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Six Sigma - A ContinuousImprovement Process
April 26, 2002
Authorized Panel BuilderForum 2002
Presenters: Sherry Hoy and Bertram Wells
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Six Sigma - A Continuous Improvement Process
Agenda:
• Principles of Six Sigma (6σ)
• Characteristics of a Six Sigmaapproach
• The tools of Six Sigma- the DMAICcycle
• Six Sigma Success Factors
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Six Sigma - A Continuous Improvement Process
• Principles of Six Sigma
– A strategy and a philosophy that promotes theuse of planned scientific approach forachieving customer satisfaction
– An efficient process that focuses on thestructured application of the tools andtechniques to improve customer satisfactionand achieve strategic business results.
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Six Sigma - A Continuous Improvement Process
Concept
Customer QualityRequirements (as definedby the customer)
Defect
Defect Opportunity
Sigma
Definition
Customer Performance Requirementof a Product or Service
Any Event That Does Not Meet TheSpecifications of the customer
Any Event Which Can Be Measured
That Provides a Chance of NotMeeting a Customer Requirement
A measure of variation in a process
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Six Sigma - A Continuous Improvement Process
If We Accepted The Goal of 99.9% Quality
Then we would have…
• One hour of unsafe drinking water every month
• Two unsafe plane landings per day at Paris (CDG & Orly)
• 20,000 pieces of mail lost in Europe every hour
• 500 incorrect surgical operations each week
• 50 newborn babies dropped at birth by doctors each day
• 22,000 checks deducted from the wrong bank accountseach hour
• 32,000 missed heartbeats per person, per yearWE EXPERIENCE SIX SIGMA PROCESSES EVERY DAY!
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Six Sigma - A Continuous Improvement Process
Characteristics of a Six Sigma approach
• Focuses on variability of processes, notonly on defects
• Founded on statistical Thinking
• Uses a common methodology to applyclassical and specific tools to meet thecustomer requirements known as theDMAIC cycle
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Defects Defects
Too early Too late
Delivery Time
Reduce
variation
Delivery Time
Too early Too late
Spread of variation toowide when compared tocustomer expectations.
Spread of variation narrowwhen compared to
customer expectations.
Importance of Reducing Variation
Six Sigma Focuses on Variability of Processes
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Off-Target
XX
XXXXX
XX
X
XX
SpreadX
X
X
X
XX
X
X
XXX
Center theProcess
Reduce theSpread
On-Target
X
XXXX
XX
XXXX
XX X
Six Sigma focuses on variability of processes
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Six Sigma Focuses on Variability of Processes
RESULTSRESULTSFailures,Failures,
shortages,shortages,rework,rework,scrap,scrap,
warrantywarrantycosts,costs,
excessiveexcessiveinventory,inventory,
extra spendextra spend
etcetc..
OutputOutputOutput
CUSTOMER EXPECTATIONSIncorrect job specs
Inadequate designs, marginsInadequate designs, marginsand tolerances not aligned toand tolerances not aligned to
material and processmaterial and process
MATERIALMATERIALunstable, out ofunstable, out ofspec., flawedspec., flawed
etc.etc.
PROCESSinconsistent,inconsistent,
incapable,incapable,over-complexover-complex
etc.etcetc.etc
What Causes Variability in the Output of a Process?
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Six Sigma Focuses on Variability of Processes
Statistical Thinking Basics
• All big-picture outcomes are generated through asystem of interconnected processes.
• All processes vary.
• All variation is caused.
Improvement comes through making the invisiblevariation visible and systematically eliminating the causes.
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The tools of Six Sigma- the DMAIC cycle
DEFINEDEFINE
MEASUREMEASURE
ANALYZEANALYZE
IMPROVEIMPROVE
CONTROLCONTROL
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The DMAIC cycle: Define
STEP
Define
OBJECTIVE
Develop clearbusiness case,projectsponsorship, multi-functional team,and identify thecritical process(es)
TOOLS
�Voice of CustomerAnalysis
�SIPOC (Supplier, Input,Process, Output, Customer)
�Flowchart
�Performance Objectives
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The DMAIC cycle : Measure
STEP
Measure
OBJECTIVE
Develop/executemeasurement plan tobaseline processperformance and setperformance goals
BASIC TOOLS
�Metrics: Cycle Time &Defect per MillionOpportunities
�Data Collection/Analysistools: Cycle Time forprocess steps,Checksheets, Histograms
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The DMAIC cycle: Analyze
STEP
Analyze
OBJECTIVE
Determine rootcauses that createthe performancegaps
BASIC TOOLS
�Pareto Chart
�Brainstorming
�Cause & EffectDiagrams
�Scatter Diagrams
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The DMAIC cycle: Improve
STEP
Improve/Innovate
OBJECTIVE
Identify, test, andselect the bestsolutions to improvethe process and closethe performancegaps
BASIC TOOLS
� Implementation Plan�Control Charts�Prioritization Matrix
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The DMAIC cycle: Control
STEP
Control
OBJECTIVE
Document,standardize, andcommunicate theimprovements tosustain the gains
TOOLS
�Training &CommunicationPlans
�Document &Process ControlPlans
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Why is Six Sigma different ? Success Factors
• Focuses on customer requirements
• Aligned to strategic business objectives
• Universal application across the business
• Projects selected are based on key business issueswith a direct link to increased profitability
• Pays for itself; returns are far greater thaninvestment
• Benefits are visible and traceable; focus is oncustomer satisfaction, decreasing of non-qualitycosts.
• Six Sigma is supported by top level management
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Six Sigma - Meeting Customer Requirements
LeadershipLeadership
ProcessProcess
CultureMotivationResponsibilityBehavior changes
Products/Services
People
Your Organization
To satisfy customer- better product quality- better market-in by listening to the customer ’svoice
Streamlining, fluidityDecreasing of varianceCustomer Satisfaction
OwnersManagersWorkers
Everyone must take aleadership role when servingthe customer
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Six Sigma - A Continuous Improvement Process
Case Study
Taylor’s TransportationTechnology Inc.
(TT&T) is one of the biggestspecialist suppliers of table toptransportation equipment. Thecompany offers a moderatevariety of equipment designed totransport small objects from pointA to point B. One of their mostpopular models, the Catapult, isspecially designed to transportping pong balls a distance of 6’.The Catapult contributes over60% of the company’s annual netincome.
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Six Sigma - A Continuous Improvement Process
Case Study
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Six Sigma - A Continuous Improvement Process
Case Study
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The success of Six Sigma in your organization isbased on the following criteria:
■ Individual and team participation■ Participation at all levels■ An established part of the culture
Six Sigma - Making A Difference