javier garcia - verdugo sanchez - six sigma training - w1 six sigma introduction
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Introduction to Six Sigma gm
DefineMeasure
lAnalyseImproveImproveControl
Week 1
Knorr-Bremse Group
When you never…
were forced to manufacture a product outside the process capabilityp y
discussed with a customer about the measurement method
sorted parts to fulfill the specification limits
grumbled about too many failures reworks and checksgrumbled about too many failures, reworks and checks
discussed about late payments, wrong invoices, delayed hi t t l t it d dshipments, too less or too many items produced
identified a cost reduction opportunity which you could not realized
. . . than probably, you have Six Sigma already implemented
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 2/26
implemented
Six Sigma is ...
...a structured methodology for
consistent and confident application of selected statistical methodsconsistent and confident application of selected statistical methods
in teams lead by specialists trained for it
to almost eliminate process variation and failures
by processing well-chosen projects within a defined time frame
in accordance with the company strategy p y gy
and deliver precisely defined and controlled financial contributions.
The goals of Six Sigma are:
• To fulfil customer needs completely and economically
• Breakthrough in process improvement and profitability
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 3/26
Breakthrough in process improvement and profitability
Six Sigma as a new Philosophy
SIX SIGMA
CustomerTeam work
TQMISO / QS 9000
FastnessSafety
QValue Based Selling
KVPyPerformance
EmployeesLean / Kaizen / JIT
EFQMInnovation R & D Programs
Company values and programs are unified in the Six Sigma Philosophy
Th h th l ill b f lKnorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 4/26
The way how the puzzle will be successful
Make Existing with Six Sigma Successful
Zero defects ...Value up ...top+
The Six Sigma methodology supports the existing programs and values This gives all the and values. This gives all the quality initiatives the further framework to be successful
CustomerTeam workTeam workFastnessSafetyaf tyPerformanceEmployees
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 5/26
Innovation
Six Sigma & the DMAIC Cycle
ControlMaintain
DefineMaintain
ImprovementsSPC
Control Plans
Project charter (SMART)
Business Score CardQFD VOC
D Documentation QFD + VOC
Strategic GoalsProject strategy
C M
MeasureB li A l iImprove
AIBaseline Analysis
Process MapC + E Matrix
M t S tAnalyze
ImproveAdjustment to the
OptimumFMEA Measurement System
Process CapabilityDefinition of critical
InputsFMEA
S
FMEAStatistical Tests
SimulationTolerancing Statistical Tests
Multi-Vari StudiesRegression
Tolerancing
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 6/26
Sigma; a Measure of Variability
20
σ σStandard Deviation
M
15
σ σ Meanen
cy Point of InflectionPoint of Inflection
10
Fre
qu
5
30272421180
3027242118
Measurement values of a process or product:
µ
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 7/26
e.g. delivery time, process time, length, pressure, speed, acceleration, volt, etc.
Six Sigma Means Customer Orientation Internal focus
30% Cost of poor quality 3σ Process
3σLow delivery quality, high inventories
Right First Time < 90%σσσ σσσ
3σ
DefectsDefects
σσσ σσσ
6σ Process
µ UpperSpecification
LowerSpecification
6σ• Customer oriented
• 7% Cost of poor quality
σσσσσσ
• 7% Cost of poor quality
• High delivery quality, low inventories
• Right First Time 99.9%g t st e 99 9%
• Integration of customers & suppliers
• Efficient processes and flows
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 8/26
µLSL USL
“Three Sigma” ProcessThree Standard Deviations between Mean
and customer specification
3σ
D f tD f tσσσ σσσ
DefectsDefects
USLLSLµ
(Upper Specification Limit)(Lower Specification Limit)
The capability of a process can be characterized based on the metric Mean
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 9/26
µ and the amount of the Variation σ (Standard Deviation).
“Six Sigma” ProcessSix Standard Deviations between Mean und
customer specification
6σ
σσσσσσ
µUSLLSL
(Upper Specification Limit)(Lower Specification Limit)
The capability of a process can be characterized based on the metric Mean
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 10/26
µ and the amount of the Variation σ (Standard Deviation).
Example: Tube Manufacturing Customer requirement: 994 1006 mm
LSL USL
994 - 1006 mm
What is the process capability measured in
Länge in mm1006100410021000998996994
capability measured, in terms of sigma?
Could you name reasonsCould you name reasons for the difference?
1006100410021000998996994
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 11/26
Länge in mmLength in mm
Sigma Score Comparison The number of the Standard deviations between the average
value and the customer specification
6
5
“Best in the class”
5
4
Sig
ma
3
2
The most companiesS
Si D f t /Milli D f t f
1
Sigma measure Defects/Million Defect free
Six Sigma 3.4 99.9997%
5 Sigma 230 99 977%5 Sigma 230 99.977%
4 Sigma 6,210 99.4%
3 Sigma 66 810 93%
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 12/26
3 Sigma 66,810 93%
Benchmark Metric Sigma
The relation between Quality and Cost
30%
25% 2σ
Cost of Quality
25%
20%
15%
2σ
3σContinuous improvement
10%
5%4σ
Continuous improvement means cost reduction
5σ
6σ
Right First Time70 90 95 99 99.9 99.9997 %
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 13/26
The Cost Advantage of Optimized Processes
Conventional cost of poor quality and losses are easy to recognize but this is only the tip of the icebergrecognize, but this is only the tip of the iceberg …
ReworkWarranty
Inspection
Reject/ Compensation DiscountScrap
Additional Lost Sales
(Tangible) Compensation Discount
Technical Changes
Long Inventory Turn TimesFixed Capital
Lost Sales
Lost Opportunities
(Easy to overlook)
Cost forInadequate use
Late Delivery
Inadequate MaterialO d i / Pl i
Image Loss
Lost Opportunities
AdditionalPerformance Increase
Cost forPrioritization
of Company Assets Ordering / Planningg
Additional hidden cost due to poor quality
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 14/26
Additional hidden cost due to poor quality
The Success of Six Sigma
The Six Sigma Elements
r nt n
Sal
es
ust
om
er
evel
op
men
Lo
gis
tic
rod
uct
io
Qu
alit
y
Fin
ance
Su
pp
lier
C De L
Pr F S
LEANINGDESIGNING MASTERING
Create valuableProducts & Performance
for the Customer
Efficient Processes without
Waiting Time
Eliminate Defects& reduce Variability for the Customer Waiting Time
Price On time SIGMA / DPMOCapableValue Lean
Optimized Products and Solutions
CapableValue Lean
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 15/26
Optimized Products and Solutions
Business Processes vs. Organization
FinanceMfg LogisticsSalesMaterials
MgmtCustomerService
Strategy, Business Plan, ObjectivesStrategy, Business Plan, Objectives
s s FinanceMfg LogisticsSalesMaterials
MgmtCustomerService
Strategy, Business Plan, ObjectivesStrategy, Business Plan, ObjectivesStrategy, Business Plan, ObjectivesStrategy, Business Plan, Objectives
s s s s FinanceMfg LogisticsSales MgmtService
Mea
sure
sM
easu
res
me,
m
e,
chas
ech
ase
sure
s su
res
iver
y,
iver
y,
stst
Application (Product) Development
fact
ion
FinanceMfg LogisticsSales MgmtService
Mea
sure
sM
easu
res
me,
m
e,
chas
ech
ase
Mea
sure
sM
easu
res
me,
m
e,
chas
ech
ase
sure
s su
res
iver
y,
iver
y,
ststsure
s su
res
iver
y,
iver
y,
stst
Application (Product) Development
fact
ion
r V
alu
e M
r V
alu
e M
st in
Tim
st in
Tim
e o
f P
urc
e o
f P
urc
ier,
Mea
sie
r, M
eas
tive
, Del
tive
, Del
ota
l Co
so
tal C
os
Order to Delivery
Produce Products mer
Sat
is
r V
alu
e M
r V
alu
e M
st in
Tim
st in
Tim
e o
f P
urc
e o
f P
urc
r V
alu
e M
r V
alu
e M
st in
Tim
st in
Tim
e o
f P
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f P
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Mea
sie
r, M
eas
tive
, Del
tive
, Del
ota
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tal C
os
ier,
Mea
sie
r, M
eas
tive
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tive
, Del
ota
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so
tal C
os
Order to Delivery
Produce Products mer
Sat
is
ust
om
er
ust
om
er
Jus
Jus
Sh
are
Sh
are
Su
pp
lS
up
pl
Def
ect
Def
ect
ToTo Produce Products
Credit and Collections Cu
sto
m
ust
om
er
ust
om
er
Jus
Jus
Sh
are
Sh
are
ust
om
er
ust
om
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Sh
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pp
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up
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Credit and Collections Cu
sto
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CC
Fi i l P f MFi i l P f M
CCCC
Fi i l P f MFi i l P f MFi i l P f MFi i l P f MFinancial Success and
Financial Performance Measures Financial Performance Measures Net Income, Productivity, Cash FlowNet Income, Productivity, Cash Flow
Financial Success
Financial Performance Measures Financial Performance Measures Net Income, Productivity, Cash FlowNet Income, Productivity, Cash Flow
Financial Performance Measures Financial Performance Measures Net Income, Productivity, Cash FlowNet Income, Productivity, Cash Flow
Financial Success
Customer Satisfaction are strongly linked. Experience
shows that there is friction in
C t i t d th h B i P M t
Financial SuccessFinancial Success shows that there is friction in the daily business
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 16/26
Customer oriented through Business Process Management
A Detailed View
Some of the elements are not yet fully developed
FinancesCustomer
Employees
VisionControl Processes
Metrics
Strategy
Analysis
Action
The DMAIC cycle includes all elements of the chain
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 17/26
The Reason for the Success of Six Sigma
Measurable
SuccessFinancesCustomer
Employees
ControlVisionControl Processes
Improve DefineMetrics
Strategy
Analysis
Action
MeasureAnalysis
Success through an integrated approach… Larry Bossidy
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 18/26
Success through an integrated approach… Larry Bossidy
Example Automotive
Efforts to increase the capability of
processes are not new…
• The SPC stage
• The FMEA stage
• The cpk > 1.33 stage
Actual studies show:
60 % f l ll th 1 2• 60 % of cpk values are smaller than 1.2
• Most of the data sets are not normally distributed
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 19/26
y
Improvement Strategies
Innovation + CIP
... Steps back vs. Benchmark
InnovationBenchmark
CIP
Do nothing
Obviously improvement, but…
Structured proceeding and use of Six Sigma tools makes CIP more successful. The innovation steps are getting bigger and time intervals
tti ll t th ti
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 20/26
getting smaller at the same time.
Cost Reduction Programs
Development of business sectorslit
y Protected!Assailable!
Pro
fita
bil
Monopolyposition I
ce a
nd
P position Incompetition
New player Rise in prices
Overcapacity Differentiation
Pri
c
Genetic engineering
Price war Consolidation
"Shakeout"
PCs
engineering
Maglevtrain
Time - years0 5 10
PCs
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 21/26
y
Cost Reduction Programs
Selling price1. At the beginning of the live cycle
Manufacturing cost Profit
Market price2 X Years later
Manufacturing cost Profit
Market price2. .... X Years later
Manufacturing cost Profit
Cost reductionL TPM K i Eff ti
Market price
Lean, TPM, KaizenSix Sigma
CIP
EffectiveFast
Big StepsManufacturing cost Profit
Big StepsLasting
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 22/26
Cost Reduction Programs
Restructuring Approach
Product & Programarrangement
CostCost
Adjustment/Simplification
New businessarrangement
Product arrangement
Design to costDesign to
k t
pProduct-portfolio
Country specific
dj t t
New products
Product arrangement
Operative
marketComplexity reduction
SalesProcess optimization Sales increase
adjustmentsNew
applications
Sales
OperativeProgramsBurden
reduction
in ancestral areas
Restructured cost base
Baseline GoalCost base settlement is necessary for business growth
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 23/26
Cost base settlement is necessary for business growth
Cost Reduction Programs
The lever for cost reduction should be used always integrated
100%
Sales Design to cost•Variants•Complexity
Performance
Efficiency•Product cycle
Manufacturing
Materialcost Other factor
costS l C it l
R & D
Performancedifferences•Service life•Precision
y
Efficiency•Logistic cycle•Stock
•Salary, Capital
Admin Factor costProcess designProduct design
(Total cost in %)
New SituationActual Situation
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 24/26
(Total cost in %)
Cost Reduction Programs
Where can you use Six Sigma for cost reduction?
Customer orientedvi
ty
hai
n
hai
n
on
kets
B i
od
uct
iv
pp
ly C
h
enu
e C
nn
ova
tio
w m
ark Business
improvements
Pro
Su
p
Rev In New
Culture change
Improvements in all areas will be achieved fast, lasting and effective through a Six Sigma structure
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 25/26
through a Six Sigma structure.
Successful Positioning
esom
er
pm
ent
stic
ctio
n
ity
nce lie
r
Sal
e
Cu
sto
Dev
elo
p
Lo
gis
Pro
du
c
Qu
al
Fin
an
sup
p
Technical Competence
Methodical Competence
Successful programs and j t d d t
Social Competence
projects need good team work and good coaching
Knorr-Bremse Group 02 BB W1 Six Sigma Intro 08, D. Szemkus/H. Winkler Page 26/26
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