Download - Six Sigma Concepts
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Process Improvement Process Improvement MethodologyMethodologyTMTM
Six Sigma
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Purpose
Provide An Overview of Six Sigma Layout the Process Improvement MethodologyTM
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Code of Conduct
Please listen as an ally… If you have a question at any time, ask! Use name tents Please be prompt in returning from breaks Turn off the mobile/pager system while in
training
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Expectations
You will have a better understanding of Six Sigma
What are your expectations for this session?
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!!!!!Quality!!!!!
Conformance to dimensions, fit, form, requirements, use, Customer Satisfaction.
Problem solving
• Condition of output• Changing gaps between good & bad.
• Solutions are engineered well with statistical guidance to Engineering.
• Who created problems in the first place could not be used to solve it
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ProcessProcessModelingModeling(Taguchi) (Taguchi)
StatisticalStatisticalProcessProcessControlControl
(Deming) (Deming)
Pursuit of Quality
Inspect for QualityInspect for Quality
19301930 19401940 19501950 1980198019601960 19701970 19901990 20002000
Design forDesign forSix Sigma Six Sigma
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!!!!!What’s new!!!!!
Active Leadership Integration with strategy Quality net income Special Matrics Special roles Project Management Facts decide not judgement. Alignmenet of drivers & behaviour System Approach Remuneration linkage with six-sigma initiatives.
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Six Sigma
Sigma Breakthrough Technologies has a proven track recordtrack record
Methodology that is unique, systematic, proven, unique, systematic, proven, simple, lastingsimple, lasting
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Objectives
* What Is 6 Sigma ?
* Why Are We Doing 6 Sigma ?
* How Are We Deploying 6 Sigma ?
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Objectives
* What Is 6 Sigma ?
* Why Are We Doing 6 Sigma ?
* How Are We Deploying 6 Sigma ?
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What is Six Sigma?
An approach to sustainable breakthrough improvement that: Fosters a common language and cross-functional
cooperation within and between divisions Strengthens our productivity efforts Develops our process improvement core competency Uses statistical tools for significant variability reduction Helps
Develop expert personnel and future leaders Increase capacity with minimal capital Meet productivity goals Improve customer service
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Improving performance by flawless execution
Achieving rapid breakthrough improvement
Applying advanced breakthrough tools that work
Making a positive and deep cultural change
Getting Real Financial Results
Passion + Execution = Fast and Lasting Results
Six Sigma Focus
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Overall Perspective
Customer Requirements
Robust Designs
Predictable Flexible
Factories
Process Capabilities
Technology Capabilities
Materials Capabilities
Organization Capabilities
Customer Satisfaction
Safety
Rolled Throughput
Yield
COPQ, 4 Wall Cost
Capacity Productivity
Materials Mangmnt & Inventory
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Six Sigma Systems
New Product Development
Six Sigma Leadership Systems
Problem Solving
Process Operation
and Control
Materials Management
Reliability Centered Maint.
Six Sigma Data Systems
Human Resource Involvement
Measurement Control
Customer Satisfaction Assessment
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What is Six Sigma? SimpleSimple:
Eliminate variation and defects Eliminate the opportunity for variation and defects
ComplexComplex Vision Metric (Standard of measurement) Benchmark Philosophy Method Tool for:
Customer focus Breakthrough improvement Continuous improvement People Involvement
Aggressive Goals
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2 308,5373 66,8074 6,2105 2336 3.4
Sigma PPM
A Measurement
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% Non-Defective
Another Look . . .
2 69.1%
3 93.32%
4 99.379%
5 99.9767%
6 99.99966%
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Practical Meaning
99% Good 99.99966% Good
Postal System
20,000 Lost Articles Of Mail / Hr 7 Lost Articles / Hr
Airline System
Two Short/Long Landings / Day 1 Short / Long Per 5 Years
Medical Profession
200,000 Wrong Drug Prescriptions / Year 68 Wrong Drug Prescriptions
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7
Sigma Level
1,000,000
100,000
10,000
1,000
100
10
1
PPM
Restaurant Bills
Payroll Processing
Prescription Writing
Baggage Handling
AirlineSafety Rate
3 4 5 621
What Does 6 Sigma Mean In Your Daily Life?
Best in Class
Tax Advice
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Business Metrics
Number of antibiotic prescriptions issued in 1996: 282,631,000
JAMA reported that 21% of all antibiotic prescriptions written were to treat colds, bronchitis, and respiratory infections...
USA TodayMedical Article
September 22, 1997
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Business Metrics
Number of antibiotics prescriptions issued in 1996: 282,631,000
JAMA reported that 21% of all antibiotic prescriptions written were to treat colds, bronchitis, and respiratory infections...
USA TodayMedical Article
September 22, 1997
even though more than 90% of such infections are caused by viruses, which are immune to antibiotics.
53,000,000 defective prescriptions = 2.4
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Business Metrics
Tranquilizers / Anti-Anxiety Medications:76,370,000
Sleeping Pills / Sedatives:23,681,000
Anti-Obesity Drugs:23,596,000
Sources: IMS America, Plymouth Meeting, PA.
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Business Metrics
Instructor’s Note:
Despite being less than 3 sigma, we are “happy” to reportDoctors are operating with very profitable returns.
This only proves . . . You don’t have to be 6 Sigma to make money.
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Reality of Escaping Defects
TToottaall DDeeffeeccttss//UUnniitt
EE sscc aa
pp ii nn
gg DD e
e ffee cc
tt ss
Escaping Defects
No matter how good your inspection and test processes are, the more defects you create, the more defects escape to the customer
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Premise for Six Sigma Methods
Sources of variation can be Identified Quantified and prioritized Eliminated by control or prevention
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3 Sigma Process
Upper SpecLower Spec
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Lower Spec Upper Spec
6 Sigma Process
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Dissecting Process Capability
LSL USL
Defects
Process Capability
Inadequate Design Margin
Inadequate Process
Capability
Supplier Variation
Inadequate Measurement
Capability
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Dissecting Process Capability
LSL USL
Process Capability
Ove
r W
eigh
t.A
ir B
ubbl
eW
rong
Col
orD
efo
rmat
ion0
500
1000
0
20
40
60
80
100
Defect
Per
cen
t
Co
un
t
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Business Impacts of Variability
Prevention CostsPrevention Costs Education and training Quality planning Product design qualification tests Supplier qualification Customer interface Controlling processes
Appraisal CostsAppraisal Costs Incoming inspection Maintenance and calibration of
equipment Setup inspection and tests Field testing Process audits
Internal FailureInternal Failure Scrap Supplier caused losses Rework
Retest / Re-inspection Unplanned downtime Trouble shooting Engineering change notices
External FailuresExternal Failures Processing customer inquiries Maintaining customer field service Retro fit costs Incurring penalties/claims Product warranty Lost sales
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Exercise
Go through the list on the previous slide and indicate which costs are EASILY accessed through your current finance systems.
Count the selected elements
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6
5
4
3
2
5% 10% 15% 20% 25% 30%
Sigma Level
Cost of Failure (% of Sales)
3 Cost of Failure : 20-25% of Sales3 Cost of Failure : 20-25% of Sales
What’s Your Cost Reduction Opportunity?What’s Your Cost Reduction Opportunity?
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Objectives
* What Is 6 Sigma ?
* Why Are We Doing 6 Sigma ?
* How Are We Deploying 6 Sigma ?
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Six Sigma
INITIATIVE Improvement Breakthrough Focused Approach Right Projects Right People Project Reviews Sustain the Gains Results ($$)
METHODS & TOOLS Process Thinking Process Variation Facts, Figures, Data DMAIC 8 Key Tools Statistical Tools Minitab Critical Few Variables
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Process Excellence: Process Excellence: The Right MetricsThe Right Metrics
1050
0.21
0.20
0.19
0.18
0.17
0.16
0.15
0.14
Month
CO
PQ
How is this process doing?
ScrapScrap
1050
400
350
Month
Un
its
pe
r D
ay
RateRate
1050
7
65
55
Month
RTY
Goal
Actual
Baseline
Defects per 1000Defects per 1000
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Actual Metrics Example
Scrap Downtime
Defects/Unit
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Others
Assembly
Technical
Process
34 164 1981328 2.0 9.511.577.0
100.0 98.0 88.5 77.0
1800
1600
1400
1200
1000
800
600
400
200
0
100
80
60
40
20
0
Defect
CountPercentCum %
Per
c ent
Cou
nt
Pareto Chart for Cause
Using Pareto’s to Select Projects
Stopcock TSII
Safety S
hield Stop
Housing 5m
m
Knife -50
0x100mm
Spring, Reset
Inner Gasket
Kni fe Assem
bly
50 69 72 74 75128148 8.111.211.712.012.220.824.0
100.0 91.9 80.7 69.0 57.0 44.8 24.0
600
500
400
300
200
100
0
100
80
60
40
20
0
Defect
CountPercentCum %
Per
c ent
Cou
nt
Major Part Failure due to Process
Knife Assembly and Inner Gasket are the two major
process scrap drivers
Two Potential Projects: - Knife Assembly
- Inner Gasket
Process Related Scrap is the Highest
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Six Sigma Methods
Six Sigma Everywhere
MFG.
DESIGNSERVICE
PURCH.
MAINT.
ADMIN.
QA
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Process MeasurementProcess Measurement
Process AnalysisProcess Analysis
Process ImprovementProcess Improvement
Process ControlProcess Control
Process DefinitionProcess Definition
The Process Improvement MethodologyTM
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Phase III: Process Improvement• Verify Critical Inputs• Optimize Critical Inputs
Phase II: Process Analysis• Complete FMEA• Perform Multi-vari Analysis• Identity Potential Critical Inputs• Develop Plan for Next Phase
Phase IV: Process Control• Implement Control Plan• Verify Long Term Capability• Continuously Improve Process
Phase 0: Define
•Scope and Boundary
•Define Defects
•Team Charter and Sponsor
•Estimated $ Impact
•Leadership approval
Phase I: Process Measurement• Map process and Identify Inputs and Outputs• Cause and Effects Matrix • Establish Measurement System Capability• Establish Process Capability Baseline
The Process Improvement MethodologyTM