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Six sigma overview
- 1. Six Sigma Overview Six Sigma Overview 1
- 2. Objective In This Module We Will…. • Understand the objective of Six Sigma • Understand the Six Sigma measurement • Gain an understanding of the Six Sigma terminology • Introduce the DMAIC process/methodology • Understand the objective of each of the 5 phases (DMAIC) of Six Sigma methodology • Discuss the differences between Six Sigma and other corporate initiatives. Six Sigma Overview 2
- 3. Is 99% Good ? Six Sigma Overview 3
- 4. 99% Accuracy Practical Meaning of “99% Good” • 20,000 lost articles of mail per hour • Unsafe drinking water almost 15 minutes each day • 5,000 incorrect surgical operations per week • 2 short or long landings at most major airports each day • 200,000 wrong drug prescriptions each year • No electricity for almost 7 hours each month 99% Is NOT Good Enough Anymore Six Sigma Overview 4
- 5. 6 σ – The Measurement 99.0% = 3.85 σ 99.9996% = 6 σ Is there really a big difference between 99.0% & 99.9996%? Six Sigma Overview 5
- 6. Facts • All work is a process • All processes have variation and waste • Variation causes defects waste causes loss • Processes can be improved by understanding the nature of the variation and waste Six Sigma Overview 6
- 7. Methodologies ISO Lean DFSS Waste Elimination Design For Growth Six Sigma Variation Elimination Six Sigma Overview 7
- 8. Lean Philosophy Anything the customer will not pay for is Non-Value Added 80% of Non-Value Added is waste Six Sigma Overview 8
- 9. Six Sigma Culture 6σ Methodology Process Project Focus Common Language DMAIC Department Link DFSS (IDOV or DMADV) Change Tool Kit Roles and Defect Elimination Commitment Variation Reduction Six Sigma Overview 9
- 10. Change Management • New Way of Looking at Problems Culture 6σ Methodology • Fact Based Decision Making Common Language DMAIC Department Link Tool Kit • Not Relying on “Gut Feel” Change Change Roles and Commitment Defect Elimination Variation Reduction • Change Management Six Sigma Incorporates Change Management Six Sigma Overview 10
- 11. Six Sigma Methodology is Change Six Sigma Is… “Six Sigma Is Not… • Structured Problem • Gut Feel Solving • Reliance On “Best” • Fact Based Decision Customer Making • That Won’t Work • Rigorous Here” Methodology • Opinion • Management By Fact • “We’ve Tried That” • Statistically Based • Firefighting • Team Driven Six Sigma Overview 11
- 12. The Methodology • Scalable to the depth Culture 6σ Methodology Methodology and breadth of the organization • Applicable to all Common Language DMAIC Tool Kit business regardless Department Link Change Defect Elimination of size or industry Roles and Commitment Variation Reduction • Project focused depending upon the strategic direction of the organization Six Sigma Overview 12
- 13. Getting to Six Sigma How far can insp ection get us? Six Sigma Overview 13
- 14. Inspection Exercise Instructions: Count the number of times the 6th letter of the English Alphabet appears on the next slide. Ff Six Sigma Overview 14
- 15. The MacFeenie Company was founded by Fannie MacFeenie of Fredericksburg, Florida. The MacFeenie Company finds first the finest freshest fish for feeding hungry people. The MacFeenie Company can compete with Florida’s finest fish foundries because Fannie MacFeeneie who is the founder of the company deployed Six Sigma five years ago. Now The MacFeenie Company finds defects caused by variation and removes them from processes. This helps the MacFeenie Company satisfy their customers first, thereby facilitating valuable market share from fierce fish foundry competition. Six Sigma Overview 15
- 16. The MacFeenie Company was founded by Fannie MacFeenie of Fredericksburg, Florida. The MacFeenie Company finds first the finest freshest fish for feeding hungry people. The MacFeenie Company can compete with Florida’s finest fish foundries because Fannie MacFeenie who is the founder of the company deployed Six Sigma five years ago. Now The MacFeenie Company finds defects caused by variation and removes them from processes. This helps the MacFeenie Company satisfy their customers first, thereby facilitating valuable market share from fierce fish foundry competition. Six Sigma Overview 16
- 17. F Exercise Sigma Level Number Missed DPMO Sigma Value* Yield(%) 1 27027 3.4 97.3% 3 81081 2.9 91.9% 5 135135 2.6 86.5% 8 216216 2.3 78.4% 10 270270 2.1 73.0% 12 324324 1.95 67.6% 15 405405 1.75 59.5% Total # F (f): 37, Opportunity: 1 slide DPMO Calculations = (# missed/Total # F) * 1,000,000/# Opportunities Sigma Calculation: Normal Distribution Z Table with 1.5 sigma shift Yield (%) = # Correct / Total # F NOTE: Sigma Level and Yield above are approximate short term calculations Six Sigma Overview 17
- 18. The Goals Of Six Sigma Defect Reduction Yield Improvement Improved Customer Satisfaction Higher Net Income Six Sigma Overview 18
- 19. Six Sigma – The Methodology Six Sigma Overview 19
- 20. Process Vs. Customer LSL USL Defects Acceptable Defects Customer Requirement Process Performance Process Performance And Customer Requirement Often Do Not Match Six Sigma Overview 20
- 21. 6 Sigma – The Basic Process 1. Understand the Customer Requirements 2. Reduce Variation Waste Within The Process To Reduce the Defects 3. Center the Process Around The Customer Requirements 4. Control The Process Six Sigma Overview 21
- 22. DMAIC - 5 Phase Approach Define Measure Analyze Improve Control The Six Sigma Projects Are Completed By Following A 5 Phase Approach Six Sigma Overview 22
- 23. Define Phase Objectives Define • Identify customer requirements • Identify corresponding process Measure • Determine relationship between process and customer Analyze • Scope project • Identify problem statement Improve • Identify team • Develop project contract Control Six Sigma Overview 23
- 24. Measure Phase Objectives Define • Identify process input and output variables Measure • Identify steps in process • Remove waste from process Analyze Improve Tools Process Mapping Control Six Sigma Overview 24
- 25. Analyze Phase Objective Define • Identify sources of variation Measure • Identify sources of waste • Identify key variables Analyze Improve Tools C&E Fishbone Control Six Sigma Overview 25
- 26. Improve Phase Objective Define • Optimize process by making Measure improvements Analyze Improve Tools Brainstorming Control Six Sigma Overview 26
- 27. Control Phase Objective Define Measure • Control the optimized process Analyze Improve Tools Standard Operating Procedure Control Mistake Proofing Six Sigma Overview 27
- 28. Six Sigma Tool Box Define Measure Analyze Improve Control Benchmarking Value Stream Fishbone Modeling SPC Charts Map Diagrams Process Flow Cause & Effect FMEA Tolerance Performance Mapping Control Metrics Flow charts Defect Metrics Root Cause Defect Control Multiple Analysis Regression Project Charter Statistical ANOVA Design Train as a Team Analysis Changes Set Up a Plan Data Collection Cause & Effect Piloting & Guidelines Diagram for Team Run Charts, Time Series Chars, Time Value Charts, Pareto Charts Review Sampling Scatter Plots Best Practices Existing Data SIPOC Six Sigma Overview 28
- 29. Six Sigma Infrastructure Six Sigma Overview 29
- 30. Enterprise Wide Six Sigma Roles Executives Project Team Senior Members Champion All departments have processes 6σ Green All processes can be improved Project Belts All departments should Champion implement Six Sigma Most “low hanging fruit” can be found outside of manufacturing Black Belts Finance Champion Six Sigma Overview 30