01 02- introduction to six sigma & bpms

8/3/2019 01 02- Introduction to Six Sigma & BPMS

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Introduction to Six Sigma3rd May 2008

1


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Does This Sound Familiar?

2


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The Quality Imperative

3

Its the Customer, Stupid!


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The Six Sigma Philosophy

4

Business is driven by Processes

Customers hate variation in process output

The variation in output is caused by variation in inputs and in processdeployment

If we can control the variation in inputs and process, we can control

the variation in output

CONTROL Xs TO CONTROL Y

f(X)=


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The Six Sigma Approach

5

Practical

Problem

Practical

Solution

StatisticalProblem

StatisticalSolution

Statistical Approach to ProblemSolving

Systematic Provides a Structure

Data Driven

Focused on Statistically SignificantRoot Causes & Solutions

Customer Focused . . .Bottom Line Driven

Traditional

Approach


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Statistical Objective of Six Sigma

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Target

USLLSL

Center the Process, and Reduce the Variation

Process Off Target Excessive VariationTarget

USLLSL

Target

USLLSL

CenterProcess

USL Upper Specification limit

LSL Lower Specification Limit

Defects

ReduceSpread


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Two Meanings of Sigma . . .

7

Generally Sigmais used todesignate the distribution or

spread (standard deviation) aboutthe mean (average) of anyprocess or procedure.

For a business ormanufacturing process, the

Sigma Capability (Z-value)isa metric that indicates how wellthe process is performing.

D

As DefectsGo Down . . .

Z. . . SigmaCapabilityGoes Up

s308,537

66,807

6,210

233

3.4

PPM*

Defects per

MillionOpportunities

*PPM: Parts Per Million

2s

3s

4s

5s

6sProcess

Capability

Z

A Near Perfect Quality Goal


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Getting a Sense of Six Sigma Quality

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20,000 lost articles of mail per hour

~15minutes each day of unsafedrinking water

5,000 incorrect surgical operationsper week

2 short or long landings at mostmajor airports daily

200,000 wrong drug prescriptionseach year

7hours without electricity eachmonth

The Classical View of Quality

99% Good (3.8s)

7 lost articles of mail per hour

1minute every 7 months ofunsafe drinking water

1.7 incorrect surgical operationsper week

1 short or long landing at mostmajor airports every 5 years

68 wrong drug prescriptions eachyear

1hour without electricity every 34years

The Six Sigma View of Quality

99.99966% Good (6s)


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So, What is Six Sigma?

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Is Is notA focus on customer needs

A method for making data driven

decisions

A focus on reducing variabilityA disciplined approach for designing

products & processes

A prediction of product quality during

design

An end in itself

A replacement for engineering,

scientific or process knowledge

Applicable to every problem in itsentirety

A set of tools only; it is also a

methodology and a cultural change

DMAIC and DFSS are the vehicles for deliveringSix Sigma


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Key Six Sigma Terms

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CTQ Critical-to-Quality characteristics.An attribute important to the customer.A Y Response.

Opportunity Any measurable event that provides a chanceof not meeting specification limits of a CTQ.

Specification Range in variation acceptable to the

Limit customer (lower and upper)

Defect Anything that results in customer dissatisfaction.Anything that results in a non-conformance.

DPMO Defects Per Million Opportunities.

Sigma The probability of defect, a measure ofCapability process capability, measured in (Z-value) units of(Z-value) standard deviations.


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The DMAIC Framework

11Y = f(X)

DefineWhat is important tocustomer?

Define the Y

MeasureHow is the process performing?What does it look / feel like to thecustomer?

How good is the data (gage

R&R)?

Measure the Y

ImproveHow do we remove the causesof the defects & variation?

Improve the Xs

ControlHow can we maintain theimprovements?

Control the Xs So

Customer Never SeesVariation in the Y

5 4

2 3DefineWhat is important tocustomer?

Define the Y

1AnalyzeWhat are the most importantcauses of the defects &variation?

Find & Measurethe Xs


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The 12 + 3 Step DMAIC Strategy

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How good am I today? How good do I need to be What factors make a difference

Whats at the Root of the Problem?How can I predict the Output?

How tight does the control have to be?

Can I trust the in-process data?Have I reached my goal?How can I sustain the improvement?

Step 1:- Select CTQ Characteristic-Project yStep 2:- Define Performance Standard

Step 3:- Validate Measurement system

What do I want to Improve?Whats the best way to measure?Can I trust the output data?

Step 4:- Establish Process CapabilityStep 5:- Define Performance ObjectivesStep 6:- Identify Variation Sources

Step 7:- Screen Potential CausesStep 8:- Discover Variable Relationships

Step 9:- Establishing OperatingTolerances

Step 10:- Validate X Measurement SystemsStep 11:- Determine Process CapabilityStep 12:- Implement Process Control

Step A:- Identify Project CTQ-Big YStep B:- Define Team CharterStep C:- Wing to Wing Process Map

What is important to the Customer Why do the Project Who is the Customer

A

D

M

I

C


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Knowing What to Measure An Introduction to BPMS

13

You cannot improve what you cannot measure

You cannot measure if you dont know WHAT to measure

Business Process Management System (BPMS) is a framework to

Identify the relevant input, process and output metrics

Develop a systematic measurement plan free of Gauge errors

Collect, publish and review the metrics at regular intervals toidentify improvement needs

Not just a set of Dashboards / Process Maps, but a StructuredMethodology for Sustainable Process Performance


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Three Phases of BPMS Deployment

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Document

CTQs

Develop

Dashboards

1 2 3 4 5 6 7 8 9

Document

Process

ID Process

Measures

Create

PM System

Data

CollectionPlan

Performance

Monitoring

Infrastructure Implementation Execution

Infrastructure can becompleted in one / twosessions over 5 - 10 days.

Must be revisited regularly tore-validate information.

Implementation may require 1- 2 Months of continuous datacollection

Requires Gauge R & Rvalidation

Execution is a continuousprocess, which may takeseveral cycles to establish

Must be continually re-validated against baseline.

Aligning Process Goals with Key Customer Requirements

CreateProcess

Mission

ImproveProcess


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Top Down Driven

Determines Role ProcessPlays in Business Strategy

Should be set by ProcessChampion / Process Ownerand involve key processassociates

Collaborative Effort

Determines What the

Process Must do to Achieve

Vision

Should be set by jointly byProcess Champion, ProcessOwner and Process Team.

Bottom-Up Driven

Determines How to Achieve

Strategic Objectives

Should be Set by ProcessingTeam with Buy-in fromProcess Owner

Model Allows for Role Segmentation:Leaders Lead, Managers Coach, Process Teams Execute

VISION STRATEGY EXECUTIONPhase

Steps

Characteristics

1 2

3

4 5 6

8 9

6 7

8 9

Leading BPMS Deployment Vision, Strategy and Execution


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Experience Sharing Facilitatinga BPMS Exercise

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Creating Process Mission

Think the Big Picture your process output is a customer process input

Document Existing Process

Drill deep to identify key steps

Capture variation between operators

Document Process CTQs (Ys) Obtain / Validate from Customer

Translate into measurable parameters (e.g. What does Smooth Delivery imply?Turn-around Time < 8 hours? Accuracy > 95%? Both?)

Identify Process Measures (Xs)

Use a brainstorming approach to identify key attributes that influence processdelivery - Detailed Process Map useful document for guiding the discussion

Wherever possible, choose Continuous Data over Discrete Data

Err on the side of Caution easier to drop later than to include later

i Sh i ili i


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Experience Sharing Facilitatinga BPMS Exercise

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Data Collection

Continual exercise hence buy-in at process associate level a MUST Watch out for consistency (R&R) issues validate an initial sample

A Carrot and Stick approach might be required for adherence

Performance Monitoring and Dashboards

Monitor CTQs and Xs on a regular basis

Analyze target misses / variation in Y to identify significant Xs

Report out on a regular basis to the process owner as well as the customer

Improve Process

Improvement opportunities typically classified as waste elimination (LEANprojects) or Variance Reduction (Six Sigma Projects)

Continuous Involvement of Process Associates Key to theSuccess and Sustainability of the exercise

BPMS is a dynamic activity need to periodically revisit to

maintain relevance to changing business processes


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The Lean Six Sigma Framework

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Lean Philosophy is about Waste Elimination

Typically attacks low-hanging fruits by identifying non-value added(NVA) activities through Value Stream Mapping (VSM) exercises

Little or no use of statistical data analysis

Roadmap for integrating Lean and Six Sigma in Quality initiatives:

Identify processes with customer dissatisfaction issues,bottlenecks, or high time / resource consumption

Prepare detailed VSMs to identify process inefficiencies

Eliminate simple NVAs through short projects Lean ideas

Use BPMS data on input and process metrics to identify six sigmainitiatives

Start with Lean to create awareness and momentum

Use Six Sigma projects to take process capability to the

next level

S i i Th L dd f


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Summarizing - The Ladder ofProcess Improvement

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Breakthrough Improvement:Best-In-Class

Six Sigma Projects

Process Stabilization

ContinuousImprovement

Focus

LevelofImprovem

ent

LeanBPMS

Time

Voice of the Customer

Process Entitlement

Benchmarking

Customer Impact

Best-in-Class

Metric Performance

Minimize Variation

VoC Performance

Eliminate Waste

Simplify, Digitize

Empower

01 02- introduction to six sigma & bpms

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