4367 six sigma orientation

7/28/2019 4367 Six Sigma Orientation

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Six sigmaOrientation




expectations•What is Quality?

•Know Six Sigma

• Awareness with respect to originand history of Six Sigma.

•The utility and benefits

•Introduction to Six Sigma asmethodology

•The Six Sigma organization




What is Quality?




Evolution of Quality

Historically

Proactive Quality

“Create process that will produce

less or no defects”

Contemporary

Reactive Quality

Quality Checks (QC) - Taking the

defectives out of what is produced




Segments in Quality

Methodologies Standards Capability Models

•Six Sigma

•Lean

•ISO 9000, ISO

14000 etc.•COPC

•Malcolm Baldrige

•eSCM

•CMM•CMMI

Scientific way

to improvecapability?

Sharing

Benchmarkedpractices-

“Standardizing”

Best practices

to buildcapability




What is Six Sigma?

• It is a methodology for continuous improvement• It is a methodology for creating products/ processes that perform at high

standards

• It is a set of statistical and other quality tools arranged in unique way

• It is a way of knowing where you are and where you could be!

• It is a Quality Philosophy and a management technique

Six Sigma is not:

• A standard• A certification

• Another metric like percentage




• The term “sigma” is used to designate the distribution or spread about themean (average) of any process or procedure.

• For a process, the sigma capability (z-value) is a metric that indicates how well

that process is performing. The higher the sigma capability, the better. Sigmacapability measures the capability of the process to produce defect-freeoutputs. A defect is anything that results in customer dissatisfaction.

Two Meanings of Sigma




Path to Six Sigma

4 Sigma 6,210 Defects

2 Sigma 308,537 Defects

3 Sigma66,807 Defects

5 Sigma 233 Defects

6 Sigma 3.4 Defects

Sigma levels and

Defects per million

opportunities

(DPMO)




What it means to be @ Six Sigma

Is 99% (3.8) good enough? 99.99966% Good – At 6

20,000 lost mails per hour 7 lost mails per hour

Unsafe drinking water almost 15

minutes each day

One minute of unsafe drinking

water every seven months

5,000 incorrect surgical

operations per week

1.7 incorrect surgical operations

per week

2 short or long landings at most

major airports daily

One short or long landing at major

airports every five years

200,000 wrong drug prescriptions

each year

68 wrong drug prescriptions each

year

Example quoted from GE Book of Knowledge - copyright GE




• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola

• Late 1970s - Motorola started experimenting with problem solving throughstatistical analysis

• 1987 - Motorola officially launched it’s Six Sigma program

Origin of Six Sigma

Motorola

the company that invented Six Sigma




• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the criteria for managementpromotions

• 2002/03 - Green Belt certification became the criteria for promotion tomanagement roles

The Growth of Six Sigma

GEthe company that perfected Six Sigma




The GE model for process improvements


Define Measure Analyze Improve Control

Combination of change management & statistical analysis




BPMSBusiness Process Management System

DMAICSix Sigma Improvement Methodology

DMADOVCreating new process which will perform @ Six Sigma

Three Methodologies of Six Sigma




BPMSBusiness Process Management System




• To understand the process; it’s mission, flow and scope

• To know the customers and their expectations

• To identify, monitor and improve correct performance measures for the process

The Need of BPMS




The Methodology

Define ProcessMission

MapProcess

VOC and VOP

BuildPMS

DevelopDashboar

ds

Identify

Improvement

Opportunities

Define purposeof the process,its goal and its

boundaries

Identify Criticalto Quality andCritical to

process

Visualrepresentationof performance

Map processsteps, identifyinput/ outputmeasures

MSA, DCP,indicators andmonitors

Serviceexcellence andprocessexcellence

The DMAICcycle




DMAICSix Sigma Improvement Methodology




• A logical and structured approach to problem solving and process improvement

• An iterative process (continuous improvement)

• A quality tool with focus on change management

What is DMAIC ?

EEffectiveness

= QQuality

Improvement

x A Acceptance




The Approach

PracticalProblem

StatisticalProblem

StatisticalSolution

PracticalSolution




DDefine

MMeasure

A Analyze

I

Improve

CControl

Identify and state the practical problem

Validate the practical problem by collecting data

Convert the practical problem to a statistical one, definestatistical goal and identify potential statistical solution

Confirm and test the statistical solution

Convert the statistical solution to a practical solution

Methodology




D

VoC - Who wants the project and why ?

The scope of project / improvement

Key team members / resources for the project

Critical milestones and stakeholder review

Budget allocation

Define

DDefine

MMeasure

A Analyze

I

Improve

CControl




M

Ensure measurement system reliability

Prepare data collection plan

Collect data

- Is tool used to measure the output variable flawed ?

- Do all operators interpret the tool reading in the same way ?

- How many data points do you need to collect ?

- How many days do you need to collect data for ?

- What is the sampling strategy ?

- Who will collect data and how will data get stored ?- What could the potential drivers of variation be ?

Measure

DDefine

MMeasure

A Analyze

I

Improve

CControl




A

Understand statistical problem

Baseline current process capability

Define statistical improvement goal

Identify drivers of variation (significant factors)

Analyze

DDefine

MMeasure

A Analyze

I

Improve

CControl




A

Root Cause Analysis (fish bone)

• A brainstorming tool that helps define and display major causes, sub causes androot causes that influence a process

• Visualize the potential relationship between causes which may be creatingproblems or defects

ProblemBackbone

Primary CauseSecondary Cause

Root Cause

Analyze – Identify Drivers of Variation




A

Control – Impact Matrix

• A visual tool that helps in separating the vital few from the trivial many

Vital FewHigh Control – High Impact

Cost IneffectiveLow Control – High Impact

Cost IneffectiveHigh Control – Low Impact

Trivial ManyLow Control – Low Impact

Control

I m p a c t





A

Pareto Chart

• Pareto principle states that disproportionately large percentage of defects arecaused due to relatively fewer factors (generally, 80% defects are caused by 20%factors)

05

10

15

20

2530

35

L K A F B C G R D

0%

20%

40%

60%

80%

100%

Frequency Cumulative Frequency





A

Process Map Analysis

• Visually highlights hand off points / working relationships between people,processes and organizations

• Helps identify rework loops and non value add steps

Vendor Vendor Process BProcess BProcess AProcess ACustomer Customer Vendor Vendor Process BProcess BProcess AProcess ACustomer Customer





A

Hypothesis Testing

• A statistical tool used to validate if two samples are different or whether asample belongs to a given population

Null Hypothesis (Ho) is the statement of the status quo

Alternate Hypothesis (Ha) is the statement of difference


One way ANOVA

Regression

Homogeneity of Variance Moods Median

Chi-Square




I

Map improved process

Pilot solution

Identify operating tolerance on significant factors

Improve

DDefine

MMeasure

A Analyze

I

Improve

CControl




C

Ensure measurement system reliability for significant factors

Improved process capability

Sustenance Plan

- Is tool used to measure the input / process variables flawed ?

- Do all operators interpret the tool reading in the same way ?

- Statistical Process Control

- Mistake Proofing

- Control Plan

Control

DDefine

MMeasure

A Analyze

I

Improve

CControl




C

Control Plan

• Have the new operating procedures and standards been documented ?

• What Statistical Process Control (SPC) tools will be used to monitor the processperformance ?

• Who will review the performance of the output variable and significant factorson closure of the project and how frequently ?

• What is the corrective action or reaction plan if any of the factors were to beout of control ?

Control – Sustenance Plan




Six Sigma Organization




Six Sigma - Three Dimensions

ToolsOrganization

Methodology

Process variation

LSL USL

Upper/Lower specification

limits

Regression• • • • • • • • • • • •

• • • • • • •

• • • • •

• • •

• • •

Drivenby

customerneeds

Enabled by qualityteam.

Led bySeniorMgmt

Define Measure Analyze Improve Control

Vendor Vendor Process BProcess BProcess AProcess ACustomer Customer Vendor Vendor Process BProcess BProcess AProcess ACustomer Customer

Process Map Analysis

0

5

10

15

20

25

30

35

L K A F B C G R D

0%

20%

40%

60%

80%

100%

Frequency Cumulative Frequency

Pareto Chart




The Quality Team

Master Black Belt

Black Belt Black Belt

Green Belt

Green Belt

Green Belt

- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts

- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or “high

risk” projects

- Part time or full time resource- Deployed to less complex projectsin areas of functional expertise




Six Sigma – Career Option!

• Basic - Six Sigma Awareness

• Green Belt Projects• Participate in Black Belt Projects• Assist business functions with day to day

activities

• Mentor/Train Green Belts• Black Belt Projects• Change Agents• Work along with the business owners

• Mentor/ Train Black Belts• Run Strategic projects• More Strategic than tactical role

Green Belt (GB)

Black Belt (BB)

Master Black Belt (MBB)

Highly paid!

Work like a Consultant!Huge demand in the industry!

Overall…A high flying Career!!




Thank You

4367 six sigma orientation

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