presentation - six sigma for managers

7/27/2019 Presentation - Six Sigma for Managers

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Six Sigma for Managers


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Contents : Six Sigma : An Overview

What is Six Sigma?

Why Six Sigma?

Six Sigma Phases : Define, Measure, Analyze,

Improve and Control

Tools and Key Roles for Six Sigma

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Why Six Sigma?


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What is Sigma ?

Sigma

A term used in statistics to represent

standard deviation, an indicator of thedegree of variation in a set of a process


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What is Six Sigma?

SixSigma

A statistical concept that measures a

process in terms of defects at the sixsigma level, there 3.4 defects per

million opportunities

A philosophy and a goal : as perfect aspractically possible

A methodology and a symbol of quality


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Sigma LevelSigma Level

(Process

Capability)

Defects per MillionOpportunities

2 308,537

3 66,807

4 6,210

5 2336 3.4


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Sigma Level

Six Sigma =99,9997%



Sigma Level Every hour the postal service

would lose 20,000 pieces of mail

Every day our drinking water

would be unsafe for almost 15

minutes

Every week there would be 5,000

surgical operations that go wrong

in some way

Every month we would be without

electricity for almost seven hours

Why not Four

Sigma or99.379% ?



Why Six Sigma?

Money

CustomerSatisfaction

Growth

Quality

CompetitiveAdvantage

Employee Pride



At GE, Six Sigma added more than $ 2 billion to the

bottom line in 1999 alone

Motorola saved more than $ 15 billion in the first 10

years of its Six Sigma effort

AlliedSignal reports saving $ 1,5 billion through SixSigma.

Why Six Sigma?



Why Six Sigma?

Six Sigma is about practices that help you

eliminate defects and always deliver

products and services that meet customer

specifications



Cost of Poor QualityWhat is cost of scrap?

What is cost of rework?

What is cost of excessive cycle times anddelays?



Cost of Poor QualityWhat is cost of business lost because

customers are dissatisfied with your

products or services?

What is cost of opportunities lost because

you didnt have time or the resources to takeadvantage of them?



Critical-to-Quality (CTQ)Elements of a process that significantly affect

the output of that process. Identifying these

elements is figuring out how to make

improvements that can dramatically reduce

costs and enhance quality.



Six Sigma Phases


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Define Measure Analyze

Improve

Control

Six Sigma Phases

D M A I C


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Define

Measure

Analyze

Six Sigma Phases

Define the project goals and customer

(internal and external) deliverables

Measure the process to determine current

performance

Analyze and determine the root cause(s)

of the defects


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Improve

Control

Six Sigma Phases

Control future process performance

Improve the process by eliminating defects


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Six Sigma Phases

Define

Define Customers and Requirements (CTQs)

Develop Problem Statement, Goals and

Benefits

Identify Champion, Process Owner and Team

Define Resources

Evaluate Key Organizational Support

Develop Project Plan and Milestones

Develop High Level Process Map


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Six Sigma Phases

Measure

Define Defect, Opportunity, Unit and Metrics

Detailed Process Map of Appropriate Areas

Develop Data Collection Plan

Validate the Measurement System

Collect the Data

Begin Developing Y=f(x) Relationship Determine Process Capability and Sigma

Baseline


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Six Sigma Phases

Analyze

Define Performance Objectives

Identify Value/Non-Value Added Process

Steps

Identify Sources of Variation

Determine Root Cause(s)

Determine Vital Few x's, Y=f(x)

Relationship


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Six Sigma Phases

Improve

Perform Design of Experiments

Develop Potential Solutions

Define Operating Tolerances of Potential

System

Assess Failure Modes of Potential

Solutions

Validate Potential Improvement by Pilot

Studies

Correct/Re-Evaluate Potential Solution


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Six Sigma Phases

Control

Define and Validate Monitoring and Control

System

Develop Standards and Procedures Implement Statistical Process Control

Determine Process Capability

Develop Transfer Plan, Handoff to Process Owner

Verify Benefits, Cost Savings/Avoidance, ProfitGrowth

Close Project, Finalize Documentation

Communicate to Business, Celebrate


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Define Measure Analyze Improve Control

Deliverables :

Fully trained team is formed, supported, and

committed to work on improvement project.

Team charter developed, customers identified and

high impact characteristics (CTQs) defined, business

process mapped.


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Checkpoints for Readiness

Team Readiness :

Team is sponsored by a champion or business leader.

Team formed and team leaders assigned.

Improvement team members fully trained on Six Sigma and DMAIC.


Team Charter :

Completed project management charter, including business case,

problem and goal statements, project scope, milestones, roles and

responsibilities, communication plan.


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Customers

Customer(s) identified and segmented according to their different

needs and requirements.

Data collected and displayed to better understand customer(s) critical

needs and requirements.

Business Process Mapping Completed, verified, and validated high-level 'as is' (not 'should be' or

'could be') business process map.

Completed SIPOC representation, describing the Suppliers, Inputs,

Process, Outputs, and Customers.


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Deliverables :

Key measures identified, data collection planned and

executed, process variation displayed and communicated,

performance baselined, sigma level calculated.


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Key Measures Identified

Key measures identified and agreed upon.

High impact defects defined and identified in the business process.

Data Collection Planned and Executed

Solid data collection plan established that includes measurement

systems analysis.

Data collected on key measures that were identified.


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Process Variation Displayed/Communicated

Process variation components displayed/communicated using

suitable charts, graphs, plots.

Long term and short term variability accounted for.

Performance Baseline/Sigma Calculation

Measure baseline process performance (capability, yield,

sigma level).


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Deliverables :

Data and process analysis, root cause analysis,

quantifying the gap/opportunity.


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Data and Process Analysis

Identify gaps between current performance and the goalperformance.

Root Cause Analysis

Generate list of possible causes (sources of variation).

Segment and stratify possible causes (sources of variation).

Prioritize list of 'vital few' causes (key sources of variation).

Verify and quantify the root causes of variation.


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Quantifying the Gap/Opportunity

Determine the performance gap.

Display and communicate the gap/opportunity in financial terms.


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Deliverables :

Generate (and test) possible solutions, select the best

solutions, design implementation plan.


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Generating (and Testing) Possible Solutions

Possible solutions generated and tested.


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Selecting The Best Solution(s)

Optimal solution selected based on testing and analysis.

New and improved process ('should be') maps developed.

Cost/benefit analysis of optimal solution(s).

Small-scale pilot for proposed improvement(s).

Pilot data collected and analyzed.

Improved process ('should be') maps modified based on pilot data

and analysis.

Project impact on utilizing the best solution(s).


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Designing Implementation Plan

Solution implementation plan established, including schedule/work

breakdown structure, resources, risk management plan,

cost/budget, and control plan.

Contingency plan established.


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Deliverables :

Documented and implemented monitoring plan,

standardized process, documented procedures, responseplan established and deployed, transfer of ownership

(project closure).


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Response Plan

Response plans established, understood, and deployed.

Transfer of Ownership (Project Closure)

Transfer ownership and knowledge to process owner and process

team tasked with the responsibilities.


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Tools and Roles forSix Sigma


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DOE is a structured, organized method for

determining the relationship between

factors (Xs) affecting a process and theoutput of that process (Y).

Tools for Six Sigma

Design of

Experiments

or DOE


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A group of rows and columns, with one set

of increments marked along the X

(horizontal) axis and another set ofincrements marked along the Y (vertical)

axis.

The purpose of using XY matrix is to study

and understand the relationship betweenwhat you are putting into a process and

what your customer is getting out of it.

The XY matrix allows the team to identify

gaps, areas for improvement.

Tools for Six Sigma

XY Matrix


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The goal of this tool is to ensure that your

measurement system is statically

confidentthat its both accurate andprecise each and every time it is used.

Undertaken during Measure phase, your

MSA determines whether or not you can

take a certain measurement and repeat orreproduce it among different people who

take the same measurement.

Tools for Six Sigma

Measurement

System

Analysis


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Process capability tool is the measure of a

process being able to meet specification

requirements and fulfill customer CTQneeds on a long term basis.

Tools for Six Sigma

Process

Capability

Tool


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Investigating a theory about the suspected

cause (s) of a particular effect in a process

to determine if it is correct. Its a compass that points you directly to

the vital few factors that are most affecting

your process.

Tools for Six Sigma

Hypothesis

Testing


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The manner in which a part or process can

fail to meet a specification, creating a

defect or non-conformance, and the impacton the customer if that failure mode is not

prevented or corrected.

Tools for Six Sigma

Failure

Mode Effect

Analysis


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A detailed assessment and guide for

maintaining all the positive changes you,

your black belt, and the project team havemade.

It ensures that all your analysis and efforts

stay in effect and that you have information

at your disposal to prevent backsliding or areturn to less than optimal performance

standard.

Tools for Six Sigma

Control

Plan


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Champions Are responsible for the Six Sigma

implementation across the organization in anintegrated manner. Champions also act as

mentor to Black Belts.

Includes CEO and other key top management

team members. They are responsible for setting

up a vision for Six Sigma implementation.

Key Roles for Six Sigma

Executive

Leadership


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Black Belts Operate under Master Black Belts to apply Six

Sigma methodology to specific projects. Theyprimarily focus on Six Sigma project execution.

Identified by champions, act as in-house expert

coach for the organization on Six Sigma. They

devote 100% of their time to Six Sigma.


Master

Black Belts


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Are the employees who take up Six Sigma

implementation along with their other job

responsibilities. They operate under the guidance

of Black Belts and support them in achieving the

overall results.


Green Belts


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Six Sigma Dos

Do communicate the commitment company-

wide

Do demonstrate the commitment of company

leaders

Do empower your key human resources

Do provide on-site mentoring for black belts


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Six Sigma Dos

Do be patient at the inception of you six Sigma

initiative

Do claim and advertise early wins

Do benchmark

Do establish project baseline and goals


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Recommended Further Readings:

1. Greg Brue, Six Sigma for Managers, McGraw Hill

2. George Eckes, Six Sigma for Everyone, John Wiley and Sons


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