Six Sigma

Presented

Munif Ahmad

Introduction

What is Six Sigma?

Three Principles

Who uses it?

What are the Benefits

The Six Sigma Model

Pitfalls

What is Six Sigma?

DefinitionA system that uses data analysis to improve an organisation’s operating performance.

A system that targets the reduction of variation to improve the outcomes of a process.

What is Six Sigma?

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.)

Three Principles

PhilosophyCustomer focus, reduce variation, Maintain Standards

Methodology Project management (Step by Step)

Metrics / MeasurementsObjective data

Who uses it?

Manufacturing

Logistics

Transport

Finance

Health

Public Service

Local Governments

Telecommunications

I.T services

Food Industry

Education

SME

And Your Organisation?

What are the Benefits

Hard savingsIncrease salesReduce headcountReduce costImprove profit

Soft savingsTimeQuality improvementReliabilityCustomer perception

Savings typically in the range

1% - 5% of TR

How does it work?

Project management methodology

What tools does it use?

Process Flow Diagrams

Root cause analysis

Failure Mode and Effect Analysis

Cause and Effect Diagrams

Pareto charts

Statistical Process Control

Inferential statistics

Graphical techniques

SIPOC

Control Charts

Gantt Charts

Customer surveys

The Six Sigma ModelDefine

Measure

Analyse

Implement

Control

DMAIC - DefineIdentify the customers (Satisfier)

Understand the problem (Target Desire)

Voice of Customer (VOC) (Feed back)

What do you want to achieve for the customer? Commitment to Customer (Set Specific Goals)

Example – Define

Customer – General Manager (Internal)VOC – Reduce the wastage of raw materials

(plastic parts) to 3% of total.(Recycle?)

Our Commitment to the Customer

To develop and implement operational improvements to achieve a wastage rate of plastic parts to 3% of the total consumption per month within a three month period. (Set Targets/ Time Management)

DMAIC - Measure

“If you can’t measure it you can’t manage it” (Understanding key issues)

What to measure? (Describe)

How to measure? (Provide training/Hand-on)

Example - MeasureAt commencement of project it is

known that the total wastage of plastic components is 11% per month

The quantities attributable to different sources is not yet knownData collection is required

(Coordinate amongst all Production wings/Section)

DMAIC - Analyse

What does my data mean? (Understand and compare)

How much mathematics do I really need? (Check the loop holes)

What tools can I use? (Set new targets)

DMAIC - Improve

Improve the target process by designing creative solutions to fix or prevent problems. (Be Proactive)Create innovative solutions using technology and discipline (Share the ideas)Develop and deploy implementation plan (Maintain and Retain)

DMAIC - ControlControl the improvements to keep the process on the new course. (Maintain them)

Prevent reverting to the "old way" (Avoid old thumb roles)

Require the development, documentation and implementation of an ongoing monitoring plan

Institutionalizese the improvements through the modification of systems and structures (specialised staffing, training, incentives)

RDMAICRRecognise the need for improvement

Realize the benefits!!

PitfallsLeadership commitment

Not identifying the “customer”

Not understanding VOC

Too many projects

Over-analysis

Statistics v results

Impatience

Poor team selectionLack of a mentorAdditional activitiesInsufficient project monitoring and reviewOrganisation’s influencers not on board

Two Key Points

Customer Focus

Reduce Variation

Conclusions

Six Sigma is a system that can be used effectively to grab the easy Targets as well as that which is harder to achieve.