Overview What is Six Sigma? What can Six Sigma do? How does Six Sigma work? Six Sigma infrastructure The DMAIC methodology
A methodology that uses metrics and statistical analysis to improve processes, services, and products What is Six Sigma?
A business philosophy that makes customer requirements top priority What is Six Sigma?
A management system that unifies culture, standardizes processes, and raises performance standards What is Six Sigma?
Developed and deployed at Motorola Six Sigma helps Motorola win Baldrige Award 1994-96 SS enters chemicals, healthcare, services 1996-98 SS enters finance, education, government GE and Allied Signal results popularize the methodology for manufacturing 1988 1985-87 1999-2003 Six Sigma development milestones
Improve performance: reduce defects, systematize and stabilize processes, improve customer satisfaction What can Six Sigma do?
Reduce costs: improve efficiency, eliminate waste, reduce costs of poor quality What can Six Sigma do?
Improve the bottom line: $ GE: $3 billion in Six Sigma savings in the year 2000 alone $ Honeywell: $600 million dollars in savings in just one year $ Dow Chemical: $25 million investment regained within only one quarter What can Six Sigma do?
The Greek letter refers to standard deviation, a measure of the variation of data about its average. When we measure a processs sigma value, we measure the number of units of standard deviations between the process center and the closest specification limit. What is ?
6 Sigma 6 Standard Deviations Upper Spec Lower Spec Target Process Center A 6 process has 6 standard deviations between the target and the nearest specification limit
Higher = less variation = fewer defects = better performance Lower Specification Limit (LSL) Upper Specification Limit (USL) 6 process
A 6 process results in only 3.4 defects per million opportunities (DPMO) 3.46 2335 6,2104 66,8073 308,5372 690,0001 DPMOSigma level
4 99.4% error free Electrical outages one hour per week 6 out of every 1,000 invoices contain incorrect info 6 99.9997% Outages two seconds per week 3.4 out of every 1,000,000 invoices How much better is 6?
The infrastructure: Executives and Champions secure organizational support for improvement projects run by Black Belts and Green Belts How does Six Sigma work?
Green Belts All staff Master Black Belts Black Belts Project Team Members Champions Executives Six Sigma infrastructure
Part-time SS (retain previous job duties) Assist BBs with data collection and analysis Lead teams and run projects GBs Half- to full-time Lead problem-solving projects Train and coach project teams BBs Full-time Develop metrics and help establish strategic direction Train and coach BBs and GBs MBBs
Up to 80% of time on Six Sigma Project owners: remove obstacles, provide resources, review progress Translate company mission, goals, and metrics into individual projects Champions 25% of time on Six Sigma Drive overall program Align Six Sigma with organizational culture and vision Executives
Why the Belt terminology?
The methodology: teams apply the DMAIC (define, measure, analyze, improve, control) methodology to root out and eliminate the causes of defects How does Six Sigma work?
DMAIC Methodology no Improve Define Measure Analyze Control Modify design? yes Redesign
Define Identify processes to be improved Define defects, customer requirements, and opportunities for improvement Define Establish project objectives, parameters, and metrics
Define phase tools High-level, as-is business process map Voice of the Customer (VOC): determine what is critical to customer satisfaction Cost of quality/cost of poor quality (COQ, COPQ) Team charter
Collect data on performance Map the process Determine Critical to Quality (CTQ) characteristics Validate measurement system and establish a baseline Estimate process capability Measure
Measure phase tools Detailed process map Failure modes and effects analysis (FMEA) Control charts Gage reproducibility and repeatability (Gage R&R) Process capability
Identify possible sources of variation; narrow the search for key variables Perform hypothesis testing and correlation/regression Analyze Outline areas for improvement; recommend redesign when necessary
Analyze phase tools Confidence intervals Multi-vari analysis Analysis of variance (ANOVA) Correlation/regression Hypothesis testing 0 5 10 15 20 0246810 Correlation = 1 126.96.36.199.39.29.19.08.98.8 8.7 9.4 9.3 9.2 9.1 9.0 8.9 8.8 8.7 8.6 R-Sq = 92.0 % Y = 1.02031 + 0.872922X Regression Plot H o = Null H a = Alternate
Improve Determine effect of key process variables on undesirable variation Develop and test potential solutions to reduce variation Implement validated solutions
Improve phase tools Completely randomized blocks Design of experiments (DOE) Full-factorialmeasures and analyzes the responses of all possible combinations of factors and factor levels Fractional-factorialmeasures and analyzes responses for a balanced portion of the full- factorial array Response optimization Response surface methodology
Monitor the improved process Implement controls to hold the gains Establish and document new standard operating procedures Transfer responsibility to process owners Control
Control phase tools Control plans Evolutionary operation (EVOP) Statistical process control (SPC) Process capability analysis 20100 4 3 2 1 0 U=1.930 UCL=3.794 LCL=0.06613 Lower Control Limit Upper Control Limit Center Line
How do we get started? Explore the business need: VOC, COQ, defect analysis Identify staff: Champions, BBs, GBs Send staff for training: Executives, 1-2 days GBs, 2 weeks Champions, 1 weekBBs, 4 weeks
How long until we see results? Most projects require 4-8 months for completion and sustained results Ideally, an implementation never ends new projects are continually launched to keep the company improving
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