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Six sigma-basics

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Six Sigma Six Sigma Overview Overview Roma Mohanti, 04/2008 Roma Mohanti, 04/2008
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Page 1: Six sigma-basics

Six Sigma OverviewSix Sigma Overview

Roma Mohanti, 04/2008Roma Mohanti, 04/2008

Page 2: Six sigma-basics

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Page 2 Six Sigma Overview

Sigma as a Business StrategySigma as a Business Strategy Focused on Focused on customercustomer requirements requirements

o Internal, and externalInternal, and external customerscustomerso Root cause of defects that impact satisfaction, loyalty, Root cause of defects that impact satisfaction, loyalty,

revenue, market sharerevenue, market share A disciplined, fact-based approach to managing a A disciplined, fact-based approach to managing a

business and its processesbusiness and its processes A way to assess performance of a processA way to assess performance of a process

o Devised at Motorola in 1987Devised at Motorola in 1987o Higher the process sigma, the fewer the defectsHigher the process sigma, the fewer the defects

Comparison of differing processesComparison of differing processeso Marketing, Finance, Manufacturing, Order Fulfillment, Marketing, Finance, Manufacturing, Order Fulfillment,

Service Delivery in common terms Service Delivery in common terms o Adjust for complexity of the work, product, serviceAdjust for complexity of the work, product, service

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Page 3 Six Sigma Overview

Six SigmaSix Sigma

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Page 4 Six Sigma Overview

DeploymentDeployment

Six Sigma is deployed by individuals Six Sigma is deployed by individuals certified in the methodology including:certified in the methodology including:• Master Black Belt - certified to train and certify Master Black Belt - certified to train and certify

othersothers• Black Belt - certified to train and lead Six Sigma Black Belt - certified to train and lead Six Sigma

projectsprojects• Green Belt - certified to train and participate in Green Belt - certified to train and participate in

the processthe process

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Page 5 Six Sigma Overview

Six Sigma MethodsSix Sigma Methods

DMAICDMAIC• Define, Measure, Analyze, Improve, ControlDefine, Measure, Analyze, Improve, Control• Used to improve existing processesUsed to improve existing processes

DMADV / DFSSDMADV / DFSS• Define, Measure, Analyze, Design, VerifyDefine, Measure, Analyze, Design, Verify• Used to develop new processes or implement new Used to develop new processes or implement new

technologiestechnologies• May be referred to as DFSSMay be referred to as DFSS

Process ManagementProcess Management• Reviewing and analyzing E2E of work processesReviewing and analyzing E2E of work processes

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Page 6 Six Sigma Overview

Methodology IntegrationMethodology Integration

Intiation Planning Execution Closure

Define Measure Analyze Improve Control

Inception Elaboration Contruction Transition

Pro

ject

Ma

na

ge

me

nt

Life

Cycle

DM

AIC

M

eth

od

olo

gy

RU

P

Me

tho

do

log

y

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Page 7 Six Sigma Overview

DMAIC Cycle - DefineDMAIC Cycle - Define

Select specific problem/opportunitySelect specific problem/opportunity An appropriate DMAIC project An appropriate DMAIC project Meaningful and ManageableMeaningful and Manageable

Create a Project CharterCreate a Project Charter Validated by leadershipValidated by leadership Identifying key contributorsIdentifying key contributors

Define the process and Define the process and

customer(s)customer(s)

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Page 8 Six Sigma Overview

Define Stage ActivitiesDefine Stage Activities

Define Critical Customer RequirementsDefine Critical Customer Requirements Develop Team CharterDevelop Team Charter Map “As Is” Business Process Map “As Is” Business Process Complete SIPOCComplete SIPOC Develop the Business Case including high Develop the Business Case including high

level project planlevel project plan

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Page 9 Six Sigma Overview

SIPOCSIPOC

A document that defines A document that defines the context, specifics and plans of the context, specifics and plans of an improvement or design projectan improvement or design project

Define (and narrow) the project’s focusDefine (and narrow) the project’s focus Clarify the results being soughtClarify the results being sought Confirm value to the businessConfirm value to the business Establish boundaries and resources for Establish boundaries and resources for

the teamthe team Communicate goals and plansCommunicate goals and plans

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SIPOC

Suppliers Input Process Output CustomerClients Requirements Profile ClientSales People Resumes Interview Summaries Sales PeopleCandidates Profiles Offer Letters Delivery ManagementWeb Site Margin Template Candidate/EmployeeRecruiting Data Base

Get Requirement

Search for Candidate

Screen Candidate

Make Offer Fill RequirementPresent

Candidate

Example - SIPOCExample - SIPOCA SIPOC will allow your project team to put parameters A SIPOC will allow your project team to put parameters around the process being reviewed and identify the areas around the process being reviewed and identify the areas

impacted both up and down streamimpacted both up and down stream

Suppliers – who feeds the processSuppliers – who feeds the process Inputs – what do they feedInputs – what do they feed Process – steps in the processProcess – steps in the process Outputs – outputs of the processOutputs – outputs of the process Customer – who pulls from the processCustomer – who pulls from the process

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Page 11 Six Sigma Overview

DMAIC Cycle - MeasureDMAIC Cycle - Measure

Determine what to measure and whyDetermine what to measure and why Prepare plans to collect output, process Prepare plans to collect output, process

and/or input dataand/or input data Construct forms and test data collection Construct forms and test data collection

proceduresprocedures Refine data collectionRefine data collection Refine DMAIC CharterRefine DMAIC Charter

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Page 12 Six Sigma Overview

Measure Stage ActivitiesMeasure Stage Activities

Identify Key MeasurementsIdentify Key Measurements Data Collection PlanData Collection Plan Data Collection ExecutionData Collection Execution Document Process VariationsDocument Process Variations Establish Performance BaselineEstablish Performance Baseline

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Page 13 Six Sigma Overview

Input – Process – Output MeasuresInput – Process – Output Measures A DMAIC team must get Output measures to baseline A DMAIC team must get Output measures to baseline

the process/problemthe process/problem• Focus on your Goal target or “Project Y” Focus on your Goal target or “Project Y”

Output measures can be taken before or after the Output measures can be taken before or after the product or service is delivered to the customerproduct or service is delivered to the customer• Defects caught in-house prior to shipment vs. on delivery or Defects caught in-house prior to shipment vs. on delivery or

inserviceinservice

Use SIPOC diagram and sub-process maps to help Use SIPOC diagram and sub-process maps to help select measures and ensure “balance” select measures and ensure “balance”

Consider possible “X” measures early in the project to Consider possible “X” measures early in the project to help get some initial data for the Analyze phasehelp get some initial data for the Analyze phase

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Review Y and X MeasuresReview Y and X Measures

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Process Measurement ExampleProcess Measurement Example

Delivery Time in Days

Critical Customer Requirement = 9.4 days

Defects: Service unacceptable to

customer

Nu

mb

er O

rder

s F

ille

d

Variation in results

1 2 3 4 5 6 7 8 9 10 11 12

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Page 16 Six Sigma Overview

DMAIC Cycle - AnalyzeDMAIC Cycle - Analyze

Current state analysisCurrent state analysis Is the current state as good as the Is the current state as good as the

process can do?process can do? Who will help make the changes?Who will help make the changes? Resource requirementsResource requirements What could cause this change effort to What could cause this change effort to

fail?fail? What major obstacles do I face in What major obstacles do I face in

completing the project?completing the project?

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Page 17 Six Sigma Overview

Analyze Stage ActivitiesAnalyze Stage Activities

Validate “As Is” Process MapValidate “As Is” Process Map Complete Root Cause AnalysisComplete Root Cause Analysis

• Fishbone DiagramFishbone Diagram• House of QualityHouse of Quality

Develop “To Be” Process MapDevelop “To Be” Process Map Complete Gap AnalysisComplete Gap Analysis

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Page 18 Six Sigma Overview

Process AnalysisProcess Analysis

DisconnectsDisconnects BottlenecksBottlenecks RedundanciesRedundancies Rework loopsRework loops Decisions/InspectionsDecisions/Inspections

MovesMoves

Look for points in the process that generate defects or where work may be disrupted or

delayed

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Page 19 Six Sigma Overview

Analyze Current ProcessAnalyze Current Process

Process Flow Example

Sys

tem

sM

anag

emen

t /

Oth

erLi

st S

elec

tion

Mar

ketin

g

Revise List Order to Reflect Cut-

Backs, Nth Requests

List Selection

Key in List Order in Vendor's Language

ExcelList Order /

Audit Spreadsheet

Vendor

ExcelList Order

List Selection

Complete Trial Run

Review and Approve Trial Run

VendorData Base

VendorData Base

Order Vendor Suppression Files

Audit with Excel Spreadsheet and Approve, Send to

List Selection

Review and Approve Trial Run

Develop List Order Instructions

Complete Internal List Order Using Instructions from DataBase Mgr

Work Flow Loop

Mrkt Manager

Review, Recommend Cut-

Backs

ExcelList Order

ExcelList Order

SAS

Dat

aBas

eM

anag

emen

t

Revise if Necessary, Place

Order with List Broker

Prepare External List Order

Mktg Manager

Review, Recommend Cut-

Backs

Vendor DataBase

ExcelList Order

ExcelList Order

List Selection

Revise if Necessary, Send Order to Vendor

Use symbols and colors to help you analyze the current state

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Page 20 Six Sigma Overview

DMAIC Cycle - ImproveDMAIC Cycle - Improve

Create innovative ideas for improvementCreate innovative ideas for improvement Funnel and select best solution possibilitiesFunnel and select best solution possibilities Understand best practices for process Understand best practices for process

workflowworkflow Develop pilot and define implementation Develop pilot and define implementation

strategiesstrategies• Work breakdown structureWork breakdown structure

• Specific activities to meet the project goalsSpecific activities to meet the project goals

• Alignment or re-integration of various subprojectsAlignment or re-integration of various subprojects

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Improve Stage ActivitiesImprove Stage Activities

Define SolutionDefine Solution• Include IT when defining technical solutionsInclude IT when defining technical solutions

Develop Work Breakdown StructureDevelop Work Breakdown Structure Develop Implementation PlanDevelop Implementation Plan Complete FMEAComplete FMEA

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Page 22 Six Sigma Overview

Generate and Select SolutionsGenerate and Select Solutions

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FMEAFMEA

Failure Modes & Effects AnalysisFailure Modes & Effects Analysis Method to assess and plan for problems which Method to assess and plan for problems which

could impact safety, reliability, customer could impact safety, reliability, customer satisfaction, profits, etc.satisfaction, profits, etc.• Failure Modes = types of possible error or defectFailure Modes = types of possible error or defect

• Looks at common or rare events and relative riskLooks at common or rare events and relative risk

A tool for process owners to allocate A tool for process owners to allocate measurement and prevention resources measurement and prevention resources (Control)(Control)

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Example - FMEAExample - FMEA

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DMAIC Cycle - ControlDMAIC Cycle - Control

How will I control risk, quality, cost, How will I control risk, quality, cost, schedule, scope and changes to the plan?schedule, scope and changes to the plan?

What types of progress reports should I What types of progress reports should I create?create?

How will I assure that the business goals of How will I assure that the business goals of the project were accomplished?the project were accomplished?

How will I keep the gains made?How will I keep the gains made?

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Page 26 Six Sigma Overview

Control Stage ActivitiesControl Stage Activities Complete Process StandardizationComplete Process Standardization

• Validate Process MapValidate Process Map• Develop Process DocumentationDevelop Process Documentation

Develop Monitoring PlanDevelop Monitoring Plan Develop Response PlanDevelop Response Plan Complete Transfer of OwnershipComplete Transfer of Ownership

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Page 27 Six Sigma Overview

Control PlanControl Plan

Control Plan = FMEA + Monitoring + Response

From Improve Phase New!Dashboard/Control ChartVOC Systems

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SummarySummary

Six Sigma Six Sigma • 3.4 Defects per Million Opportunities3.4 Defects per Million Opportunities

DMAICDMAIC• DefineDefine• MeasureMeasure• AnalyzeAnalyze• ImproveImprove• ControlControl


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