8 SixSigma

7/29/2019 8 SixSigma

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Six SigmaSix Sigma


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OutlineOutline

What is Six Sigma?What is Six Sigma?

Phases of Six SigmaPhases of Six Sigma DefineDefine

MeasureMeasure

Evaluate / AnalyzeEvaluate / Analyze

ImproveImprove ControlControl

Design for Six SigmaDesign for Six Sigma

Green Belts & Black BeltsGreen Belts & Black Belts


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z A Vision and Philosophical commitment to ourconsumers to offer the highest quality, lowest cost

products

z A Metric that demonstrates quality levels at99.9997% performance for products and processs

z A Benchmark of our product and process capabilityfor comparison to best in class

z A practical application of statistical Tools and Methodsto help us measure, analyze, improve, and control ourprocess

What is Six Sigma?What is Six Sigma?


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1.1. Reduces dependency onReduces dependency onTribal KnowledgeTribal Knowledge

-- Decisions based on facts and data rather than opinionDecisions based on facts and data rather than opinion

2.2. Attacks the highAttacks the high--hanging fruit (the hard stuff)hanging fruit (the hard stuff)

-- Eliminates chronic problems (common cause variation)Eliminates chronic problems (common cause variation)

-- Improves customer satisfactionImproves customer satisfaction

3.3. Provides a disciplined approach to problem solvingProvides a disciplined approach to problem solving

-- Changes the company cultureChanges the company culture

4.4. Creates a competitive advantage (or disadvantage)Creates a competitive advantage (or disadvantage)

5.5. Improves profits!Improves profits!

Why Companies Need Six SigmaWhy Companies Need Six Sigma


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99.9% is already VERY GOOD

But what could happen at a quality level of 99.9% (i.e., 1000 ppm),

in our everyday lives (about 4.6)?

More than 30003000 newborns accidentally falling

from the hands of nurses or doctors each year

40004000 wrong medical prescriptions each year

400400 letters per hour which never arrive at their destination

Two long or short landings at American airports each dayday

How good is good enough?How good is good enough?


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Six Sigma as a MetricSix Sigma as a Metric

Sigma = = Deviation( Square root of variance )

-7

-6

-5

-4

-3

-2

-1 0 1 2 3 4 5 6 7

Axis graduated in Sigma

68.27 %

95.45 %

99.73 %

99.9937 %

99.999943 %

99.9999998 %

result: 317300 ppm outside

(deviation)

45500 ppm

2700 ppm

63 ppm

0.57 ppm

0.002 ppm

between + / - 1

between + / - 2

between + / - 3

between + / - 4

between + / - 5

between + / - 6


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3 Sigma Vs. 6 Sigma3 Sigma Vs. 6 Sigma

Defines CTQs externally Define CTQs internally

Believes 99% is unacceptable Believes 99% is good enough

Benchmarks themselves against the best inthe world

Benchmarks themselves against theircompetition

Use Measure, Analyze, Improve, Control andMeasure, Analyze, Design

Does not have a disciplined approach togather and analyze data

Relies on capable process that dont producedefects

Relies on inspection to find defects

Spends 5% of sales dollars on cost of failure Spends 15~25% of sales dollars on cost offailure

The 6 sigma CompanyThe 3 sigma Company


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Motorola ROI1987-1994

Reduced in-process defect levels by a factor of 200.

Reduced manufacturing costs by $1.4 billion.

Increased employee production on a dollar basis by 126%.

Increased stockholders share value fourfold.

AlliedSignal ROI1992-1996

$1.4 Billion cost reduction.

14% growth per quarter.

520% price/share growth.

Reduced new product introduction time by 16%.

24% bill/cycle reduction.

Six Sigma ROISix Sigma ROI


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Six Sigma as a PhilosophySix Sigma as a Philosophy

Internal &ExternalFailureCosts

Prevention &Appraisal

Costs

Old Belief4C

osts

Internal &ExternalFailure Costs

Prevention &Appraisal

Costs

New BeliefC

osts

4

5

6

Quality

Quality

Old BeliefHigh Quality = High Cost

New Belief

High Quality = Low Cost

is a measure of how muchvariation exists in a process


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Six Sigma ToolsSix Sigma Tools

SPCSPCBaseliningBaselining

DOEDOERationalRational SubgroupingSubgrouping

RegressionRegressionGauge R & RGauge R & R

Hypothesis TestingHypothesis TestingPareto AnalysisPareto Analysis

Components SearchComponents SearchStructure TreeStructure Tree

Tolerance AnalysisTolerance AnalysisProcess MappingProcess Mapping


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Breakthrough

Strategy

Characterization Phase 2:Measure

Phase 3:

Analyze

Optimization

Phase 4:Improve

Phase 5:

Control

Projects are worked through these 5 main

phases of the Six Sigma methodology.

Phase 1:

Define

Problem Solving MethodologyProblem Solving Methodology


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Define PhaseDefine Phase

Define ProcessDefine Process

Define Customer requirementDefine Customer requirement

Prioritize Customer requirementPrioritize Customer requirement


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Define PhaseDefine Phase

SIPOC ModelSIPOC Model KanoKano AnalysisAnalysis Customer SurveyCustomer Survey CTQ DiagramCTQ Diagram

Customer Requirement AnalysisCustomer Requirement Analysis

QFDQFD Literature ReviewLiterature Review Standard / Regulation ReviewStandard / Regulation Review


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MeasureMeasure

Characterize Process

Understand Process

EvaluateEvaluate

Improve and Verify Process

ImproveImprove

Maintain New Process

ControlControl


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Define

Problem

Understand

Process

Collect

DataProcess

Performance

z Process Capability- Cp/Cpk- Run Charts

z Understand Problem(Control orCapability)

z Data Types- Defectives- Defects

- Continuousz Measurement

Systems Evaluation(MSE)

z Define Process-Process Mapping

z Historical

Performancez Brainstorm

Potential DefectCauses

z DefectStatement

z Project

Goals

Measure Phase


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MeasureMeasure


Understand Process

EvaluateEvaluate


ImproveImprove


ControlControl


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Evaluate / Analysis PhaseEvaluate / Analysis Phase

Data AnalysisData Analysis

Process AnalysisProcess Analysis Formulate HypothesisFormulate Hypothesis

Test HypothesisTest Hypothesis


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MeasureMeasure


Understand Process

EvaluateEvaluate


ImproveImprove


ControlControl


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Improvement PhaseImprovement Phase

Generate Improvement alternativesGenerate Improvement alternatives

Validate ImprovementValidate Improvement CreateCreateshould beshould beprocess mapprocess map

Update FMEAUpdate FMEA

Perform Cost/Benefit analysisPerform Cost/Benefit analysis


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Design of Experiments (DOE)Design of Experiments (DOE)

To estimate the effects of independent Variables on Responses.To estimate the effects of independent Variables on Responses.

TerminologyTerminology FactorFactor An independent variableAn independent variable

LevelLevel A value for the factor.A value for the factor.

ResponseResponse -- OutcomeOutcome

X Y

PROCESS


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MeasureMeasure


Understand Process

EvaluateEvaluate


ImproveImprove


ControlControl


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ControlControl PhasePhase

Control Phase Activities:

- Confirmation of Improvement- Confirmation you solved the practical problem- Benefit validation

- Buy into the Control plan- Quality plan implementation- Procedural changes- System changes- Statistical process control implementation

- Mistake-proofingthe process- Closure documentation- Audit process- Scoping next project


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ControlControl PhasePhase

Control Plan Tools:

1. Basic Six Sigma control methods.- 7M Tools: Affinity diagram, tree diagram, processdecision program charts, matrix diagrams,interrelationship diagrams, prioritization matrices,

activity network diagram.

2. Statistical Process Control (SPC)- Used with various types of distributions- Control Charts

Attribute based (np, p, c, u). Variable based (X-R, X)Additional Variable based tools

-PRE-Control-Common Cause Chart (Exponentially BalancedMoving Average (EWMA))


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Customer-driven design ofprocesses with 6 capability.

Predicting design quality upfront.

Top down requirementsflowdown (CTQ flowdown)matched by capability flowup.

Cross-functional integrateddesign involvement.

Drives quality measurementand predictability improvementin early design phases.

Utilizes process capabilities to

make final design decisions.

Monitors process variances to

verify 6 customerrequirements are met.

What is Design for Six Sigma (DFSS)?What is Design for Six Sigma (DFSS)?


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DFSS Methodology & ToolsDFSS Methodology & Tools

Define Measure Analyze Design Verify

Under-

standcustomerneeds andspecifyCTQs

Develop

designconceptsand high-leveldesign

Develop

detaileddesign andcontrol/testplan

Test

design andimplementfull-scaleprocesses

Initiate,scope,and plantheproject

DESIGN FOR SIX SIGMA

DELIVERABLES

TeamCharter

CTQs High-levelDesign

DetailedDesign

Pilot

TOOLS

Mgmt Leadership Customer Research FMEA/Errorproofing

Project QFD Process Simulation

Management Benchmarking Design Scorecards


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GE has very successfully instituted this programGE has very successfully instituted this program

4,000 trained Black Belts by YE 19974,000 trained Black Belts by YE 1997

10,000 trained Black Belts by YE 200010,000 trained Black Belts by YE 2000

You havenYou havent much future at GE unless they are selected tot much future at GE unless they are selected tobecome Black Beltsbecome Black Belts-- Jack WelchJack Welch

Kodak has instituted this programKodak has instituted this program

CEO and COO driven processCEO and COO driven process

Training includes both written and oral examsTraining includes both written and oral exams

Minimum requirements: a college education, basic statistics,Minimum requirements: a college education, basic statistics,presentation skills, computer skillspresentation skills, computer skills

Other companies include:Other companies include:

Allied SignalAllied Signal --Texas InstrumentsTexas Instruments

IBMIBM -- ABBABB

NavistarNavistar -- CitibankCitibank


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10 / year10 / yearFive Black BeltsFive Black Belts80~100%80~100%Consulting/MentorConsulting/Mentor

ing/Traininging/Training

MasterMaster

Black BeltBlack Belt

4 / year4 / yearTwo green beltsTwo green belts5%~10%5%~10%

Lead use ofLead use of

technique andtechnique and

communicate newcommunicate new

onesones

Black BeltBlack Belt

2 / year2 / year

Find one newFind one new

green beltgreen belt2%~5%2%~5%

UtilizeUtilize

Statistical/QualityStatistical/Quality

techniquetechnique

Green BeltGreen Belt

RelatedRelated

ProjectsProjectsMentoringMentoring

Time onTime on

Consulting/Consulting/

TrainingTraining

TaskTask


8 SixSigma

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