – IdentifyDrivers of Variation Pareto Chart • Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors) 0 5 10 15 20 25 30 35 L K A F B C G R D 0% 20% 40% 60% 80% 100% Frequency Cumulative Frequency
- 42. Analyze – IdentifyDrivers of Variation Process Map Analysis • Visually highlights hand off points / working relationships between people, processes and organizations • Helps identify rework loops and non value add steps VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer
- 43. Improve Map improved process Pilotsolution Identify operating tolerance on significant factors D Define M Measure A Analyze I Improve C Control
- 44. Control Ensure measurement systemreliability for significant factors Improved process capability Sustenance Plan - Is tool used to measure the input / process variables flawed ? - Do all operators interpret the tool reading in the same way ? - Statistical Process Control (SPC) - Mistake Proofing - Control Plan D Define M Measure A Analyze I Improve C Control
- 45. Two components ofSix Sigma 1. Process Power 2. People Power
- 46. Six Sigma: PeoplePower • High Level Executive committed to Six Sigma Success • Knowledgeable in Six Sigma Process • Assign key individuals to the Champion/Sponsor Position. • High Level Executive • Provide resources for the job • Assist Black Belts to select projects • Benchmark with other organizations • Resource for the Black Belts-experts • Experts on the Six Sigma process • Works with Champion to select projects • Leaders of the Six Sigma process • Bring the project vision to reality • Solely dedicated to Six Sigma Program • Oversee Green Belts • Project Leaders • Support the Black Belt to complete the project Executive Leader Champion/Sponsor Master Black Belt Black Belt Green Belt Green Belt Green Belt
- 47. Six Sigma: AProject
- 48. Six Sigma: AProject Customer Satisfaction Through Claim Amount D Define M Measure A Analyze I Improve C Control
- 49. Six Sigma: AProject D Define M Measure A Analyze I Improve C Control Strong Relationship (10) Some Relationship (5) Weak relationship (2) No mark, no relationship (0) Relative importance S NO 1 10 2 10 3 8 4 5 5 10 70 150 200 70 150 150 150 3 2 1 3 2 2 2 RELATIONSHIPS CUSTOMER NEEDS Absolute Relative Driveability Issue Safety Features Functioning Part Availability Based On Order Good Exterior Look No Rust of Parts < 100 Technical Importance Target Value Paintquality Partspecerror Partmiss Forwarddriving gear Reversedriving gear ABS Airbag Quality Function Deployment (QFD) For Customer Problems
- 50. Six Sigma: AProject S. N CUSTOMER PROBLEM CNT CLAIM AMT / COUNT TOTAL CLAIM AMT 1 ABS unit not working 10 $ 300 $ 3000 2 Reverse gear slippage at 30 kph 5 $ 200 $ 1000 3 Paint claims 10 $ 100 $ 1000 4 No air bag label (spec error) 50 $ 10 $ 500 5 Sun visor spec error 5 $ 50 $ 250 TOTAL $ 5750 TOTAL CLAIM AMOUNT 1 2 3 4 5 Top – 5 Claim Details D Define M Measure A Analyze I Improve C Control
- 51. Six Sigma: AProject D Define M Measure A Analyze I Improve C Control Cause & Effect Diagram (Fish Borne Diagram) All the Top-5 Problems (as per QFD) have been analyzed through Cause & Effect Diagram (Fish Borne Diagram).
- 52. Six Sigma: AProject D Define M Measure A Analyze I Improve C Control Cause & Effect Diagram (Fish Borne Diagram) Cause & Effect Diagram (Fish Borne Diagram)
- 53. Six Sigma: AProject D Define M Measure A Analyze I Improve C Control Cause & Effect Diagram (Fish Borne Diagram) Cause & Effect Diagram (Fish Borne Diagram)
- 54. Six Sigma: AProject D Define M Measure A Analyze I Improve C Control • Changing machine procedure to incorporate ABS option in Roll & Brake machine. (Refer Annexure – A) • Incorporating Reverse gear checking method at Road Test. (Refer Annexure – B) • Creating work standard for all areas to avoid miss outs. (Refer Annexure – C) • Training procedure & skill requirement for all areas to identify skill level of technicians. (Refer Annexure – D)
- 55. Six Sigma: AProject D Define M Measure A Analyze I Improve C Control Refer Annexure – E (Creating Mistake proofs / Updating Work standard for all areas to avoid miss outs) Based on the work standard, training given to all technicians who are working in the designated area. Also in the control plan, multi-inspection mentioned in some areas to avoid miss out.
- 56. For More detailsVisit http://www.mybskool.com Email us – support@mybskool.com Call us - +91-9840048418