introduction to six sigma

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Introduction To Six Sigma

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  • 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
  • Department
  • 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
    • GE
      • 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
    • Profits
  • 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?

  • Motorola:
    • 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

17. Philosophy

  • 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

  • Y
  • Dependent
  • Output
  • Effect
  • Symptom
  • Monitor
  • X1 . . . Xn
  • Independent
  • Input-Process
  • Cause
  • Problem
  • Control

f(X) Y= The focus of Six sigma is to identify and control Xs 20. Two Processes

  • Define
  • Measure
  • Analyze
  • Improve
  • Control
  • Define
  • Measure
  • Analyze
  • Design
  • Verify

DMAIC DMADV

  • Existing Processes
  • New Processes
  • DFSS

21.

  • KeyConcepts

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:
  • Intangible
  • Difficult to Measure
  • Traditional Quality Costs:
  • Tangible
  • 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
  • Examples:
    • 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
  • Examples:
    • 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
  • Examples:
    • 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
  • Examples:
    • 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
  • Examples:
    • In previous case (15 defect opportunities), if 10