Introduction To Six Sigma

• 1. Introduction to Six Sigma Purpose of Six Sigma-To make Customer Happier and Increase Profits

2. 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, ABB, Bechtel, IBM, Texas Instruments, Kodak, .....................

3. Time Line 1985 1987 1992 1995 2002 Allied Signal Johnson & Johnson, Ford, Nissan, Honeywell Dr Mikel J Harry wrote a paper relating early failures to Quality. MOTOROLA General Electric 4. Question: Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola 5. Question: Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola 6. Pilot's Six Sigma Performance Width of Landing Strip 1/2 Width of Landing strip If pilot always lands within 1/2 the landing strip width, we say that he has Six Sigma capacity. 7. Pilot's Six Sigma Performance This is a very crude way of telling that when you perform in half the margin allowed to you, you may call it six sigma performance. 8. Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six SigmaZero Sigma Three sigma 9. Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six SigmaZero Sigma Three sigma 10.

• Delighting Customers

• Reducing Cycle Times

• Keeping up with Technology Advances

• Retaining People

• Reducing Costs

• Responding More Quickly

• Structuring for Flexibility

• Growing Overseas Markets

Current Leadership Challenges Six sigma will be able to help in dealing with all these challenges to a certain extent. 11. Question: How six sigma helps in retaining people? Because two times 3 is 6 Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems. 12. Question: How six sigma helps in retaining people? Because two times 3 is 6 Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems. 13. Six Sigma Benefits

• Generated sustained success

• Project selected to Organizational strategy

• • Customer Focused

• • Profits

• Project Outcomes/ Benefits tied to financial Reporting systems.

• Full-time Black Belts in a rigorous project oriented method.

• Recognition and Reward system established to provide Motivation.

14. Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits 15. Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits 16. What can Six Sigma do ? 17. GE Six Sigma Economics (in millions) Source: 1998 GE Annual Report, Jack Welch Letter to Share Owner and Employees - progress based upon total corporation cost/ benefits attributable to Six Sigma. 18. Overview of Six Sigma CHANGE THE WORLD TRANSFORM THE ORGANIZATION GROWTH COSTS OUT PAIN, URGENCY, SURVIVAL Six Sigma a PHILOSOPHY Six Sigma as a Process Six Sigma as a Statistical Tool. 19. It's 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.

20. It's a Process

• To achieve this level of performance you need to Define, Measure, Analyze, Improve and Control.

21. It's Statistics

• Six Sigma processes will produce less than 3.4 Defects per million Opportunities.

22. 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

23. Question: How many defects per million opportunities make six sigma? 3.40.34 3400 34 24. Question: How many defects per million opportunities make six sigma? 3.40.34 3400 34 This is with long term shift of 1.5 sigma 25. Key issues for Leadership

• How will Leadership organize to support Six Sigma? (Six Sigma Council, Director Six Sigma, etc.)

• Transition Rate to achieve Six Sigma

• Level of resource Commitment

• Centralized or Decentralized approach

• Integration with current initiatives e.g. QMS

• How will the progress be monitored?

26. Philosophy of six sigma

• Know What's Important to the Customer (CTQ)

• Reduce Defects (DPMO)

• Center Around Target (MEAN)

• Reduce Variation (Standard Deviation)

27. 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

28. Data Driven Decision Y =f(x)

• Y

• Dependant

• Output

• Effect

• Symptom

• Monitor

• X1 Xn

• Independent

• Input-Process

• Cause

• Problem

• Control

The Focus of Six Sigma is to Identify and Control X's 29. Two Processes

• DMAIC

• • Existing Process

• Define

• Measure

• Analyze

• Improve

• Control

• DMADV

• • New Processes

• • DFSS

• Define

• Measure

• Analyze

• Design

• Verify

30. Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough 31. Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough True, that is the cause of the problem. 32. Some Basic Concepts 33. COPQ - Cost of Poor Quality

• Inspection

• Warranty

• Scrap

• Rework

• Rejects

• Traditional Quality Costs:

• Tangible

• Easy to Measure

• More Setups

• Expediting Costs

• Lost Sales

• Late Delivery

• Lost Customer Loyalty

• Excess Inventory

• Long Cycle Times

• Costly Engineering Changes

• HIDDEN COST:

• Intangible

• Difficult to Measure

• Lost Opportunities

• The Hidden Factory

AVERAGE COPQ approximately 15% of Sales 34. COPQ v/s Sigma Level 35. Question: Which of the followings is "not" the Cost of poor quality? Cost of raw materialCost of lost customer Cost of inspections Cost of repair 36. Question: Which of the followings is "not" the Cost of poor quality? Cost of raw materialCost of lost customer Cost of inspections Cost of repair 37. Process

• A Process is a group of steps, tasks, or activities, which take inputs (People, material, Information ...) and in some way change them to product an output (Service, Product ...)

X sStep 1Step 2Step 3Y s INPUT PROCESS OUTPUT 38. CTQ (Critical To Quality)

• CTQ Characteristics for the process, service or product

• Measure of "What is important to Customer?

• Six Sigma projects are designed to improve CTQ

• Examples

• • Waiting time in Clinic

• • Spelling mistakes in Letter

• • % of valves leaking in Operation

39. 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 defec