Lss explained sigma rules.ppt
- 1. 1 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 2. 2 00 Introduction and Overview.ppt Let’s Get to Know Each Other .... First, let us introduce the Instructors and and our backgrounds ... Next, please introduce yourself: Name Business unit/segment Job title/function Location Years of service with CCM Previous quality and/or statistics experience Expectations from Green Belt Training SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 3. 3 00 Introduction and Overview.ppt Green Belt Training Course Objectives By the end of this training you will be able to: Understand why the business is implementing Six Sigma Learn the Six Sigma Methodology Execute steps required to complete your first Six Sigma project Select the appropriate Six Sigma techniques and tools for future projects SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 4. 4 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Course Schedule Week 1 Day 1 Six Sigma Overview, Define & Projects Reviews Day 2 Define and Measure, Minitab Intro Day 3 Measure (Data, MSA, Capability) Day 4 Measure and Analyze (Goal Y, Xs) Day 5 Analyze (Critical Xs), Project Reviews Week 2 Day 6 Analyze (Critical Xs, $), Project Reviews Day 7 Improve (DOE), Project Reviews Day 8 Improve (Pilots), Project Reviews Day 9 Control (SPC, Document, Translate), Project Reviews Day 10 Final workshop, Summary, Project Completion/Certify
- 5. 5 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Greenbelt Certification Requirement Requirement Responsibility Endorsement Fullattendance inall 10 days of training GreenBelt MBB Instructors Successfulproject completion GreenBelt/Team Process Owner Demonstrationof skills GreenBelt MBB Instructors FinancialSavings of $50K/yr GreenBelt Process Owner & MBB mentor
- 6. 6 00 Introduction and Overview.ppt Ground Rules Take responsibility for your own learning Every question is a good question Honor time limits Participate by sharing your opinions and experiences Listen and consider the opinions and feedback of others If you have to leave, make arrangements Computer etiquette Help others Have fun!!! SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 7. 7 00 Introduction and Overview.ppt After this session, you will be able to… Describe what Six Sigma is in terms of Its philosophy Its goal Its methodology Describe in general terms how the Six Sigma methodology works Explain the business stake and rational for applying Six Sigma Describe your role as a Green Belt Beginning with the End in Mind SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 8. 8 00 Introduction and Overview.ppt The Big Picture WHAT is Six Sigma? WHAT is the basic idea behind Six Sigma? WHY do Six Sigma? HOW does Six Sigma work? What’s my role as a Green Belt? SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 9. 9 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Six Sigma is Excellence “Six sigma quality means the virtual elimination of defects from every process, product and transaction in our company. … It is a key part of how we will do business well into the next century. ...However, the real impact of Six Sigma is that it is a business management process and not just a quality metric.” Chad Holliday Chairman & CEO DuPont Company February 26, 1999 Excellence
- 10. 10 00 Introduction and Overview.ppt Six Sigma is A ... • Vision … $$$ from Zero Defects • Philosophy … Statistically-based Decision-Making • Business Process … How we work • Goal … 6 Sigma Capable • Metric … Sigma Level of Process • Methodology … DMAIC SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 11. 11 00 Introduction and Overview.ppt Values of Six Sigma Customer focus Delight the customer by eliminating defects Variability is the enemy Act on fact and data Real financial results that impact the bottom line Core Values Of Six Sigma Passion + Execution = Fast and Lasting Results SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 12. 12 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING 2 3 4 5 6 308,537 66,807 6,210 Sigma level Defects per Million opportunities 233 3.4 . 3s to 6s - 20,000 Times Improvement... A True Quantum Leap Defect Levels
- 13. 13 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Six Sigma Benchmarking Results 1,000,000 100,000 10,000 1,000 100 10 1 3 4 5 6 7 2 Sigma Scale Restaurant Bills Doctor Prescription Writing Domestic Airline Fatality Rate (0.43 PPM) IRS Tax Advice (phone in) Airline Baggage Handling DuPont Average Best-in-Class DuPont Safety
- 14. 14 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING 99.99966% Good (6 Sigma) • 20,000 lost articles of mail per hour • Unsafe drinking water for almost 15 minutes each day • 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 • No electricity for almost seven hours each month • Seven articles lost per hour • One unsafe minute every seven months • 1.7 incorrect operations per week • One short or long landing every five years • 68 wrong prescriptions per year • One hour without electricity every 34 years 99% Good (3.8 Sigma) Six Sigma -- Practical Meaning
- 15. 15 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Six Sigma Deployment in USA 1992 1995 2000 • 1985 - Motorola starts Six Sigma • 1992 - Six Sigma founder Mikel Harry joins ABB and takes Six Sigma in a new direction. • 1998 - Dupont’s customers & competitors are deploying Six Sigma • ABB • Motorola • TI • IBM • DEC • Kodak • AlliedSignal • Nokia • Sony • Navistar • Whirlpool • Bombardier • GenCorp • Siebe Foxboro • Lockheed Martin • John Deere • Siemens • Compaq • Seagate • PACCAR • Toshiba • Dupont • Dow Chemical • Air Products • Honeywell • Johnson Controls • Maytag • Praxair • Ford • Johnson & Johnson • GE
- 16. 16 00 Introduction and Overview.ppt The Big Picture WHAT is Six Sigma? WHAT is the basic idea behind Six Sigma? WHY do Six Sigma? HOW does Six Sigma work? What’s my role as a Green Belt? SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 17. 17 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Process Variation The objective is to identify and reduce process variation and defects to make money! Center Process Reduce Spread X X X X X X X X X X X X X X X X XX X X X X XX X XX X X X XX X X X X XX X XX X Off-Center Too Much Spread Centered On-Target
- 18. 18 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Process Variation - Another View Target USL LSL Target USL LSL Target USL LSL Center Process Reduce Spread Off-Center Too Much Spread Centered On-Target Defects
- 19. 19 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING • Characterize • Optimize • Breakthrough The Six Sigma Strategy Customer Focused - Both Internally & Externally USL LSL USL LSL USL’ LSL’ USL LSL
- 20. 20 00 Introduction and Overview.ppt The Focus of Six Sigma • Six Sigma works from right to left! – Find out what’s critical to the customer (CTQ) – Define what process output(s) most closely relate to the CTQ – Determine what process controls and inputs most affect the output – Identify new modes of operation in the X’s to dramatically improve Y and delight the customer • Final solution = optimal arrangement and control of the X’s • Old school solution = Inspect Y and throw out the bad! Process to be Improved Controls X6, X7, X8, … X1 X2 X3 X4 X5 Inputs Output Y Critical to the Customer SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 21. 21 00 Introduction and Overview.ppt The Big Picture WHAT is Six Sigma? WHAT is the basic idea behind Six Sigma? WHY do Six Sigma? HOW does Six Sigma work? What’s my role as a Green Belt? SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 22. 22 00 Introduction and Overview.ppt Six Sigma Eliminates the Hidden Factory through Defect Reduction and ultimately Design for 6 Sigma 90% Yield After Inspection or Test Each defect must be detected, repaired and placed back in the process. This results in Wasted… • Time • Money • Resources • Floor Space Inputs Scrap Rework Hidden Factory NOT OK Operation First Time Yield OK 90% Customer Quality Defects and the Hidden Factory • Fails to account for the hidden factory. Typical process that meets a customer need Inspect SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 23. 23 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Hidden Factory Hidden Costs Six Sigma attacks the entire “Iceberg” resulting in: Higher quality, lower cost, timeliness - Increasing customer satisfaction Six Sigma attacks the entire “Iceberg” resulting in: Higher quality, lower cost, timeliness – Increased customer satisfaction Scrap Rework Inspection Warranty Rejects Hidden Quality Costs (Difficult to measure) Lost Opportunity Traditional Quality Costs (Easily identified) Lost Sales Engineering Change Orders Long Cycle Times Expediting Costs Productivity Loss Employee Morale, Productivity, Turnover Late Delivery Excess Inventory Lost Customer Loyalty Low Customer Satisfaction Lengthy Installations Overtime Late Product Introduction
- 24. 24 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING What is Cost of Poor Quality? • Types of costs • Direct costs associated with finding and fixing defects • The hidden cost of failing to meet customer expectations the first time • The hidden opportunity for increased efficiency • The hidden potential for higher profits • The hidden loss in market share • The hidden increase in production cycle time • The hidden labor associated with ordering replacement material • The hidden costs associated with disposing of defects • How Big is COPQ? • Typically, as big as 25 % of sales • Almost always exceeds the profit margin
- 25. 25 00 Introduction and Overview.ppt The Big Picture WHAT is Six Sigma? WHAT is the basic idea behind Six Sigma? WHY do Six Sigma? HOW does Six Sigma work? What’s my role as a Green Belt? SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 26. 26 00 Introduction and Overview.ppt Six Sigma Begins with Leadership • Necessary foundation for success: Leadership that is… – …passionate about excellence – …willing to change. • Fundamental Leadership principles in Six Sigma – Challenge the process – Inspire a shared vision – Enable others to act – Model the way – Encourage the heart • Six Sigma is a catalyst for leaders SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 27. 27 00 Introduction and Overview.ppt Your Work Begins With Project Selection: Criteria for Success Historical and Current Data Accessible. Good Fit With 6 Sigma Techniques. Strong Support/Sponsorship in Place Clearly linked to real business need Part of your ongoing work Not Capital Intensive. Achievable in 4 - 5 Months. Quantified savings or revenue enhancement with clear ownership for delivery High Probability of Success. SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 28. 28 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Identify Customer Needs, and “flow down” to X’s We Can Control CTQ = “Critical to Quality” Key measurable characteristics whose performance standards must be met in order to satisfy the customer Process output that directly relates to the CTQ. Specifications for this output determine “defects” Process inputs, controls, and factors that potentially impact the Project Y. Those X’s that can be used to achieve Six Sigma performance CTQ Customer Needs Project Y’s Candidate X’s “Vital Few” X’s
- 29. 29 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING CTQ Customer Needs DMAIC Enables the Flowdown Project Y’s Candidate X’s “Vital Few” X’s Define Measure Analyze Improve Control
- 30. 30 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING DMAIC Methodology Describe the problem we are working on and its value to the business; Organize the team Define Measure Analyze Improve Control Define the defect, gather baseline information about the product/process, and establish improvement goals. Determine which process inputs most influence the key process outputs Identify routes to improving performance and confirm that those changes will achieve the project goals. Implement the solution and establish ongoing mechanisms to “lock in” the improvements and to share them elsewhere
- 31. 31 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING DMAIC Process Improvement Methodology Although the DMAIC process is often portrayed in a linear fashion, the phases and steps do not actually occur in such lock-step sequence. More frequently, as teams begin to measure they recognize the need to collect additional data, etc. Teams continually double-back in the DMAIC process to ensure thoroughness of the previous step.
- 32. 32 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING The X’s are the Key Process to be Improved Controls (X6, X7, X8…) Critical To Measures Quality Cost Delivery X1 X2 X3 X4 X5 Input Input Defect Free! Change & Control $
- 33. 33 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING The X’s are the Key! • By understanding which X’s affect Y and how – Determine which X’s are important – Establish how those X’s affect the Y’s • Then we can control and optimize those X’s and… – Reduce the variability in Y – Predict Y without having to rely on inspection and testing (non value-adding activities) – Decrease the number of defects – Eliminate or reduce the hidden factory • If we don’t know much about our X’s, then… – We have to rely on inspection and testing (non value added operations) Y = f(X1, X2, X3, …Xk)
- 34. 34 00 Introduction and Overview.ppt What Success Looks Like S p e c Project Y Improvement Production Order Defects Baseline SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 35. 35 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Business Problem Statistical Problem Statistical Solution Business Solution Overall Approach Define Measure Analyze Improve Control Y = f(X1,X2,X3,…,Xk)
- 36. 36 00 Introduction and Overview.ppt Robust Problem Solving Your primary job is to… • Translate a business challenge to a defect elimination or variability reduction problem • Formulate this defect/variability issue as a statistical problem • Solve the statistical problem using tools and techniques taught in this course (or suggested by your MBB) • Convert the statistical learning into business benefits and actions. • Ensure gains are sustained long after project completion. SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 37. 37 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Business Problem Improve yield Viscosity out of specification Example Business Problem
- 38. 38 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Business Problem Statistical Problem How can we improve Y such that % defects due to out-of-specification viscosity is less than 1% Statistical Problem Y = viscosity= f(X1,X2,X3,…,Xk)
- 39. 39 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Business Problem Statistical Problem Statistical Solution What are the X's? What is f ? What is the optimal setting and specification limits for each key x? Statistical Solution Y = viscosity= f(X1,X2,X3,…,Xk)
- 40. 40 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Business Solution Change settings and specification limits for key variables and implement a control method Business Solution Business Problem Statistical Problem Statistical Solution
- 41. 41 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Examples of Business Problems to Target • Low yields • Energy or raw material consumption • Poor equipment life • Uptime detractors • High maintenance costs • Excessive cycle times • High consumables usage/costs • Rework • Excessive testing and inspection • Capacity limitations • Process defects or variation • Excess cycle time in supply chain operations • Delivery problems • Customer complaints • Excessive Contractor cost • High FEL cost of capital • Defects in supplied materials and services • Information accuracy, speed
- 42. 42 00 Introduction and Overview.ppt Examples of Performance Improvement Projects • Cycle Time Reduction Projects – Reduce the time required to complete manufacturing processes or transactional activities. Example: Return empty railcars to supplier faster to reduce railcar storage (demurrage) charges. • Defect Reduction Projects – Reduce or eliminate defects in quality. Example: Eliminate defects in pigment color. • Consumption Reduction Projects – Reduce or optimize the consumption of costly raw material, contract service or energy. Example: Reduce amount of Lime required for neutralization. SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 43. 43 00 Introduction and Overview.ppt The Big Picture WHAT is Six Sigma? WHAT is the basic idea behind Six Sigma? WHY do Six Sigma? HOW does Six Sigma work? What’s my role as a Green Belt? SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 44. 44 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Green Belt Roles & Responsibilities What is a Green Belt ? Being a Green Belt is not a role, but a competency A Green Belt will be expected to acquire a certain set of skills and competencies and then deploy them
- 45. 45 00 Introduction and Overview.ppt Green Belt Selection Criteria • Process/Product knowledge • Knows the organization • Self-starter, motivated • Open minded • Eager to learn new ideas • Desire to drive change through Six Sigma • Team player • Willingness to change • People considered for future promotions SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 46. 46 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Green Belt Roles & Responsibilities Critical Core Skills for Green Belts Awareness and understanding of Six Sigma Values Understanding of and ability to apply basic 6s tools and processes Adoption of fact based, data driven decision making
- 47. 47 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING There are many ways, but here are 3 possibilities As part of their normal job, apply the 6s tools to improve quality, output, reduce variability, costs, etc. Play a significant active role in BB projects, applying the tools learned and leveraging the impact As a leader, change own behaviours to incorporate 6s values, and set expectations for others to do the same How to deploy these skills ? Green Belt Roles & Responsibilities
- 48. 48 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Roles of the Champion Develop Vision for Organization Create and maintain passion Strategically Apply Six Sigma - Identification and prioritization of Strategic projects (Categories) - Communicate and Market the process and results program Enable Resources - Recruit, inspire and “free-up” Black Belts Champions also…. - Share best practices - Remove barriers - Provide the drum beat for results > Review projects > Keep score through metrics
- 49. 49 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Roles of the Master Black Belt Expert in the tools and concepts Develop and deliver training to various levels of the organization Help identify projects Coach and support BB/GB Participate in project reviews to offer technical expertise Passion around Six Sigma Certify the GB’s & Black Belts in future Facilitate sharing of best practices across the corporation Just in time training/technical resource Take on leadership of major projects Develop new tools or modify old tools for application and teaching
- 50. 50 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Roles for the Black Belt Deliver projects; ($1MM/yr target) Expert in the tools of 6-sigma Document learning Identify barriers Lead teams to execute projects Report progress to appropriate leadership levels Influence without direct authority Determine most effective tools to apply Identify project resources (project management) Seek input from knowledgeable operators/First Line Supervisors/Team Leaders/Coaches Manage project risk Deliver sustainable control plans
- 51. 51 00 Introduction and Overview.ppt The Six Sigma Methodology: Summary • Disciplined, Data-based approach • Focuses on the customer and critical metrics • Works upstream to control process X’s instead of relying on inspection and testing • Attacks variation, defects and the “hidden factory” • Directly affects quality, cost, cycle time and financial results • Ensures a predictable operation SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING
- 52. 52 00 Introduction and Overview.ppt SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING Table Activity - DMAIC Review To review the deliverables and steps in the DMAIC methodology Objective Three mistakes that first-time Six Sigma project teams might make are listed below. In each case: - Why do you think these are mistakes? - What are the implications for each one on the project results? A. In its rush to start the project, the team does not execute the DEFINE phase thoroughly. B. Early in the project, the team comes up with an idea to improve the process. The team skips from MEASURE to IMPROVE without conducting any analysis (ANALYZE). C. The team rushes to finish the project and does not execute an effective CONTROL phase. Document the key points on a flipchart. Instructions 10 minutes
- 53. 53 00 Introduction and Overview.ppt Can you… Describe what Six Sigma is in terms of Its philosophy? Its goal (six-sigma performance)? Its methodology (DMAIC)? Describe how DMAIC works to translate customer needs into high-performing processes? Explain the business stake in reducing the Cost of Poor Quality through Six Sigma Describe your role as a Green Belt? Time for a Wrap-up SARAL SIX SIGMA & BUSINESS SOLUTIONS PVT. LTD GREEN BELT TRAINING