introduction to six sigma
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DESCRIPTIONIntroduction To Six Sigma
- 1. Introduction To SIX - SIGMA Presented by :http://www.QualityGurus.com
2. Agenda 0750 - 0800 Participants introduction 0800 - 0930 Introduction to Six Sigma concept Key Concepts 0930 - 0945 Tea / Coffee Break 0945 - 1200 Forms of waste What is Sigma Components of Six Sigma 1200 - 0100 Lunch Break0100 - 0200 Selecting a Project 0200- 0300 Open session / Q&A 3. Participants Introduction
- Your Name
- Your job profile
- Your exposure to Quality Management/ Six Sigma
4. Ground Rules
- Program success depends on your participation. Actively participate.
- Please avoid cross-talks.
- Observe specified timings.
- Please keep your mobile phones switched off.
- Feel free to ask question at any point of time.
- - Restrict question to specific issue being discussed, while general
- questions can be discussed during Q & A session.
- Enjoy the program !
5. Introduction to Six Sigma Purpose of six sigma :To make customer happier and increase profits 6. Origin of Six Sigma
- 1987 Motorola Develops Six Sigma
- Raised Quality Standards
- Other Companies Adopt Six Sigma
- Promotions, Profit Sharing (Stock Options), etc. directly tied to Six Sigma training.
- Dow Chemical, DuPont, Honeywell, Whirlpool
7. Time Line 2002 1995 1992 1987 1985 Dr Mikel J Harry wrote a Paper relating early failures to quality Motorola Allied Signal General Electric Johnson & Johnson, Ford, Nissan, Honeywell 8. Pilots Six-Sigma Performance Width of landing strip 1/2 Width of landing strip If pilot always landswithin 1/2 the landing strip width, we say that he has Six-sigma capability. 9. Current Leadership Challenges
- Delighting Customers.
- Reducing Cycle Times.
- Keeping up with Technology Advances.
- Retaining People.
- Reducing Costs.
- Responding More Quickly.
- Structuring for Flexibility.
- Growing Overseas Markets.
10. Six Sigma Benefits?
- Generated sustained success
- Project selection tied to organizational strategy
- Customer focused
- Project outcomes / benefits tied to financial reporting system.
- Full-time Black Belts in a rigorous, project-oriented method.
- Recognition and reward system established to provide motivation.
11. Management involvement?
- Executives and upper management drive the effort through:
- Understanding Six Sigma
- Significant financial commitments
- Actively selecting projects tied to strategy
- Setting up formal review process
- Selecting Champions
- Determining strategic measures
12. Management Involvement?
- Key issues for Leadership:
- How will leadership organize to support Six Sigma ? (6council, Director 6 , etc)
- Transition rate to achieve 6 .
- Level of resource commitment.
- Centralized or decentralized approach.
- Integration with current initiatives e.g. QMS
- How will the progress be monitored?
13. What can it do?
- 5-Fold growth in Sales
- Profits climbing by 20% pa
- Cumulative savings of $14 billion over 11 years
- General Electric:
- $2 billion savings in just 3 years
- The no.1 company in the USA
- Bechtel Corporation:
- $200 million savings with investment of $30 million
14. GE Six Sigma Economics Source:1998 GE Annual Report, Jack Welch Letter to Share Owners and Employees - progress based upon total corporation cost/benefits attributable to Six Sigma. 6 Sigma Project Progress 1996 1998 2000 2002 0 500 1000 1500 2000 2500 1996 Cost Benefit (in millions) 15. Overview of Six Sigma PAIN, URGENCY, SURVIVAL COSTS OUT GROWTH TRANSFORM THEORGANIZATION CHANGETHE WORLD 6 SIGMA AS A STATISTICAL TOOL 6 SIGMA AS A PHILOSOPHY 6 SIGMA AS A PROCESS 16. Overview of Six Sigma
- It is a Philosophy
- Anything less than ideal is an opportunity for improvement
- Defects costs money
- Understanding processes and improving them is the most efficient way to achieve lasting results
- It is a Process
- To achieve this level of performance you need to:
- D efine,M easure,A nalyse,I mprove andC ontrol
- It is Statistics
- 6 Sigma processes will produce less than 3.4 defects per million opportunities
- Know Whats Important to the Customer (CTQ)
- Reduce Defects (DPMO)
- Center Around Target(Mean)
- Reduce Variation (Standard Deviation)
18. Critical Elements
- Genuine Focus on the Customer
- Data and Fact Driven Management
- Process Focus
- Proactive management
- Boundary-less Collaboration
- Drive for Perfection; Tolerance for failure
19. Data Driven Decision
- X1 . . . Xn
f(X) Y= The focus of Six sigma is to identify and control Xs 20. Two Processes
- Existing Processes
- New Processes
22. COPQ (Cost of Poor Quality) - Lost Opportunities - The Hidden Factory - More Setups - Expediting Costs - Lost Sales - Late Delivery - Lost Customer Loyalty - Excess Inventory - Long Cycle Times - Costly Engineering Changes Average COPQ approximately 15% of Sales
- Hidden Costs:
- Difficult to Measure
- Traditional Quality Costs:
- Easy to Measure
- Inspection - Warranty - Scrap - Rework - Rejects 23. COPQ v/s Sigma Level Cost of Quality % Sales Sigma Level 24. CTQ (Critical-To-Quality)
- CTQ characteristics for the process, service or process
- Measure of What is important to Customer
- 6 Sigma projects are designed to improve CTQ
- Waiting time in clinic
- Spelling mistakes in letter
- % of valves leaking in operation
25. Defective and Defect
- A nonconforming unit is a defective unit
- Defect is nonconformance on one of many possible quality characteristics of a unit that causes customer dissatisfaction.
- A defect does not necessarily make the unit defective
- Scratch on water bottle
- (However if customer wants a scratch free bottle, then this will be defective bottle)
26. Defect Opportunity
- Circumstances in which CTQ can fail to meet.
- Number of defect opportunities relate to complexity of unit.
- Complex units Greater opportunities of defect than simple units
- A units has 5 parts, and in each part there are 3 opportunities of defects Total defect opportunities are 5 x 3 = 15
27. DPO (Defect Per Opportunity)
- Number of defects divided by number of defect opportunities
- In previous case (15 defect opportunities), if 10 units have 2 defects.
- Defects per unit = 2 / 10 = 0.2
- DPO = 2 / (15 x 10) = 0.0133333
28. DPMO (Defect Per Million Opportunities)
- DPO multiplies by one million
- In previous case (15 defect opportunities), if 10