1Six Sigma Overview

Six Sigma Overview

2Six Sigma Overview

Objective

• Understand the objective of Six Sigma

• Understand the Six Sigma measurement

• Gain an understanding of the Six Sigma terminology

• Introduce the DMAIC process/methodology

• Understand the objective of each of the 5 phases (DMAIC) of Six Sigma methodology

• Discuss the differences between Six Sigma and other corporate initiatives.

In This Module We Will….

3Six Sigma Overview

Is 99% Good ?

4Six Sigma Overview

99% Accuracy

Practical Meaning of “99% Good”

• 20,000 lost articles of mail per hour

• Unsafe drinking water almost 15 minutes each day

• 5,000 incorrect surgical operations per week

• 2 short or long landings at most major airports each day

• 200,000 wrong drug prescriptions each year

• No electricity for almost 7 hours each month

99% Is NOT Good Enough Anymore

5Six Sigma Overview

6 – The Measurement

99.0% = 3.85

99.9996% = 6

Is there really a big difference between 99.0% & 99.9996%?

6Six Sigma Overview

Facts

• All work is a process

• All processes have variation and waste

• Variation causes defects waste causes loss

• Processes can be improved by understanding the nature of the variation and waste

7Six Sigma Overview

Methodologies

Six Sigma

Lean DFSSWaste Elimination Design For

Growth

Variation Elimination

ISO

8Six Sigma Overview

Lean Philosophy

Anything the customer will not pay for is Non-Value Added

80% of Non-Value Added is waste

9Six Sigma Overview

Six Sigma

Culture Methodology66Common Language

Department Link

Change

Roles and Commitment

Process Project Focus

DMAIC

DFSS (IDOV or DMADV)

Tool Kit

Defect Elimination

Variation Reduction

10Six Sigma Overview

Change Management

Culture Methodology66DMAIC

Tool Kit

Defect Elimination

Variation Reduction

Common Language

Department Link

Change

Roles and Commitment

Culture Methodology66Culture Methodology66DMAIC

Tool Kit

Defect Elimination

Variation Reduction

Common Language

Department Link

Change

Roles and CommitmentChange

• New Way of Looking at Problems

• Fact Based Decision Making

• Not Relying on “Gut Feel”

• Change Management

Six Sigma Incorporates Change Management

11Six Sigma Overview

Six Sigma Methodology is Change

Six Sigma Is…

• Structured Problem Solving

• Fact Based Decision Making

• Rigorous Methodology

• Management By Fact

• Statistically Based

• Team Driven

“Six Sigma Is Not…

• Gut Feel

• Reliance On “Best” Customer

• That Won’t Work Here”

• Opinion

• “We’ve Tried That”

• Firefighting

12Six Sigma Overview

The Methodology

Culture Methodology66DMAIC

Tool Kit

Defect Elimination

Variation Reduction

Common Language

Department Link

Change

Roles and Commitment

Culture Methodology66Culture Methodology66DMAIC

Tool Kit

Defect Elimination

Variation Reduction

Common Language

Department Link

Change

Roles and Commitment

Methodology• Scalable to the depth

and breadth of the organization

• Applicable to all business regardless of size or industry

• Project focused depending upon the strategic direction of the organization

13Six Sigma Overview

Getting to Six Sigma

How far can inspection get us?

14Six Sigma Overview

Inspection Exercise

Instructions:

Count the number of times the 6th letter of the English Alphabet appears on the next slide.

F f

15Six Sigma Overview

The MacFeenie Company was founded by Fannie MacFeenie of Fredericksburg, Florida. The MacFeenie Company finds first the finest freshest fish for feeding hungry people. The MacFeenie Company can compete with Florida’s finest fish foundries because Fannie MacFeeneie who is the founder of the company deployed Six Sigma five years ago. Now The MacFeenie Company finds defects caused by variation and removes them from processes. This helps the MacFeenie Company satisfy their customers first, thereby facilitating valuable market share from fierce fish foundry competition.

16Six Sigma Overview

The MacFeenie Company was founded by Fannie MacFeenie of Fredericksburg, Florida. The MacFeenie Company finds first the finest freshest fish for feeding hungry people. The MacFeenie Company can compete with Florida’s finest fish foundries because Fannie MacFeenie who is the founder of the company deployed Six Sigma five years ago. Now The MacFeenie Company finds defects caused by variation and removes them from processes. This helps the MacFeenie Company satisfy their customers first, thereby facilitating valuable market share from fierce fish foundry competition.

17Six Sigma Overview

Number MissedDPMO Sigma Value* Yield(%)

27027 3.4 97.3%

81081 2.9 91.9%

135135 2.6 86.5%

216216 2.3 78.4%

270270 2.1 73.0%

324324 1.95 67.6%

405405 1.75 59.5%

1

3

5

8

10

12

15Total # F (f): 37, Opportunity: 1 slideDPMO Calculations = (# missed/Total # F) * 1,000,000/# OpportunitiesSigma Calculation: Normal Distribution Z Table with 1.5 sigma shiftYield (%) = # Correct / Total # FNOTE: Sigma Level and Yield above are approximate short term calculations

F Exercise Sigma Level

18Six Sigma Overview

The Goals Of Six Sigma

Defect Reduction

Yield Improvement

Improved Customer Satisfaction

Higher Net Income

19Six Sigma Overview

Six Sigma – The Methodology

20Six Sigma Overview

Process Vs. Customer

DefectsDefects Acceptable

LSL USL

Customer Requirement

Process Performance

Process Performance And Customer Requirement Often Do Not Match

21Six Sigma Overview

6 Sigma – The Basic Process

1. Understand the Customer Requirements

2. Reduce Variation Waste Within The Process To Reduce the Defects

3. Center the Process Around The Customer Requirements

4. Control The Process

22Six Sigma Overview

DMAIC - 5 Phase Approach

The Six Sigma Projects Are Completed By Following A 5 Phase Approach

Define

Measure

Analyze

Improve

Control

23Six Sigma Overview

Define Phase Objectives

Define

Measure

Analyze

Improve

Control

• Identify customer requirements

• Identify corresponding process

• Determine relationship between process and customer

• Scope project

• Identify problem statement

• Identify team

• Develop project contract

24Six Sigma Overview

Measure Phase Objectives

• Identify process input and output variables

• Identify steps in process

• Remove waste from process

Define

Measure

Analyze

Improve

Control

ToolsProcess Mapping

25Six Sigma Overview

Analyze Phase Objective

• Identify sources of variation

• Identify sources of waste

• Identify key variables

Define

Measure

Analyze

Improve

Control

ToolsC&E Fishbone

26Six Sigma Overview

Improve Phase Objective

• Optimize process by making improvements

Define

Measure

Analyze

Improve

Control

ToolsBrainstorming

27Six Sigma Overview

Control Phase Objective

• Control the optimized process

Define

Measure

Analyze

Improve

Control

ToolsStandard Operating ProcedureMistake Proofing

28Six Sigma Overview

Six Sigma Tool Box

Define Measure Analyze Improve Control

Benchmarking Value Stream Map

Fishbone Diagrams

Modeling SPC Charts

Process Flow Mapping

Cause & Effect FMEA Tolerance Control

Performance Metrics

Flow charts Defect Metrics Root Cause Analysis

Defect Control Multiple Regression

Project Charter as a Team

Statistical Analysis

ANOVA Design Changes

Train

Set Up a Plan & Guidelines for Team

Data Collection

Run Charts, Time Series Chars, Time Value Charts, Pareto Charts

Cause & Effect Diagram

Piloting

Review Existing Data

Sampling Scatter Plots Best Practices

SIPOC

29Six Sigma Overview

Six Sigma Infrastructure

30Six Sigma Overview

Enterprise Wide Six Sigma Roles

Executives

Senior Champion

Project Champion

Black Belts

Green Belts

Project Team

Members

6Finance

Champion

All departments have processes

All processes can be improved

All departments should implement Six Sigma

Most “low hanging fruit” can be found outside of

manufacturing