Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles...
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Transcript of Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles...
Six Sigma
By: Tim BaumanApril 2, 2007
Overview
What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms
What is Six Sigma? Improve customer satisfaction by
producing virtually free processes and products
To achieve Six Sigma a process must not produce more than 3.4 defects per million opportunities
6 standard deviations between the mean and the nearest specification limit
Developed by Bill Smith at Motorola in 1986 as a way to standardize the way defects are counted
Key Concepts Critical to Quality: Attributes most important
to the customer Defect: Failing to deliver what the customer
wants Process Capability: What your process can
deliver Variation: What the customer sees and feels Stable Operations: Ensuring consistent,
predictable processes to improve what the customer sees and feels
Design for Six Sigma: Designing to meet customer needs and process capability
Methodologies
DMAIC Improvement system for existing
processes DMADV
Improvement system for developing new processes or products
Methodologies: DMAIC Define – “the project goals and
deliverables for both internal and external customers”
Measure – “the process to determine current performance”
Analyze – “and determine the root cause(s) of the defects”
Improve – “the process by eliminating defects”
Control – “future process performance”
Methodologies: DMAIC Define
Identify the Critical To Quality characteristics
Create a map of the process to be improved with defined and measurable, deliverables, and goals
Tools: Benchmark, Baseline, Voice of the Customer and Business, Quality Function Deployment, Process Flow Map
Methodologies: DMAIC Measure
Establish valid and reliable metrics to monitor the progress of the project
Input, process, and output indicators are identified Determine the impact of defects from each
input on the CTQs Once reasons for input failure are determined,
preventative actions are put into place Tools: Defect Metrics, Data Collection,
Sampling Techniques
Methodologies: DMAIC Measure Defects Per Million
Opportunities (DPMO) = (Total Defects / Total Opportunities) * 1,000,000
Defects (%) = (Total Defects / Total Opportunities)* 100%
Yield (%) = 100 - %Defects
Process Sigma (type this formula into Excel): =NORMSINV(1-(total defects / total opportunities))+1.5
http://www.isixsigma.com/sixsigma/six_sigma_calculator.asp
Methodologies: DMAIC
Analyze Identify the gap between existing
performance and desired performance Root Cause Analysis – finding the causes
of defects Process Improvement Scenarios Tools: Cause and Effect diagrams,
Decision and Risk Analysis, Control Charts
Methodologies: DMAIC Improve
Create new improvement solutions for each root cause
Cost/Benefit Analysis What happens if improvements are not made
or improvements take too long to implement Process experimentation and simulation Implement and adapt to these solutions
and the results from these changes
Methodologies: DMAIC Control
A monitoring plan with proper change management methods
Implement the lesson learned Put tools in place to maintain process
improvement gains Training Document the project
New procedures and lessons learned are maintained and give a solid example
Identify future Six Sigma improvement opportunities
Methodologies: DMAIC
Extra Step: Synergize Integrate and institutionalize the
improvements throughout the whole organization
Create a learning organization Multiply the gains achieved by Six
Sigma
Methodologies: DMAIC
Checklistshttp://www.americanheart.org/presenter.jhtml?identifier=3039772
Methodologies: DMADV First three steps are the same Define – “the project goals and deliverables for
both internal and external customers” Measure – “and determine customer needs
and specifications” Analyze – “the process options to meet the
customer needs” Design – “the process to meet the customer
needs” Verify – “the design performance and ability to
meet customer needs”
Methodologies: DMADV
Design Specification Limits Simulation model Test Plan Measurement and Control Plan
Methodologies: DMADV
Verify Pilot runs Training Implementing the processes Document the processes
Roles
Yellow Belt or Team Member Professional who works on project Awareness of Six Sigma, but no
training
Roles
Green Belt Part time professional Receives direction from Black Belts Works with a Black Belt’s project or
leads smaller projects Two weeks of training in methods and
basic statistical tools
Roles
Black Belt Full time professional Team Leader on Six Sigma projects Four to Five weeks of training in:
Methods Statistical tools Team skills
Roles
Master Black Belt Expert in Six Sigma methods and tools Mentors other belts on complex issues Responsible for training others to the
Green and Black belt levels Assists the Champion with deployment
Roles
Champion Middle or Senior level executive who
helps a specific Six Sigma project In charge of making sure resources
are available Resolves cross-functional issues
Roles
Leader Senior level executive responsible for
implementing Six Sigma throughout the business
Sponsor Senior executive in charge of the
overall Six Sigma Initiative
Examples of Six Sigma
Current average industry runs at 4 sigma
Domestic airline flights run at a rate higher than 6 sigma
Non competitive companies typically run at a sigma level of 2
Examples of Six Sigma
Companies currently using Six Sigma Motorola General Electric Allied Signal Citibank Microsoft Many others
Benefits
Save Money Black Belts save companies
approximately $230,000 per project General Electric has estimated
benefits of $10 billion in the first five years of its implementation
Raise customer satisfaction
Benefits
Save lives Health Care
Intensive care results from 53 minutes to 22 minutes
Reduce error rates for patient controlled pumps to administer pain medication
Airplane Industry
Criticism
Cost of training at Motorola Green Belt Certification: $2,950 Black Belt Certification: $12,950
Cost of infrastructure Creating the roles and responsibilities
Criticism Six Sigma does not always work
Need active leadership Align with organizational strategy Need aggressive performance tracking and
accountability for results Green and Black belts need to be process
oriented and willing to learn and use statistical tools
Pay more attention to steps than the actual result
Sources[1] Functional Methods. “DMADV (Define, Measure,
Analyze, Design, Verify) Roadmap.” 2004. Retrieved 25 March 2007 <http://www.functionalmethods.com/DMADV%20Roadmap.pdf>.
[2] General Electric. “What is Six Sigma?” 2007. Retrieved 23 March 2007 <http://www.ge.com/en/company/companyinfo/quality/whatis.htm>.
[3] ISixSigma LLC. “Six Sigma – What is Six Sigma.” 2007. Retrieved 24 March 2007 <http://www.isixsigma.com/sixsigma/six_sigma.asp>.
[4] Motorola, Inc. “Motorola Univerisity, Six Sigma in Action.” 2007. Retrieved 22 March 2007 <http://www.motorola.com/motorolauniversity.jsp>.
Sources[5] Peterka, Peter. “The DMAIC Method in Six Sigma.” 25
October 2007. Retrieved 25 March 2007. <http://www.buzzle.com/editorials/10-24-2005-79640.asp>.
[6] “Roles.” 2007. Retrieved 25 March 2007 <http://www.onesixsigma.com/node/2485>.
[7] Siviy, Jenannine. “Six Sigma.” 11 January 2007. Retrieved 22 March 2007 <http://www.sei.cmu.edu/str/descriptions/sigma6_body.html>.