Knowledge Sharing Session on Six Sigma
- 2. Six Sigma {6σ } Introduction Basics Why Six Sigma Six Sigma (6σ) International Organization for Standardization (ISO) Vision Total Quality Management (TQM) Business Process Reengineering (BPR) Mission Just in Time (JIT) Seiri (Sort) Seiton (Set) Seiso (Shine) Seiketsu (Standardize) Shitsuke (Sustain) {5’s} Objectives Failure Modes and Effects Analysis (FEMA) Man, Material, Machines, Money, Method, Management and Moral Values (7M’s) Policies Product, Price, Place, Promotion, People, Process & Physical Evidence (7 P’s) Planning, Organising, Staffing, Directing, Co-ordinating and Budgeting (POSDCoRB) Procedures Plan Do Check Act (PDCA Cycle) & Plan Do Study Act (PDSA Cycle) Define Phase, Measure, Analyse, Improve & Control (DMAIC) Process Define Phase, Measure, Analyse, Improve & Verify (DMAIV)
- 3. Sigma Value 1 σ * 16.6666 = 16.6666 2 σ * 16.6666 = 33.3332 3 σ * 16.6666 = 49.9998 4 σ * 16.6666 = 66.6664 5 σ * 16.6666 = 83.3330 6σ * 16.6666 = 99.9996 (10,00,000 parts 3.4 failure)
- 4. SIGMA LEVEL DEFECT RATE 1 691,500 dpmo 2 308,770 dpmo 3 66,811 dpmo 4 6,210 dpmo 5 233 dpmo 6 3.44 dpmo
- 5. Introduction Manufacturing business companies initiative to reduce waste in manufacturing products. The basic idea is to reduce the cost systematically, throughout the production process. Their goal is to satisfy the customer with the exact product, quality, quantity, and price in the shortest time. manufacturing is more than a cost reduction program or a problem solving approach. The main idea is that an efficient production can be achieved by a comprehensive approach to minimize wastes.
- 6. A Vision and Philosophical commitment to our consumers to offer the highest quality, lowest cost products A Metric that demonstrates quality levels at 99.9997% performance for products and processs A Benchmark of our product and process capability for comparison to ‘best in class’ A practical application of statistical Tools and Methods to help us measure, analyze, improve, and control our process What is Six Sigma
- 7. Define Six Sigma Six Sigma is a defined and disciplined business methodology to increase customer satisfaction and profitability by streamlining operations, improving quality and eliminating defects in every organization-wide process.
- 8. Six Sigma as a Philosophy Internal & External Failure Costs Prevention & Appraisal Costs Old Belief 4s Costs Internal & External Failure Costs Prevention & Appraisal Costs New Belief Costs 4s 5s 6s Quality Quality Old Belief High Quality = High Cost New Belief High Quality = Low Cost s is a measure of how much variation exists in a process
- 9. HISTORY OF SIX SIGMA Motorola company that invented Six Sigma. The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola Late 1970s - Motorola started experimenting with problem solving through statistical analysis 1987 - Motorola officially launched it’s Six Sigma program Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort
- 10. Motorola saved $17 billion from 1986 to 2004, reflecting hundreds of individual successes in all Motorola business areas including: • Sales and marketing • Product design • Manufacturing • Customer service • Transactional processes • Supply chain management
- 11. Throughout its history and evolution, Six Sigma turned into a business driven, multi-dimensional structured approach to reinforce Business Strategies into various aspects such as: 1 Improving Processes 2 Lowering Defects 3 Reducing Process Variability 4 Reducing Costs 5 Increasing Customer Satisfaction 6 Increasing Profit
- 12. Six Sigma as a Metric Sigma = s = Deviation ( Square root of variance ) -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 Axis graduated in Sigma 68.27 % 95.45 % 99.73 % 99.9937 % 99.999943 % 99.9999998 % result: 317300 ppm outside (deviation) 45500 ppm 2700 ppm 63 ppm 0.57 ppm 0.002 ppm between + / - 1s between + / - 2s between + / - 3s between + / - 4s between + / - 5s between + / - 6s s
- 13. Six Sigma methodology require the following roles: 1 Six Sigma Deployment Leader 2 Six Sigma Champion 3 Six Sigma Master Black Belt (MBB) 4 Six Sigma Black Belt (BB) 5 Six Sigma Green Belt (GB) 6 Six Sigma Yellow Belt (YB)
- 15. Training 1. Six Sigma Champion: Champions undergo five days of training and are taught how to manage projects and act as advisors to various project teams. 2. Master Black Belts: These are the people who conduct Six Sigma Training and also have on the job training and experience. 3. Black belts: They receive four weeks of trainings and are directly involved in the implementation of Six Sigma Projects. They are the project leaders and go through in-depth training on Six Sigma approach and tools and work full time on the project. 4. Green Belts: They undergo two weeks of training that includes project-oriented tasks. They act as team members to the Six Sigma project team. Their cooperation and involvement is necessary for projects success.
- 16. ISO-International Organization for Standardization ISO is a worldwide federation of national standards bodies. ISO is a nongovernmental organization that comprises standards bodies from more than 160 countries, with one standards body representing each member country. The American National Standards Institute (ANSI) for example, represents the United States.
- 17. TQM-Total quality management Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training. Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service. TQM was developed by William Deming, a management consultant whose work had a great impact on Japanese manufacturing. While TQM shares much in common with the Six Sigma improvement process, it is not the same as six sigma. TQM focuses on ensuring that internal guidelines and process standards reduce errors, while six sigma looks to reduce defects.
- 18. BPR-Business process re-engineering Business process re-engineering (BPR) is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and business process within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to improve customer service, cut operational costs, and become world-class competitors.
- 19. Just-in-time (JIT) • Just-in-time (JIT) manufacturing, also known as just-in-time production or the Toyota Production System (TPS), is a methodology aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. Its origin and development was mainly in Japan, largely in the 1960s and 1970s and particularly at Toyota.
- 20. METHODS OF SIX SIGMA • DMAIC APPROACH • DMAIV APPROACH
- 21. Define Phase •Input •Internal Resource (Material, Men, Money) •External Resources (Customers, Competition, Comparison, Constitution) •Quality •Research
- 22. Measure •Mean, Median, Mode •SD •Correlation •Regression •Chi Square •ANOVA
- 24. Improve •Probability •Game Theory •Research - Pilot Study •PARETO Principle (20:80) •Cause & Effect Analysis / 5 why analysis.
- 25. Cause & Effect Analysis / fishbone diagram
- 26. Control •C Chart •X Chart •R Chart •P Chart
- 28. Six Sigma Concept apply in Institution