Upcoming SlideShare
×

# Overview of Six Sigma

1,615 views

Published on

Six Sigma Green Belt is one of the most coveted quality management certification for professionals. Six Sigma Green Belt certification is a globally acknowledged certification. To make your Six Sigma certification goal achievable, Simplilearn brings to you online Six Sigma Green Belt exam prep program that gives you the liberty to study at your pace and from your own place. This presentation of Six Sigma Green Belt is based on CSSGB exam syllabus and is prepared by our highly qualified and certified trainers. Important Six Sigma topics are covered in this presentation giving you a complete overview of Six Sigma and its implementation on organizations. Each slide is prepared as per the Body of Knowledge (BOK), the guide for Six Sigma Green Belt exam. Understand Six Sigma Green Belt topics and improve your knowledge and confidence towards attaining your Six Sigma certification.

Published in: Education
4 Likes
Statistics
Notes
• Full Name
Comment goes here.

Are you sure you want to Yes No
• Be the first to comment

Views
Total views
1,615
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
76
0
Likes
4
Embeds 0
No embeds

No notes for slide
• Quality – slides on quality,
• Feedback may or may not mean a change; depends on what the feedback shows
• Explain that the RTY is based on Motorola’s assumption of a shift in the mean, and still be 4.5 sigma from a spec limit
• Significant digits can be no more than one above the form of the original data. Certainly, more precision can be calculated but it is a false precision not supported by the format of the data. Using the mathematical principle of significant digits (or significant figures) would have us writing the mean as “12” and the std. deviation as “2” (rounded from 2.496664…). Thus, Z-upper and Z-lower would be (25-12)/2=7 and (12-0)/2=6. The example shows the process to have Six Sigma levels, despite one datum being outside the upper spec limit. (In training, this would be difficult to explain how a Six Sigma level process produced 33,333 dpmo instead of 3.4 dpmo.)Most of us don’t follow the principle in literal fashion, however. There is a proviso that we should maintain some additional level of digits during calculations to avoid rounding errors. In order to use 12.3667 and 2.845 as the mean and std. deviation respectively with the principle of significant digits, the data would have to be recorded as 27.0000, 11.0000, 13.0000,….12.0000 which has no practical meaning since we’re counting whole units. When data is recorded as it is on the slide, we tend to allow one additional decimal place as shown to balance the “precision” of significant digits and the reduction of error during the calculations (sort of like balancing the alpha and beta risks).
• Consistent verb formThere are more ways than pokayoke to eliminate mistakes—such as use of checklists, warning lights, labels, etc. They don’t prohibit mistakes as well as pokayoke but they help eliminate mistakes. A robust product or process is an option when input and output variables can’t be controlled sufficiently—e.g. redundant components on an electrical assembly to prevent a catastrophic failure even though the reliability of a single component is not sufficient; medicine often treats symptoms so a person can function without curing the disease (AIDS e.g.).
• “…reducing Costs…” is redundant. I don’t know how you would reduce costs and not improve profits, unless it’s a pseudo-reduction, such as a reduction of a partial person but the person is not reassigned to more productive work for that portion of their time.
• Other two quality approaches are Six Sigma and Lean. We will discuss about this in next chapters.
• In this slide we start with the history of quality movements, before we get into the concepts of Six Sigma
• Not sure that the expected profit for a single project is a sum of all the products of profit*probability of success. The sum of all the products would be the expected profit for all Six Sigma projects, and wouldn’t help prioritize one project over another.A change in one process can reduce the optimization of another process and still be acceptable, if the reduced effect is less than the gains through the change in the first process. For example, if one person takes an extra five minutes to do some work because he/she has capacity that helps another person get more product out, we might say the first person’s optimization is reduced but the overall system has a gain.
• Plural verb form to match noun ‘number’
• *Bill-of-Lading- A bill of lading (sometimes abbreviated as B/L or BOL) is a document used in the transport of goods by sea. It serves several purposes in international trade, both as transit information, and title to the goods. The Bill of Lading is issued by a carrier, which details a shipment of merchandise, gives title, and requires a carrier to deliver the merchandise to the appropriate party.
• Consider using 9th equipment in blue “A” process for step 1 constraint. Even if 1st equipment produces 75 each of A and B, the 9th equipment cannot process all of the 1st step’s production. The 9th step is where the critically constrained resource is; it will be “Herbie” (from Goldratt’s book The Goal). The overall throughput of the process is constrained by the 9th step; only 70 units of “A” can be produced no matter what we do in Step 2 of TOC. Therefore, we should address the 9th process step in Step 1 of TOC. Your suggestion on this slide will result in 70 of A, 75 of B until you get to Step 3. My suggestion will yield 70 of A and 80 of B (the balance of the 1st equipment’s capacity) resulting in more profit and greater customer satisfaction.
• ### Overview of Six Sigma

1. 1. Six Sigma Training Session I Overview of Six Sigma and Organizational Goals (c) 2011 Simplilearn Solutions Pvt. Ltd.
2. 2. Overview of Six Sigma and Organizational Goals - Agenda1. About CSSGB2. Introduction to Six Sigma3. Six Sigma and Organizational Goals • Value of Six Sigma • Organizational Drivers and Metrics • Organizational Goals and Six Sigma projects4. Lean principles in the organization • Lean Concepts and Tools • Value-added and Non-value-added activities • Theory of Constraints5. Design for Six Sigma (DFSS) in the organization • Quality Function Deployment (QFD) • Design and process failure mode and effects analysis (FMEA, DFMEA & PFMEA) • Roadmaps for DFSS (c) 2011 Simplilearn Solutions Pvt. Ltd.
3. 3. Session I, Lesson 1 Introduction (c) 2011 Simplilearn Solutions Pvt. Ltd.
4. 4. Agenda What is CSSGB? What are CSSGB requirements? About the CSSGB exam (c) 2011 Simplilearn Solutions Pvt. Ltd.
5. 5. What is CSSGB? CSSGB: Certified Six Sigma Green Belt • Is given to an individual and is the first step of Professional Six Sigma Certification • After completing CSSGB, a trainee will be able to use basic statistical tools and will also be able to complete short-run LOB (Line of Business) wise departmental , product line, or business process or service projects Requirements • Need to have at least 2-3 years of work experience in any niche and any sector (Six Sigma is an industry neutral discipline and can be applied to 70 different sectors) • BOK: Body of Knowledge The Body of Knowledge is like the Table of Contents for any Six Sigma Certification Simplilearn’s BOK is based on the lines of ASQ (American Society of Quality, the premier training agency worldwide in the niche of Six Sigma) (c) 2011 Simplilearn Solutions Pvt. Ltd.
6. 6. About CSSGB Exam Exam measures comprehension of CSSGB BOK Total no. of questions: 100, multiple choice questions Duration of the exam: 4 hours Conducted in June and December for locations other than United States • For United States, exam is conducted year round. Details of location and dates are available on ASQ website • For locations other than United States, exam is conducted in 66 countries by international certification affiliates of ASQ in month of June and December. ASQ will make testing arrangements after you register for the exam and choose your preferred location • For countries not in the list, contact ASQ for details • Simplilearn CSSGB examinations can be taken any time post completion of SSGB Training Program CSSGB exam is an Open Book exam. You are allowed to refer to the training module, Online sources, and tables, prescribed by the facilitator. Overview: Six Sigma and the Organization 15 questions Six Sigma - Define 25 questions Six Sigma - Measure 30 questions Six Sigma - Analyze 15 questions Six Sigma - Improve and Control 15 questions (c) 2011 Simplilearn Solutions Pvt. Ltd.
7. 7. Session I, Lesson 2 Introduction to Six Sigma (c) 2011 Simplilearn Solutions Pvt. Ltd.
8. 8. AGENDA What is Six Sigma? Why Six Sigma is useful? How does Six Sigma work? What is Quality? (c) 2011 Simplilearn Solutions Pvt. Ltd.
9. 9. Basics of Six Sigma Highly disciplined process that focuses on developing and delivering near-perfect products and services consistently It is a continuous improvement process, with focus on change empowerment, seamless training of resources and consistent top management support What is a Process? Man Feedback Material Machine Products Management Cause Input (x) Process f(x) Output (y) Effect Services and so on  A process is a series of steps designed to produce a product and/or service as required by the customer  Each input can be classified into: Controllable (C), Non controllable (NC), Noise (N), Critical (X)  Feedback: • Helps in process control • Depending on the nature of output(s), feedback suggests changes to input(s), which again changes the output(s) to match desired specification  Common feature of any such process as shown above is emphasis on inputs and outputs • Input is something put into a process or expended in its operation, to achieve an output or a result • Output is the final product or service delivered to an internal / external customer • Output(s) of a process can be input(s) to another process • If inputs are bad, irrespective of the process, the output would be bad  Management is interested in • Defining points from where data is to be collected • Measurement system to be used • Analysis of the data collected • Use of information generated from the data to improve the process Feedback in real time which triggers changes in inputs, or processes For generation of improvement plan  Other versions of the above diagram are process maps, value stream maps, etc (c) 2011 Simplilearn Solutions Pvt. Ltd.
10. 10. Process for Six Sigma - DMAIC Process for Six Sigma is DMAIC • Define: Define the problem statement and plan the improvement initiative • Measure: Collect data from the process and understand current quality levels/operational performance levels • Analyze: Study the business process and the data generated to understand the root causes of the problem resulting in variations in the process • Improve: Identify possible improvement actions, prioritize them, test the improvements, finalize the improvement action plan • Control: Full scale implementation of improvement action plan, setup controls to monitor the system so that gains are sustained DMAIC is used for process improvements, while DFSS is used for designing a new process, new product, or re-engineering. Detailed text on DFSS in later chapters. (c) 2011 Simplilearn Solutions Pvt. Ltd.
11. 11. What is Six Sigma? Six Sigma thinking: All processes can be Defined, Measured, Analyzed, Improved, and Controlled (phases of Six Sigma). Collection of above phases is popularly known as DMAIC. Any process has inputs (x), and delivers outputs (y). Controlling inputs will control output. This is y=f(x) thinking. Six Sigma as set of tools: Contains qualitative and quantitative tools which Six Sigma practitioners use to drive improvements. Examples include Control Charts, FMEA, Process Mapping, etc. DFSS approach is helpful to design new processes, while DMAIC improves existing process. Metric: Six Sigma quality means 3.4 defects in 1 million opportunities or a process with 99.99966% Rolled Throughput Yield. Assumes a 1.5 sigma shift in the process mean. Sigma: It is the standard deviation of a process metric. Sigma Process Defects per million opportunities Rolled Throughput Yield (σ) 1 697,672 30.2328% 2 308,537 69.1463% 3 66,807 93.3193% 4 6,210 99.3790% 5 233 99.97670% 6 3.4 99.99966%  Opportunity: Every chance for a process to deliver an output that is either “Right” or “Wrong”, as per customer’s specifications. In other words, an opportunity is every possible chance of making an error. Six Sigma projects are, at a lot of times, referred to as opportunities.  Defect: Every result of an opportunity that does not meet customer’s specifications i.e. not falling within Upper Specification Limit (USL) and Lower Specification Limit (LSL).  Specification limits: Limits set by a customer always and not by the business. These limits represent the range of variation the customer can tolerate/accept. (c) 2011 Simplilearn Solutions Pvt. Ltd.
12. 12. From where does Six Sigma come? Example: • Assume a machine produces the following number of bottle caps per minute • The following is the number of caps produced for a period of 30 minutes • 27,11,13,12,13,12,11,12,9,12,12,13,12,12,13,12,12,12,11,10,12,12,12,11,12,13,12,12,12,12 • Mean (μ) Sum of all the data points / Total number of data points (27+11+13+12+13+12+11+12+9+12+12+13+12+12+13+12+12+12+11+10+12+12+12+11+12+13+12+12+12+12) / 30 μ=12.4 • Standard deviation (σ) • Subtract mean from each data points and square them • (27-12.4)2 , (11-12.4)2 , (13-12.4)2 , (12-12.4)2 , ……… • Add them and divide by the total no. of data points = 8.1 • Calculate the square root of the value found in above step = √ (8.1) = 2.8 • σ = 2.8 • The acceptable limits set by the production manager (the customer for the machine) is between 0 bottle caps per minute (LSL), and 25 bottle caps per minute (USL) This means that out of all 30 data points mentioned above, one data point (27) falls outside customer specification • Calculate ZU (Z-Upper) and ZL (Z-Lower) ZU = (USL – μ)/ (σ) = (25 – 12.4) / (2.8) = 4.5 ZL = (μ - LSL)/ (σ) = (12.4 - 0) / (2.8 )= 4.3 Process Sigma levels = Minimum of ZU and ZL = 4.3 We can say that the machine producing bottle caps is at 4.3 Sigma levels. • This could be thought of as an improvement opportunity for the production manager, if he wishes to improve process efficiency to 6 Sigma levels. • The formula for calculating Sigma levels will be referenced in the Measure Phase discussions. Note --- There are multiple ways of calculating Sigma levels, which we will discuss later (c) 2011 Simplilearn Solutions Pvt. Ltd.
13. 13. Six Sigma --- Introduction to Qualifications Interpretations from the calculations done on the previous page• Currently, the process is working at 4.3 Sigma, which may not be the optimal level of performance.• The business manager needs to know if given the current business conditions and Customer Satisfaction levels, is this Sigma level acceptable?• The business manager also needs to know if improving the performance to Six Sigma levels will bring him sustained business results.All these interpretations will be discussed in detail in the Prerequisites, Qualifications. (a latersession) (c) 2011 Simplilearn Solutions Pvt. Ltd.
14. 14. Why Six Sigma? Eliminate causes of mistakes and defects in a process. Elimination of mistakes is subject to successful implementation of POKA YOKE or MISTAKE PROOFING and other preventive techniques. Sometimes the solution is creating a robust process or product that mitigates the impact of a variable input or output on a customer’s experience. For example, many electrical utility systems have voltage variability up to and sometimes exceeding a 10% deviation from nominal. Thus, most electrical products are built to tolerate the variability, drawing more amperage without damage to any components or the unit itself. Reduce variation and waste in a process Gain competitive advantage and become world leader in their respective fields Ultimately satisfy customers and achieve organizational goals (c) 2011 Simplilearn Solutions Pvt. Ltd.
15. 15. How Does Six Sigma work? Management Strategy: An environment where management supports Six Sigma as a business strategy and not as a stand-alone approach or a program to satisfy some public relations need DMAIC: Emphasis on the DMAIC (Define-Measure-Analyze-Improve-Control) method of problem solving Focused Teams: Teams are assigned to well-defined projects that directly impact organization’s bottom line, with customer satisfaction and increased quality being by-products Use of Statistical Methods: Six Sigma requires extensive use of statistical methods Six Sigma and Quality Taking a process to Six Sigma level ensures that Quality of the product is maintained, with the primary goal being increased profits What is Quality?  Conformance to Customer Requirement  Traditionally defined as the Degree of Excellence of a product/service offered to a customer (c) 2011 Simplilearn Solutions Pvt. Ltd.
16. 16. Summary What is Six Sigma? • Why is it used? • How is it used? What is a Process? What is Quality? (c) 2011 Simplilearn Solutions Pvt. Ltd.
17. 17. Session I, Lesson 3 Six Sigma and Organizational Goals (c) 2011 Simplilearn Solutions Pvt. Ltd.
18. 18. Agenda History of Quality Popular Quality Gurus History of Six Sigma What is Business System? (c) 2011 Simplilearn Solutions Pvt. Ltd.
19. 19. History of QualityQuality approaches Time frame DescriptionStatistical Process 1930s Conceived by Walter Shewhart and used extensively during World War II toControl quickly expand the US’s industrial capabilitiesQuality Circles 1960s They are self improvement groups composed of small number of employees belonging to a single department. Originated in JapanISO 9000 1987 – A set of international standard on quality management and quality assurance to present help organizations implement quality management systems and related supporting standards. Was developed by International Organization for Standardization (ISO)Re-engineering 1996-1997 An approach which involves restructuring of an entire organization and its processesBenchmarking 1988 An improvement process in which an organization measures its performance against the best organization in their field, determines how such performance levels were achieved and uses the information to improve themselvesBalanced Scorecard 1990s A management tool that helps managers at all levels to monitor multiple results in their key areas so that one metric is not optimized while another is ignoredBaldrige Award Criteria 1987 – An award developed by U.S. Congress in 1987 to raise awareness of quality present management system and to recognize and award U.S. companies that have successfully implemented quality management systems (c) 2011 Simplilearn Solutions Pvt. Ltd.
20. 20. Quality GurusGuru Contribution “Do it Right, First time” and “Zero Defect” Crosby’s fourteen steps to quality improvementPhilip Crosby Senior management involvement 4 absolutes of quality management Quality cost measurements 14 key principles for management for transforming business effectiveness Seven deadly diseases also known as the "Seven Wastes“ PDSA (Plan- Do-Study- Act) cycleW Edwards Deming Top management involvement Concentration on system improvement Constancy of purposeArmand V. Feigenbaum Total quality control/management Top management involvement Cause-effect diagramKaoru Ishikawa Company wide quality control Human dimension to quality management Pareto analysis Quality trilogyJoseph M Juran Top management involvement Quality cost measurement Statistical Process Control (SPC) charts Assignable cause vs. chance causeWalter A. Shewhart PDCA (Plan-Do-Check-Act) cycle Use of statistics for improvement Loss function concepts Signal to noise ratioGenichi Taguchi Experimental design methods Concept of design robustness (c) 2011 Simplilearn Solutions Pvt. Ltd.
21. 21. History of Six Sigma1986: Motorola starts Six Sigma initiative. Bill Smith and Mikel Harry are the pioneers. The firstteam of professionals implementing Six Sigma in Motorola were Karate students, hence theyadopted the terms of Black Belts, Green Belts.2001: Motorola saves \$16 billion cumulatively1995: Jack Welch initiates Six Sigma at GE1998: Allied Signal saves \$0.5 billion2000: GE saves \$2 billion annuallyMotorola initiated Six Sigma for process improvement and reduced defects to negligible levelsMotorola initiated the project when the company was not doing well with Customer SatisfactionlevelsIt was at GE that Six Sigma was used to improve the entire Business System (c) 2011 Simplilearn Solutions Pvt. Ltd.
22. 22. Six Sigma and Business System What is Business System • Designed to implement a process or a set of processes • Ensures that process inputs are at the right place and right time so that each step of process has the resource it needs • Considers and includes the collecting and analyzing of data So that continual improvement of its processes, products, and services is ensured • Has processes, subprocesses (procedures), and steps as its subsets • Personnel Development, Manufacturing Scheduling, Marketing Forecasts are some examples of Processes in a Business System How Six Sigma effects Business System • By removing defects in its processes Defective: Any Product(s)/Service(s) that a customer would reject Defect: Any noncompliant attribute or aspect of a product or service that would cause a customer to reject it (“a nonfulfillment of an intended requirement…”) Reducing the probability of defects will remove some number of defectives and increase the throughput yield of the process Customer:  Can be the user of ultimate product(s)/service(s)  Can be the next process in the downstream • By making the defect removing process continuous (c) 2011 Simplilearn Solutions Pvt. Ltd.
23. 23. Six Sigma Projects and Organizational Goals Not all Six Sigma project bring improvement to a Business. Selection of projects should be done on the basis of prerequisites and qualifications of selecting a Six Sigma project Six Sigma project should align to the Goals of a Business System or Organizational Goals Project selection • Project selection group consists of Master Black Belts, Black Belts, Champions, and Key Executives to establish a set of criteria for project selection and team assignments • Team selection for the project may be done based on the nature of the project. The selection should have a mix of skills and expertise • Only projects that have an impact on the profits of the company should be taken • Calculating the project’s expected profit helps in further selection of the project. Expected profit = Profit X Probability of success Projects for selection should also optimize the results of the whole system. The effect of proposed changes on other processes within the system should be considered. Improvement in any one process of a Business System should not cause large, deleterious effects in other processes of the system which causes the overall results of the system to suffer (c) 2011 Simplilearn Solutions Pvt. Ltd.
24. 24. Structure of Six Sigma Team • Own vision of the organization, provide directionTop Executives of an • Lead change Organization • Identify and define the scope of project • Develop Deployment and Strategy • Support cultural changeSix Sigma Champions • Identify, coach, and develop Master Black Belt • Every Champion has 3-4 Master Black Belts under him/her Six Sigma Master • Train and coach Black Belts, Green Belts, and Black Belts Functional Leaders • Has 3-4 Black Belts under him/her • Apply strategy to specific projectsSix Sigma Black Belts • Lead and direct teams to execute projects Six Sigma Green • Support Black Belts by participating in project Belts teams (c) 2011 Simplilearn Solutions Pvt. Ltd.
25. 25. Summary History of Quality Various contributors to the field of Quality Management Systems History of Six Sigma Understanding key drivers for a Business System Importance of project selection and its relevancy to organizational goals Structure of a Six Sigma Team (c) 2011 Simplilearn Solutions Pvt. Ltd.
26. 26. Session I, Lesson 4 LEAN Principles (c) 2011 Simplilearn Solutions Pvt. Ltd.
27. 27. Agenda Why use Lean? What is Lean? Value-added and Non-value-added Activities Value Stream mapping Lean Concepts Various Lean Techniques Reduction in Cycle Time Theory of Constraints (c) 2011 Simplilearn Solutions Pvt. Ltd.
28. 28. Why Use LEAN? LEAN helps in reducing/eliminating wastes and reducing non-value added (NVA) activities from a process. In doing so, LEAN increases continuous flow in the process, as opposed to stop-flow and unbalanced production. Before starting with a Six Sigma project, it is important to check the WASTE status of the process. If Wastes and NVAs exist, eliminate or reduce them first, and then apply Six Sigma.ExampleAn operation might have many defects in the welding operations. An operator observes that he issometimes welding rusty components together. It might be worthwhile to figure out ways to reduceinventory and the waiting (storage) time that causes the steel to rust (i.e., oxidize excessively)before figuring out other solutions to deal with rust (like using an oil coating which might createother welding problems or require a cleaning process). (c) 2011 Simplilearn Solutions Pvt. Ltd.
29. 29. What is LEAN? Lean talks of doing away with Muda, Mura, and Muri. Muda = Waste, Mura = Unevenness, Muri = Overburden. Techniques to tackle these three key Lean related issues could be different. 7 types of Muda or waste: • Overproduction: Producing more than is required. Example: customer needed 10 products and you delivered 12. • Inventory: In simple words, stock. Inventory includes finished goods, semi-finished goods, raw materials, supplies kept in waiting, and some of the work in progress. • Defects/Repairs/Rejects: Anything deemed unusable by the customer and any effort to make it usable to the original customer or a new customer. • Motion: A waste due to poor ergonomics of workplace. • Overprocessing: Extra operation on a product or service to remove some unneeded attribute or feature is processing. Example: customer needed a bottle and you delivered a bottle with extra plastic casing; customer needs ABEC 3 bearing and your process is tuned to produced more precise ABEC 7 bearings taking more time for something the customer doesn’t need. • Waiting: When the part waits for processing, or the operator waits for work. • Transport: When the product moves unnecessarily in the process, without adding value. Example: product is finished yet it travels 10 kilometers to warehouse before it gets shipped to the customer. Another example: an electronic form is transferred to 12 people, some of them seeing the form more than once (i.e., the form is traveling over the same ‘space’ multiple times). History of Lean • Henry Ford spoke about Lean principles, which Taiichi Ohno later adopted at Toyota. • TPS became one of the key driving points for Lean Manufacturing, popularized by James Womack in 1980s. (c) 2011 Simplilearn Solutions Pvt. Ltd.
30. 30. Other Lean WastesSome Lean experts will talk about additional areas of waste: • Underutilized skills: the workforce has capabilities that are not fully being used towards productive efforts; people are assigned to jobs for which they are not fit. • Automation of a poorly performing process: often people create a program that duplicates the inefficient routing of paperwork; improving a process that should be eliminated if possible (e.g., the product returns department or product discounts process); asymmetry in processes that should be eliminated (e.g., two signatures to approve a cost reduction and six signatures to reverse a cost reduction that created higher costs in other areas). • Wrong use of metrics: process metrics sometimes lead us to incorrect conclusions or suggest actions we shouldn’t take (e.g., a lack of SPC analysis on run charts—to be discussed in the SPC session); inappropriate performance requirements that do not have a basis in reality (e.g., requiring suppliers’ products to arrive by 1st of the month when they won’t be used completely in the next 7 days); focusing the whole organization on ship dates when production dates might be a better focus. (c) 2011 Simplilearn Solutions Pvt. Ltd.
31. 31. Examples of WasteIdentify the types of waste and possible causes: • Materials are air-freighted into a company for the MRP deadline on the first day of the month. The materials then sit in the warehouse for 3 weeks before they’re used. • A clerk sets aside an incomplete order form after contacting the customer for more information. • Customer payments are not received on time because the customer claims that the information on the bill-of-lading, invoice and order do not match. • An inspector rejects blemished parts that he inspected under a microscope when the specification allows for blemishes that can’t be seen from 3 feet away. • A welder visually inspects his/her work. The next welder inspects that first welder’s work before proceeding with their work. Finally, an inspector inspects both welders’ work. • By the time, the work-in-process piles on the shelves and carts are reduced, it was found some assemblies were done to a previous revision and can’t be used. • When the copier runs out of paper, the person has to get more from the office supply closet 100 feet away. When the ream is opened, he/she discovers it was the wrong paper (i.e., it was pre-punched for a three-ring binder) requiring a return trip to the closet. (c) 2011 Simplilearn Solutions Pvt. Ltd.
32. 32. Value Stream Mapping It is a visualization tool to map the path and identify all activities involved in the product/service All activities related to a product/service are mapped using flowcharts Helps in identifying and eliminating/reducing non-value added activities • Any activity that does not add any value to the product as perceived by the customer is a non-value added activity Value added activities • Activities in the making of a product which adds value to the customer using the final product • Customer would be willing to pay for those activities Every activity of a Value Stream Map can be classified into: • It adds value as perceived by the customer. Example: actual production process • It adds no value, but is required by the process. Such activities can be termed as non-value adding activities, but you cannot eliminate them from the process as they are necessary Example: regulatory audits, like ISO and financial audits • It adds no value, and can be eliminated (c) 2011 Simplilearn Solutions Pvt. Ltd.
33. 33. LEAN Concepts Value Chain: It is a chain of activities in a business system. Forming a value chain at business system level is more appropriate than forming it at any process level Flow: It is essential that products/services move through the business system in continuous flow. Any stopping or reduction in flow is a non-value adding activity and hence a waste Pull: Instead of making products/services based on an estimated sales forecast, the business system makes products/services as the customer requires it. Benefits of a pull process are: • Decrease in cycle time • Finished inventory is reduced • Work in progress is reduced • Stable price • Smooth flow of the process Perfection: It is the complete elimination of muda/waste so that all activities along a value chain add value Push --- It is a type of process, which works exactly the opposite of a Pull process. In the Push process, forecasting of demand is the first step, which moves on to the production line and the parts produced are stocked in anticipation of customer demand. (c) 2011 Simplilearn Solutions Pvt. Ltd.
34. 34. LEAN ConceptsPull versus PushPush Process Example: A shirt manufacturing company decides to manufacture 200shirts based on past forecasts. The company makes 200 shirts and waits for thecustomer to place the order.The same case for a Pull process would have been like this --- The company receives a client orderfor 200 shirts, and then starts producing the 200 shirts to be delivered to the customer.Important --- Contrary to what most people think, it is not necessary that Pullprocesses work universally. In some cases, PUSH works well too. For example,a pharmacy shop is an example of PUSH process to customer. (c) 2011 Simplilearn Solutions Pvt. Ltd.
35. 35. Lean TechniquesTechniques Description Kaizen, or continuous improvement, is the building block of all Lean production methods. Kaizen Kaizen philosophy implies that all, incremental changes routinely applied and sustained over a long period result in significant improvements Aka Mistake Proofing - It is good to do it right the first time; it is even better to make it impossiblePoka Yoke to do it wrong the first time. POKA YOKE talks about automated mistake detection and fix A framework to create and maintain your workplace- 5S Sort, Set-in-order, Shine, Standardize, SustainJust in Time A manufacturing philosophy which leads to "Producing the necessary units, in the necessary (JIT) quantities at the necessary time with the required quality” Literally means signboard in Japanese. Kanban utilizes visual display cards to signal movement of Kanban material between steps of a product process Means “automation with human touch.” It is an automated inspection function in production line Jidoka and stops the process as soon as a defect is encountered. The process does not start until root cause of the defect has been eliminated Takt time is the maximum time in which the customer demand needs to be met. For example, if the customer needs 100 products, and the company has 420 minutes of available production time, Takt time TAKT Time = Time Available/Demand. In this case, the company has a maximum of 4.2 minutes per product. This would be the target for the production line Means Production Leveling/Smoothing. It is a technique to reduce waste which occurs due to Heijunka fluctuating customer demand (c) 2011 Simplilearn Solutions Pvt. Ltd.
36. 36. Cycle Time Reduction  Need for Cycle Time Reduction • Satisfy customer • Reduce internal/external waste • Increase capacity • Simplify operation • Reduce product damage • Remain ahead of competition Old process Improved process In In Process 1 Operator 1 Process 1 Process 2 Process 4 Operator 4Process 5 Operator 5 Lean Techniques Operator 1 Operator 2 Operator 3 Process 5 Process 4 Process 3 Out Process 3 Process 2 Operator 2 Operator 3 Out (c) 2011 Simplilearn Solutions Pvt. Ltd.
37. 37. The Theory Of Constraints What is the Theory of Constraints? • Is a tool to remove bottlenecks in a process that limits production or throughput • Start with mapping the value stream and follow the 5 steps The 5 steps in the Theory of Constraints are: • Step 1: Identify the systems constraint(s) A system constraint limits the business system from achieving its performance and goals It acts as a bottle neck • Step 2: Decide how to exploit the systems constraint(s) Find ways so that this constraint now works at full potential • Step 3: Subordinate everything else to the decisions of Step 2 Align the whole process or system to support the decision made above • Step 4: Elevate the systems constraint(s) Make other changes so that the constraint is resolved • Step 5: If a constraint has been resolved in Step 4, go back to Step 1 Once a constraint has been resolved, redo the process to find the next constraint(s) (c) 2011 Simplilearn Solutions Pvt. Ltd.
38. 38. The Theory of Constraint - ExampleInput  The numbers in shapes are maximum production rates in 150 400 70 units/hr • Blue line for product A; Red dotted line for product B B 250A • Black figure is assembly point where A & B are 600 assembled and sold as a complete product 225 250  Customer demand says that this process needs to produce 100 units/hr as a combination of both A & B 250 250 • Demand is the constraint; Constraint is external; Work on marketing/sales 225 300 250  If customer demand is 100 units/hr each of both A & B Output  Step 1: Identify the system constraint 600 300 • Ninth equipment: Only 70 units/hr; Constraint in the 500 system. This is the active constraint  Step 2: Exploit the systems constraint • Run 9th equipment at full capacity at 70 units/hr; no downtime or defects  Step 3: Subordinate everything else to decision of step 2 • Run 1st equipment at capacity with 70 of A and 80 of B  Step 4: Elevate the system constraint • To elevate the active constraint; Elevate constraint found in step 1 to 100 ; Elevate 1st equipment to 200;  Step 5: If constraint is broken or resolved, go to step 1 and identify the next constraint (c) 2011 Simplilearn Solutions Pvt. Ltd.
39. 39. SummaryLean • Brief History • What it means – reduce wasteValue Stream Maps • Value-added and Non-value-added activitiesVarious Lean ConceptsVarious Lean Techniques • 5S, Kanban, Kaizen, and so onThe Theory of constraints (c) 2011 Simplilearn Solutions Pvt. Ltd.
40. 40. Session I, Lesson 5 Design for Six Sigma (DFSS) (c) 2011 Simplilearn Solutions Pvt. Ltd.
41. 41. AGENDAWhat is DFSS?What is QFD?DFMEA & PFMEAProcesses for DFSS (c) 2011 Simplilearn Solutions Pvt. Ltd.
42. 42. What is DFSS?DFSS: Design for Six SigmaWhat can be designed? • New Product/Service • New Process for a new product/Service • Redesign of existing product/service to meet customer requirement • Redesign of existing product/service processDFSS ensures that the Product/Service meets customer requirementWhat DFSS means to a Business System? • Introduce new product/service or new category of product/service New category for the Business System and not the customer • Improve product/service • Addition to current product/service lines Example --- If you wish to launch a new product or build a new product/process, you would want to use DFSS. (c) 2011 Simplilearn Solutions Pvt. Ltd.
43. 43. What is QFD?QFD: Quality Function DeploymentAlso known as Voice of Customer or House of QualityA process to understand the needs of the customer and convert them in to a set of design and manufacturing requirementsQFD also helps the company prioritize customer needs and sets targets for the Technical or the Operations team to meet those customer needsWhat do we learn from QFD? • Which customer requirements are most important? • What are our strength and weaknesses? • Where do we focus our efforts? • Where do we need to do most of the work?How do we learn from QFD? • By asking relevant questions to customers • Tabulating them to identify the set of parameters critical to the product design (c) 2011 Simplilearn Solutions Pvt. Ltd.
44. 44. FMEA (DFMEA and PFMEA)DFMEA/FMEA: Design Failure Mode and Effects Analysis • Used in the design of a new product to uncover potential failures • Purpose: How failure modes affect the system and to reduce effect of failure upon the system • Is done before product is sent to manufacturing operation • All significant design deficiencies would be resolved at the end of this processPFMEA: Process Failure Mode and Effects Analysis • Used on new or existing processes to uncover potential failures • Is done in the quality planning phase to act as an aid during production • A PFMEA can involve fabrication, assembly, transactions, or services Important --- FMEA is also used as a preemptive tool. Importantly, FMEA is also a Business Results measuring tool (Discussed in the Business Results section and further) (c) 2011 Simplilearn Solutions Pvt. Ltd.
45. 45. Processes for DFSS Two major Processes for DFSS: IDOV & DMADV IDOV • Identify Specific customer needs based on which product or business process will be designed Tools used: QFD, Voice of Customer, FMEA • Design Consists of identifying functional requirements, developing alternative concepts, evaluating alternatives, selecting a best-fit concept, and predicting sigma capability Tools used: FMEA and others • Optimize Use statistical approach to calculate tolerance Developing detailed design elements, predicting performance, and optimizing design • Verify Test and validate the design Check conformance to Six Sigma standards (c) 2011 Simplilearn Solutions Pvt. Ltd.
46. 46. Processes for DFSS DMADV • Define customer requirements and goals for the process, product or service • Measure and match performance to customer requirements • Analyze and assess the design for the process, product or service • Design and implement the array of new processes required for the new process, product or service • Verify results and maintain performance DMADV Define DMAIC Develop NO YES Measure Does a Measurement process Existing Criteria exist? Process Remove In Analyze Special Control? Causes NO Design Improve Capable? Analyze Verify Control (c) 2011 Simplilearn Solutions Pvt. Ltd.
47. 47. SummaryDFSS • Meaning and use • Types (DMADV & IDOV) Difference between types and uses • Relation to DMAICQFD • Meaning and useFMEA • Meaning and use • Types (DFMEA & PFMEA) Difference between types and uses (c) 2011 Simplilearn Solutions Pvt. Ltd.
48. 48. Session Summary1. What Six Sigma is, How Six Sigma is done and Why2. Six Sigma and organizational goals • Value of Six Sigma • Organizational drivers and metrics • Organizational goals and Six Sigma projects3. Lean principles in the organization • Lean concepts and tools • Value-added and non-value-added activities • Theory of constraints4. Design for Six Sigma (DFSS) in the organization • Quality function deployment (QFD) • Design and process failure mode and effects analysis (FMEA, DFMEA & PFMEA) • Roadmaps for DFSS (c) 2011 Simplilearn Solutions Pvt. Ltd.
49. 49. Quiz (options in bold are the right answers)I. Kaizen is defined as I. Re-engineering II. Lean manufacturing III. Continuous improvement IV. Mistake proofingII. A production line uses signs at specific points on the line to indicate when components or raw materials need to be replenished. This practice is an example of I. Kanban II. Kaizen III. Poka Yoke IV. FMEAIII. Quality function deployment (QFD) is a methodology for I. removing bugs from code II. identifying and defining key customer requirements III. measuring the reliability of a software product IV. training employees in quality issues (c) 2011 Simplilearn Solutions Pvt. Ltd.
50. 50. QuizIV. For a process at five sigma level, how many opportunities lie outside the specification limits I. 3.4 II. 99.9767 III. 233 IV. 5V. Defects, over-production, inventory, and motion are all examples of I. Waste II. 5S target areas III. Noise IV. value-added activitiesVI. The primary factor in the successful implementation of Six Sigma is to have I. the necessary resources II. the support/leadership of top management III. explicit customer requirements IV. a comprehensive training program (c) 2011 Simplilearn Solutions Pvt. Ltd.
51. 51. Explanation to Quiz questionsI. Meaning of the word Kaizen is Continuous Improvement. Re-engineering is a different quality concept, Mistake proofing is a tool of Lean manufacturingII. Kanban literally means signboards. Kanban uses display cards to signal movement of materialIII. QFD stands for Voice of Customer and is used to identify customer requirementIV. A process at five sigma level is at 99.9767% yield. For 1 million opportunities, it means 999767 times the process has no defects. No. of defects = 1000000 – 999767 = 233 defectsV. Correction, over-production, inventory, and motion are four of the seven wastes mentioned in LeanVI. Implementing Six Sigma needs change in the whole organization, and hence support of top management is necessary (c) 2011 Simplilearn Solutions Pvt. Ltd.