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An Introduction to Six Sigma
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Jabil Technology 2
Intro to Six Sigma Training Objectives
Understand the goals and objectives of theSix Sigma Initiative
Understand the overall approach of Six
Sigma
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Jabil Technology 3
Black belt / Brown belt Training Objectives
To learn the systematic approach to Six Sigmaproblem solving
D beforeM before A before I before C
To understand and effectively utilize the D.M.A.I.C.
tool kit
To understand how you will be play a key part inJabils incorporation of Six Sigma methodology
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Jabil Technology 4
Six Sigma
Achieving Our Objectives
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Jabils Seven Objectives
Products
1.Improve time to market for all products
2.Lead the industry in key technologies
Operations
3.Create world-class manufacturing processes
4.Develop strategic vendor relationships
Customer
5.Provide best-in-class product and process quality6.Develop strategic relationships with key customers
Management
7.Become an employer of choice
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Jabil Technology 6
What is Six Sigma?
Six Sigma - The Initiative
Process
Systemat ic approachto reducing defects whichaffect what is important to the customer
Tools
Qualitative, statistical and instructional Devicesforobserving process variables and theirrelationships as well as managing their character
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Whats it Based On ?
Customer .....
Anyone Who ReceivesProduct, Service, or Information
Opportunity .....Every Chanceto Do Something
Either Right or Wrong
Successes Vs. Defects .....Every Result of an Opportunity Either Meets
the Custom er Speci f icat ionor it Doesnt
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Whats the Strategy?
Know whats important to theCustomer
Reduce defects
Center around target
Reduce Variation
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The Goals of Six Sigma
Defect Reduction
Yield Improvement
Improved Customer Satisfaction
Higher Net Income
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How Does Six Sigma Make the Difference?
Vision
Philosophy
Aggressive goal
Breakthrough improvement
Metrics Driven
Focus
Customer focus
Problem focus
Process focus
Method
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Six Sigma Vision
The Vision of Six Sigmais to delight customersby delivering world-class quality productsthrough the achievement of Six Sigma levels ofperformance in everything we do.
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Six Sigma Philosophy
The Philosophy of Six Sigmais to apply astructured, systematic approach to achievebreakthrough improvement across all areas of
our business.
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Sigma is a statistical unit of measure that reflectsprocess capability. The sigma scale of measure isperfectly correlated to such characteristics asdefects-per-unit, parts-per-million defective, and the
probability of a failure/error.
2 308,5373 66,8074 6,210
5 2336 3.4
PPM
Process
Capability
Defects per
M il li on Opp.
Six Sigma - Aggressive Goal
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Measure of variation
Indicator of thecapability of ourprocesses and quality of
our products
The Sigma
1_
01_
01_
016
Sigma
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A 3
Process
m Target
Average Deviation from the Mean
1
USL
0.14% def
Upper Specification Limit (USL)Lower Specification Limit (LSL)Mean of the distribution (m)
Sigma ()
3
The distance between thepoint of inflection and themean constitutes onesigma.If three sigma can be fitbetween the target valueand the specification limit,
we would say the processhas three sigmacapability.
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Sigma Level or Z-Score = number of standarddeviations away from the specifications
A universal metric used to compare performanceacross products or processes
Derived from the probability of producing a defect /defective unit
Sigma Level or Z Score
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Average Deviation from Mean
1
USL
1 in a billion
1 2 3 4 5 6
A 6
Process
Why do we need 6
?
Z score = 6
In reali ty a 6 Sigm a
process is someth ing l ike
1/bi l l io n defectiv es
The z-score or - Level of the proc ess is based on Short Term
data but o ur pro cess exhib i ts long term var iab il i ty du e to
shi f tsand dr i f ts
m
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Long TermShort Term
Small Standard Deviation Large Standard Deviation
How can we determine the long term capability
from short term estimates of sigma?
e.g. What is the size difference?
Short and Long Term
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Determining the Difference
Without calculating both standard deviations itis often assumed that the Long Termdistribution is made up of the short termdistributions mean shifting / drifting by 1.5ST
Long TermShort Term
Small Standard Deviation Large Standard Deviation
STLT
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A Six Sigma Process
The 1.5
shift is used as an off-set in the centering of the mean to
generally account for dynamic non-random shifts in the process. Itrepresents the average (estimated) amount of change a typical
process will exhibit over many cycles of that process.
Sigma
Level
Short-Term
DPPM
Long-Term
DPPM
1 158655.3 691462.5
2 22750.1 308537.5
3 1350.0 66807.2
4 31.7 6209.7
5 0.3 232.7
6 0.0 3.4
3.4ppm
LSL USL4.5T
m
A Six SigmaProcess Shifted
by 1.5
LSL 6
0.001ppm
USL
ProcessCapability
A Six SigmaProcess Centered
T
0.001ppm
A Six SigmaProcess With SDInflated by 1.5
DPPM = Defective
Product Per Mil l ion
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Six Sigma -- Practical Meaning
99.99966% Good (6 Sigma)
20,000 lost articles of mail perhour
Unsafe drinking water for almost15 minutes each day
5,000 incorrect surgicaloperations per week
Two short or long landings atmost major airports each day
200,000 wrong drug prescriptionseach year
No electricity for almost sevenhours each month
Seven articles lost per hour
One unsafe minute every sevenmonths
1.7 incorrect operations per week
One short or long landing everyfive years
68 wrong prescriptions per year
One hour without electricity every34 years
99% Good (3.8 Sigma)
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Where Does Industry Stand?
7
Sigma Scale of Measure
1,000,000
100,000
10,000
1,000
100
10
1
PPM
Restaurant BillsDoctor Prescription Writing
Payroll Processing
OrderWrite-upJournal Vouchers
Wire Transfers
Airline Baggage HandlingPurchased Material
Lot Reject Rate
Domestic Airline Flight
Fatality Rate
(0.43 PPM)
Best- in-Class
Average
Company
3 4 5 621
IRS - Tax Advice
(phone-in)
(140,000 PPM)
With the 1.5shift
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Quality Performance Levels - Where Is Jabil ?
2
34
5
6
308,537
66,8076,210
233
3.4
Sigma PPM
Process
Capability
Defects per
Million
Opportunities
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Breakthrough Strategy
Six Sigma-Six Sigma Enables Breakthrough Level
Improvement!
1 2 3 4 5
The problem with continuous improvements as the only goal,Organization sees improvement BUT loses the game.
Time in Years
Standard Approaches
Current ToolsKaizenLean ManufacturingRe-engineering
Typical TQMIm
provement
Breakthrough Strategy
- Trained & Dedicated
Individuals
- Analytical Expertise
- >70% Improvement perProject
Six Sigma
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Getting to Six Sigma
How far can inspection get us ?
(Distribution Shifted 1.5)
PPM
2 308,5373 66,8074 6,2105 2336 3.4
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How Does Six Sigma Make the Difference?
Vision
Philosophy
Aggressive goal
Breakthrough improvement
Metrics Driven
Focus
Customer focus
Problem focus
Process focus
Method
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Customer Focus: A Model For Success
TechnologyTechnology
Capabil ityCapabil i ty
OrganizationOrganization
PeoplePeople
ProcessesProcesses
Business survival is dependent upon howwell we satisfy our customers.
Customer satisfaction is a function ofquality, price, and delivery.
Quality, cost, and prompt delivery aredependent upon capability.
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Need
Maximizing the Interaction
Delivery
Price
Quality
Do
Cycle Time
Cost
Defects
Supplier strives for performance on Cyc le Time, Cos t andDefectsto meet Customers increasing expectations on
Delivery, Price and Quali ty.
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Dedicatedproblem solvers, among the
companys best people
Complete, disciplineddata-based approach
to problem solution
Combines the right peoplewith the right tools
on the right projects
Hard financial analysison project selection
and assessment
Focus on the Problem: Unique Approach
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What Types of Problems Should We Target?
High Defect Rates
Low Yields
Excessive Cycle Time
Excessive Machine Down Time
High Maintenance Costs
Bottlenecks
Poor Process Capability
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What Types of Problems Should We Target?
High Defect Rates Low Yields
Excessive Cycle Time
Excessive Machine Down Time
High Maintenance Costs
Bottlenecks
Poor Process Capability
Non-Conformance
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The Cost of Poor Quality (COPQ) Iceberg
Traditional Quality Costs
Lost Opportunity
Hidden Factory
Lost sales
Late delivery
More Setups
Expediting costs
Excess inventory
Long cycle times
Lost Customer LoyaltyEngineering change orders
Additional Costs of Poor Quality
(intangible)
(tangible)
(Difficult or impossible
to measure)
Scrap
Rework
Inspect ion
Warranty
Rejects
Adm in is t ra tion /
Dispos i t ion
Concessions
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What is Cost of Poor Quality?
In addition to the direct costs associated with finding and fixing
defects, Cost of Poor Quality also includes:
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
The hidden cost of rework
For most companies today, the cost of poor quality is likely to be
25 % of sales. For Jabil, thats over $1 billion each year.
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Why Focus on Cost of Poor Quality?
Profit
Total Cost tomanufactureand deliverproducts
Profit
Cost ofPoor Quality
COPQ
Theoretical
Costs
Profit
COPQ
Theoretical
Costs
Which Feels Better??
Cost ofPoor Quality
COPQ
Theoretical
Costs
Cl i l Yi ld
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Classical Yield
Factory A100 85 Factory B100 85
Not all Yields are alike!
15
Scrap
15Scrap
ReworkFactory C: The Hidden Factory
50 35
Cl i l Yi ld
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Classical Yield
Factory A100 85
15
Scrap
Factory B100 85
15 Scrap
Not all Yields are alike!
50 35
Equal Yields Unequal Costs
Classical Yield does not correlate to cost,
cycle time or inventory levels
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Manufactur ing Variation Causes A " H idden Factory"I ncreased Cost - Lost Capacity
Yield AfterInspection or Test
Each defect must be detected, repaired
and placed back in the process. Eachdefect costs time and money.
Scrap
Rework
Hidden Factory
NOTOK
OperationInputs Inspect FinalYield
OK
Wasted TimeWasted Money
Wasted ResourcesWasted Floor space
90%Customer Quality
Defects and the Hidden Factory
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Extending the Concept of YRT
Without Insp ection or Test Without Insp ection or Test Without Insp ection or Test
99% 99% 98%
Op 1 OutputOp 2x =Process Centered Process Centered
there is a 98% probability that any given unit ofproduct will pass through both operations defect free.
Power of Rolled Throughput Yield
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0 2 4 6 8 10 12 14 16
#Operations
RTY RTY p=0.9
RTY p=0.99
RTY p=0.9999966
A N P ti f th F t
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A New Perspective of the Factory
Non-Value Added(The Hidden Factory)
Ytp =Throughput Yield
ScrapScrap
Operation VerifyOperation Verify
Value Added(The Visible Factory)
CustomerCustomerQualityQuality
Supplier Quality
ProducersProducersQualityQuality
To decrease defects per unit means to increase rolled-throughput yield
which in turn improves product reliability and customer satisfaction.
Ytp=Yrtm
1i=
Ytp =Throughput Yield
ReworkNotOK Rework
NotOK
Th F th P
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The Focus on the Process
If we are so good at X, why do we constantly test and inspect Y?
Y Dependent
Output
Effect
Symptom
Monitor
X1. . . XN Independent
Input-Process
Cause
Problem
Control
To g et resul ts , should we focus our b ehavior on the Y or X?
f (X)Y=
Focus on X rather than Y, as done historically
KPIV
KPOV
*
Wh t T D With th Vit l F
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What To Do With the Vital Few. . . . .
Process
KPIV
KPIV
KPIVKPOV CTQ
Vital Few Correct(In-Spec) Defect-
Free!
KPIV
Control Control Control - Inputs
Note: Statistically proven relationshipsbetween Inputsand Outputs
Manage the INPUTS and good OUTPUTS will follow
H D Si Si M k th Diff ?
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How Does Six Sigma Make the Difference?
Vision
Philosophy
Aggressive goal
Breakthrough improvement
Metrics Driven
Focus
Customer focus
Problem focus
Process focus
Method
Th F d ti f th Si Si T l
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The Foundation of the Six Sigma Tools
DataDriven Analysis
1. We only use experience, not data
2. We collect data, but just look at the numbers
3. We group the data so as to form charts and graphs
4. We use census data with descriptive statistics
5. We use sample data with descriptive statistics6. We use sample data with inferential statistics
Levels of Analysis:
What level are you at?
Goal
Data is used to classify, describe, improve, control
The Application Roadmap
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The Application Roadmap
BreakthroughStrategy
Characterization
Phase 1:Measure
Phase 2:Analyze
Optimization
Phase 3:Improve
Phase 4:Sustain
A Six Sigma Black
Belt leads a
Customer FocusTeam through each
of the breakthrough
phases with respect
to their line of sight
process.
AverageCompany
3 4 5 6 7
100,000
2
Sigma Scale of Measure
Best-in-Class
The Basic Objective1,000,000
10,000
1,000
100
10
PPM
1
Th I t St t (MAIC)
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The Improvement Strategy (MAIC)Focus__
Vital Fewxi
Y
Y
Y
Y
Y
Vital Fewxi
Vital Fewxi
Vital Fewxi
Vital Fewxi
SIX SIGMA METHODS GENERATEDATA-BASEDDECISIONS *
Select product or process key characteristic(s); e.g. Customer Y
Define performance standards for Y
Validate measurement system for Y
Establish process capability of creating Y
Define improvement objectives for Y
Identify variation sources in Y
Screen potential causes for change in Y & identify vital few Xi
Discover variable relationships between vital few Xi
Establish operating tolerances on vital few Xi
Validate measurement system for vital few Xi
Determine ability to control vital few Xi
Implement process control system on vital few Xi
X1, X2, Xn
X1, X2, Xn
Phase
Measure
Analyse
Improve
Control
I S h f th Vit l F
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In Search of the Vital Few
Optimized Process
30 - 50
10 - 15
4-8
Key Process InputVariables (KPIVs)
8 - 10 KPIVs
CriticalKPIVs
3-6 Key LeverageKPIVs
Input Variables
ANALYZE
MEASURE
IMPROVE
CONTROL
Narrow the Scope > ID Leveraged KPIVs
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Narrow the Scope --> ID Leveraged KPIVs
Optimized Process
30 - 50
10 - 15
4-8
Key Process InputVariables (KPIVs)
8 - 10 KPIVs
CriticalKPIVs
3-6 Key LeverageKPIVs
Input Variables
Process Map
Multi-VariStudies,
Correlations
ScreeningDOEs
DOEs, RSM
C&E Matrix and FMEA
Gage R&R, Capability
Hypoth. Tests, ANOVA
Quality Systems
SPC, Control Plans
Measure
Analyze
Improve
Control
The Focus of the Black Belt
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The Focus of the Black Belt
Manage medium-large scale cr i t icalprojects
Target a $175,000 cost savings and a 70% defectreduction ora critical-to-customer-satisfaction issue
Systematically executeD.M.A.I.C.
D DefineM Measure
A Analyze
I Improve
C Contro l
Ensure appropriate conclusions are drawn andcorrect actions implemented
The Focus of the Brown Belt
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The Focus of the Brown Belt
Manage a single project, similar in nature toa Black Belt project
Actively participate on BB projects as
needed
Incorporate D.M.A.I.C.principles into daily
functional work
The Focus of the Green Belt
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The Focus of the Green Belt
Actively participate on BB projects asassigned
Systematically execute principles ofD.M.A.I.C.on BB subprojects
Incorporate D.M.A.I.C.principles into dailyfunctional work
6 Methodology Project Selection Philosophy
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6Methodology - Project Selection Philosophy
Link to Jabils business strategy and issuescritical to customer satisfaction
Identify and improve the key process(es)
Build on what has been done before - dontreinvent the wheel
Bound the project scope and mandate a focusof effort
Use a rigorous process that ensures buy in,
clarity of purpose and accountability
6 Methodology - Project Reviews
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6Methodology - Project Reviews
The Champion should review the Black Belt / BrownBelts project prior to the Training.
Projects should be routinely reviewed in an efficientand rigorous manner...assure they are moving toconclusion
Weekly Champions reviews should occur(minimum)
Monthly Reviews at Site Operations Reviews arerecommended
Reviews should include success stories,backlogged projects, and Detailed Project ReviewPresentations using standardized presentationtemplates and progress review guidelines
6 Methodology Project Completion/Realization
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6
Methodology - Project Completion/Realization
Successful projects...for what do we aim?
Process is operating at targeted level andcustomers are satisfied with performance
Long term process performance sustained
Project costs contained within estimated
levels
Completed on schedule with a minimumdisturbance to normal work flows
A Challenging Task
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A Challenging Task
BK1-1INTRO
Black belts and Brown belts will:
Understand and apply the Six Sigma training onprojects
Influence others through education andcommunication to understand that the new
method is the right thing to do
Assure that the rigor of the discipline of SixSigma is adhered to
Ensure that an improved process stays that way Provide face-to-face feedback to the Champions
on the project progress and results
Change the culture
Expectations On Projects
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Expectations On Projects
41BK1-1INTRO
Bu i ld Relat ionsh ips with the functional team & leaders.
Become part of the Team !
Be disciplined about using the Breakthrough Strategy
Use the Tools (where applicable)
Get involved (but not side-tracked)
Keep organized documentation of your activities,actions, costs, and data
Communicate and educate those around youNetwork with other Black Belts, Brown Belts, and
Green Belts
Intro to Six Sigma Training Objectives
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Intro to Six Sigma Training Objectives
Understand the goals and objectives of theSix Sigma Initiative
Understand the overall approach of Six
Sigma
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Ref: Breakthrough Thinking, Seven Steps of Creative
Problem Solving, Gerald Nadler, Prima Publishing, 2nd
Ed., 1998
APPENDIX
Breakthrough Thinking
8 Basic Errors
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8 Basic Errors
1. Applying the wrong mental assum pt ionsto theproblem
2. Taking the wrong approachto the problem
3. Involving the wrong people
4. Trying to solve the wrong prob lem
5. Addressing the problem with the wrong t im ing
6. Exerting the wrong cont ro lover the search for asolution
7. Wrongly accepting a false or incom plete so lut ion
8. Wrongly reject in g a true and effect ive solut io n
of
Approaches to Problem Solving
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Approaches to Problem Solving
Doubting game initially doubts all assertions
rigorous, disciplined, tough-minded
mode of Western corporate executives, academicintellectuals and political leaders
Believing game initially believes all assertions
see farther into a situation
seek ways of achieving the desired end
Needed Mental Shift
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Needed Mental Shift
1. There is more than one type of problem
2. Different ways to think are more effective in solvingcertain types of problems
3. Believing, not doubting, must come first
7 Principles of Creative Problem Solving
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7 Principles of Creative Problem Solving
Uniqueness Principle
Purposes Principle
Solution After Next Principle
Systems Principle
Limited Information Collection Principle
People Design Principle
Betterment Timeline Principle
1 Uniqueness Principle
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1. Uniqueness Principle
Assume initially that the problem, issue,or opportunity is different. Dont copya solution or use a technique fromelsewhere just because the situationmay appear to be similar.
"Discovery consists of looking at the same thing as
everyone else and thinking something different."-Albert Szent-Gyorgi
Uniqueness
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Uniqueness
No two situations are alike, For starters, peoplein each are always different
Each problem is embedded in a unique array ofrelated problems
Problems that may look alike have differentpurpose needs
Tomorrows technology is already different than
todays
2 Purposes Principle
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2. Purposes Principle
Explore and expand purposes tounderstand what really needsto be accomplished.
"It is not enough to just do your best or work hard; You
must know what to work on."
-W. Edwards Deming
Purpose
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Purpose
Provides a means to:
transform a problem into a productive change
avoid working on the wrong problem
Peop le tend to accept a problem as p resentedto them and , in do ing so, almost assuredly
el im inate the opportuni ty for breakthrough
solut ion
Hierarchy of Purpose
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Hierarchy of Purpose
Purpose
Purpose
Purpose
Purpose
Purpose
Narrow purpose, few solutions
Broad purpose, many solutions
3. Solution-After-Next Principle
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Think future solutions for the focus purpose and
work backwards. Consider the solution youwould recommend if in three years you had tostart all over. Make changes today based onwhat might be the solution of the future.
Creativity consists of coming up with many
ideas, not just that one great idea.
- Charles Thompson
S-A-N
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S-A-N
Puts a time frame on the ideal solution to bedeveloped
Its future orientation permits you to start fresh
It encourages stimulation lines of questioningthat lead to alternative ideal solutions
It establishes the concept of regularity as aguideline for designing the ideal system
4 Systems Principle
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4. Systems Principle
Everything we seek to create andrestructure is a system. Think ofsolutions and ideas as a system ofeight elements. Use a solution
framework that includes all elementsand interrelationships.
"Problems and solutions nest within a complex array
of related systems and problems."
- Bob Wiele
5. Needed Information Collection Principle
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5. Needed Information Collection Principle
Collect only the information that is
necessary to continue the solution-finding process. Know your purposes forcollecting data. Study solutions, notproblems.
"The breeding ground for barriers to fresh ideas and
the implementation of them is in the detailed
analysis of what exists."
Dont Over-Collect Data
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Don t OverCollect Data
The benef it of l im i t ing inform ation col lect ionto what is needed, resu l ts in:
requiring less total time, cost, energy, anddocument handling
providing a high quality of usableinformation
eliminating the defensiveness of people
when reviewing data about what exists identifying better system interrelationships
providing guidance to implementingsolutions.
Collect Data Selectively
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Collect Data Selectively
Determine what information is really needed -and not really needed
Collect data on purposes and possiblesolutions rather than initially on the problem
Extensive data gathering may make you anexpert on the problem but it may also preventyou from seeing many alternatives.
Collect information from a variety of sourcesand share it broadly
Ask how the solution could work -- becomean expert about possible future solutions
6 People Design Principle
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6. People Design Principle
Give everyone who will be affected by thesolution or idea the opportunity toparticipate throughout the process of itsdevelopment with the other principles. A
solution will work only if people knowabout it and help to develop and improveit.
"We cannot talk people into accepting the future if
they haven't been there."
Benefits from People Design
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Benefits from People Design
Their knowledge of the "secrets" (purposes,
technology fiction, solutions-after-next andsystems) of the front line
Their support of the larger purposes to beachieved rather than resistance to change
Getting the creative (technology fiction) juicesflowing
Getting the team to focus on customer-based
perspectives Their emotional attachment to a future they
helped to create
Together reaching better solutions
7. Betterment Timeline Principle
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p
Install changes with built-in seeds of futurechange. Know when to fix it before itbreaks. Know when to change it.
"Even if you are on the right track you'll get run over
if you just stand there."- Will Rogers
Breakthrough Thinking
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Breakthrough Thinking
Refutes the conventional wisdom that you
shouldn't fix something if it isn't broken. For a solution to continue to be effective, it
has to be maintained and upgradedcontinually toward the target solution-after-
next.
The assumptions, purposes, technology,environment and constraints upon which
the solution is based change with time. Even the target needs to be updated
regularly.
Breakthrough Thinking
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Breakthrough Thinking
Is an organized and flexible thinkingprocess
keep all of the 7 principles available all ofthe time