Intro to six sigma s depoe.ppt
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The document provides an introduction to Six Sigma, including: 1) An overview of Six Sigma as a data-driven approach to process improvement focused on reducing defects, with origins at Motorola in the 1970s. 2) A description of common Six Sigma roles like Champions, Black Belts, and Green Belts who lead projects using the DMAIC methodology of Define, Measure, Analyze, Improve, and Control. 3) An explanation of how Six Sigma complements Lean methods by focusing on reducing variation and waste in processes.
Intro to six sigma s depoe.ppt
- 1. Introduction to Six Sigma Steve Depoe June 2013 Steve.depoe@gmail.com
- 2. Background to Six Sigma Program • So What is Six Sigma? − a highly disciplined process that helps us focus on developing and delivering near-perfect products and services − The central idea behind Six Sigma is that if you can measure how many „defects‟ you have in a process, you can systematically figure out how to eliminate them and get as close to „zero defects‟ as possible − A rigorous analytical methodology that employ statistical tools either to design NEW products and processes or to improve EXISTING products and processes (DMAIC - Define, Measure, Analyze, Improve, Control). − Focused on prevention rather than detection, and is applicable to all processes
- 3. • Statistical Quality Control (Deming)1940s • Design Of Experiments (Taguchi / Box & Hunter)1940s • Management By Objectives (McGregor)1950s • Zero Defects (Crosby)1960s • Total Quality Control (Juran)1980s • Total Quality Management1980s • Malcom Baldridge Award for Quality1980s • The Toyota Production System1980s • Lean Methodolgies & Kaizen1990s • Six Sigma (GE, Motorola, Allied Signal, etc.)1990s • Lean + Six Sigma 2000s − Focus on reducing waste and variation throughout the entire Value Stream The Evolution to Lean Six Sigma
- 4. Background to Six Sigma Program • History of Six Sigma − 1979 Motorola starts Six Sigma program for production processes • Goal is to eliminate waste by achieving near perfect results - 3.4 defects per million opportunities • Six Sigma is a registered trade and service mark of Motorola, Inc. − Now used by major corporations throughout the world, for example: • At GE Six Sigma is the way of life – In 1991 Jack Welch invested $450 million and expected a $6 billion saving in 5 years…and he got it
- 5. The Difference • Six Sigma differs from earlier methods in it‟s tie to financial savings. • Six Sigma is tied to financial or dollar savings as a metric for the process improvement
- 6. Background to Six Sigma Program • Benefits − Greater customer satisfaction − Reduction in the cost of poor quality − Improved competitiveness − Increased productivity and top-line growth − Establishes a rigorous approach for problem solving − Greater employee pride.
- 7. Background to Six Sigma Program • Benefits to Customers − A pro-active approach which listens to client requirements, and then translates them into Critical to Quality measurements. − Customer focused - taking key requirements and implementing processes which deliver − Increased quality of goods and services provided − Ability to “Get it Right the First Time” and if there are problems to “Fix the Problem, and only once”
- 8. Background to Six Sigma Program • Relationship to Other Quality Methodologies − Yes, SOME of the tools and concepts of Six Sigma are the same as TQM • Conceptualizing Tools - Brainstorming, Fishbone Diagrams, Affinity Diagrams • Display Tools - Pareto Charts, Histograms, Trend Analysis − But there are many new tools and concepts • DMAIC • Control Charts • Mistake Proofing, • Failure Modes and Effects Analysis (FMEA), • Statistical Process Control (SPC) • MANY More
- 9. Background to Six Sigma Program • Six Sigma complemented with Lean − Lean has a focus on speed, efficiency, and elimination of waste − Six Sigma is about defect reduction. − Together we have Lean/Six Sigma • Lean typically requires: − Elimination of waste (muda): Defects, overproduction, inventories, unnecessary processing, unnecessary movement of people, unnecessary transport of goods, waiting, designing goods and services that don‟t meet customers‟ needs − Value stream mapping: Map the process and focus on elimination of non-value add activities − Pull scheduling
- 10. Typical Course Agenda Day a.m. p.m. Monday Course Introduction Project Practical Session Introduction to Six Sigma Define Phase Tuesday Measure Phase Project Practical Session Wednesday Analyse Phase Project Practical Session Thursday Improve Phase Project Practical Session Friday Control Phase Project Practical Session Next Steps
- 11. Six Sigma Philosophy • Improve Profitability • Be Customer Focused • Measure Outcomes • Focus on Prevention • Reduce Variation
- 12. Six Sigma Philosophy – Improve Profitability • Six Sigma is about results − Actions must lead to improved profitability − Six Sigma is not a “smiles” program (but it does lead to “smiles”) • Focus the organization − Set targets − Then measure performance outcomes to make sure you have hit the right targets
- 13. • Defects • Defects Per Unit (DPU) • Total Defects Per Unit (TDU) • Parts Per Million (PPM) • Defects Per Million Opportunities (DPMO) • Rolled Throughput Yield (RTY) • Sigma ( ) Each of these metrics may be used at different levels in the organization to express the performance of a process in meeting requirements. A Metric Symbol Value Measure Metric Benchmark Method Tool Goal Philosophy A Metric
- 14. Source: Journal for Quality and Participation, Strategy and Planning Analysi A Benchmark Symbol Value Measure Metric Benchmark Method Tool Goal Philosophy Yield Defects Per Million Opportuniti es (DPMO) Cost of Poor Quality (COPQ) Sigma 99.9997% 3.4 <10% 6 World Class 99.976% 233 1-0-15% 5 99.4% 6,210 15020% 4 Industry Average 93% 66,807 20-30% 3 65% 308,537 30-40% 2 Non- Competitiv e 50% 500,000 40% 1
- 15. Six Sigma Philosophy – Be Customer Focused • Listen to what customers say − Hear what is being said “between the lines” • Does CTQ = CTC? − Make sure your CTQ (Critical to Quality) requirements match up to your CTC (Critical to Customer) elements − Be fast, flexible, and responsive − Measure your performance through the eyes of your customers
- 16. Six Sigma Philosophy – Measure Outcomes • If we don‟t measure “it” we don‟t improve “it” − Measuring is an important way to focus the organization • What we measure is what we get − If we measure the wrong things, the wrong things get better − Make sure your measures don‟t send mixed messages − Measure your performance through the eyes of your customers • Use a universal metric (DPMO – Defects Per Million Opportunity) • Track improvement trends over time
- 17. Why 99% or 3.8 Sigma is NOT Good Enough!! 200,000 incorrect prescriptions per year 2 unsafe landing per day at Heathrow 5,000 incorrect surgical operations per week 1 hour of unsafe water each month 7.2 Hours per month down-time John Doe, 111 Any Address Cg54 XD 20,000 lost articles of mail per hour
- 18. Six Sigma – Some Examples •7.2 Hours per month of server down time •20,000 lost articles of mail per hour •5,000 incorrect surgical operations per week •Two short or long landings at most major airports each day •200,000 wrong drug prescriptions each year •9 seconds per month of server down time •Seven articles lost per hour •1.7 incorrect operations per week •One short or long landing every five years •68 wrong prescriptions per year 3.8 Sigma – 99% Good 6 Sigma – 99.99966% Good
- 19. Six Sigma Philosophy – Focus on Prevention • Prevention costs less than detection − Detection is finding and fixing errors, problems, and mistakes − Prevention is preventing them from happening in the first place • COQ : Cost of Quality − Prevention costs − Appraisal costs − Internal failures − External failures • The $1 : $10 : $100 Rule − $1 spent on prevention saves $10 of internal failures and $100 of external failures
- 20. Six Sigma Philosophy – Reduce Variation • Everything varies − Even snowflakes • Variation leads to: − Unpredictable processes − Poor process capability − Scrap and re-work − High cost of quality − Lower profitability
- 21. Six Sigma Approach - DMAIC • Define − Define Customers and their CTQs − Map the high level business process − Develop and refine project charter • Measure − Establish baseline performance for the current process and to develop measures that will enable improvement of the performance of the process • Analyze − Examine the data and process to determine root causes and opportunities for improvement • Improve − Generate, select, design, test, and implement improvements • Control − Maintain the improvement
- 22. • “It is also known as the Toyota Production System. The goal of lean production is described as "to get the right things to the right place at the right time, the first time, while minimizing waste and being open to change". • At Toyota, engineer Tachi Ohno, who is credited with developing the principles of lean production, discovered that in addition to eliminating waste, his methodology led to improved product flow and better quality. What is Lean?
- 23. Lean Six Sigma is about identifying/quantifying and eliminating the Hidden Factory through cycle time & defect reduction and ultimately Design for Six Sigma Described below is any process that meets a customer need 90% Yield after Final inspection or test Each defect must be detected, repaired and placed back in the process. This results in Wasted: • Time • Money • Resources Scrap Rework Hidden Factory 30% NOT OK OperationInputs Informal Inspection 70% OK 90% Customer Quality This classic approach to calculating yield does not account for the hidden factory. Scrap Rework Hidden Factory 10% NOT OK Operation 90% OK Formal Inspection Waste and the Hidden Factory
- 24. • Specify value from the perspective of the customer • Identify and understand the value stream • Reduce waste in the process • Make the value flow – faster process • Pull value according to customer demand • Pursue perfection Timed Value Map -15 -10 -5 0 5 10 15 1 2 3 4 5 6 7 8 9 10 11 Activity Hours VALUE ADD NON-VALUE ADD 3 types of value • Value add An activity that transforms or shapes (for the first time) material or information to meet customer requirements • Non-value add Those activities that take time and resources but do not add to the customer requirements • Non-value add but necessary i.e. legislative Lean = Faster by Improving the Value Stream
- 25. • Waste elimination • Work concentration • Flow • At the pull of the customer Speed Accuracy+ Lean Six Sigma • Variation reduction • Scrap / rework elimination • Process control = $$$ Lean Methods & Six Sigma
- 26. • Lean is the focus of resources to reduce waste • Lean tries to eliminate waste in the following areas – Defects (correction of product) – Overproduction – Transportation – Waiting – Inventory – Motion – Processing Lean Methods
- 27. Lean Six Sigma - • Is not merely a quality initiative, it is a business initiative • Is a total management commitment and philosophy of excellence, customer focus, process improvement, and the rule of measurement rather than gut feel – it means we do not accept defects, we do not accept waste and we always work toward improving our products & services • The term Six Sigma refers to a product or process that produces only three defects (or errors) out of every million opportunities Lean Six Sigma is Business Improvement
- 28. Project Based Approach • Unlike traditional quality techniques, Six Sigma explicitly uses concepts of project management, and so has several benefits of a project − Every Six Sigma project has a defined start date and end date and a pre-defined project charter with goals, objectives and deliverables. • Project planning tools like project plan, Gantt charts, PERT, planning trees etc are used for managing the project and require proper knowledge of the different project management knowledge areas: − Project integration management − Project scope, time and cost management − Project human resources management − Project communication and risk management − Project risk management
- 29. Cohesive Project Based Approach • Detailed process maps created during initial stages of Six Sigma project provide an overview of complex processes in an organization, identifies relationship and interdependencies between the processes and facilitates identification of problems. • Six Sigma methodologies can evaluate different processes within an organization including people, equipment, environment, materials etc. and identify the best projects to provide maximum benefits to the organization. • Cohesive process based approach helps in getting a holistic view of the organization and identifying potential problem areas – Six Sigma projects can then be used to fix the problems identified.
- 30. Quantitative Approach • Since several traditional quality approaches did not use rigorous quantitative methods, it was very difficult to measure the cost and benefits of those quality initiatives. • By using rigorous quantitative and statistical techniques, six sigma provides mathematical analysis to determine which projects offer maximum benefits at lowest costs i.e. all six sigma project have measurable and quantifiable goals and associated costs. • Following the quantitative six sigma concepts also helps ensure that − The project goals align with the organization goals − There are long-term benefits from the six sigma project.
- 31. Six Sigma Roles and Responsibilities Executive Management Champions Green Belt Green BeltBlack Belt Six Sigma Teams Organisational Infrastructure Support Measure Teach Consult MasterBlackBelt Finance Vision Priority Select Define Measure Analyse Improve Control Lead Black Belt
- 32. Six Sigma Roles and Responsibilities • Executive Management − Sets the company/division strategy and goals − Allocates resources − Targets key improvement areas
- 33. Six Sigma Roles and Responsibilities • Champion − Chooses projects − Conducts project reviews − Provides management, leadership, support, and mentoring to project leaders − Knocks down barriers
- 34. Six Sigma Roles and Responsibilities • Lead Black Belt − Works with Product Line/Account management to identify project opportunities − Identifies people within the Product Line/Account who will run Six Sigma projects − Coordinates the training requirements − Coordinates Six Sigma program within Product Line or Account − Supports the individual projects
- 35. Six Sigma Roles and Responsibilities • Black and Green Belts − Leads project − Keeps champion informed of project progress − Uses and educates team on Six Sigma methodology and tools − Actively seeks to use Six Sigma process to solve problems
- 36. Six Sigma Roles and Responsibilities • Team Members − Attends all the meetings − Completes assignments between meetings − Actively participates and contributes expertise − Listens to other‟s ideas − Uses Six Sigma process to solve problems
- 37. Six Sigma Roles and Responsibilities • Master Black Belt − Provides technical support and mentoring − Facilitates multiple projects − Provides support and advice to Champions and Executive Management − Trainer of Six Sigma tools and techniques