Introduction to Six Sigma

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A very basic introduction to Six Sigma from www.treqna.com

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Six sigma Introduction All Rights Reserved TreQna 2005expectatio nsAwareness with respect to origin and history of Six Sigma. The utility and benefits Introduction to Six Sigma as methodology The Six Sigma organization All Rights Reserved TreQna 2005contentsSix Sigma Intro BPMS DMAIC 15 min All Rights Reserved TreQna 2005Two Meanings of Sigma The term sigma is used to designate the distribution or spread about the mean (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. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction. All Rights Reserved TreQna 2005Origin of Six Sigma Motorolathe company that invented Six Sigma The term Six Sigma was coined by Bill Smith, an engineer with Motorola Late 1970s - Motorola started experimenting with problem solving through statistical analysis 1987 - Motorola officially launched its Six Sigma program All Rights Reserved TreQna 2005The Growth of Six Sigma GEthe company that perfected Six Sigma Jack Welch launched Six Sigma at GE in Jan,1996 1998/99 - Green Belt exam certification became the criteria for management promotions 2002/03 - Green Belt certification became the criteria for promotion to management roles All Rights Reserved TreQna 2005The Growth of Six SigmaThe GE model for process improvementsDefineMeasure Analyze Improve ControlCombination of change management & statistical analysis All Rights Reserved TreQna 2005The Growth of Six Sigma All Rights Reserved TreQna 2005Business Process Management SystemBPMS All Rights Reserved TreQna 2005The Need of BPMS To understand the process; its mission, flow and scope To know the customers and their expectations To identify, monitor and improve correct performance measures for the process All Rights Reserved TreQna 2005The MethodologyMap process steps, identify input/ output measuresDefine Process Mission Map ProcessMSA, DCP, indicators and monitorsService excellence and process excellenceDevelop Dashboards Identify Improvement OpportunitiesVOC and VOPBuild PMSDefine purpose of the process, its goal and its boundariesIdentify Critical to Quality and Critical to processVisual representatio n of performanceThe DMAIC cycle All Rights Reserved TreQna 2005Six Sigma Improvement MethodologyDMAIC All Rights Reserved TreQna 2005What is DMAIC ? A logical and structured approach to problem solving and process improvement An iterative process (continuous improvement) A quality tool with focus on change managementEffectivenessE=Quality Acceptance ImprovementQxA All Rights Reserved TreQna 2005The ApproachPractical ProblemStatistical ProblemStatistical SolutionPractical Solution All Rights Reserved TreQna 2005MethodologyD Define M Measure A Analyze I Improve C Control All Rights Reserved TreQna 2005Identify and state the practical problemValidate the practical problem by collecting dataConvert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solutionConvert the statistical solution to a practical solutionDefineD Define M Measure A Analyze I Improve C Control All Rights Reserved TreQna 2005VoC - Who wants the project and why ?The scope of project / improvementKey team members / resources for the projectCritical milestones and stakeholder reviewBudget allocationDMeasureD Define M Measure A Analyze I Improve C Control All Rights Reserved TreQna 2005Ensure measurement system reliability- Is tool used to measure the output variable flawed ? - Do all operators interpret the tool reading in the same way ?Prepare data collection planHow 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 ?Collect dataMAnalyzeD Define M Measure A Analyze I Improve C Control All Rights Reserved TreQna 2005Understand statistical problemBaseline current process capabilityDefine statistical improvement goalIdentify drivers of variation (significant factors)AAnalyze Identify Drivers of VariationRoot Cause Analysis (fish bone) A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process Visualize the potential relationship between causes which may be creating problems or defects Primary Cause Secondary CauseBackbon eProble mRoot CauseA All Rights Reserved TreQna 2005Analyze Identify Drivers of VariationControl Impact Matrix A visual tool that helps in separating the vital few from the trivial manyControlVital FewImpactHigh Control High ImpactCost IneffectiveLow Control High ImpactCost IneffectiveHigh Control Low ImpactTrivial ManyLow Control Low ImpactA All Rights Reserved TreQna 2005Analyze Identify Drivers of VariationPareto Chart Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors)35 30 25 20 15 10 5 0 L K A F B C G R D 100% 80% 60% 40% 20% 0%Frequency All Rights Reserved TreQna 2005Cumulative FrequencyAAnalyze Identify Drivers of VariationProcess Map Analysis Visually highlights hand off points / working relationships between people, processes and organizations Helps identify rework loops and non value add stepsCustomer Process A Process B VendorA All Rights Reserved TreQna 2005Analyze Identify Drivers of VariationHypothesis Testing A statistical tool used to validate if two samples are different or whether a sample belongs to a given population Null Hypothesis (Ho) is the statement of the status quo Alternate Hypothesis (Ha) is the statement of difference Homogeneity of Variance One way ANOVA Moods MedianChi-SquareRegressionA All Rights Reserved TreQna 2005ImproveD Define M Measure A Analyze I Improve C Control All Rights Reserved TreQna 2005Map improved processPilot solutionIdentify operating tolerance on significant factorsIControlD Define M Measure A Analyze I Improve C Control All Rights Reserved TreQna 2005Ensure measurement system reliability for significant factors- Is tool used to measure the input / process variables flawed ? - Do all operators interpret the tool reading in the same way ?Improved process capabilitySustenance Plan- Statistical Process Control - Mistake Proofing - Control PlanCControl Sustenance PlanControl Plan Have the new operating procedures and standards been documented ? What Statistical Process Control (SPC) tools will be used to monitor the process performance ? Who will review the performance of the output variable and significant factors on closure of the project and how frequently ? What is the corrective action or reaction plan if any of the factors were to be out of control ?C All Rights Reserved TreQna 2005Six Sigma Organization All Rights Reserved TreQna 2005Six Sigma - Three DimensionsCustomer Process A Process B VendorDefineMeasur eAnalyzeImproveControlDriven by custom er needsLSL US LProcess Map AnalysisLed by Senior MgmtMethodologyOrganizationToolsUpper/Lower specification limits Regression35 30 25 20 15 100% 80% 60% 40% 20% 0% L K A F B C G R DEnabled by quality team.Process variation10 5 0FrequencyCumulative FrequencyPareto Chart All Rights Reserved TreQna 2005The Quality TeamMaster Black Belt- Thought Leadership - Expert on Six Sigma - Mentor Green and Black BeltsBlack Belt- Backbone of Six Sigma Org Black Belt - Full time resource - Deployed to complex or high risk projectsGreen Belt Green BeltGreen Belt- Part time or full time resource - Deployed to less complex projects in areas of functional expertise All Rights Reserved TreQna 2005Thank You All Rights Reserved TreQna 2005

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