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A quick guide to Six Sigma

A quick guide to Six Sigma. Objectives. Gain a high-level understanding of Six Sigma Learn the basic vocabulary of Six Sigma Understand the roles and responsibilities of Six Sigma practitioners Identify some of the benefits of Six Sigma as a business improvement methodology. Agenda.

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A quick guide to Six Sigma

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  1. A quick guide to Six Sigma

  2. Objectives • Gain a high-level understanding of Six Sigma • Learn the basic vocabulary of Six Sigma • Understand the roles and responsibilities of Six Sigma practitioners • Identify some of the benefits of Six Sigma as a business improvement methodology

  3. Agenda • Introduction • Methodology • Roles and Responsibilities • Why Six Sigma

  4. What Six Sigma Means • “Past definitions of quality focused on conformance to standards, as companies strived to create products and services that fell within certain specification limits.” -Mikel Harry and Richard Schroeder

  5. What Six Sigma Does • “...this Six Sigma journey will change the paradigm fromfixing productsso they are perfect tofixing processesso that they produce nothing but perfection, or close to it.” - Jack Welch

  6. What Six Sigma is Goal Metric Benchmark Philosophy Vision Value Method Symbol Tool

  7. The Concept of Variation Variety may be the spice of life but, for customers, consistency is King!

  8. The Concept of Variation Every repeatable process exhibits variation

  9. Measuring Variation X We measure variation using standard deviation (s)

  10. Performance and defects LSL USL Defects Defects X Reducing Variability Is The Essence of Six Sigma

  11. Defects per Million opportunities s Yield 2 308,537 69.20% 3 66,807 93.32% 6,210 99.38% 4 5 233 99.98% 3.4 99.99% 6 3s to 6s - 20,000 X Improvement...A True Quantum Leap Performance and Yield

  12. Seven articles lost per hour • One unsafe minute every seven months • 1.7 incorrect operations per week • 6 Passengers with Misplaced luggage each month • 68 wrong prescriptions per year • 20,000 lost articles of mail per hour • Unsafe drinking water for almost 15 minutes each day • 5,000 incorrect surgical operations per week • 340 Passengers with Misplaced Luggage every day • 200,000 wrong drug prescriptions each year Performance in Context 99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

  13. DMAIC Define Measure Analyze Improve Control When a process needs to be improved Methodologies • Two distinctly different methodologies • DMADV • Define • Measure • Analyze • Design • Verify • When a process needs to be invented • (aka. DFSS-Designed For Six Sigma)

  14. The Improvement Methodology

  15. Define Define Measure Analyze Improve Control Deliverables • Identify customer wants • Project charter • High-level process map

  16. Identify Customer Wants Define • Who are your customers? • Internal vs. external customers • Collect VOC-Voice Of Customer data • Interviews • Surveys • Complaints • Focus groups • Define CTQs-Critical To Quality measures • How does the customer judge your product or service?

  17. Project Charter Define • Project scope • Business case • Cost benefit • Roles & responsibilities • Milestones • Deliverables

  18. High-level Process Map Define SIPOC / COPIS PROCESS INPUTS OUTPUTS 1) Part Request2) Physical Inventory 3) Call Transfers 4) Parts5) Customer/Equipment data 1) Part Usage2) Inventory3) Credit/Debit to P&L 4) Part5) SUPPLIERS CUSTOMERS 1) Technicians2) Buyers3) NPC4) Refurb5) Vendors6) NSC 1) Finance2) Technicians3) Buyers4) NPC5) Vendors

  19. Measure Define Measure Analyze Improve Control Deliverables • Identify CTQ characteristic • Collect data • Calculate sigma

  20. Identify CTQ Characteristic Measure • Getting down to the thing that the project will target using tools like: • Detailed process mapping • QFD-Quality Functional Deployment • Cause & effect analysis • FMEA-Failure Modes & Effects Analysis

  21. Collect Data Measure • Create a data collection plan • Perform a MSA • Measurement Systems Analysis • Gage R & R • Attribute R & R • Test re-test study • Collect data

  22. Calculating Sigma Measure • Calculate process capability • Short term (ZST=sST) • Long term (ZLT=sLT) • The 1.5 Shift X LSL USL Defects Defects

  23. Analyze Define Measure Analyze Improve Control Deliverables • Identify possible causes • Narrow down to root cause • Confirm the benefit

  24. Identify Possible Causes Analyze • Identify sources of variation using: • Process map analysis • Graphical analysis • Brainstorming

  25. Narrow To Root Causes Analyze Regression Plot • Confirm statistically significant factors through: • Hypothesis testing • DOE-Design Of Experiment Y = 1026.02 + 98.0500X R-Sq = 87.9 % P value = 0.000

  26. Confirm The Benefit Analyze • Ensure that the effort needed to rectify the issues identified are financially feasible • Basic ROI-Return On Investment or cost benefit analysis

  27. Improve Define Measure Analyze Improve Control Deliverables • Generate and select solution • Implement solution • Confirm results

  28. Generate & Select Solution Improve • Solution generation through structured brainstorming • Solution Selection based upon viability and trade-offs

  29. Implement Solution Improve • Comprehensive pilot planning • Detailed process maps • SOP-Standard Operating Procedures • Monitoring plans • Contingency planning • Risk management plan

  30. Confirm Results Improve • Ensure that an improvement has been made and is consistent with expectations • Learn and adapt • Re-assess measurement systems • Adjust improvements as required • Re-calculate sigma • Confirm improvement is statistically significant

  31. Control Define Measure Analyze Improve Control Deliverables • Standardization and documentation • Process monitoring and control • Closing the project

  32. Standardize and Document Control • Rollout confirmed solution across business with updated information from pilot • Detailed process maps • SOP-Standard Operating Procedures • Monitoring plans • Contingency planning • Risk management plan

  33. Monitoring and Control Control • Ensure project x’s and y’s remain in statistical control • SPC-Statistical Process Control

  34. Close the Project Control • Complete project documentation • Complete project sign-off • Handoff documentation to process owner • Celebrate!

  35. Roles and Responsibilities Master Black Belts Champions Quality Leader& BQC Green Belts Black Belts

  36. Champions & Master Black Belts

  37. Black Belts & Green Belts

  38. Return on Investment • In 2000 GE’s gross annual benefit was $6.6 billion. • CEO Larry Bossidy brought AlliedSignal back from the verge of bankruptcy. Cumulative benefits $2 billion in direct savings • Raytheon improved its cost of doing business by more than $1 billion annually in 2001. • Average financial benefit per project $120,000 • Motorola claims a Six Sigma ROI of between 10:1 & 50:1

  39. Performance Improvements • Increased profits • Decreased operating costs • Improved customer satisfaction • Decreased cycle-time in processes • Increased employee morale

  40. How To Implement Six Sigma • Factors for success • Leadership • Communication • Rewards & recognition • Training • Launching the initiative • Implementation • Sustaining the effort and return

  41. Information Sources Six Sigma Software

  42. Questions and Answers Ketch Consulting 1-888-2-6-SIGMA www.ketch.ca

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