Bb Wk1 120 6-Sigma Fundamentals

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Copyright © 2001-2005Six Sigma Academy International, LLC

All rights reserved; for use only in compliance with SSA license.

Six Sigma Fundamentals



Copyright © 2001-2005

Six Sigma Academy International, LLC


Six Sigma Fundamentals Pg 1

Module Objectives

By the end of this module, the participant should be able to:

• Describe the Six Sigma approach to solving problems

• Describe phases of the Six Sigma Breakthrough Strategy®

• Explain organizational Six Sigma Roles and Responsibilities







What Is Sigma?

• Letter in the Greek alphabet

• Statistical unit of measure

• Metric

• Benchmark

- Measure of variation

- Measure of quality

- Measure of process capability

- Measure of performance







What Does Six Sigma Mean To You?

•

•

•

•

•







Six Sigma Is A Business Philosophy

“Six Sigma is not an improvement program. It is instead a business

philosophy that employs a step-by-step approach to reducing variation,increasing quality, customer satisfaction, and, in time, market share.”

“Six Sigma is about the quality of business, not the business of quality.”

-

Dr. Mikel Harry







Six Sigma Is Different From Past QualityPrograms In That It…

• Aligns problem solvers to Customer needs and Business Goals driven from

the top

• Is an investment to develop employees with a problem solving skill set that

is acquired through:

- Comprehensive training

- Continuous application of methodology on consumer driven projects to

- Delivery of sustainable and statistically validated business results

• Is a systematic approach that monitors projects to successful closure

• Is data and metric driven

• Improves business measurements

• Improves competitiveness

…and is bottom line focused and led by executives to ensure success.







Six Sigma Benefits

• Enables success in a world of intensified competition and declining

margins

• Ensures the quality necessary to satisfy increasingly demanding

customers

• Provides the means to become the best in the world

• Establishes a standard language and approach across all functions and

lines of business

• Develops employees with a comprehensive problem solving skill set on

the job

Develops Employees and it is directly linked with Customer needs andbusiness objectives.







Premise Of Six Sigma

Consumer and Data-driven methodology:

- In-Process measurements linked to the Voice of the Customer

- Focused on strategic or core processes for Customer and

Employee Satisfaction to:

- Identify, quantify, eliminate and control key sources of

variation and defects

-Drive Continuous Improvement

Variation and defects are costly and non-value add.







Value Defined By The Customer

• Customer defines value:

- For something to add value, it must

• Change the product or provide a service

• Meet quality requirements

• Be available when the customer needs it

• Be something the customer will pay for

• Six Sigma components of value:

- Cost – What the customer will pay, what is our margin

- Quality – What is the cost of poor quality

- Delivery – Characteristics of our process that impact delivery

Business survival is based on howwell we satisfy the customer.







Process Focus Of Six Sigma

• Inputs (X1

, X2

. . . Xn

)

• Independent

• Cause

• Control

• Output

• Dependent on Input

• Effect

• Monitor

ProcessY = f(x)

X Y

Determining the critical Xs andcontrolling the Xs to guarantee the Ys.







How Y=f(x) Relates To A Process

Process

X1

X2

YVoice Of Process

(VOP)

“Correct”

(Customer Acceptance Standards –> “In Spec”)

Xn

X3

Process Input

Variables

(PIV)

Process Output

Variables

(POV)

Customer’s

Needs and

ExpectationsVoice Of Customer

(VOC)

Critical To Satisfaction

(CTS)

Quality Cost Delivery

Control the INPUTS to achieve the desired OUTPUTSthat satisfy our customers’ expectations.







“Voice Of Customer” vs.“Voice Of Process”

Defects

Voice Of Process

Inadequate

Design

Margin

Inadequate

Process

CapabilityUnstable/Unpredictable

Process

Defects Acceptable

LSL USL

Voice Of Customer

Voice Of Process must be predictable and acceptable over time todeliver the Voice Of Customer.







GOAL

VOP Performance Relative to VOC:Getting To Six Sigma

Process Capability

Sigma

Defects per MillionOpportunities

Long Term Yield

2 308,537 69.15%

3 66,807 93.32%

4 6,210 99.38%5 233 99.98%

6 3.4 99.99966%







Goals Of Six Sigma

Center Stable Process on TargetEliminate Defects

Customer target

Meet Customer Target

and Specifications

Customer target

Stabilize Process, Reduce VariationEliminate Defects

Customer target

Defects Defects

GOAL

USLLSL

LSLLSL USL USL

Defects






Can We Tolerate Variability?

• There will always be variability present in any process

• We can tolerate variability if:

- The process is stable over time

- The process is on target (or at nominal)

- The total variability is predictable and acceptable within the

customer driven process specifications

C o s t

C o s t

LSL USLNom

LSL USLNom

Traditional

View Acceptable

Cost Function

View






LSL USL

Six Sigma Performance:Robustness to Process Shift

In a Six Sigma process, Customer Satisfaction andBusiness Objectives are robust to process shifts.

6 Sigma Process

Average = 0

StDev. = 1

Tolerance = +/- 6

-3 -2 -1 0 1 2 3 -4 -5 -6 4 5 6

Shift the average 1.5

If a 6 process shifts 1.5 to the

right, 3.4 Defects per Million

Opportunities are created on the

right (note there are essentiallyzero defects on the left).

3 Sigma Process

Average = 0StDev. = 2

Tolerance = +/- 6

-2 0 2

Shift the average 1.5

-4 -6 4 6

If a 3 process shifts 1.5 to the

right, 66,807 Defects per Million

Opportunities are created on the

right (note there are still 1,300

DPMO on the left side).






Why Are Most Companies At 3-4 Sigma?

• Past success has

bred arrogance

• Dependence on inspection and

rework

• Reliance on trial and error

• Non process focused

• Non-data driven decisions

• Rewarding fire –

fighting behavior

• Little focus on

quality metrics

• Functional silos

inhibit collaboration

3 S i g m a

4 S i g m a

5 S i g m a

6 S i g m a

B

A

R

R

IE

R

Most companies have

not achieved a QualityCulture






Quality Culture

Needed to Make the

Leap

Taking The Breakthrough Strategy Leap

• Defects as opportunities

• Belief in

the methodology

• Openness to challenge “statusquo”

• Data Driven Decisions

• Process Focused

• Quality metrics focused

• New skills, tools,

and information

• New behaviors

for management

• Cross Functional 3 S i g m a

4 S i g m a

5 S i g m a

6 S i g m a

B

A

R

RI

E

R






Is 99% Good Enough?

99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

20,000 lost articles of mail per

hour (based on 2,000,000/hr)

7 articles lost per hour

Unsafe drinking water for

almost 15 minutes each day

1 unsafe minute every

7 months

5,000 incorrect surgicaloperations per week

1.7 incorrect operationsper week

2 short or long landings daily at

an airport with 200 flights/day

1 short or long landing

every 5 years

2,000,000 wrong drug

prescriptions each year

680 wrong prescriptions

per year

No electricity for almost 7 hours

each month

1 hour without electricity every

34 years






Will Inspection Help?

Task: You have 60 seconds to count the number of times the 6th letter of

the alphabet appears in the following text:

The necessity of training farm hands for first class farms in the

fatherly handling of farm livestock is foremost in the eyes of farmowners. Since the forefathers of the farm owners trained the farm

hands for first class farms in the fatherly handling of farm

livestock, the farm owners feel they should carry on with the family

tradition of training farm hands of first class farmers in the fatherly

handling of farm livestock because they believe it is the basis of good fundamental farm management.






DPMO

2 308,537

3 66,8074 6,2105 2336 3.4

(Distribution shifted ± 1.5)

How far can inspection get us ?

Getting to Six Sigma




Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license.

Six Sigma Methodologies and theSix Sigma Breakthrough Strategy ®

Si Si M th d l i






DEFINE

ANALYZE

IMPROVE

CONTROL

MEASURE

REPLICATE

Design

Change

Six Sigma Methodologies:DMAICR and DCOV

Variability and defect reduction of

DMAICR (Find and Fix):

DEFINE

Optimize

Verify

Characterize

DCOV (Failure Mode Avoidance):Failure mode avoidance of existing/new processes of products and services to meet/exceed customer

expectationsexisting processes of products and services

New

Design

C S






Define:

Identify GAP to Critical To CustomerSatisfaction (CTS) Characteristics &performance

Measure:

Create/validate measurement system tomeasure GAP.

Analyze: Identify critical sources of variation fromperformance objectives which result in GAP

Improve:

Reduce/Eliminate sources of variation throughImprovement Actions to reduce/eliminate GAP

Control:

Implement process controls & verify they areinstitutionalized

Replicate:Improvement actions are replicated to similarprocess where appropriate

DEFINE

ANALYZE

IMPROVE

CONTROL

MEASURE

REPLICATE

Design

Change

DMAICR Problem Solving Methodology:Find and Fix

DCOV






Design

Change

D

C

O

V

The 12 Step Breakthrough Strategy

1. Select the Critical to Customer Satisfaction

Characteristic (CTS)

2. Define Performance Standards

3. Validate Measurement System

4. Establish Baseline Process Stability & Capability

5. Define Performance Objectives

6. Identify Variation Sources

7. Screen Potential Causes

8. Discover Variable Relationships

9. Establish Operating Tolerances & Implement

Improvements

10. Validate Measurement System

11. Determine Final Process Capability

12. Implement Process Controls & Replicate

DEFINE

ANALYZE

IMPROVE

CONTROL

MEASURE

REPLICATE&






DMAICR Funnel Effect

Optimized Process

10-15 PIVs

8-10 PIVs

1-6 KPIVs

1-6 KPIVs

30-50 Inputs (X or PIV)

Define

Measure

Analyze

Improve

Control & Replicate

PIV = Process Input variable = an X

KPIV = Key Process Input Variable

The problem (defect(s)) that we are trying to solve

Sources of defect(s) and variability and baseline current state process

Screen for potential root causes/sources of defect(s) and variability

Future State Process with statistically validated root cause(s), KPIV(s)

KPIV(s) or critical Xs on new process to sustain gains and replicate

DCOV M th d l F il M d A id






DEFINE

Optimize

Verify

Characterize

Define:

Synthesize customerneeds/wants & product/processhistory into objective CTSmeasurable characteristictargets

Characterize:Generate & select designs tomeet CTS measurablecharacteristic targets.

Optimize:

Identify best design for robustPerformance & manufacturability

Verify:

Validate with data that thebest design meets/exceeds CTSmeasurable characteristictargets with hardware

DCOV Methodology - Failure Mode Avoidance

DCOV Methodology training is available as a separate course




Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license.

Six Sigma Roles andResponsibilities

Si Si R l A d R ibiliti






Six Sigma Roles And Responsibilities

All Employees

• Owns vision, direction,

integration, results

• Apply Breakthrough

Strategy to specific

projects, lead and

direct teams to

execute

projects

• Trains and coaches

Black Belts, Green

Belts and Leaders

• Identifies and

scopes projects

• Identifies, coaches

and develops

Black Belts

• Provides day-to-day

management and direction

of Six Sigma program

• Understand vision

• Apply concepts to their

job and work area

• Leads change

• Developsdeployment and

Strategy

• Supports cultural

change

Executive

Green Belts

Black Belts

Master Black BeltProject Champion

Deployment

Champion

Senior Champion

Process Owner

• Owns business process

• Ensures changes are sustained

• Support Black Belts onproject teams

• Work localized projects with

support from Black Belts

R l d R ibiliti f Bl k B lt






Roles and Responsibilities of a Black Belt

• Lead team(s) to execute projects to successful completion

- Represent the Voice of the Customer (Quality Culture)- Quantify project scope and business impact

- Identify project resources required for success (project management)

• Align cross functional support and commitment from management to secure

participation of key resources required to drive successful business results

• Form team- Technical Six Sigma coach and teacher

• Reinforces the application and discipline of the 6-Sigma methodology

• Determine appropriate use of tools to apply

- Deliver results aligned to Customers requirements/Business Plan objectives

- Communicate progress and replication opportunities to management• Influence management and peers to drive a Quality Culture and role model the

behavior

Obj ti R i






Objectives Review

The participant should be able to:

• Describe the Six Sigma approach to solving problems

• Describe phases of the Six Sigma Breakthrough Strategy®

• Explain organizational Six Sigma Roles and Responsibilities



Copyright © 2001-2005Six Sigma Academy International LLC


The following are trademarks and service marks of Six Sigma Academy International, LLC: Breakthrough Lean®, Breakthrough Strategy®, Breakthrough Value Services®,

Breakthrough Change StrategySM, Breakthrough DesignSM, Breakthrough DiagnosisSM, Breakthrough ExecutionSM, Breakthrough Sigma LeanSM, Breakthrough Six SigmaSM,

Breakthrough Software DesignSM, FASTARTSM, Six Sigma Gold BeltTM, SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIMESM. Six Sigma is a federally

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VarTran is a federally registered trademark of Taylor Enterprises.


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Bb Wk1 120 6-Sigma Fundamentals