- 1. Six Sigma Quality Engineering Week 2 Introduction to Six
Sigma Macro model of Six Sigma Management
2. Chapters 1,2 & 3 Outline
- Development & Timeline of Six Sigma Management
- Benefits of Six Sigma Management
- Voice Of the Process (VOP)
- Voice Of the Customer (VOC)
- Roles and responsibilities in Six Sigma Management
- Technical terminology of Six Sigma Management
- Six Sigma Methodology (DMAIC)
- Six Sigma Macro Model (Dashboards)
- Six Sigma BB project presentation
3.
- Six Sigma is a process that enables companies toincrease
profitsdramatically bystreamlining operations ,improving quality ,
andeliminating defects or mistakesin everything a company does,
from raw materials to finish goods. ASix Sigma processgenerates a
defect probability of3.4 parts per million (PPM).
- Key activities in Six Sigma are:
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- Understanding customer needs (in quantifiable terms)
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- Translating the needs into the measurable outcomes
- Key objectives in Six Sigma are:
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- Understanding & measuring the process inputs
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- Looking at the root causes of variation
Values of Six Sigma 4. If we are so good at X, why do we
constantly test and inspect Y? X 1 . . . X N Independent
Input-Process Cause Problem Control f (X) Y= The Focus of Six Sigma
Y Dependent Output Effect Symptom Monitor 5.
Six Sigma Companies Process Capability Nonconformities PMO 2
308,770 3 66,811 4 6,210 5 233 6 3.4 Parts per Million
Opportunities The sigma scale of measure is perfectly correlated to
such characteristics as defects-per-unit, parts-per million
defective, and the probability of a failure/error. 6.
- 1978Poor Quality!!!Motorola sells it TV business.When asked
why,VP states QUALITY STINKS!
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- Did not co-operate across division
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- Ignored customer requirements
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- Diluted culture with new employees without training
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- Did notrealizethat Sigma had limitations
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- Was an internally focused program
Timeline of Six Sigma Management 7. 1980 Corporate Quality
Officer appointed 1981Training Center established 1985Began to
measure total defects/unit 1987 Corporation adopts Six Sigma
program, Six Sigma goal to beachieved by 1992 1988 Motorola
winsMalcolm Baldridge Awardat the corporate level 1990 Six Sigma
Research Institute formed. 1992Blackbelt infrastructure developed
and implemented atMotorola, Kodak, TI, IBM, and Digital. 1993
Motorola hires 40,000 new employees and removes the 40hour quality
training program.Revenue growth averages 27%growth. Timeline of Six
Sigma Management 8. 1994 Motorola owns 60% of the wireless phone
market.Six SigmaAcademy formed. 1998 Motorola owns 34% of the
wireless phone market.Revenuegrowth is 5%. Shareholder value is 1%;
it had averaged 54% inprevious 3 years. Timeline of Six Sigma
Management
- Produce superior, reliable, and customer-satisfying
products
- Are faster, better, cheaper, and more efficient than their
competitors
9. Benefits of Six Sigma Management
- Reduce process cycle time
- Enhance Customer and Employee satisfaction
- Help improve capacity and output
- Help increase quality and reliability
- Help decrease product costs
- Help improve product delivery to custumer
10. Voice Of the Process (VOP)
- A process is a collection of interacting components that
transform inputs into outputs toward a common aim.
Components MachinesOperators Assembly Test Final Inspection Ship
to Customer Customer receives product Inputs Process Outputs 11.
Variation in a Process
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- The enemy of customer satisfaction
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- Adds to customer (and employee) disbelief
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- Adds to lack of confidence in the ability of processes
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- Increases risk that a result will not meet expectations
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- Variation is a driver of defects
For any process, variation is the main reason for poor
performance... Variation is the key focus of Six Sigma 12.
Variation in a Process
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- A feedback loop relates information about outputs from any
stage or stages back to another stage or stages to make an analysis
of the process.
Inputs Process Outputs Feedback Loop 13.
- It is vital that we understand and are able to quantify what is
critical to the customer's satisfaction.
Voice Of the Customer (VOC) No Good Loss Unhappy Customer No
Good Loss Unhappy Customer GoodNo Loss LSL USL Nominal Value
14.
- Critical to Customers satisfactions:
Therefore Producers should bring forth these products in a
manner that minimizes cost and cycle time and maximizes profit
Voice Of the Customer (VOC) 15.
- We need to ask ourselves...
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- How easy it is for our customers to do business with us?
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- Are we making assumptions about what customers need?
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- How often do we ask our customers (internal and external) what
they need?
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- Is this information properly communicated throughout our
organization.
Voice Of the Customer (VOC) We must place a value and emphasis
on the customer, take measurements and measure inputs, not just
outputs 16.
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- Historically 1 in 25 unsatisfied customers express their
dissatisfaction
Do you have dissatisfied customers?
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- 1 unsatisfied customer typically tells 7-16 others.
- It cost about five times more to attract a new customer as it
does to keep an old one.
Customer Satisfaction? 17. Roles and responsibilities in Six
Sigma Management
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- Provides the impetus, direction & alignment necessary for
Six Sigma ultimate success. Senior Executive should:
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- Study Six Sigma management
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- Link companys objectives to Six Sigma projects
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- Champion Six Sigma projects
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- Constantly review Six Sigma projects progress
- Executive Committee Member
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- They are the top management of an organization. Executive
Committee Members should:
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- Deploy Six Sigma throughout the organization
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- Prioritize and manage Six Sigma portfolio
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- Assign champion, BB and GB to Six Sigma projects
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- Remove barriers to Six Sigma management
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- Provide resources for Six Sigma management
18. Roles and responsibilities in Six Sigma Management
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- Take a very active sponsorship and leadership role in
conducting and implementing Six Sigma projects. Champions
should:
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- Identify the project on the organizational dashboard
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- Provide an ongoing communication link between the project team
and Executive committee
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- Keep the team focused on the project by providing direction and
guidance
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- Assure that Six Sigma methods and tools are being used in the
project
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- Takes a leadership role as keeper of the Six Sigma process and
advisor to executives or business unit managers. Master Black Belt
should:
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- Counsel senior executives and business unit managers on Six
Sigma management
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- Continually improve and innovate the organizations Six Sigma
process
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- Apply Six Sigma across across both operations and
transactions-based process
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- Mentor Green Belts and Black Belts
19. Roles and responsibilities in Six Sigma Management
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- Is a full time change agent and improvement leader. Black Belts
should have the following characteristics:
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- Technical and managerial process improvement/innovation
skills
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- Understand the psychology of individuals and teams
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- Not intimidated by upper management
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- The responsibilities of a Black Belt include:
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- Communicate with the champion and process owner about progress
of the project
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- Help team members design and analyze experiments
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- Provide training in tools and team functions to project team
members
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- Coach Green belts leading projects limited in scope
20. Roles and responsibilities in Six Sigma Management
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- Is an individual who works on projects part time, either as a
team member for complex projects or as a project leader for simpler
projects. Green Belts have the following responsibilities:
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- Define & review project objective with projects
champion
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- Facilitate the team through all phases of the project
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- Analyze data through all phases of the project
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- Train team members in the use of Six Sigma tools and methods
through all phases of the project
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- Is the manager of a process. The process owner should be
identified and involved in all Six Sigma projects relating to the
process owner area. A process owner has the following
responsibilities:
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- Empower employees to follow and improve best practice
methods
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- Accept and manage the improved process after completion of the
Six Sigma project
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- Understand how the process works, the capability of the
process, and the relationship of the process to other processes in
the organization
21. Technical terminology of Six Sigma Management
- Critical-To-Quality (CTQ): Is a measure of what is important to
a customer.
- Defect: Is a nonconformance on one of many possible quality
characteristics of a unit that causes customer dissatisfaction
- Defects per Million opportunities (DPMO): A quality metric
often used in the Six Sigma process. It is calculated by the number
of defects observed divided by the number of opportunities for
defects compared to 1 million units.
- Yield: Is the proportion of units within specification divided
by the total number of units.
- Rolled Throughput Yield (RTY): Is the product of the yields
from each step in a process.
22. Six Sigma Methodology (DMAIC) 23. Six Sigma Methodology
(DMAIC) 24. Six Sigma Macro Model (Dashboards)
- A dashboard is a tool used by management to clarify and assign
accountability for the critical few key objectives, key indicators,
and project tasks needed to steer an organization toward its
mission statement.
- There are four basic categories of dashboard key
objectives:
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- Process Improvement Key Objectives
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- Innovation/Customer Satisfaction Key Objectives
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- Employee Growth and Development Key Objectives
25. Six Sigma Macro Model (Dashboards) 26. Six Sigma Macro Model
(Dashboards) 27. Plant Performance Dashboard 28. 29. Questions?
Comments?