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Six Sigma Introduction 3697

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Six Sigma Six Sigma Business Excellence Breakthrough "Delivering Tomorrow's Performance Today" 
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    Six SigmaSix Sigma

    Business ExcellenceBreakthrough

    "Delivering Tomorrow's

    Performance Today"

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    Your first question is likely.What is Six Sigma?

    Your second question is likely

    Why Six Sigma?

    Six Sigma

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    What is a Sigma?

    What is Six Sigma?

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    Six Sigma Defined

    A quality discipline that focuses onproduct and service excellence to

    create a culture that demandsperfection (on target, every time!)

    But, it is much more!

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    % AccurateDefects per Million

    Opportunities

    The Range of Six Sigma

    22 308,500308,50069.1569.15

    33 66,80066,80093.3293.32

    44 6,2106,21099.3899.3855 23323399.97799.977

    66 3.43.499.999799.9997

    11 691,500691,50030.8530.85

    77 0.0200.02099.99999899.999998

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    Cost of Poor Quality (COPQ)Traditional Quality Costs

    Tangible

    Scrap

    Rework

    Inspection

    Warranty

    Rejects

    Administration /

    Disposition

    Concessions

    Engineering Change Orders

    Lost OpportunityHidden Factory

    Lost Sales

    Late Delivery

    Long Cycle Times

    Expediting Costs

    Excess Inventory

    Additional Costs of Poor Quality

    IntangibleDifficult or impossible to measure

    Lost Customer Loyalty

    More Setups

    Average COPQ Approximately 15% of Sales

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    A B C DCustomers

    (Products!)

    99% 98% 97%95%Suppliers

    (Raw Materials)

    89%89%

    96%

    86%86%

    ECustomers

    (Products!)

    96% 94%

    F

    95%

    G

    78%78%

    90%Suppliers

    (Raw Materials)

    64%64%

    70%70%H

    94% 90%

    I54%54%

    49%49%

    Rework

    SS

    Rework

    SS

    Rework

    SS

    RedoSS Rework

    SS

    RedoSS

    Redo

    SS

    64%64%99%(3.9 )

    64%64%99%(3.9 )

    The Hidden Factory

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    MeasureMeasure

    ExploreExplore

    ImplementImplement

    MeasureMeasure

    AnalyzeAnalyze

    ImproveImprove

    ControlControl

    Define the opportunity

    YesDo products,process and

    service

    standards existto satisfy therequirements?

    DevelopDevelopIs Improvement

    Sufficient?

    Yes

    LeverageLeverage

    No

    No

    Improve currentImprove currentprocess, products &process, products &

    servicesservices

    Hard savings (EBIT) 12Hard savings (EBIT) 12--month impactmonth impact

    ImprovingImproving

    the game!the game!

    MAICDFSS

    BreakthroughBreakthroughdifferentiateddifferentiated

    performance designs forperformance designs for

    new process, productsnew process, products

    & services& services

    Breakthrough inBreakthrough inavoiding cost & capitalavoiding cost & capital

    LongLong--term (NPV)term (NPV)benefitsbenefits

    ChangingChangingthe game!the game!

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    Measure

    Main activities

    Finalize ProjectCharter

    Define CurrentProcess

    Identify PossibleInput/Output

    Variables

    DetermineMeasurementSystem Variation

    Assess CurrentCapability

    Finalized ProjectCharter

    Prepared ProjectTeam

    Use Excellence tool

    Possible Key Input /Output Variables

    Data CollectionMethodology

    Critical to Cost Current Sigma, and $Baseline

    Potential Tools & Techniques Key Deliverables

    ProjectProjectCharterCharter

    CurrentCurrentProcessProcess

    CapabilityCapability

    MemtMemtSystemSystem

    VariabilityVariability

    PotentialPotentialKIVs &KIVs &KOVsKOVs

    CurrentCurrentProcessProcess

    MEASURE:

    Gathering the right data toaccurately assess a

    problem.

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    Analyze

    Main activities

    Analyze Potential

    Root Causes Establish Key InputVariables

    Propose Key Input

    Variable Limits Implement ObviousInput VariablesControls

    Validated Root

    Causes

    Key InputVariables

    Data AnalysisValidated KeyInput Variables

    Cost Savings

    Validated

    Key DeliverablesPotential Tools & Techniques

    RootRootCauseCauseAnalysisAnalysis

    CurrentCurrentandand

    ValidatedValidated

    Fix theFix theobviousobvious

    ProposeProposed Keyd Key

    VariableVariableInputInputLimitsLimits

    StatisticaStatisticall

    AnalysisAnalysisfor Keyfor KeyInputInput

    VariablesVariablesx

    ANALYZE:

    Using statistical tools tocorrectly identify the root

    causes of a problem.

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    Main activities

    Optimize key inputvariables

    Optimize processdesign

    Set key inputvariable limits

    Establish changestrategy

    ImprovementImpacts Validated

    ChangeManagementStrategy

    Improved Defectsper opportunity andCost SavingsValidated

    News Validated

    Key DeliverablesPotential Tools & Techniques

    Key InputKey InputVariablesVariablesOptimizeOptimize

    dd

    CurrentCurrentDPO/$DPO/$

    ChangeChangeManagementManagement

    StrategyStrategy

    KeyKeyVariablesVariables

    ((KIVsKIVs))InputInput

    Limits SetLimits Set

    OptimizeOptimizeProcessProcessDesignDesign

    Improve

    IMPROVE:

    Correcting the problem (notthe symptom).

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    Control

    Key DeliverablesMain activities

    Implement controlplan

    Monitor controlsystem

    Document lessonslearned

    Process Control

    SystemCase Study,LessonsLearned

    Potential Tools & Techniques

    Controlling theControlling theImproved ProcessImproved Process

    Final $Final $ValidatedValidatedVS GoalVS Goal

    $$

    LessonsLessonsLearnedLearned

    andand

    LeveragedLeveraged

    ControlControlSystemSystemAuditAudit

    x

    CONTROL:

    Putting a plan in place tomake sure that problems

    STAYfixed once and forall.

    SUSTAIN THE GAINS!

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    At Dow Six Sigma is

    more

    than a quality Program- and more than just

    dollars

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