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Who is Using Six Sigma in the Twin Cities

Who is Using Six Sigma in the Twin Cities. Seagate, Medtronic, Donalson, Honeywell, American Express, Ceridian, 3M. What is Six Sigma?. Six Sigma - The Initiative Process Systematic approach to reducing defects which affect what is important to the customer Tools

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Who is Using Six Sigma in the Twin Cities

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  1. Who is Using Six Sigma in the Twin Cities • Seagate, Medtronic, Donalson, Honeywell, American Express, Ceridian, 3M

  2. What is Six Sigma? Six Sigma - The Initiative Process Systematic approachto reducing defects which affect what is important to the customer Tools Qualitative, statistical and instructionalDevicesfor “observing” process variables and their relationships as well as “managing” their character

  3. Six Sigma - Aggressive Goal  PPM Process Capability Defects per Million Opp. Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.

  4. Six Sigma -- Practical Meaning 99% Good (3.8 Sigma) 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

  5. How Does Six Sigma Make the Difference? • Vision • Philosophy • Aggressive goal • Breakthrough improvement • Focus • Customer focus • Problem focus • Process focus • Metric (standard of measurement) • Method

  6. The Goals of Six Sigma Defect Reduction Yield Improvement Improved Customer Satisfaction Higher Net Income

  7. What’s the Strategy • Know what’s important to the Customer • Reduce defects • Center around target • Reduce Variation

  8. Six Sigma Vision The Vision of Six Sigmais to delight customers by delivering world-class quality products through the achievement of Six Sigma levels of performance in everything we do.

  9. Six Sigma Philosophy The Philosophy of Six Sigmais to apply a structured, systematic approach to achieve breakthrough improvement across all areas of our business.

  10. Where Does Industry Stand? PPM 1,000,000 100,000 10,000 1,000 100 10 1 1 2 3 4 5 6 IRS - Tax Advice (phone-in) (140,000 PPM) Restaurant Bills Doctor Prescription Writing Payroll Processing • • Order Write-up Journal Vouchers Wire Transfers Airline Baggage Handling Purchased Material Lot Reject Rate Best-in-Class Average Domestic Airline Flight Company Fatality Rate (0.43 PPM) 7 Sigma Scale of Measure

  11. Six Sigma - Performance Target Sigma Long-Term Yield Standard 3 Sigma 93.32 % Historical 4 Sigma 99.379 % Current 5 Sigma 99.9767 % Intermediate 6 Sigma 99.99966 % Long-Run

  12. Six Sigma -Why? • To deal with a world of declining product prices • To compete successfully with the best companies in the world • To establish standard language and approaches across functions and across businesses • To develop our next generation of leaders To accelerate our rate of quality and productivity improvement faster than our competitors

  13. Six Sigma Basics ...What If...? That Is Six Sigma ! • You Could Select One of Your Most Highly Leveraged Problems . . . ? • Identify One of Your Best People to Work on It . . . ? • Provide That Person With All of the Training, Tools, and Resources They Need to Fix It . . . ? • Guarantee Them Uninterrupted Time and Focus to Work on It . . . ? • And Get a Well Thought Out, Data Driven Solution . . . ?

  14. The People Who Make it Happen Six Sigma Directors & Six Sigma Executive Green Belts & All Employees Business Champions Hands on Champions DFSS Employees Finance Reps Master Black Belts Black Belts

  15. -Current Tools -Kaizen -Lean Manufacturing -Reengineering -Typical TQM Six Sigma -Approaches to Improvement Six Sigma Continuous Improvement Breakthrough Strategy -Trained & Dedicated Individuals -Analytical Expertise ->70% Improvement per Project Time in Years 1 2 3 4 5 The problem with continuous improvement as the only goal…. Organization sees improvementBUT loses the game. Six Sigma Enables Breakthrough Level Improvement!

  16. The Focus of Six Sigma KPIV(s) Y= f (X) KPOV(s) Focus on X rather than Y, as done historically Metrics KPOV = Key Process Output Variable KPIV = Key Process Input Variable Defect (Gap) Critical To The Customer *

  17. Six Sigma as a Problem Solving System 0. Define 1. Measure 2. Analyze 3. Improve 4. Control 5. Realize • Six Sigma employs the Breakthrough Strategy, which is a multi-step problem solving and process improvement methodology.

  18. Generates/Determines Define the Situation Problem Statement • CTQs • COPQ est. • Identify: • process inputs • process outputs Create with Team Process Map Define/Measure Determine: opportunities forimprovement Defect Rate per Step Rolled Throughput Yield with team . . . Root Causes Strong Links Cause and Effect FMEA Fishbone; other methods • Link KPIV & KPOV • prioritize inputs to attack Is Measurement good enough to detect process variation? (see improvement!) Check Gauges & Data Collection Devices & Procedures MSA Six Sigma Road Map -Define & Measure

  19. Six Sigma Road Map -Measure & Analyze Generates/Determines Gather Historical Data or Sample (Size & Subgroup) Indicators: Performance & Entitlement DPMO; Sigma Score Cp Pp Cpk Ppk Process Capability Study Measure Determine Cost of Quality Review Internal & External Costs Potential Benefits Analytical Tools Trends & Behaviors in KPIV/KPOV relationships Minitab Analyze Confidence Intervals Applies throughout

  20. Six Sigma Road Map -Analyze Generates/Determines Answers: Difference in Means? One Pop. to Another; Before/After; to Spec Hypothesis for Variables - Means (t-tests) Variables Data Hypotheses for Variables - Std. Dev. (Chi Sq., F-Test, Homogeneity of Variance) Answers: Difference in Spread? One Pop. to another; to baseline; multiple Pops. Variables Data Analyze Answers: Differences in % Def. Between pop.; Diff. in % Def. from overall mean Hypotheses for Attributes (Contingency Tables, Non-parametric study) Proportion Defects Proportion Defectives Collecting data on several variables at the same time Points to variables warranting further analyses Multi-Vari Studies

  21. Six Sigma Road Map -Analyze Generates/Determines Variables Data Answers: Difference in Means? One Variable (Factor) Multiple Types ANOVA Analyze For pairs of continuous Data Variables Correlation & Regression Answers: If know X; Predict Y Strength & Direction This completes the Characterize phase confirming which Input Variables most directly affect the Output Variables: Move on to Optimize - Settings or Procedures

  22. Six Sigma Road Map -Improve Generates/Determines Known Relationships between KPIVs & KPOVs Design of Experiment Answers: How to Set “X” to get Best “Y” Answers: What’s the Best Combination of the “Xs’ for producing the Best “Y” Testing Variables at 2 Levels (High/Low) Full Factorial Simple 2K Improve Tests Multiple Variables, at Various Levels (High/Low) Answers: What’s the Best Combination of ALL Variables (X) to give the Best Output (Y) Full Factorial Multiple Variables Answers: Same as Above - But . .. Less Information; More Risk - but, requires less experimentation Tests Multiple Variables But Not All; Not All Levels Conserves Resources Fractional Factorial

  23. Six Sigma Road Map -Improve Generates/Determines Isolates Parts of Data from other Parts Clarifies Results when Interacting Variables “Confound” the Results DOE- Blocking Improve Improves Current EHS Situation and/or Identifies Issues to be Managed Up-Front Reviews Affects on the Environment, Health & Safety EHS Review Now . . . We have established the parameters and procedures for operating the improved process . . . Keep it in Control !

  24. Six Sigma Road Map -Control Generates/Determines Real-time Process Results; Trends; Control Limits SPC Indicates if Process is Operating as Expected (In-Control); If Not, What Corrections to Make Outlines: Parameters of Operations, Responsibilities, Actions, Measurements, etc. CTQs, Specs, Measurements, Actions “Process” Control Plans Outlines: Checking, Maintenance, Care & Periodic Review of Data Collection Devices & Methods Control Gauge/Measurement Stability & Control Gauges, Forms & Data Collection Methods Outlines: How Employees “Do” Procedures - Standard & Consistent, Opportunity for Understanding & Verification of Understanding Employees, Documented Proc. Learning Events Instructions & Training Spare Parts; System Back-Ups; Scheduled Downtime, etc. Preventive Maintenance Plan Outlines: Indicators to Monitor; Actions to Prevent Failures, Resources Needed On-Hand

  25. DFSS Six Sigma Road Map -Control & DFSS Generates/Determines Inputs Affecting Project; Others Affected by Project Outlines: Procedures for Making Changes; Predictions of Change Affects Change Control Cost to Control vs CTQ Attainment & Benefits Achieved Checks: Project Controls Appropriate for Achieving CTQs and Benefits Control Cost Review Sustained Process Will Meet Customers Expectations All Agree and Commit to the Control Strategy as the Means of sustaining the Defect Reductions DFSS = Design for Six Sigma Functional Team Sign-Off & Celebrate! Yes No Re-Design

  26. Six Sigma -How Does It Work? Select the Right People Provide Intense Training Select Key Problem Areas Assign Projects to Black Belts Obtain Results • Champions • Master BB’s • Black Belts • Brown Belts • Strong • Analytical Skills • Strong Problem • Solving Skills • People & • Leadership Skills • Critical to • Success • Chronic or Systemic • Fastest or • Largest Return • Lead Focused • Effort • Apply Skills and • Tools • Determine • Causes and • Solutions • Reduce Variability • Preventative & • Proactive Vs • Appraisal & • Reaction • Fewer Trials • Faster • Accurate • Solutions

  27. Six Sigma Basics • Six Sigma Provides a Disciplined Method for Reducing Defects. • Customers Define Their Critical to Satisfaction Measures (CTS’s). • Champions Define Key Outputs of a Process Whose Defects Most Significantly Impact the CTS’s & Assign Projects to Black/Green Belts. • Black/Green Belts Identify the Process Inputs That Most Significantly Influence the Outputs. • They Then Eliminate the Root Causes of Variation in the Inputs and Put in Controls to Prevent Reoccurrence of the Problem. • Design For Six Sigma Engineers Identify and Exploit Areas of Decreased Sensitivity to the Input Variables in Order to “Design In” Quality.

  28. Six Sigma Reference • www.isixsigma.com • The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance by Peter S. Pande et al, Robert P. Neuman, Roland R. Cavanagh. • The Six Sigma Handbook: A Complete Guide for Greenbelts, Blackbelts, & Managers at All Levelsby Thomas Pyzdek

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