an introduction to six sigma - innocentrix

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  • An Introduction to Six Sigma

    2008 InnoCentrix, LLC

    Jeffrey T. Gotro, Ph.D.

  • Agenda

    What is Six Sigma?

    Why would a company adopt Six Sigma?

    What are the challenges?

    2008 InnoCentrix, LLC 2 2008 InnoCentrix, LLC 2

    What are the challenges?

    What are the rewards?

    How is Six Sigma implemented?

    Summary and Questions

  • Six Sigma has many meanings

    A Symbol

    A Measure

    A Benchmark or Goal

    2008 InnoCentrix, LLC 3 2008 InnoCentrix, LLC 3

    A Benchmark or Goal

    A Philosophy

    A Method

  • Six Sigma: A Symbol

    is a Statistical Symbol for Standard Deviation

    Standard Deviation is a Measure

    2008 InnoCentrix, LLC 4 2008 InnoCentrix, LLC 4

    Standard Deviation is a Measure of Variability

  • Six Sigma: A Measure

    The Sigma Level of a process can be used to express its capability How well it performs with respect to customer

    2008 InnoCentrix, LLC 5 2008 InnoCentrix, LLC 5

    How well it performs with respect to customer requirements.

    Percent Defects, Cp, Cpk, ppm

  • Doing the math

    6 Sigma = 3.4 defects per million5 Sigma = 230 defects per million 4 Sigma = 6,210 defects per million

    2008 InnoCentrix, LLC 6

    4 Sigma = 6,210 defects per million3 Sigma = 66,800 defects per million 2 Sigma = 308,000 defects per million 1 Sigma = 690,000 defects per million

  • Six Sigma: A Benchmark or Goal

    The specific value of 6 Sigma (as opposed to 4 or 5 Sigma) is a benchmark for process excellence.

    Adopted by leading organizations as a goal

    2008 InnoCentrix, LLC 7 2008 InnoCentrix, LLC 7

    Adopted by leading organizations as a goal for process capability.

  • 100K

    10K

    1K Purchased Material Lot Reject Rate

    Payroll Processing

    Journal Vouchers

    Wire Transfers

    Air Line Baggage

    Order Write-up

    IRS - Tax Advice (phone-in)

    AverageCompany

    Restaurant Bills

    Doctor Prescription Writing

    (6,210 ppm)

    (66,800 ppm)

    Defe

    cts

    per

    Mil

    lio

    n

    Op

    po

    rtu

    nit

    ies

    Some Examples to Illustrate Typical Defect Rates

    2008 InnoCentrix, LLC 8 2008 InnoCentrix, LLC 8SIGMA (with 1.5 Sigma Shift)

    2 3 4 5 6 7

    100

    10

    1

    (230 ppm)

    Lot Reject Rate

    (0.43 ppm)

    Air Line BaggageHandling

    Best in ClassDomestic Airline

    Flight Fatality Rate(3.4 ppm)

    Defe

    cts

    per

    Mil

    lio

    n

    Op

    po

    rtu

    nit

    ies

  • Six Sigma: A Philosophy

    A vision of process performance

    Delivering nearly defect-free products and services

    Focus on variation reduction

    2008 InnoCentrix, LLC 9 2008 InnoCentrix, LLC 9

    Focus on variation reduction

    A Guiding Management Principle

  • Six Sigma: A Method

    A well defined process and toolkit used for:

    Product/Service Design

    Quality Control

    2008 InnoCentrix, LLC 10 2008 InnoCentrix, LLC 10

    Quality Control

    Quality Improvement

    Strategic Planning

  • Six Essential Themes

    A genuine focus on the customer

    Data and fact-driven management (using effective measurement systems)

    Process focus [Y = f (x)]

    2008 InnoCentrix, LLC 11 2008 InnoCentrix, LLC 11

    Process focus [Y = f (x)]

    Proactive management drives improvement efforts

    Boundaryless* collaboration (including customers, suppliers, and supply chain partners)

    A drive for perfection with a tolerance for failure (freedom to take risks, learning from mistakes, drive to try new approaches)

    * Termed by Jack Welch, CEO of GE

  • DMAIC Approach

    30

    35

    40

    Sporadic Spike (Special Cause)

    Define Measure/Analyze ControlImprove

    De

    fect R

    ate

    2008 InnoCentrix, LLC 12

    0

    5

    10

    15

    20

    25

    -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40

    Chronic Waste

    Chronic Waste

    De

    fect R

    ate

    Time

    Common Cause Variation

  • Define Measure Improve ControlAnalyze

    Project Scope

    Project Charter

    Business Impact

    Process Map

    Data Collection

    Control Charts

    Multivari Analysis

    Cause & Effect

    Brainstorming & Creativity tools

    Design of

    Statistical Process Control (SPC)

    Standard Operating

    Six Sigma DMAIC Process

    2008 InnoCentrix, LLC 13

    Business Impact

    Voice of the Customer (VOC)

    Affinity Diagram

    Kano Model

    CTQ Tree diagram

    Control Charts

    Pareto Charts

    Prioritization Matrix

    Measurement System Analysis

    Process Capability

    Yields (RTY)

    Cause & Effect Matrix

    FMEA

    Hypothesis testing

    ANOVA

    Noise Variables

    Scatter plots

    Design of Experiments

    Design of Experiments (DOE)

    Full Factorial

    Fractional Factorial

    Response Surface

    Pilot Trials

    Implementation Plan

    Standard Operating procedures (SOP)

    Data Collection & sampling plans

    Control Plans

    Measurement Systems Analysis (recheck)

    Project summary & lessons learned

  • All Work is a Process

    SupplierProcess

    Value-added Customer

    Requirements Requirements

    Inputs Output

    2008 InnoCentrix, LLC 14

    Value-added tasks

    Feedback Feedback

    S. I. P. O. C.

  • What is a process?

    ControllableInputs(Xs)

    Key ProcessOutputs

    (Ys)

    Process

    2008 InnoCentrix, LLC 15 2008 InnoCentrix, LLC 15

    (Xs) (Ys)

    Noise Inputs

    Y = f (X)

  • Process Capability

    LowerSpecification

    Limit

    UpperSpecificationLimit

    LowerSpecification

    Limit

    UpperSpecificationLimit

    2008 InnoCentrix, LLC 16

    LowerSpecification

    Limit

    UpperSpecificationLimit

    Capable Process

    LowerSpecification

    Limit

    UpperSpecificationLimit

    This process is not capable

  • Visualizing Process Capability

    43210-1-2-3-4

    0.4

    0.3

    0.2

    0.1

    0.0

    Lower Spec. Limit

    Upper Spec. Limit

    Cust. Tolerance

    86420-2-4-6-8

    0.4

    0.3

    0.2

    0.1

    0.0

    Lower SpecLimit

    Upper Spec.Limit

    Cust. Tolerance

    2008 InnoCentrix, LLC 17Cp=1 Cp=2

    Process CapabilityProcess

    Capability

  • Process Drift

    Cp = 1.33

    Cpk = 1.331.33

    0.4

    0.3

    0.2

    0.1

    Lower Spec. Limit

    Upper Spec. Limit

    Cust. Tolerance

    2008 InnoCentrix, LLC 18

    5.334.02.671.33-1.33-2.67-4.0-5.33 0

    0.0

    0

    0.4

    0.3

    0.2

    0.1

    0.0

    5.334.02.671.33-1.33-2.67-4.0-5.33

    Lower Spec. Limit

    Upper Spec. Limit

    Cust. Tolerance

    Cp = 1.33

    Cpk = 0.830.83

  • Unstable Process

    Mean shifts present

    Excess variation (changes)

    TimeFri

    Unstable Process

    LSL USL

    2008 InnoCentrix, LLC 19

    changes)

    Special causes of variation are present,

    Process output is not stable over time and is not predictable

    Mon

    Tue

    Wed

    Thur

  • Stable process: Variation reduced (lower ) Process is centered in spec window Mean shifts reduced

    Stable Process

    Time

    LSL USL

    2008 InnoCentrix, LLC 20 2008 InnoCentrix, LLC 20

    Only common cause variationis present

    Process output is stable/predictable The process is termed in statisticalcontrol.

  • History of Six Sigma

    Originated at Motorola in the early 80s

    Doesnt use Quality in the name

    Uses a modification of the Deming Plan-Do-

    2008 InnoCentrix, LLC 21

    Uses a modification of the Deming Plan-Do-Check-Act (PDCA) cycle

    Adopted widely in the 90s by major corporations including AlliedSignal (now Honeywell), GE, Kodak, and a growing list.

  • Six Sigma Strategy

    Implementation is top-down. CEO driven with executive management and Champions (process owners) leading the initiative.

    Improvement projects must be integrated with the goals of the organization.

    Six Sigma uses a divide and conquer approach. Find

    2008 InnoCentrix, LLC 22

    Six Sigma uses a divide and conquer approach. Find and work on the most important key customer related projects.

    Uses several levels of competency in Six Sigma implementation: Champions Master Black Belt Black Belt Green Belt

  • Roles & Responsibilities

    Executive Team: Provide continuous support to drive for results. Sets

    strategic direction, identify core business process issues, prioritize

    Champion:

    2008 InnoCentrix, LLC 23 2008 InnoCentrix, LLC 23

    Champion: Identifies high impact projects by combining the strategic

    vision of the executive team & the key customer and process needs of the business.

    Facilitates successful project completion, coaches teams

    Master Black Belt: Highly skilled & experienced in all aspects of Six Sigma

    Coach and mentor to Black Belts, works with Champion on project selection

  • Roles & Responsibilities

    Black Belt: Project Leader

    Highly trained in Six Sigma methods and tools

    Influencer, team facilitator, project manager

    2008 InnoCentrix, LLC 24 2008 InnoCentrix, LLC 24

    Influencer, team facilitator, project manager

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