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“Quick”6-Sigma [Q6S]

“Quick”6-Sigma [Q6S]. Presentation to Baltimore Section, American Society of Quality [ASQ] 19 October 2004. Presented by : John Weisz CQE, CRE Director, Performance Management Thomson Prometric. Objectives of this Session.

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“Quick”6-Sigma [Q6S]

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  1. “Quick”6-Sigma [Q6S] Presentation to Baltimore Section, American Society of Quality [ASQ]19 October 2004 Presented by: John Weisz CQE, CRE Director, Performance Management Thomson Prometric

  2. Objectives of this Session • Understand what 6-Sigma [6-s] means [statistically and in its value to an Enterprise] • Appreciate that 6-s can be realized at much lower cost & faster ROI’s than traditional approach [through “Quick 6-s”(“Q6S”)] • The five-step DMAIC process is the key to accelerating ROI & reducing investment in 6-s projects • Show basic Continuous Quality Improvement (CQI) tools [a.k.a. “6-s Tools”] & how simple they are to use

  3. Who is Thomson Prometric? • The world leader in computer-based testing [CBT] and assessment • A part of the $7.8 Billion Thomson Corporation • Serving five major CBT markets: • Professional licensure & certification - Information Technology • Corporate - Government • Academic • Delivering over 8 Million exams in 2003; in 134 countries in 26 languages, through… • More than 4200 testing centers • By 3000 employees world-wide • Offering 300 Client [sponsor] programs

  4. What do we do? • Our mission: “To provide superior value to our clients, candidates and channel partners by providing them with indispensable e-testing solutions” • We offer a life-cycle approach to CBT services, to include: • Producing exams • Offering registration services • Providing a network of testing centers • Providing real-time results scoring and reporting to test-takers and institutions

  5. What is “6-s?” • A statistical measurement: • “sigma” = “s” = one standard deviation [statistic] • measures the degree to which ANY business process deviates from its goal or standard • [see next page] • a business strategy ... • that can lead to breakthrough improvements in profitability and quantum improvements in quality • that can provide decisive competitive edge as quality improves and costs go down • a philosophy … • the context for how we work & compete in the marketplace • working “smarter, not harder” • preventive, pro-active approach to reducing errors/defects • focused on understanding and reducing variation

  6. “Six-Sigma” Illustrated Average or Mean of Distribution Example: Imagine manually typing a book... 3  = 1 misspelled word for every page of text* 6  = 1 misspelled word for every 1,000 pages* This ‘tail’ of the distribution represents the # of defects[outside of the distribution ‘limits’] for a certain level of “s” process capability. In this case, for 6- quality, there are less than 1.7 defects per million opportunities to make a defect [multiply by 2 to take both ‘tails’ into account] [~95% of distribution is defect free] 2 * = assumes average of 334 words/page 3 [~99.7%] 4 [~99.99%] 5 [~99.9987%] [~99.9997%] 6

  7. The Benefits of Quality in“Sigma”A Real-World Example Mean 1.75s 2.05 [~92% of distribution] [~96%] 2.65 3.00 [~99.2%] [~99.7%] 3.50 [~99.9%] In-House CQI Program Cost Savings: Phase 1 CQI [to 3s ] : ~$60K per mo. Phase 2 CQI [to 3.5s ] :~ $25K per mo. Cost to Implement: Ph 1: $30K plus $15K per mo Ph 2: $ 45K plus $3K per mo Vendor CQI Program Cost Savings [1.75s to 2.65s ]: $60k per month in defect reduction Cost to Implement: $75K-- non-recurring $5K per month

  8. Some Myths [& Truths] About 6-s

  9. DMAIC & Typical Tools The “How” of 6-s DEFINE • Line/run Chart CONTROL Start here MEASURE • Pareto Chart • Control Chart • Capability Analysis IMPLEMENT ANALYZE • Fishbone • Flow Chart • Counter-Measures matrix • Force Field • Action Plan

  10. Prerequisites for SustainedProcess Improvement Waste Control Capable VOC VOC VOC LSL USL USL LSL Dark blue = waste LSL USL X X X -3s +3s -3s -3s +3s +3s VOP VOP VOP By setting & managing the Client’s expectations, we can offer a 6-s level of confidence that we will deliver the service level we promised. By making the process more efficient, we get less variation, which means we can meet Client needs Today’s environment

  11. Basic Tool 6-s Basic & Advance Tools Advanced Tool

  12. Organizing for 6-s Traditional 6-s Technical Roles Master Black GREEN BLACK • ‘heart & sole’ of 6-s • lead projects & work until complete • 4-6 projects @ $230K each • ‘coaches’ green belts • do regular work • trained in 6-s • 10-50% of time on projects • Assigned to a work area • helps process owners w/ quality goals/target metrics • plans, tracks, educates “Quick 6-s” Technical Roles WHITE RED BLUE • ‘facilitates teams • skilled in all Basic & some advanced tools • teaches team members basic skills • records minutes/decisions • ‘heart & sole’ of Q6S • usually “Management Rep” in ISO 9000 companies] or reports to him/her • looks for opportunities • ‘sells’ to Exec.Mgmt Team • ‘mentors’ red belts • skilled in all Basic & most advanced tools • lead projects & work until complete • teaches advanced skills • some schedule/budget concerns • ‘coaches’ white belts

  13. 6-s Tools [& practical exercises] • Line/run • Pareto • Fishbone • Flow Chart • Control Chart

  14. Everyone appreciates the “Fishbone”

  15. Conclusions about “Q6S” • Each “sigma” step closer to “6s” results in… • lower cost in manufacturing or service operations [due to shorter cycle times, less non-value-added steps and less rework] • shorter time to market [less delays in development of new products/services/software] • more competitive products [less defects; meets Customer needs] • Traditional 6-s is not the only way. Faster implementation at lower costs is possible through “QUICK 6-s” • The 6-stools are easy! In addition to faster ROI… • traditional 6-s tools are truly absorbed & embraced “a bite at a time” by employees …setting the stage for strategic employment of traditional 6-s …after Executive Management and employees are convinced of its utility and encouraged by significant successes already under the belt • The cost to start islower than you think; • The cost of not starting is…unthinkable!

  16. Some benefits at Thomson Prometric

  17. Role of the Performance Management team • Establish quality and performance standards for test centers • Define problems & determine value of solutions • Focus on root causes • Identify corrective actions that are effective and sustainable • Reduce variation in processes • Assure processes are “capable” of meeting Customer needs • Coach and assist others in use of 6-Sigma tools and statistical methods

  18. Just for fun… • Interesting interactive tutorial at: http://www.sbtionline.com/java/define.html • see the power of 6-sigma first hand; you control the variables and determine the impact on quality

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