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  • SVR*23/2/11INTRODUCTION TOSIX SIGMA

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  • SVR*23/2/11SIX SIGMA IS DEFINED AS

    A STRUCTURED , SYSTEMATIC , TEAM DRIVEN, DATA DRIVEN APPROACH TO ACHIEVING BUSINESS EXCELLENCE.

    SIX SIGMA IS A PHILOSOPHY

    WE CAN ALSO LOOK AT IT AS A SET OF TOOLS AND TECHNIQUES FOR ACHIEVING BUSINESS RESULTS.WHAT IS SIX SIGMA?

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  • SVR*23/2/11Six Sigma a way of life for people who may not have even heard of management toolsNo of defects : 1 in 8 million transactions, Sigma level : 7 sigmaDabbas are collected from customers' homesAt the nearest railway station, they are sorted according to the destination station and are loaded in crates onto trains.At the destination station they are unloaded by other dabbawalas and re-sorted. The 100- kg crates of carriers are delivered, picked up at 1:30 p.m., and returned whence they came7-8 am10:15 10:45 am12:00 to 12:30 pm

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  • SVR*23/2/11They do it with codes and coloursCollection PointAndheriLokhandwalaComplexDestination DetailsNirmal Bldg11th FloorNariman PointDabbawala identification at destination

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  • SVR*23/2/11What does this tell us Attaining six-sigma is not about usage of statistics but about discipline, customer focus, simplicity, robust process, robust system for managing the process and belief in the processBut even if a company operated in Six Sigma fashion if its overall strategy is weak or the market environment is changing, Six Sigma might be less successful if not linked to the business needs. It is about getting our Corporate Strategy & Operational Excellence right.

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  • SVR*23/2/11Six Sigma can also be looked at asSix Sigma as a culture of continuous improvementImproving business performance through greater customer satisfaction, profitability & competitiveness by process improvementsit is about learning to build processes that deliver flawless quality of output continuouslySix Sigma as a stretch goalImprovement in performance 10 X every 2 yearsAchieving 3.4 defects per million

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  • SVR*23/2/11TO REDUCE VARIATIONTO REDUCE LEAD TIMETO REDUCE DEFECTS/ ERRORsTO IMPROVE YIELDTO ENHANCE CUSTOMER SATISFACTIONTO IMPROVE THE BOTTOMLINETHE GOALS OF SIX SIGMA

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  • SVR*23/2/11TWO MEASURES OF A PROCESSCentral TendencyDispersion

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  • SVR*23/2/11Customer may never observe mean performance

    But

    Always feel variation around the mean

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  • SVR*23/2/11We normally study and report Averages

    The problem is - Average never happens

    What Customer Feels is Variation

    And The Organization's performance depends on Variation

    Dont Look at Averages

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  • SVR*23/2/11What we See and What We GetOur Performance Average - 20 DaysDelivery Commitment to Customer = 25 Days

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  • SVR*23/2/11TargetValueUSLCustomerDissatisfactionWhat we See and What We Get20 Days25 Days

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  • SVR*23/2/11What we See and What We GetOur Performance Average = 25.0 kgsBag Weight = 25 Kgs

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  • SVR*23/2/11TargetValueUSLLossWhat we See and What We Get25 Kgs24.8 Kgs25.2 KgsCustomerDissatisfaction

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  • SVR*23/2/11CenterProcessReduceSpreadOff-TargetToo Much VariationCentered On-Target The Statistical Objective of Six Sigma

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  • SVR*23/2/11The Normal Curve2 s3 s4 s5 s6 s68.26 %95.46 %99.73 %99.9937 %99.999943 %99.9999998 %1 s 2 s3 s4 s5 ss-6s-5s-4s-3s-2s+1sm+2s-1s+3s+4s+5s+6s

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  • SVR*23/2/11Six Sigma StatisticallyStatistically Six Sigma is the area covered by the specification limits is 6 standard deviations on either side from mean for a normal distribution.

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  • SVR*23/2/113 Sigma Process2 s3 s4 s5 s6 s68.26 %95.46 %99.73 %99.9937 %99.999943 %99.9999998 %1 s 2 s3 s4 s5 ss-6s-5s-4s-3s-2s+1sm+2s-1s+3s+4s+5s+6sLSLUSLRej.Rej.

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  • SVR*23/2/113 s6 s99.73 %99.9999998 %3 ss-6s-3s-2m+3s+6sLSLUSLRej.Rej.Six Sigma Process

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  • SVR*23/2/11

    SIGMA RATING & PPM ARE CORRELATEDSigma Rating PPM2308,537366,80746,210523363.4 Process Defects per Capability Million OpportunitiesSIGMA RATING A PERFORMANCE MEASURE

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  • SVR*23/2/11SHOULD ALL PROCESSES BE AT SIX SIGMA?The airline fatality rate is about 6.5 sigma, but airline baggage handling is about 4 sigma

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  • SVR*23/2/11 SIX SIGMA PROJECT - STEPSThere are 5 fundamental steps involved in applying the breakthrough strategy for achieving Six Sigma. DefineDefineMeasureMeasureAnalyzeAnalyseImproveDesignControlValidateDMAICDMADV

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  • SVR*23/2/11The Six Sigma ProcessMeasureAnalyzePractical ProblemStatistical ProblemPractical SolutionStatistical SolutionControlImprove

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  • SVR*23/2/11Objective of Six SigmaY = f (X)

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  • SVR*23/2/11MAIC FunnelAnalyseMeasureImproveControl

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  • SVR*23/2/11METHODOLOGYIdentify Six Sigma ProjectsCarryout Six Sigma ProjectsIntegration with Business Planning ProcessInstitutionalizationManagement Team Buy-in Creating Organization for Six SigmaTraining People on Six Sigma

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  • SVR*23/2/11Basic Tenets of Six SigmaCustomer OrientationProcess OrientationSpeak with facts

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  • SVR*23/2/11CWCM / SS / ABCTL Chloro Alkali / 2 OctSpeak with FactsIf we cant express something in numbers, we dont know much about it.If we dont know much about it, we cant control itIf we cant control it, we are at the mercy of chance.

    Let us talk with facts because;

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  • SVR*23/2/11Where Six Sigma does not workPoorly defined problems

    No clear measurement metrics

    Non availability of data/development actions

    One off assignments/ no process exists

    No team assigned or No Review mechanism planned

    Not linked to Reward and Recognition system

    Some softer reasons: Low on priority, focus, support, guidance etc.

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  • SVR*23/2/11Roadmap to Six Sigma

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  • SVR*23/2/11Identify All Possible CausesDefine Performance Parameter YValidate Measurement System for YEstablish Baseline Process CapabilityDefine Performance ObjectivesIdentify Variation SourcesEstablish Cause & Effect RelationshipDevelop Feasible SolutionsValidate & Implement Solutions

    Step 4 Step 5Step 6 Step 7Step 8Step 9Step 10Step 11Step 12Develop & Implement Control Plans Monitor Process for SustenanceInstitutionalize ImprovementsStep 13Step 14 Step 15Step 1 Step 2Step 3 Identify Improvement OpportunityDevelop Team CharterDefine Process MapThe DMAIC Road MapDefineMeasureAnalyzeImproveControl

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  • SVR*23/2/11Step 1 - Identify Improvement Opportunities

    Identify Project Ys & Link it to Big Y

    Step 2 - Develop Team Charter

    Develop The Business CaseDevelop The Problem and Goal StatementDetermine Project ScopeSelect Team & Define RolesSet Project Milestones

    Step 3 - Define Process Map

    Process Map Connecting Customer to ProcessDefine Phase Steps

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  • SVR*23/2/11

    Project CharterCTQ MatrixSIPOCQFDTools Commonly Used during define Phase

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  • SVR*23/2/11PROCESSCTQKPOVKPIVKPIVDEFINE Clearly state the Problem in terms of Defects or Variation which Upset the CustomerDefine Phase - GoalKPIV

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  • SVR*23/2/11Measure Phase - StepsStep 4 Identify All Possible Causes

    Identify Measurable Y and All Possible Causes of Variation (Xs)

    Step 5 - Define Performance Parameter

    Design the Measurement SystemDetermine & Confirm Specifications Limits For Y

    Step 6 Validate Measurement System for Y

    Confirm Adequacy for Measurement System for Y

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  • SVR*23/2/11

    1. Data collection Plan/Check Sheets2. Stratification (Multi Vari Analysis)3. Control Charts4. Frequency Plot/Normal Probability Plot (Six Pack)5. Gage R & R6. Pareto Chart7. Prioritization matrix8. FMEA/Risk Analysis9. Cp, Cpk, Pp, Ppk (Process Capability - Normal, Binomial or Poisson)Tools Commonly Used during Measure Phase

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  • SVR*23/2/117 Quality Tools

    Charts and GraphsCheck SheetsPareto ChartsCause and Effect (Ishikawa/Fishbone) DiagramsScatter DiagramsHistogramsControl Charts

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  • SVR*23/2/11IF WE CANT EXPRESS WHAT WE KNOW IN THE FORM OF NUMBERS,WE REALLY DONT KNOW MUCH ABOUT IT Dr Mikel HarryLET DATA BE THE BASE TO OUR ACTIONS!Importance of Measurement

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    Sheet: Blad1

    MEASURMENTS

    Run 1

    Run 2

    Run 3

    Run 4

    Run 5

    Run 6

    Run 7

  • SVR*23/2/11PROCESSCTQKPIVKPOVKPIVKPIVKPIVMEASUREDescribe the Performance of the process Quantitatively and Identify Key InputsMeasure Phase - Goal

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  • SVR*23/2/11Analyze Phase - StepsStep 7 - Establish Baseline Process Capability

    Establish Current Performance (9-12 Months Data)

    Step 8 - Define Performance Objective

    Statistically Define the Goal of the Project

    Step 9 - Identify Variation Sources

    Identify Key Xs which are expected to influence Y

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  • SVR*23/2/11

    1. Brainstorming (Why - Why Analysis)2. Cause and Effect Diagram3. Control Charts4. Multi vari Analysis5. Test of hypothesis6. Design and Analysis of Experiments7. Scatter Plots/Regression Analysis

    Tools Commonly Used During Analyze Phase

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  • SVR*23/2/11PROCESSCTQKPIVKPOVKPIVKPIVKPIVAnalyzeStatistically Describe the Relationship BetweenINPUTS and the OUTPUTSFind the Inputs with the BIGGEST IMPACT on the OUTPUTAnalyze Phase - Goal

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  • SVR*23/2/11Improve Phase StepsStep 10 Establish Cause & Effect Relationship

    Determine Vital few Xs which Cause Change in YEsta

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