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SIX SIGMA

SIX SIGMA. Six Sigma Means 3.4 Defects in 1,000,000 - MOTOROLA. Six Sigma is a business concept that answers customer’s demand for high quality and Defect-free Business process. Six Sigma was born in Motorola and developed by Mikel J. Harry. Motorola won Malcolm Baldridge Quality Award.

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SIX SIGMA

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  1. SIX SIGMA

  2. Six Sigma Means 3.4 Defects in 1,000,000 - MOTOROLA • Six Sigma is a business concept that answers customer’s demand for high quality and Defect-free Business process. • Six Sigma was born in Motorola and developed by Mikel J. Harry. • Motorola won Malcolm Baldridge Quality Award. • Six Sigma is carried out as projects and mostly uses DMAIC method

  3. Eg: Godrej -G E Assembly Plant • Defective Components were coming at the rate of 3,00,000 for one Million Parts. • Applying Six Sigma saved Rs 4 Crores • Mr. Vijay Krishna, C.E.O, Godrej-G E. “We’re not talking about intangible savings here. Six Sigma has given us the power to measure and control costs. And that goes straight to our bottom line”

  4. Upper and Lower Standards (Specifications) Single Standard (Specification) Spec (Upper) Spec (Lower) Spec Out of Spec Out of Spec In Spec Out of Spec In Spec Probability Probability Probability PROCESS CAPABILITY Process capability is simply a measure of how good a metric is performing against established standard(s).

  5. CONCEPT OF SIX SIGMA USL LSL

  6. CONCEPT OF SIX SIGMA USL Process LSL Cp = Design Width / Process Width Mean Cp = USL –LSL / UCL - LCL

  7. SIGMA SCALE OF DEFECTS(1.5 σ shift)

  8. Six Sigma Implementation • Five-phases process 1.Establishing Management Commitment 2.Information Gathering 3.Training 5.Business Process to Be improved are chosen 4.Developing Monitoring Systems 6.Conducting Six Sigma Projects Continuous Improvement

  9. Processvariation LSL USL • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Regression Upper/Lower specification limits Six Sigma - Three Dimensions Define Analyze Improve Control Measure Driven by customer needs Methodology Process Map Analysis Led by Senior Mgmt Tools Organization Enabled by quality team. Pareto Chart

  10. DMAIC PROCESS Measure Define DMAIC Analyze Control Improve

  11. Determine Bench mark DEFINE Set Baseline Determine Customer requirements Get Customer Commitment Map Flow process

  12. Develop Defect Measurement MEASURE Develop Data Collection process Collect Data Create Forms Compile and Display Data

  13. Verify Data ANALYSE Draw Conclusions From Data Test Conclusions Determine Improvement Opportunities Determine Root Causes

  14. Create Improvement Ideas IMPROVE Create Models Experiment Set Goals Create Problem Statement Create Solution Statement Implement Improvement Methods

  15. Monitor Improvement Progress CONTROL Measure Improvement Statistically Assess Effectiveness Make Needed Adjustments

  16. ENIGMA OF SIX SIGMA +3 +2 +1 -1 - 2 - 3 Six Sigma 6 σ

  17. SIX SIGMA BENCHMARKS Restaurant Bills Prescription writing 100K Payroll processing Order write-up 10K Journal Vouchers Wire transfer Average company Air baggage handling Defects per million opportunities 1K Material lot Rejected 10 Air flight Fatality Rate Best in class (0.25ppm) 1 2 3 4 5 6 7 Sigma(with 1.5 shift)

  18. Key:$B = $ Billions, United States(e) = Estimated, Yearly Revenue 1986-1992 Could Not Be FoundND = Not DisclosedNote: Numbers Are Rounded To The Nearest Ten

  19. The Quality Team Master Black Belt - Thought Leadership - Expert on Six Sigma - Mentor Green and Black Belts • Backbone of Six Sigma Org • Mentor Green Belts • - Full time resource • - Deployed to complex or “high risk” projects Black Belt Black Belt GreenBelt GreenBelt • - Part time or full time resource • Deployed to less complex projects in areas of functional expertise Green Belt

  20. Scope of Six Sigma • Manufacturing • Service Industries • Hospitals • Insurance • Call Centre

  21. THANK YOU

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