The essential of Six Sigma


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How you could leverage Six Sigma in your work organisation.

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  • Shigeo Shingo (1909-1990), born in Saga City, Japan, was a Japanese industrial engineer who distinguished himself as one of the world’s leading experts on manufacturing practices and the Toyota Production System.
  • The essential of Six Sigma

    1. 1. Presented by Wan Harris Zaky HJ.IBRAHIM IT43 Master of Information Technology 20 September 2010 1
    2. 2. An Overview of 6 Sigma 6 Sigma Steps in Improvements 6 Sigma Tools & Techniques The Summary of 6 Sigma Q & A 20 September 2010 2
    3. 3. hat is Six Sigma? 20 September 2010 3
    4. 4. ig & Small Steps Continuous Improvement Performance Changes achieved through both “Big & Small Steps” to continuously improve the Big Step performance of the System Improvement Each performance level is delivered by the SUM of all Small Step Improvements the processes in the Organisation Time 20 September 2010 4
    5. 5. In Human Resource Management Paradigm (Been, L. Y., 1997) 20 September 2010 5
    6. 6. hat Is A Sigma ( ) ? A Greek term used in statistics to represent standard deviation, an indicator of the degree of variation/spread in a set of measurements or a process. 20 September 2010 6
    7. 7. hat is Six Sigma? Culture that demands perfection (or almost) Drives out variation Data-based decision making. Systematic statistical method Customer's requirements Controls the process (Founder – Mikel Harry) 20 September 2010 7
    8. 8. hat Is Six Sigma? Others describe Six Sigma as a way towards Culture change. Motorola puts a lot of emphasis on cultural change such as breaking down barriers between departments, employee empowerment, etc. 20 September 2010 8
    9. 9. ho uses 6 Sigma? Honeywell Du Pont Canon GE Raytheon Nokia Iomega Toshiba Ford Sony ABB Amazon Texas Instruments LG Ericsson Du Pont Air Products Lockheed American Express Xerox Volvo Kodak Dow Chemicals Agfa Motorola Daimler Chrysler Shimano Citibank Seagate DBS Marconi Honda OCBC Polaroid Invensys ST Tech Bombadier Air France National Healthcare G Avery Dennison Hitachi Urban Redevelopment Philips Siemens Authority Building & Construction 20 September 2010 Authority 9
    10. 10. 6 Improvement Methodology (DMAIC) 20 September 2010 10
    11. 11. A. Identify the product/service you create/provide. (What do you do?) Service #1 Your Process Service #2 B. Who are your customers? – Internal vs. external customers C. Collect VOC (Voice Of Customer data) – Interviews, Surveys, Complaints, Focus groups D. Define CTQs (Critical To Quality measures) – How does the customer judge our product or service? 20 September 2010 11
    12. 12. Develop a high-level process map Define (Purchasing & Delivery Process) Inputs Outputs - Purchase Order from Customer - Purchase Order to Item Supplier - Supplier database - Shipping schedule - Customer database - Delivery Order - Items Inventory - Packing list - Delivery Order - Delivery schedule to end Customer Receive Check Plan Receive Prepare Customer Sales stock & storage goods and and For place order Order from place order require- update arrange for Billing Customer with ments inventory delivery Supplier Suppliers Customers - End Customer - Salesman - Salesman - Buyer - Buyer - Item Supplier - Item Supplier - Storekeeper - Storekeeper - Trucking Contractor - End Customers 20 September 2010 - Finance 12
    13. 13. A. Identify the Customer(s) for your product / service. Determine what they consider important. B. Determine critical customer REQUIREMENTS. C. Collect data or information from customers (both internal and external) D. Select the service that is most suitable for Six Sigma Improvement. E. Identify your needs (so as to satisfy the customers). F. Collect data using Process Mapping 20 September 2010 13
    14. 14. Measure Collect data – Process Mapping PURCHASING PROCESS & DELIVERY PROCESS - INTERNAL PROCESSES SALES PROCUREMENT WAREHOUSING DELIVERY ACCOUNTS Recei ve Sal es Check & pl ace Pl an st or age O der f r om r or der w t h i r equi r ement s Cust omer Suppl i er Recei ve goods Pr epar e and Pr ocess and updat e ar r ange f or bi l l i ng t o i nvent or y del i ver y Cust om er St ock Yes Avai l abl e? No Pl ace or der Pr epar e or der w t h Suppl i er i and ar r ange del i ver y Recei ve goods CUSTOMER SUPPLIER FREIGHT FORWARDER EXTERNAL PARTY 20 September 2010 14
    15. 15. Define Performance Analyze Objectives/Targets 1. Customer’s Requirements 2. Benchmarking (Best-in-class) 3. Set Performance Objectives/Targets (Quality, Speed, Cost) 20 September 2010 15
    16. 16. 16
    17. 17. Develop and Implement Improve Solutions 1. Develop alternative solutions for vital causes & eliminate waste. 2. Idiot Proofing (Poka Yoke) 3. Develop “Should Be” Map 4. Select the best solutions and evaluate the ROI 5. Implement the solutions 6. Confirm the results 20 September 2010 17
    18. 18. Poka Yoke Defined Shingeo Shingo defines Poka Yoke as:  Poka - “Inadvertent mistake that anyone can make”  Yoke - “To prevent or proof” Meaning: To prevent unintentional mistakes people can make. 20 September 2010 18
    19. 19. Control Document SOP (Standard Operation Procedure) - Detail process maps - Standard operation procedure for new way of working - Contingency plan 20 September 2010 19
    20. 20. Improvement Methodology 1. Determine What Customer Wants D Define 2. Develop Project Charter 3. Draw High-level Process Map 4. Select CTQ Characteristic M Measure 5. Collect Data 6. Determine Sigma Level (Process Capability) 7. Define Performance Objectives/Targets A Analyze 8. Identify Possible Of Variations 9. Vital Causes Of Variations 10. Generate Solutions I Improve 11. Implement Solutions 12. Confirm results 13. Documentation & Standardization C Control 20 September 2010 14. Process Monitoring & Control 15. Project Closing 20
    21. 21. formal Six Sigma infrastructure in an Organization Belt system is a common system used: • Master Black Belts (MBBs) are fully trained quality leaders responsible for Six Sigma strategy, training, mentoring, deployment and results. • Black Belts (BBs) are fully trained experts leading improvement teams across the business. • Green Belts (GBs) are individuals trained in Six Sigma supporting Six Sigma projects. 20 September 2010 21
    22. 22. ix Sigma Techniques  Variation reduction  Project focus (one to three months)  Statistical process control (Cp, Cpk)  Measurement system assessment (Gage R&R)  Root cause analysis and hypothesis tests  Design of Experiments, Taguchi Methods  Regression analysis  Analysis of Variance (ANOVA)  FMEA (Failure Modes and Effects Analysis)  Response Surface Methodology (RSM) 20 September 2010 22
    23. 23. Six Sigma Vision Symbol Strategy Six Sigma needs Innovation Tool Belief Innovation needs Six Sigma Method Goal Benchmark Metric 20 September 2010 23
    24. 24. 1. Our survival is dependent upon growing the business. 2. Our business growth is largely determined by customer satisfaction. 3. Customer Satisfaction is governed by quality, price and delivery. 4. Quality, price and delivery are controlled by process capability. 5. Our process capability is greatly limited by variation. 20 September 2010 24
    25. 25. (Cont.) 6. Process variation leads to an increase in defects, cost and cycle time. 7. To eliminate variation, we must apply the right knowledge. 8. In order to apply the right knowledge, we must first acquire it. 9. To acquire new knowledge means that we must have the will to survive. Dr. Mikel J. Harry 20 September 2010 Six Sigma Academy 25
    26. 26. hat Practitioner Said “Only those companies that eliminate their defects will have what it takes to win.” “Breakthrough companies strive for 100 percent DEFECT-FREE products and services.” Larry Bossidy Ex-CEO of AlliedSignal “...this Six Sigma journey will change the paradigm from fixing products so they are perfect to fixing processes so that they produce nothing but perfection, or close to it.” Jack Welch Former GE’s CEO 20 September 2010 26
    27. 27. Been, L. Y. (1997). The Six Sigma, Metaprenuers Inc. Pte. Ltd. Mark Kiemele.(2009). “Six Sigma and Innovation” Retrieved April 1, 2010 from 93 Vinzant, J. C. and D. H. Vinzant (1999). "Strategic management spin-offs of the Deming approach." Journal of Management History 5(8): 516 - 531. 20 September 2010 27
    28. 28. 20 September 2010 28