ppt - six sigma introduction
TRANSCRIPT
Introduction to Six Sigma
Topics (Session 1)Understanding Six Sigma
History of Six Sigma
Six Sigma Methodologies & Tools
Roles & Responsibilities
Six Sigma is. . .A performance goal, representing 3.4 defects for
every million opportunities to make one.
A series of tools and methods used to improve or design products, processes, and/or services.
A statistical measure indicating the number of standard deviations within customer expectations.
A disciplined, fact-based approach to managing a business and its processes.
A means to promote greater awareness of customer needs, performance measurement, and business improvement.
μ
σ
What’s in a name?
Sigma is the Greek letter representing the standard deviation of a population of data.
Sigma is a measureof variation
(the data spread)
What does variation mean?Variation means that a
process does not produce the same result (the “Y”)every time.
Some variation will exist in all processes.
Variation directly affects customer experiences.
Customers do Customers do notnot feel averages! feel averages!
-10
-5
0
5
10
15
20
Measuring Process PerformanceThe pizza delivery example. . .
Customers want their pizza delivered fast!
Guarantee = “30 minutes or less”
What if we measured performance and found an average delivery time of 23.5 minutes?On-time performance is great, right?Our customers must be happy with us, right?
How often are we delivering on time?Answer: Look at the variation!
Managing by the average doesn’t tell the whole story. The average and the variation together show what’s happening.
s
x
30 min. or less
0 10 20 30 40 50
Reduce Variation to Improve PerformanceHow many standard deviations can you “fit” within customer expectations?
Sigma level measures how often we meet (or fail to meet) the requirement(s) of our customer(s).
s
x
30 min. or less
0 10 20 30 40 50
Managing Up the Sigma Scale
Sigma % Good % Bad DPMO
1 30.9% 69.1% 691,462
2 69.1% 30.9% 308,538
3 93.3% 6.7% 66,807
4 99.38% 0.62% 6,210
5 99.977% 0.023% 233
6 99.9997% 0.00034% 3.4
Examples of the Sigma ScaleIn a world at 3 sigma. . .
There are 964 U.S. flight cancellations per day.
The police make 7 false arrests every 4 minutes.
In MA, 5,390 newborns are dropped each year.
In one hour, 47,283 international long distance calls are accidentally disconnected.
In a world at 6 sigma. . .
1 U.S. flight is cancelled every 3 weeks.
There are fewer than 4 false arrests per month.
1 newborn is dropped every 4 years in MA.
It would take more than 2 years to see the same number of dropped international calls.
TopicsUnderstanding Six Sigma
History of Six Sigma
Six Sigma Methodologies & Tools
Roles & Responsibilities
How YOU can use Six Sigma
The Six Sigma Evolutionary Timeline
1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve.
1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique.
1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems.
1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”.
1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis.
1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram.
1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing.
1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality.
1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola
1994: Larry Bossidy launches Six Sigma at Allied Signal.
1995: Jack Welch launches Six Sigma at GE.
Six Sigma Companies
Six Sigma and Financial Services
TopicsUnderstanding Six Sigma
History of Six Sigma
Six Sigma Methodologies & Tools
Roles & Responsibilities
DMAIC – The Improvement Methodology
Objective:
DEFINE the opportunity
Objective:
MEASURE current performance
Objective:
ANALYZE the root causes of problems
Objective:
IMPROVE the process to eliminate root causes
Objective:
CONTROL the process to sustain the gains.
Key Define Tools:• Cost of Poor
Quality (COPQ)• Voice of the
Stakeholder (VOS)
• Project Charter• As-Is Process
Map(s)• Primary Metric
(Y)
Key Measure Tools:
• Critical to Quality Requirements (CTQs)
• Sample Plan• Capability
Analysis• Failure Modes
and Effect Analysis (FMEA)
Key Analyze Tools:
• Histograms, Boxplots, Multi-Vari Charts, etc.
• Hypothesis Tests• Regression
Analysis
Key Improve Tools:
• Solution Selection Matrix
• To-Be Process Map(s)
Key Control Tools:
• Control Charts• Contingency
and/or Action Plan(s)
Define Measure Analyze Improve Control
Define – DMAIC ProjectWhat is the project?
What is the problem? The “problem” is the Output (a “Y” in a math equation Y=f(x1,x2,x3) etc).
What is the cost of this problemWho are the stake holders / decision makersAlign resources and expectations
Six SigmaSix Sigma
Project Project CharterCharter
Voice of the
Stakeholder
S takeho lders
$
Cost of Poor
Quality
Define – As-Is ProcessHow does our existing process work?
Move-It! Courier Package HandlingProcess
Acc
ou
ntin
gF
ina
lizin
gD
eliv
ery
Out-Sort SupervisorOut-Sort ClerkAccounts
SupervisorAccounts
Receivable ClerkWeight Fee ClerkDistance Fee ClerkIn-Sort SupervisorIn-Sort ClerkMail ClerkCourier
Observ e packageweight (1 or 2) onback of package
Look upappropriate
Weight Fee andwrite in top middlebox on package
back
Take packagesf rom Weight FeeClerk Outbox toA/R Clerk Inbox.
Add Distance &Weight Fees
together and writein top right box on
package back
Circle Total Feeand Draw Arrow
f rom total tosender code
Take packagesf rom A/R Clerk
Outbox toAccounts
Superv isor Inbox.
Write Total Feef rom package in
appropriateSender column onAccts. Supv .’s log
Add up Total # ofPackages and
Total Fees f romlog and createclient inv oice
Deliv er inv oice toclient
Submit log toGeneral Managerat conclusion of
round.
Take packagesf rom Accounts
Superv isorOutbox to Out-
Sort Clerk Inbox.
Draw 5-point Starin upper right
corner of packagef ront
Sort packages inorder of Sender
Code bef oreplacing in outbox
Take packagesf rom Out-Sort
Clerk Outbox toOut-Sort
Superv isor Inbox.
Observ e senderand receiv er
codes and makeentry in Out-SortSuperv isor’s log
Deliv er Packagesto customers
according to N, S,E, W route
Submit log toGeneral Managerat end of round
Submit log toGeneral Managerat end of round
Does EVERYONE agree how the current process works?
Define the Non Value Add steps
Define – Customer RequirementsWhat are the CTQs? What motivates the customer?
Voice of the CustomerVoice of the Customer Key Customer IssueKey Customer Issue Critical to QualityCritical to QualitySECONDARY RESEARCH
PRIMARY RESEARCH
Surveys
Surveys
OTM
Market DataIn
du
stry
In
tel
List
en
ing
Post
s
Industry Benchmarking
Focus Groups
Customer Service
Customer Correspondence
Obser-vations
Measure – Baselines and CapabilityWhat is our current level of performance?
50403020100
95% Confidence Interval for Mu
26.525.524.523.522.521.520.519.5
95% Confidence Interval for Median
Variable: 2003 Output
19.7313
8.9690
21.1423
Maximum3rd QuartileMedian1st QuartileMinimum
NKurtosisSkewnessVarianceStDevMean
P-Value:A-Squared:
26.0572
11.8667
25.1961
55.290729.610023.147516.4134 0.2156
1000.2407710.238483
104.34910.215223.1692
0.8540.211
95% Confidence Interval for Median
95% Confidence Interval for Sigma
95% Confidence Interval for Mu
Anderson-Darling Normality Test
Descriptive Statistics Sample some data / not all data Current Process actuals
measured against the Customer expectation
What is the chance that we will succeed at this level every time?
OthersAmount
Late
41779 4.017.079.0
100.0 96.0 79.0
100
50
0
100
80
60
40
20
0
Defect
CountPercentCum %
Pe
rce
nt
Co
unt
Pareto Chart for Txfr Defects
Six SigmaSix Sigma
Analyze – Potential Root CausesWhat affects our process?
y = f (xy = f (x11, x, x22, x, x33 . . . x . . . xnn))
Ishikawa Diagram
(Fishbone)
Analyze – Validated Root CausesWhat are the key root causes?
OthersAmount
Late
41779 4.017.079.0
100.0 96.0 79.0
100
50
0
100
80
60
40
20
0
Defect
CountPercentCum %
Pe
rce
nt
Co
unt
Pareto Chart for Txfr Defects
OtherClerical
Currency
2 31211.817.670.6
100.0 88.2 70.6
15
10
5
0
100
80
60
40
20
0
Defect
CountPercentCum %
Pe
rce
nt
Co
unt
Pareto Chart for Amt Defects
Six SigmaSix Sigma
y = f (xy = f (x11, x, x22, x, x33 . . . x . . . xnn))Critical Xs
Process Simulatio
n
Data Stratificatio
n
Regression Analysis
Experim ental Design
Improve – Potential SolutionsHow can we address the root causes we identified?
Address the causes, not the symptoms.
y = f (xy = f (x11, x, x22, x, x33 . . . x . . . xnn))
Critical Xs
Decision
Evaluat
e
Clarify
Generat
e
Divergent | ConvergentDivergent | Convergent
Improve – Solution SelectionHow do we choose the best solution?
Solution Sigma Time CBA Other Score
Time
Quality
Cost
Six SigmaSix Sigma
Solution Solution ImplementatioImplementatio
n Plann Plan
Solution Selection Matrix
☺ Nice Try
Nice Idea X
Solution Right Wrong
Imp
lem
enta
tio
n
Bad
G
ood
Control – Sustainable BenefitsHow do we ”hold the gains” of our new process?
0 10 20 30
15
25
35
Observation Number
Indi
vidu
al V
alue
Mean=24.35
UCL=33.48
LCL=15.21
Some variation is normal and OK How High and Low can an “X” go yet not materially impact
the “Y” Pre-plan approach for control exceptions
Process Owner: Date:Process Description: CCR:
Measuring and Monitoring
Key Measurements
Specs &/or
Targets
Measures (Tools)
Where & Frequency
Responsibility (Who)
Contingency (Quick Fix)
Remarks
P1 - activity duration, min.
P2 - # of incomplete loan applications
Process Control System (Business Process Framework)
Direct Process Customer:
Flowchart
Custom er Sales Branch ManagerProcessingLoan Service
Manager
1.1
Ap
plic
atio
n &
Re
vie
w1
.2P
roce
ssin
g1
.3C
red
it re
vie
w1
.4R
evi
ew
1.5
Dis
clo
sure
Apply forloan
Reviewappliation for
com pleteness
ApplicationCom plete?
Com pletem eeting
inform ationNo
DFSS – The Design MethodologyDesign for Six Sigma
UsesDesign new processes, products, and/or services from
scratchReplace old processes where improvement will not
sufficeDifferences between DFSS and DMAIC
Projects typically longer than 4-6 monthsExtensive definition of Customer Requirements (CTQs)Heavy emphasis on benchmarking and simulation; less
emphasis on baselining
Define Measure Analyze Develop Verify
TopicsUnderstanding Six Sigma
History of Six Sigma
Six Sigma Methodologies & Tools
Roles & Responsibilities
How YOU can use Six Sigma
ChampionsPromote awareness and execution of Six
Sigma within lines of business and/or functions
Identify potential Six Sigma projects to be executed by Black Belts and Green Belts
Identify, select, and support Black Belt and Green Belt candidates
Participate in 2-3 days of workshop training
Black BeltsUse Six Sigma methodologies and advanced
tools (to execute business improvement projects
Are dedicated full-time (100%) to Six Sigma
Serve as Six Sigma knowledge leaders within Business Unit(s)
Undergo 5 weeks of training over 5-10 months
Green BeltsUse Six Sigma DMAIC methodology and
basic tools to execute improvements within their existing job function(s)
May lead smaller improvement projects within Business Unit(s)
Bring knowledge of Six Sigma concepts & tools to their respective job function(s)
Undergo 8-11 days of training over 3-6 months
Other Roles
Subject Matter ExpertsProvide specific process knowledge to Six
Sigma teamsAd hoc members of Six Sigma project teams
Financial ControllersEnsure validity and reliability of financial
figures used by Six Sigma project teamsAssist in development of financial
components of initial business case and final cost-benefit analysis
Analytical Tools for Six Sigma and Continuous Improvement: Run Chart
Can be used to identify when equipment or processes are not behaving according to specifications
Can be used to identify when equipment or processes are not behaving according to specifications
0.440.460.480.5
0.520.540.560.58
1 2 3 4 5 6 7 8 9 10 11 12Time (Hours)
Dia
met
er
9-33
Analytical Tools for Six Sigma and Continuous Improvement: Pareto Analysis
Can be used to find when 80% of the problems may be attributed to 20% of thecauses
Can be used to find when 80% of the problems may be attributed to 20% of thecauses
Assy.Instruct.
Fre
quen
cy
Design Purch. Training
80%
9-34
Analytical Tools for Six Sigma and Continuous Improvement: Checksheet
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday
Can be used to keep track of defects or used to make sure people collect data in a correct manner
Can be used to keep track of defects or used to make sure people collect data in a correct manner
9-35
Analytical Tools for Six Sigma and Continuous Improvement: Histogram
Nu
mb
er o
f L
ots
Data RangesDefectsin lot
0 1 2 3 4
Can be used to identify the frequency of quality defect occurrence and display quality performance
Can be used to identify the frequency of quality defect occurrence and display quality performance
9-36
Analytical Tools for Six Sigma and Continuous Improvement: Cause & Effect Diagram
Effect
ManMachine
MaterialMethod
Environment
Possible causes:Possible causes: The results or effect
The results or effect
Can be used to systematically track backwards to find a possible cause of a quality problem (or effect)
Can be used to systematically track backwards to find a possible cause of a quality problem (or effect)
9-37
Analytical Tools for Six Sigma and Continuous Improvement: Control Charts
Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality
Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
LCL
UCL
9-38
Some Japanese TermsGemba – Manufacturing floorMuda – Waste; Non-value added activityPoka-Yoke - Fool proof device are often
small jigs or very simple devices set up to avoid or detect errors
Kaizen – Improvements done to attain 6σ
THANK YOU