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Six Sigma Overview - What is Six Sigma?

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-6. -4. -2. 0. 2. 4. 6. Six Sigma Overview - What is Six Sigma?. What is Six Sigma? What is it? How does it work? What are the Benefits? What are the Main Challenges? What will it take?. What is Six Sigma? What is it? How does it work? What are the Benefits? - PowerPoint PPT Presentation
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Productivity/Quality WorkshopWhat will it take?
Six Sigma Green Belt
What is Six Sigma?
What will it take?
Six Sigma Green Belt
Training
Sponsors/Champions
Sigma Calcs
DOE
DMAIEC
DFSS
…that focuses on the average and variation of the output.
Sigma
1
2
3
4
5
6
DPMO
680,000
298,000
67,000
6,000
400
3.4
Customer
Requirement
1
2
3
4
5
6
Six Sigma Green Belt
Importance of Reducing Variation
To increase a process performance, you have to decrease variation
Less variation provides
Less waste and rework, which lowers costs
Products and services that perform better and last longer
Happier customers
Greater predictability has numerous beneficial side effects, such as making forecasts more reliable, increasing ability to meet schedules, etc.
Six Sigma Green Belt
What Is the Goal?
customer needs profitably
Six Sigma Green Belt
Six Sigma’s Methodologies
customer requirements
Design new products and
Six Sigma Green Belt
Provides a standard toolkit to improve business processes
Makes processes transparent, manageable
Enables fact-based decision making
Aligns organizational and process goals
Helps establish customer focus
Establishes a common language
Six Sigma Green Belt
What is Six Sigma?
What will it take?
Six Sigma Green Belt
What Is Sigma?
Sigma is the scale that compares the output of a process to customer or design specifications.
70 80 90 95 100
FREQUENCY
Dimension
moving the average away from the spec limit.
70 80 90 95 100
FREQUENCY
Dimension
Customer
spec
Customer
spec
PROCESS PERFORMANCE
Manufacturing Cable 98% defect free
Accounts Receivable 33 days average aging vs goal of 40
Customer Service 82% rated 4 or 5 on responsiveness
The Sigma Scale provides a common metric for comparison.
Six Sigma Green Belt
significant room for improvement.
Six Sigma Green Belt
Calculating the “Sigma Level”
“Counting Defects” Approach:
A packaging process is required to put at least 5 kg. of fertilizer in each bag. In addition, the fill date must be stamped on the bag.
Last weeks performance:
Sigma Calculation:
When Process Data is Continuous:
A packaging process is required to put at least 5 kg. of fertilizer in each bag.
Last weeks performance:
Standard Deviation of Fill Weight: 0.03 kg.
Sigma Calculation:
PRACTICAL
PROBLEM
PRACTICAL
SOLUTION
In some cases, effective . . . But can result in fire fighting and in recurring problems.
NEXT PROBLEM
NEXT PROBLEM
Execute
Common language and synergy of employing a standard improvement approach
Not just an assortment of tools, but what to do at each step of the improvement process.
DoE
Regression
ANOVA
t-tests
PRACTICAL
PROBLEM
DEFINE:
STATISTICAL
PROBLEM
MEASURE:
There was a lot of variation in “Y” - poor performance (RFC = 35%, 1.1). Determined RFC was a function of (1) boiler tube failures, (2) excessive cooldown (previous shutdown), (3) turbine first-stage metal temperature control, and (4) operator errors. The boiler tube failures and temperature control were major contributors
STATISTICAL
SOLUTION
ANALYZE:
Pareto Analysis & Weibull Analysis of boiler tube failures revealed inadequate water/steam flow in the ends of the waterwall tubesheet
PRACTICAL
SOLUTION
IDENTIFY/EXECUTE AND CONTROL:
Design changes improving flow distribution were implemented and process is currently achieving RFC 91% of the time (2.7) (other countermeasures also contributing).
Six Sigma Green Belt
A tool set
Teamwork
A culture change
“…a continuation of the six sigma tool set being applied specifically to process, product, or service design.”
Six Sigma Green Belt
DFSS – “50,000 foot” View
Develop & Implement Customer Research Plan
Translate Customer Needs to Product/ Service CTQ’s
Specify Targets, Tolerance Limits & Sigma Targets
Develop Product/ Service Necessary Functions
Develop Conceptual Product/ Service Designs
Develop High-Level Production Processes
Predict Capability & Evaluate Gaps
Develop Detailed Production Processes
Develop Process Control & Validation Plans
Build Pilot Processes
Validate Pilot Readiness
Perform Pilot Testing
Evaluate Scale-up Potential
Perform Start-up Testing
Transition to Process Owners
Evaluate & Close Design Project
What will it take?
Six Sigma Green Belt
Six Sigma’s Broad Application
Sigma often reveals that less than 10% of total service process time is devoted to value-added work.
Measuring the “soft stuff” becomes not only possible but profitable.
Quality of Deal teams. VOC says experience in industry and size of deal were the decisive factors in which firm to engage for an IPO. Quantified & easily measured.
Quality of Communications in a leasing business. Do you notify me of changes in schedule, do I have a designated rep, do you return calls, emails etc within 8 hours? Quantified & easily measured.
Quality of Customer Contact. “10, 5, first and last” teller measures. Quantified & easily measured
J&J over $1 Billion in 2 years
GE Capital over $1 Billion in value in 1996.
JP Morgan created $510 Million in value in year one
AIG found $38 million in revenue from one of first nine projects
Six
Sigma
Results
What will it take?
Six Sigma Green Belt
Experimental Thinking (data-driven hypothesis testing)
Control Thinking
Stretch Thinking
Accountability Thinking
Six Sigma Green Belt
What is Six Sigma?
What will it take?
Six Sigma Green Belt
General Electric – The Benchmark!
“Senior leadership, especially Jack Welch, provided unyielding commitment to get the initiative going and ensure its continued success. This will not be easy for other companies to copy.”
Hoerl, Roger (2002), “An Inside Look at Six Sigma at GE,” Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages 35-44.
Six Sigma Green Belt
General Electric – The Benchmark!
“Six Sigma was directed toward specific, tangible objectives, including financial objectives. The culture changed as a result of delivering tangible benefits, not because of a focus on the culture itself.”
Hoerl, Roger (2002), “An Inside Look at Six Sigma at GE,” Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages 35-44.
Six Sigma Green Belt
Six Sigma At 3M
500 Black Belts and Master Black Belts “for ever and ever”
Each has a two-year assignment.
All 28,000 salaried and technical people trained at least at Green Belt level. Many hourly people selected also for Green Belt training.
Major goal is to have for first time common approach to problem solving, new product development, and measurement across entire company.
W. James McNerney, Jr. CEO, 3M Company, 25 June 2002
Six Sigma Green Belt
Twenty Key Lessons Learned
 
Gerald J. Hahn, “20 Key Lessons Learned,” Six Sigma Forum Magazine, May 2002, pages 28-34.
The time is right.
Develop an infrastructure.
Commit top people.
Select initial projects to build credibility quickly.
Make it all pervasive, and involve everybody.
Emphasize DFSS.
Focus on the entire system.
Six Sigma Green Belt
Twenty Key Lessons Learned
 
Gerald J. Hahn, “20 Key Lessons Learned,” Six Sigma Forum Magazine, May 2002, pages 28-34.
Emphasize customer CTQs (critical to quality).
Include commercial quality improvement.
Consider the variability as well as the mean.
Plan to get the right data.
Beware of dogmatism.
Avoid nonessential bureaucracy.
Expect Six Sigma to become a more silent partner.
Six Sigma Green Belt
Process
Management
Business
Dashboards
Change
Management
2. Define Process Goals that lead to Competitive Advantage
3. Determine the Process Measures needed to evaluate Process
Performance
Develop Process Goals & Dashboards
Six Sigma Green Belt
Six Sigma Companies - Characteristics
Start with a prioritized list of customer and business requirements and specifications
Have a clear sense of process owners
Track performance over time
Analyze causes of process and output variation with statistical and process analysis tools
Think systematically about solutions and determine financial return (the ROI may not be there to move from 4.5 to 6.0 Sigma)
Standardize processes to hold the gains
Six Sigma is prioritized, disciplined problem solving to deliver on-target performance with minimum variation.
Six Sigma Green Belt
Applicable to Every Function and Business
About Business Performance
Six Sigma Green Belt
Large Group Discussion: What are the Your Company Business Objectives/Opportunities?
As a small group, discuss how the Six Sigma Approach can help Your Company Achieve the Business Objectives.
What will Six Sigma not achieve, relative to the Objectives?
Summarize your team conclusions on a flipchart and be prepared to discuss your list with the large group.
Using 6 to Achieve Your Co’s Objectives
Defects
Defects

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