Introduction To Six Sigma

1. Introduction to Six Sigma Purpose of Six Sigma-To make Customer Happier and Increase Profits

2. Origin of Six Sigma

1987 Motorola Develops Six Sigma

Raised Quality Standards

Other Companies adopt Six Sigma

GE

Promotions, Profit Sharing (Stock Options), etc. directly tied to Six Sigma training.

Dow Chemical, DuPont, Honeywell, Whirlpool, ABB, Bechtel, IBM, Texas Instruments, Kodak, .....................

3. Time Line 1985 1987 1992 1995 2002 Allied Signal Johnson & Johnson, Ford, Nissan, Honeywell Dr Mikel J Harry wrote a paper relating early failures to Quality. MOTOROLA General Electric 4. Question: Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola 5. Question: Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola 6. Pilot's Six Sigma Performance Width of Landing Strip 1/2 Width of Landing strip If pilot always lands within 1/2 the landing strip width, we say that he has Six Sigma capacity. 7. Pilot's Six Sigma Performance This is a very crude way of telling that when you perform in half the margin allowed to you, you may call it six sigma performance. 8. Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six SigmaZero Sigma Three sigma 9. Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six SigmaZero Sigma Three sigma 10.

Delighting Customers

Reducing Cycle Times

Keeping up with Technology Advances

Retaining People

Reducing Costs

Responding More Quickly

Structuring for Flexibility

Growing Overseas Markets

Current Leadership Challenges Six sigma will be able to help in dealing with all these challenges to a certain extent. 11. Question: How six sigma helps in retaining people? Because two times 3 is 6 Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems. 12. Question: How six sigma helps in retaining people? Because two times 3 is 6 Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems. 13. Six Sigma Benefits

Generated sustained success

Project selected to Organizational strategy

Customer Focused

Profits

Project Outcomes/ Benefits tied to financial Reporting systems.

Full-time Black Belts in a rigorous project oriented method.

Recognition and Reward system established to provide Motivation.

14. Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits 15. Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits 16. What can Six Sigma do ? 17. GE Six Sigma Economics (in millions) Source: 1998 GE Annual Report, Jack Welch Letter to Share Owner and Employees - progress based upon total corporation cost/ benefits attributable to Six Sigma. 18. Overview of Six Sigma CHANGE THE WORLD TRANSFORM THE ORGANIZATION GROWTH COSTS OUT PAIN, URGENCY, SURVIVAL Six Sigma a PHILOSOPHY Six Sigma as a Process Six Sigma as a Statistical Tool. 19. It's a Philosophy

Anything less than ideal is an opportunity for Improvement.

Defects Costs Money.

Understanding processes and improving them is the most efficient way to achieve lasting results.

20. It's a Process

To achieve this level of performance you need to Define, Measure, Analyze, Improve and Control.

21. It's Statistics

Six Sigma processes will produce less than 3.4 Defects per million Opportunities.

22. Management Involvement ?

Executives and upper Management drive the effort through:

Understanding Six Sigma

Significant Financial Commitments

Actively selecting projects tied to Strategy

Setting up Formal Review process

Selecting Champions

Determining Strategic Measures

23. Question: How many defects per million opportunities make six sigma? 3.40.34 3400 34 24. Question: How many defects per million opportunities make six sigma? 3.40.34 3400 34 This is with long term shift of 1.5 sigma 25. Key issues for Leadership

How will Leadership organize to support Six Sigma? (Six Sigma Council, Director Six Sigma, etc.)

Transition Rate to achieve Six Sigma

Level of resource Commitment

Centralized or Decentralized approach

Integration with current initiatives e.g. QMS

How will the progress be monitored?

26. Philosophy of six sigma

Know What's Important to the Customer (CTQ)

Reduce Defects (DPMO)

Center Around Target (MEAN)

Reduce Variation (Standard Deviation)

27. Critical Elements

Genuine Focus on the Customer

Data and Fact Driven Management

Process Focus

Proactive Management

Boundary-less Collaboration

Drive for Perfection, Tolerance for Failure

28. Data Driven Decision Y =f(x)

Y

Dependant

Output

Effect

Symptom

Monitor

X1 Xn

Independent

Input-Process

Cause

Problem

Control

The Focus of Six Sigma is to Identify and Control X's 29. Two Processes

DMAIC

Existing Process

Define

Measure

Analyze

Improve

Control

DMADV

New Processes

DFSS

Define

Measure

Analyze

Design

Verify

30. Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough 31. Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough True, that is the cause of the problem. 32. Some Basic Concepts 33. COPQ - Cost of Poor Quality

Inspection

Warranty

Scrap

Rework

Rejects

Traditional Quality Costs:

Tangible

Easy to Measure

More Setups

Expediting Costs

Lost Sales

Late Delivery

Lost Customer Loyalty

Excess Inventory

Long Cycle Times

Costly Engineering Changes

HIDDEN COST:

Intangible

Difficult to Measure

Lost Opportunities

The Hidden Factory

AVERAGE COPQ approximately 15% of Sales 34. COPQ v/s Sigma Level 35. Question: Which of the followings is "not" the Cost of poor quality? Cost of raw materialCost of lost customer Cost of inspections Cost of repair 36. Question: Which of the followings is "not" the Cost of poor quality? Cost of raw materialCost of lost customer Cost of inspections Cost of repair 37. Process

A Process is a group of steps, tasks, or activities, which take inputs (People, material, Information ...) and in some way change them to product an output (Service, Product ...)

X sStep 1Step 2Step 3Y s INPUT PROCESS OUTPUT 38. CTQ (Critical To Quality)

CTQ Characteristics for the process, service or product

Measure of "What is important to Customer?

Six Sigma projects are designed to improve CTQ

Examples

Waiting time in Clinic

Spelling mistakes in Letter

% of valves leaking in Operation

39. Defective and Defect

A Nonconforming unit is a defective unit

Defect is Nonconformance on one of many possible Quality characteristics of a unit that causes customer dissatisfaction

A defect does not necessarily make the unit defective

Examples

Scratch on Water Bottle

However if the customer wants a scratch free bottle, then this will be defective bottle

40. Question: Critical to Quality(CTQ) related to? The needs of customerMeeting the specified requirements 41. Question: Critical to Quality(CTQ) related to? The needs of customerMeeting the specified requirements 42. Defect Opportunities

Circumstances in which CTQ can fail to meet

Number of defect opportunities relate to complexity of the unit

Complex units - Greater opportunities of defect than simple units

Examples

A unit has 5 parts, an in each part there are 3 opportunities for defects, then

Total Defect Opportunities = 5 x 3 = 15

43. DPO (Defect Per Opportunity)

Number of Defects divided by Number of Defect opportunities

Examples

In previous case (15 Defect opportunities), if 10 units have 2 defects

Defects per Unit = 2 / 10 = 0.2

DPO = 2 / (15*10) = 0.0133333

44. DPMO(Defects Per Million Opportunities)

DPO multiplies by 1 Million

Examples

In previous case (15 Defect opportunities), if 10 units have 2 defects

Defects per Unit = 2 / 10 = 0.2

DPO = 2 / (15*10) = 0.0133333

DPMO = 0.013333333 x 1,000,000 = 13,333

Six Sigma Performance is 3.4 DPMO

13,333 DPMO is 3.7 Sigma

45. What is Sigma? Have you ever - Shot a Riffle? - Played Darts? What is the point of these sports? What is the point of these sports? 46. Have you ever. Jack JIM - Shot a Riffle? - Played Darts? Who is a Better Shooter? 47. Variability Deviation = Distance between observation and the mean(or average) 48. Variability Variance= Average Distance between observations and the mean squared Jack JIM 8 7 10 8 9 VARIANCE 49. Variability Variance= Average Distance between observations and the mean squared Jack JIM 7 6 7 7 6 VARIANCE 50. Variability Most Outcomes occur in the middle Fewer in the tails (lower) Fewer in the tails (lower) Even very rare outcomes are possible Even very rare outcomes are possible The World tends to be Bell Shaped 51. NORMAL Bell Shaped Curve 1 -1 2 -2 3 -3 68% 95% 99.7% Normal distributions are divided up into 3 Standard deviations on each side of the mean Once you are that, you know a lot about whats going on Thats what Standard Deviation is Good for 52. Causes of Variability

Common Causes

Random variation within predictable range (usual)

No Pattern

Inherent in Process

Adjusting the process increased it's Variation

Special Causes

Non-random variation (unusual)

May exhibit a pattern

Assignable, Explainable, Controllable

Adjusting the process decreases it's Variation

53. Limits

Process and Control Limits

Statistical

Process limits are used for Individual Items

Control limits are used with Averages

Limits =-3

Define usual (common causes) & unusual (special causes)

Specification Limits

Engineered

Limits = target - tolerance

Define acceptable & unacceptable

54. Acceptable v/s Defective OFF - TARGET Another View Center Process Reduce Speed LSL = Lower Specification Limit USL = Upper Specification Limit LSL USL LSL USL ON - TARGET LSL USL LARGE VARIATION 55. More about Limits Cpk measures "Process Capability" If process limits and control limits are at the same location, Cpk = 1. Cpk2 is Exceptional. 56. A Six sigma process Predictably twice as good as what the Customer wants 1 1 1 1 1 1 6 +6 -6 LSL USL 1 2 4 3 5 8 9 10 7 6 11 57. Process shift Allowed 1.5SD LSL USL 1 2 4 3 5 8 9 10 7 6 11 12 13 14 15 16 1.5SD SD = 1 58. Six sigma Measurement 59. Components of Six Sigma

Process Power

2. People Power 60. DMAIC 61. 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

62. DMAIC Approach D efinethe customer, their Critical to Quality (CTQ) issues, and the Core Business Process Involved M easurethe performance of the Core Business Process involved A nalyzethe data collected and process map to determine Root causes and opportunities for improvement I mprovethe target process by designing creative solutions to fix and prevent problems. C ontrolthe improvements to keep the process on the new course D Define M Measure A Analyze I Improve C Control 63. Question: Why should there be a Control phase when Improvement is already done? Only for companies totally out of control It is a optional phase This is to maintain the gains This phase is as per the choice of Management 64. Question: Why should there be a Control phase when Improvement is already done? Only for companies totally out of control It is a optional phase This is to maintain the gains This phase is as per the choice of Management 65. Define

VOC - Who wants the project and Why?

The scope of Project/ Improvement(SMART Objective)

Key Team members / Resources for the project

Critical milestones and stakeholders review

Budget Allocation

66. Measure

Ensure Measurement system reliability

Is the tool used to measure the output variable flawed?

Prepare data Collection plan

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?

Collect Data

67. Analyze

How well or poorly processes are working when compared with

Best possible (Benchmarking)

Competitor's

Shows you maximum possible result

Don't focus on symptoms, find theRoot Cause

68. Improve

Present recommendations to Process owner

Pilot run

Formulate Pilot run

Test improved process (Run Pilot)

Analyze pilot and results

Develop implementation plan

Prepare final presentation

Present final recommendation to Management Team

69. Control

Don't be too hasty to declare Victory

How will you maintain to Gains made?

Change Policy & Procedures

Change Drawings

Change Planning

Revise Budget

Training

70. People power Tell me, I Forget.Show me, I Remember. Involve me, I Understand. 71. 6 Sigma Training Master Black Belt Mentor, Trainer, and Coach of Black Belts and other in the Organization Black Belts Leader of teams implementing the Six Sigma Methodology on projects. Green Belts Delivers successful focused projects using the Six Sigma Methodology on tools. Team Members/ Yellow Belts Participates on and supports the project teams, typically in the context of his or her existing responsibilities. 72. Champion

Plans improvement projects

Charters or Champions chartering process

Identifies, sponsors and directs Six Sigma projects

Holds regular project reviews in accordance with project charters

Includes Six Sigma requirements in expense and capital budgets

73. Question: Is Black belt position a full time job in the company? False True 74. Question: Is Black belt position a full time job in the company? False True 75. Champion

Identifies and removes organizational and cultural barriers to Six Sigma success

Rewards and recognizes team and individual accomplishments (Formally and Informally)

Communicates Leadership Vision

Monitors and reports Six Sigma progress

Validates Six Sigma project results

Nominates highly qualified Black Belt and/ or Green Belt candidates.

76. Master Black Belt

Roles

Enterprise Six Sigma Expert

Permanent Full-time Change Agent

Certified Black Belt with additional specialized skills or experience especially useful in deployment of Six Sigma across the enterprise

Responsibilities

Highly proficient in using Six Sigma methodology to achieve tangible business results

Technical expert beyond Black Belt level on one or more aspects of process improvement (e.g. - advanced statistical analysis, project management, communications, program administration, teaching, project coaching)