This document provides an overview of the Six Sigma initiative for business excellence. It discusses key Six Sigma concepts like defining, measuring, analyzing, improving and controlling processes. It also outlines the deployment structure for Six Sigma, including Champions, Black Belts, Green Belts and others. Tools for Six Sigma are presented, as well as examples of how Six Sigma can be applied in both large enterprises and small-medium enterprises. The relationship between Six Sigma and other initiatives like strategic management, balanced scorecard and financial ratios is also examined.
six sigma is a vibrant topic in quality management
i had made this one in my total quality management subject in mba.
u can take this but leave a comment if u like it
In dis Doc. I ve covered all the phases of DMAIC methodology with Charts and Figures. And also I ve included a Case Study for easy Understanding.
To get this doc. send me a mail . . . bharath.ispat@gmail.com
Lean, Six Sigma, ToC using DMAIC project managementSimon Misiewicz
This presentation guides you through the DMAIC methodology that encompasses Lean, Six Sigma and ToC initiatives. There are five key stages of DMAIC. D = Design, where do you want to be? Create and communicate your vision, mission and objectives. M = Measure. What is to be measured and how? A = Analyse, what business process is to be analysed. Which process if changed would reap the biggest benefit? I = Improve, where are the improvements going to be made, what are the ideas and how will they be evaluated against your key objectives? C = Control, how are you going to control your process and people within it to ensure that they stick to the new way of doing things, what error proofing techniques can be built? What project management controls will you use? This presentation will guide you. Please contact me should you have any questions on simon@optimise-gb.com. Many thanks Simon Misiewicz
Webinar - Using six sigma tools to analyze ehs performance metricsProcessMAP Corporation
This interactive webinar will give you insights on:
1. Understanding the importance of having an EHS MIS to capture vital EHS data.
2. Analyzing the data to see if your changes are achieving results.
3. The importance of being “graphical” when reporting upwards in your organization.
4. Analyzing the data to predict when you may be out of compliance.
5. Learning four key Six Sigma quality tools to help analyze your EHS data.
And more….
six sigma is a vibrant topic in quality management
i had made this one in my total quality management subject in mba.
u can take this but leave a comment if u like it
In dis Doc. I ve covered all the phases of DMAIC methodology with Charts and Figures. And also I ve included a Case Study for easy Understanding.
To get this doc. send me a mail . . . bharath.ispat@gmail.com
Lean, Six Sigma, ToC using DMAIC project managementSimon Misiewicz
This presentation guides you through the DMAIC methodology that encompasses Lean, Six Sigma and ToC initiatives. There are five key stages of DMAIC. D = Design, where do you want to be? Create and communicate your vision, mission and objectives. M = Measure. What is to be measured and how? A = Analyse, what business process is to be analysed. Which process if changed would reap the biggest benefit? I = Improve, where are the improvements going to be made, what are the ideas and how will they be evaluated against your key objectives? C = Control, how are you going to control your process and people within it to ensure that they stick to the new way of doing things, what error proofing techniques can be built? What project management controls will you use? This presentation will guide you. Please contact me should you have any questions on simon@optimise-gb.com. Many thanks Simon Misiewicz
Webinar - Using six sigma tools to analyze ehs performance metricsProcessMAP Corporation
This interactive webinar will give you insights on:
1. Understanding the importance of having an EHS MIS to capture vital EHS data.
2. Analyzing the data to see if your changes are achieving results.
3. The importance of being “graphical” when reporting upwards in your organization.
4. Analyzing the data to predict when you may be out of compliance.
5. Learning four key Six Sigma quality tools to help analyze your EHS data.
And more….
This presentation describes six sigma as a business strategy for improving capability, reliability and responsiveness of the processes for achieving business results.
nkchawla@gmail.com
Six sigma originally developed in 1986 by Motorala, the business
management strategy is now used in many different industries in an effort
to improve the quality of products or services produced by the business
through the removal of effects and errors. The strategy involves creating
groups of people within the business or organisation who have expert
status in various methods, and then each product is carried out according
to a set of steps in an effort to reach specific financial milestones. A six
sigma process is defined as one in which 99.99966% of products created
are expected to be statistically free from defects.
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SSiixx SSiiggmmaa IInniittiiaattiivvee
Driver for Business Excellence
2. 2 of
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AAggeennddaa
Revenue & Cost & Profit
Hard & Soft Saving
What is Six Sigma?
Background
Basic Definitions
Strategic Perspective
Statistic Perspective
Deployment Structure
Champion
Black Belt
Green Belt
Others
3. 3 of
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AAggeennddaa
Tools for Six Sigma
Six Sigma for Small & Medium Enterprise
(SME) and Large Enterprise in Thailand
Six Sigma & Other Initiatives
Strategic Management
Balanced Score Card
Financial Ratios
Benchmarking
Lean Measures
QCC/Kaizen
4. 4 of
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RReevveennuuee && CCoosstt && PPrrooffiitt
5. 5 of
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IIddeeaall SSiittuuaattiioonn
Year 1 Year 2 Year 3 Year 4
Profit
Cost
Revenue
6. 6 of
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AAccttuuaall SSiittuuaattiioonn
Year 1 Year 2 Year 3 Year 4
Profit
Cost
Revenue
7. 7 of
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WWoorrssee SSiittuuaattiioonn
Year 1 Year 2 Year 3 Year 4
Profit
Cost
Revenue
8. 8 of
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SSttrraatteeggyy ffoorr WWoorrssee SSiittuuaattiioonn
Long Term Strategy:
New Customers/Market (Local/Global)
New Products/Services
Etc.
Short Term Strategy:
Cost Saving
Improve Productivity
Etc.
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HHaarrdd SSaavviinngg
These savings must go to the bottom line to
increase profit
Reduce Headcount –
Remove from payroll
Replace someone, in another area, that would
have been hired anyway;
More pieces –
Need the extra pieces
Extra pieces can reduce overtime or manpower;
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SSoofftt SSaavviinngg
Any savings that are not Hard savings
Transfer Headcount –
A person’s time was saved on that process so that
he/she could spend more time on another
process
There is no reduction to payroll.
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SSiixx SSiiggmmaa
Strategic Tool for
Cost Reduction
Process Improvement
Customer Satisfaction
13. 13 of
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SSttaarrtt aatt MMoottoorroollaa
In 1980s, Six Sigma began at Motorola
As a statistical measures of process performance
“Six Sigma Quality Program”
Target to achieve six sigma level in five years.
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AAddoopptteedd bbyy OOtthheerrss
In 1990s, Six Sigma approach was broadened by
General Electric (GE) and AlliedSignal
Then..
DuPont
Dow Chemical
3M
Ford
American Express
Companies in Europe and Pacific Rim
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SSiixx SSiiggmmaa aatt GGEE
In 1997, the GE annual report states that
Six Sigma delivered more than $300 million to its
operating income
This number increased to $750 million in 1998
Today, GE has
~ 3,900 Full-Time Black Belts and Master Black Belts
~ 60,000 Green Belts
$1 = 43 Baht $750 million = 32,250,000,000 Baht
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SSiixx SSiiggmmaa TTooddaayy
Six Sigma is viewed as
A business strategy and methodology for
Improving process performance
Increase customer satisfaction
Improve bottom line
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WWhhyy SSiixx SSiiggmmaa??
Increasing PROFIT by Reducing COST
The Bottom Line Focus
Gets the attention and support of senior
executives and financial controllers.
Makes Six Sigma different from other
improvement approaches.
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SSttrraatteeggiicc PPeerrssppeeccttiivvee
Definition :
It is a Process Improvement Initiative
It is Customer focused
It is data driven - decisions are based on facts
Involves the use of statistical tools
It must have a bottom-line impact
Paying back all the training.
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SSiixx SSiiggmmaa PPrroocceessss
Define - Measure - Analysis - Improve - Control
D-M-A-I-C
21. AA PPrroocceessss ffoorr IImmpprroovviinngg OOtthheerr PPrroocceesssseess..
21 of
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Input
Feedback/Information/Specification
Product/
Business/
Support
Process
Internal/External
Suppliers
Output
Internal/External
Customers
Defects
Measures/Indicators
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SSttaattiissttiicc PPeerrssppeeccttiivvee
What is Sigma a ?
The Greek letter
A statistical unit of measurement
Used to define the standard deviation of a
population
Measures the variability or spread of the data
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HHooww ggoooodd iiss mmyy pprroocceessss??
Sigma Level (ns):
The number before “s” indicates how much of the
data falls within the customers’ requirements
The higher the process sigma, the more of the
process outputs meet customers’ requirements (the
fewer the defects).
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DDeeffeeccttss PPeerr MMiilllliioonn UUnniittss
ns (Sigma Level) & Defect Rate
PPM = (Defect) Part Per Million
Sigma Level % of Output that meet
Customer’s Requirement Defect (PPM)
6s 99.99966% 3.4 PPM
4s 99.379% 6,210 PPM
2s 69.146% 308,538 PPM
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GGooaall ooff SSiixx SSiiggmmaa MMeetthhooddoollooggyy
Six Sigma methodology focuses on shifting process output average from A
to B and reducing process output variation from B to C to achieve Six
Sigma Level.
Customer Requirement Zone
B A
Acceptable Output
C
Defect Zone
Unacceptable Output
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CCoorree VVaalluueess
The core values of Six Sigma methodology is
that..
if you look at your organization as an integration of
business processes
and can measure the defects in those processes,
you can systematically figure out ways to eliminate
them to achieve
zero-defect performance level
and bottom-line profitability.
27. HHooww ddooeess tthhee SSiixx SSiiggmmaa PPrroocceessss wwoorrkk??
Work on Issues that will Transfer Money to the
Bottom Line
Focus on Specific Area or Process
Top-Down
Work in 4-6 Month Time Segments
Program/Project must be Sustainable in the Future
Changes will Effect Everyone in the Organization
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EExxaammpplleess ooff SSiixx SSiiggmmaa PPrroojjeeccttss
In manufacturing organization:
Reducing inserts/tools costs in machining
process:
Using t-Test or DOE to find the optimal combination of feed,
speed, coolant concentration, and coolant flow rate to reduce
tools/inserts consumption.
In a service organization:
Reducing overtime payment in accounting
month-end-closing process.
Reducing lead-time of the contract review
process:
more responsive to clients
and reduce costs.
29. OOtthheerr bbeenneeffiittss ffrroomm ddeeppllooyyiinngg SSiixx SSiiggmmaa....
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Improve capacity and output
Improve overall customer satisfaction
Increase productivity and efficiency
Reduce total defects and cycle time
Decrease work-in-process
Improve process flow
ROI for Black Belt training
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DDeeppllooyymmeenntt SSttrruuccttuurree
c.
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SSeenniioorr MMaannaaggeemmeenntt TTeeaamm
Strategy & Infrastructure Building
Set short and longer-term direction for Six Sigma
implementation (now)
Identify Six Sigma objectives during Strategic
Planning process (yearly)
Resource planning (yearly)
Review Six Sigma results (monthly)
Communication and Recognition
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CChhaammppiioonn
Priority & Deployment
Provide Project Management.
Select projects that support business strategy and
achieving performance objectives.
Manage for results.
Champion improvement projects.
Communicate business needs.
Review and mentor Black Belts.
Reward success.
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BBllaacckk BBeelltt
Deliver Improvement Results (Big Projects)
Full time
Lead & Train Teams
Responsible for the Six Sigma process of
Improving key processes that affect customer
satisfaction and bottom line profitability
Utilizing the 6 Sigma tools (advanced tools)
Help Green Belts to analyze complex data
Report results back to the Champions.
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BBllaacckk BBeelltt//EEmmppllooyyeeee RRaattiioo
In general, the minimum numbers of Black Belt
in your organization is:
1 Black Belt : 100 Employees
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SSaavviinngg ffrroomm BBllaacckk BBeelltt PPrroojjeeccttss
In USA
$125,000 to $250,000
per year/Project
$1 = 43 baht 5,375,000 – 10,750,000 baht
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GGrreeeenn BBeelltt
Deliver Improvement Results (Small Projects)
Part-time
Lead Teams
Responsible for the Six Sigma process of
Improving key processes that affect customer
satisfaction and bottom line profitability
Utilizing the 6 Sigma tools (basic tools)
Report results back to the Champions.
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SSaavviinngg ffrroomm GGrreeeenn BBeelltt PPrroojjeeccttss
In USA
$50,000 - $75,000
per year/Project
$1 = 43 Baht 2,150,000 – 3,225,000 Baht
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OOtthheerrss
Support Teams
Master Black Belts
Other Belts
Yellow
Grey
White
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DDeeppllooyymmeenntt SSttrruuccttuurree
Senior
Management
Team
Champions
Support
Teams
Master
Black Belts
Support
Teams
Black Belts
Green Belts
CEO
Process
Owners
Finance
IT
HR
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EExxaammpplleess ooff KKeeyy TToooollss
Process Mapping & Value Analysis
Failure Mode & Effect Analysis
Pareto Analysis
Measurement Systems Analysis
Statistical Process Control
t-Test, z-Test, Data Comparison
Design of Experiment (DOE)
Financial Analysis
Risk Analysis
Etc.
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SSiixx SSiiggmmaa
for
Small & Medium Enterprise (SME)
and
Large Enterprise
in Thailand
43. 43 of
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LLaarrggee EEnntteerrpprriissee
Country Manager
Plant A Manager Plant B Manager Financial Controller Mkt Develop Mgr
Production Mgr Engineer Mgr
Line 1 Sup Line 2 Sup Maintenance
Quality Mgr
Product Eng
Process Eng
SQE
CQE
Production Mgr Engineer Mgr Quality Mgr
Sup 1
Sup 2
Sup 3
Product
Process
SQE
CQE
Accounting MKT
Sales
Senior Management Team
Process
Owners Champions
Master
Black Belts
Champions
Support
Teams
Support
Teams
Black Belts
Green Belts
CEO
Finance
IT
HR
Support
Teams
Support
Teams
Black Belts
Green Belts
Champions
Support
Black Belts Teams
44. 44 of
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SSMMEE
Owner
General Manager
Production Mgr Store Mgr.
Line Sup Maintenance
Accounting Mgr
Officer Officer
Officer
Business
Owners
Account
Champion
Green Belt
Team
Black Belt
Process
Owners
Green Belt
Team Process
Owners
45. 45 of
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SSiixx SSiiggmmaa && OOtthheerr IInniittiiaattiivveess
46. SSiixx SSiiggmmaa aanndd SSttrraatteeggiicc MMaannaaggeemmeenntt
TriView National Bank’s Strategic Planning Process (2001 Baldrige Program’s Case study)
46 of
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1
2
3
47. 47 of
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1
2
3
TQM SSttrraatteeggiicc PPllaannnniinngg
TQM Strategic Planning at Solectron – Baldrige Winner
50. 50 of
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SSiixx SSiiggmmaa aanndd FFiinnaanncciiaall RRaattiiooss
A standard of comparisons of items on the
company's financial statements rather than a
direct reading of the financial figures.
Why do you need the Financial Ratios?
Information Sharing
Benchmarking
Comparison Data
51. 51 of
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EExxaammpplleess ooff FFiinnaanncciiaall RRaattiiooss
Sales Growth
Definition: Percentage increase (or decrease) in sales
between two time periods.
Formula: ( Current Year's sales - Last Year's sales )
Last Year's sales
Net Profit Margin
Definition: Shows how much profit comes from every
dollar of sales.
Formula: Net Profit/Total Sales
Inventory Turnover
Definition: Number of times that you turn over (or sell)
inventory during the year.
Formula: Cost of Goods Sold/Average Inventory
52. 52 of
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SSiixx SSiiggmmaa aanndd BBeenncchhmmaarrkkiinngg
Benchmarking process and data are key
requirements in Baldrige Program (Thailand
Quality Award Program.)
They are very important inputs for the Strategic
& Business Planning Process.
How can you plan and set objectives without the
comparison/benchmark data?
How can you ensure that the Six Sigma objectives
that you set are:
Achievable within specific time-frame?
Reasonable – not too easy?
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SSiixx SSiiggmmaa aanndd LLeeaann MMeeaassuurreess
Lean Manufacturing focuses on:
Waste Reduction
Process Cycle-Time Reduction
Line Balancing & WIP
Material Flow/Kanban
Single Minute Exchange of Dies
Lean Measures
Evaluate/Monitor Entire Key Production Processes.
Foundation for Six Sigma
Project Selection
Measure/Analyze Phases
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SSiixx SSiiggmmaa aanndd QQCCCC//KKaaiizzeenn
Quality Control Circle & Kaizen Teams
Continuous Improvement Activities
Part of JIT/Lean
Employee Involvement
Use Basic Analytical Tools (7QC Tools)
Bottom-Up
PDCA
Support Six Sigma
Support Teams for Green Belts/Black Belts
Pre-requisite Program for Green Belts/Black Belts
55. 55 of
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RR&&AA’’ss BBuussiinneessss EExxcceelllleennccee MMooddeell
Business
Excellence
56. 56 of
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WWhhaatt TTrraaiinniinngg DDoo YYoouu NNeeeedd??
57. TThhee 11sstt WWaavvee ooff TTrraaiinniinngg
57 of
60
AAlliiggnn SSiixx SSiiggmmaa TTrraaiinniinngg PPllaann
wwiitthh OOrrggaanniizzaattiioonn SSttrraatteeggyy
Black Belt
Training
Strategic
Objectives Executive
Overview
Project
Selection
Champion
Training
Organizational/Strategic Level
Official
Project
Charter
Champion/
Black Belt
Green Belt
Training
Official
Project
Charter
Champion/
Green Belt
Operational/Deployment Level
1
2
3
4
58. 58 of
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Payback PPeerriioodd CCaallccuullaattiioonn
Payback Point
Assumption: Monthly Hard Saving = 25,000 Baht/Month/Project
59. 59 of
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RR&&AA’’ss TTrraaiinniinngg PPaacckkaaggee
Objectives:
Develop Six Sigma Organization
Not Individual Black Belt Development
Use Strategic Planning Process to Drive and
Maintain Six Sigma Process.
Focus on Senior Management and Champion
Program
Develop Six Sigma Infrastructure
Project Selection, Management, and Review
Long-Term Strategic Partnership with Clients