Why sixsigma
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Six Sigma – a business strategy Six Sigma – a business strategy for improving “Capability, Reliability & Responsiveness” Naresh Chawla GM- Consultancy & Training PTU Nalanda School of TQM & Entrepreneurship, Mohali
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Transcript of Why sixsigma
Six Sigma – a business strategyfor improving
“Capability, Reliability & Responsiveness”
Six Sigma – a business strategyfor improving
“Capability, Reliability & Responsiveness”
Naresh ChawlaGM- Consultancy & Training
PTU Nalanda School of TQM & Entrepreneurship, Mohali
How is the business runtraditionally?
Good (Q) Cheap (C) Fast (D)
Is it possible in today’s scenario?
Six Sigma is one strategicinitiative which helps you in
making your products or services
Faster, Better & Cheaper
Six Sigma is one strategicinitiative which helps you in
making your products or services
Faster, Better & Cheaper
InputsInputs
Six Sigma Basic Premise
Outputs(CTQ)
Outputs(CTQ)
Do you know what is important to customers?Do you know what “Xs” are important tomeet customer needs?How do the “Xs” drive outcomes,revenue, and cost?
Y = ƒ(X1, X2, X3 … Xn) +
Six Sigma Basic Premise
This is thevariation.
Lesser thevariation more is
predictability
Business Strategy & Six Sigma
SuperiorReliability
High QualityCustomerRequirements
7…Customer Satisfaction is a Business Issue
BusinessResults
CustomerSatisfaction
ConsistentPerformance
On-TimeDelivery
Lower Costs
PredictableFactory
RobustDesigns
ProcessCapabilities
MaterialCapabilities
It is a waragainst
variation
Six Sigma is a“data driven”
problem solvingmethodology.
… how you utilizeand implement that
methodologydepends on you.
What is Six Sigma?
… how you utilizeand implement that
methodologydepends on you.
The International Organization for Standardisation (ISO) define SixSigma as a "statistical business-improvement approach thatseeks to find and eliminate defects and their causes from anorganization's processes, focusing on outputs of criticalimportance to customers."8 [email protected]
What is Six Sigma? Is a Methodology forSystematic Eliminationof variation
Objectof 6 is
Shift toTarget
&Reduce
variation
Objectof 6 is
Shift toTarget
&Reduce
variation
Reduce Variation & Center Process. Customers feelthe variation more than the mean
Objectof 6 is
Shift toTarget
&Reduce
variation
Objectof 6 is
Shift toTarget
&Reduce
variation
Six Sigma is a “Industry Independent”methodology and has been successfullyapplied across the various organization
Manufacturing: Automotives, Aerospace,Health Equipment, FMCG, Electronic Goods,Continuous Process Industries, Textiles, etc.
Service: Telecom, Banking and FinancialServices, Health Care, Hotels, IT, ITES, KPOs,Airlines, Cargo movement, Support Services,HR services, Marketing Services, etc.
Six Sigma Applicability Six Sigma is a “Industry Independent”
methodology and has been successfullyapplied across the various organization
Manufacturing: Automotives, Aerospace,Health Equipment, FMCG, Electronic Goods,Continuous Process Industries, Textiles, etc.
Service: Telecom, Banking and FinancialServices, Health Care, Hotels, IT, ITES, KPOs,Airlines, Cargo movement, Support Services,HR services, Marketing Services, etc.
CustomerSpecification
XX
Every Process Has Variability...
Variation & Defects are the Enemy
TargetX XXX X XX XXXXXXX XX
XX
XX
XX
XX
X
XXX
XXXX XXXXXX XX
X
X
X1
defects
y
Poor Design
Changing Needs
Sources of Variation
x
Changing Needs
Measurement System
Insufficient ProcessCapability
Skills & Behaviors
Target CustomerSpecification
1
2
3
A 3 process because 3 standard deviationsfit between target and spec
Reliability thru Variance Reduction
TargetCustomer
Specification
123456
6“No Defects”
Sigma is a statistical unit of measure that reflectsprocess capability
DPMODPMO6 3.4 99.9997%5 233 99.98%4 6,210 99%3 66,807 93%2 308,537 69%
%%
Six Sigma – a metric
6 3.4 99.9997%5 233 99.98%4 6,210 99%3 66,807 93%2 308,537 69%
ProcessCapability
Defects Per MillionOpportunities
PercentageGood
Increase Requires Exponential DPMO Reduction15 [email protected]
● MethodologyStructured problem solving methodology.Two primary sub-methodologies in SixSigmaDMAICDMADV
● Set of toolsSix Sigma as a set of tools includes allquantitative techniques used by the sixsigma expert to drive process improvement.
Six Sigma – a methodology● Methodology
Structured problem solving methodology.Two primary sub-methodologies in SixSigmaDMAICDMADV
● Set of toolsSix Sigma as a set of tools includes allquantitative techniques used by the sixsigma expert to drive process improvement.
When to use Six Sigma?
3.4DPMO
233 DPMO
6210 DPMO
SweetestFruit
AverageProcesses
LowHanging
Six Sigma
Five Sigma
FourSigma
World Class
Bulk fruit
Process Characterization &
Optimization (DMAIC)
Design for Six Sigma (DFSS)
There is exponential decrease in Defectswith increase in Sigma
6210 DPMO
66807 DPMO
308537 DPMO
697672 DPMO
AverageProcesses
LowHangingThree Sigma
Two Sigma
OneSigma
GroundFruit
Logic & Intuition
Seven Basic tools
17
Ask an Expert Six SigmaU
NK
NO
WN
When to use Six Sigma?
Just do it Lean!!!!!!!!!!
Simple Complex
KN
OW
N
Solutions18 [email protected]
StatisticalProblem
TraditionalApproach
PracticalProblem
How Six Sigma is different?
StatisticalProblem
StatisticalSolution
PracticalSolution
Six SigmaApproach
Customer Focused . . .Bottom Line “cost” Driven19 [email protected]
Beyond seven QC tools
Sr.No.
Tools Stage Nature of tool
1 Affinity Diagram D Non-Statistical2 Quality Function Deployment D Non-Statistical3 Kano Model D Non-Statistical
How Six Sigma is different?
3 Kano Model D Non-Statistical4 SIPOC D Non-Statistical5 Estimating sigma level M Statistical6 Rolled through put yield M Statistical7 Process capability/SPC studies M Statistical8 Gauge R & R, AAA studies M Statistical9 Relation Diagram A Non-Statistical10 Control/Impact Diagram A Non-Statistical
Sr.No.
Tools Stage Nature oftool
11 Cause & Effect Matrix A Non-Statistical12 FMEA A Non-Statistical13 Hypothesis Testing (Z-test, t-test,
2t-test, 2p-test, chi-sq test,ANOVA)
A Statistical
How Six Sigma is different?
Hypothesis Testing (Z-test, t-test,2t-test, 2p-test, chi-sq test,ANOVA)
14 Correlation & Regression A Statistical15 Confidence Interval A Statistical16 Multi-vari Analysis A Statistical17 DoE/Taguchi Methods I Statistical18 Response Surface Methodology I Statistical19 Control Plans C Non-Statistical20 Control Charts C Statistical
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A genuine focus on the customer Data and fact driven Management Removes defects from products & services Team based problem solving projects with
milestones Process focus, management & improvement Proactive management Drive for perfection, no tolerance for failure
Encompasses manufacturing, software andtransactional processes
Six Sigma – Fundamental Themes
A genuine focus on the customer Data and fact driven Management Removes defects from products & services Team based problem solving projects with
milestones Process focus, management & improvement Proactive management Drive for perfection, no tolerance for failure
Encompasses manufacturing, software andtransactional processes
● Identify &Defineimprovementopportunity
● DetermineCustomerRequirement(VoC)
● DevelopProjectCharter
● Map HighLevelProcesses(SIPOC)
● Define ‘As is’Situation(DetailedProcess Map)
● Plan for Datacollection
● ValidateMeasurementSystems
● QuantifyCurrentProcessPerformance
● Identifypatternsthrough dataanlysis
● IdentifyPotentialCauses (x’s)
● Prioritizepossibleroot causes
● Validatepossible rootcauses
● GeneratePotentialsolutions
● Select BestSolution
● Test Solution(Piloting)
● StatisticalEvidence ofimprovements
● PrepareandImplementControlPlan
● ImplementFull ScaleSolution
● StatisticalEvidencethatimprovements aresustainable
● ValidateFinancialGains
DMAIC Methodology
DefineDefineDefineDefine MeasureMeasureMeasureMeasure AnalyzeAnalyzeAnalyzeAnalyze ImproveImproveImproveImprove ControlControlControlControl● Identify &
Defineimprovementopportunity
● DetermineCustomerRequirement(VoC)
● DevelopProjectCharter
● Map HighLevelProcesses(SIPOC)
● Define ‘As is’Situation(DetailedProcess Map)
● Plan for Datacollection
● ValidateMeasurementSystems
● QuantifyCurrentProcessPerformance
● Identifypatternsthrough dataanlysis
● IdentifyPotentialCauses (x’s)
● Prioritizepossibleroot causes
● Validatepossible rootcauses
● GeneratePotentialsolutions
● Select BestSolution
● Test Solution(Piloting)
● StatisticalEvidence ofimprovements
● PrepareandImplementControlPlan
● ImplementFull ScaleSolution
● StatisticalEvidencethatimprovements aresustainable
● ValidateFinancialGains
