Final Six Sigma

LETS START

Siddik • BASICS

Manali • DMAIC• DFSS

Swati • SIX SIGMA BELTS

Sharmila •EXAMPLES•GE•DABBAWALAS

What is six sigma?

•Sigma is a measure of “goodness: the capability of a process to produce perfect work.

• A “defect” is any mistake that results in customer dissatisfaction.

• Sigma indicates how often defects are likely to occur.

• The higher the sigma level, the lower the defect rate.

• The lower the defect rate, the higher the quality.

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The Six Sigma Evolutionary Timeline

1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve.

1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique.

1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems.

1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”.

1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis.

1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram.

1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing.

1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality.

1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola

1994: Larry Bossidy launches Six Sigma at Allied Signal.

1995: Jack Welch launches Six Sigma at GE.

Why six sigma?

• Sigma allows comparison of products and services of varying complexity

• Also, it provides a common basis for benchmarking (competitors and non-competitors).

• The higher the sigma level, the better your operation is performing.

• Sigma measures how well you’re doing in getting to zero defects.

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Cost of poor quality.

Real but OverlookedLong Cycle TimeCost of CapitalRedundant ProcessesExpediting CostsLost SalesLost Customer

LoyaltyMissed DeadlinesExcessive PlanningInaccurate Reports

Traditional CostsInspectionOvertime DefectsIdle TimeRework 66

Big Question???

Yes

Is it a Goal, a Measure, a Process, or a Tool?

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Customer Focused

Operational Excellence Training

Our Performance Compared to Competitors

Imp

ort

an

ce t

o C

usto

mers

We’re Better They’re Better

High

Moderate-to-’Low’

• Price• Complaints

• OTD• Quality

• Training

Breakthrough performance

2 308,5373 66,8074 6,2105 2336 3.4

2 308,5373 66,8074 6,2105 2336 3.4

PPMPPM

(Distribution Shifted ± 1.5)

ProcessCapability

ProcessCapability

Defects per Million Opportunities

Defects per Million Opportunities

Possible applications

•Human Resources: reduce the number of requisitionsunfilled after 30 days.

•Customer Service: measure the number of calls answered on the first ring.

•Order Fulfillment: eliminate Customer returns because ofincorrect parts or product being shipped.

•Finance: reduce the instances of accounts being paidafter a specified time limit has elapsed.

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Calculating quality

How Six sigma is calculated???.....

Mechanically .66

Siddik • BASICS




DMAIC

it is an approach undertaken to improve existing business processSix sigma acronym of 5 interconnected phases of a process improvement project.following are the phases:

Process

1.Define high-level project goals and the current process.

2.Measure key aspects of the current process and collect relevant data.

3.Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered.

4.Improve or optimize the process based upon data analysis using various tools

5.Control to ensure that any deviations from target are corrected before they result in defects.

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1. Stakeholders analysis

2. VOC3. Surveys4. CTQ’s5. Benchmarking

1.FMEA2.Pareto analysis3.Data collection4.PDSA cycle5. Run charts

Cause and Effect ChartBrainstormingHistogramPareto analysisScatter PlotRegression AnalysisFMEA analysis

FMEAControl PlansPlan, Do, Study, Act (PDSA) Cycle PlanTeam Performance Improvement

BrainstormingForce Field Analysis (PDSA) Cycle Team Performance Improvement

definemeasure

Improve

ControlAnalysis

Tools used for dmaic approach

DMADV APPROACH

This approach is undertaken when there is a need to create new design or product:

5 steps in DMADV approach-

Define

Measure

Analyze

Design details

Verification

DMADV

Define design goals that are consistent with customer demands and the enterprise strategy.

Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.

Design details, optimize the design, and plan for design verification. This phase may require simulations.

Verify the design, set up pilot runs, implement the production process and hand it over to the process owners. DMADV is also known as DFSS, an abbreviation of "Design For Six Sigma".

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DMAIC.

1.Defines a business process

2.Measuring current process

3.Identify root cause of the recurring problem

4.Improvements made to reduce defects

5. Keep check on future performance

1.Define customer needs

2.Measure customer needs & specifications

3.Analyze options to meet customer satisfaction

4.Model is designed to meet customer needs

5.Model put through simulation tests for verification

DMADV

V/S

Siddik • BASICS




The six sigma organization.

The six sigma team has five levels of hierarchy

What is a BELT?

Belt refers to the level or the position, of a person in an organization at the time of performing a work or at the time of implementation of a project.

There are four “Belt” levels :-

1. Champion 2. Master black belt(MBB)3. Black belt(BB)4. Green belt(GB)5. Yellow belt(YB)

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Champion

•Lay down policies and guidelines regarding functioning of six sigma teams•Approves six sigma projects•Removes road blocks in the path of six sigma implementation•Receives presentations•Monitors project•Make available necessary resources•Sort out conflicts

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Master black belts

The highest level of Six Sigma expertise;

All duties involve implementation of Six Sigma, including statistical analysis, strategic and policy planning and implementation, and training and mentoring of Black Belts.

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Black belts

a Six Sigma-trained professional who has usually completed an examination and been certified in its methods;

all job duties include implementation of Six Sigma methodology throughout all levels of the business,

leading teams and projects, and providing Six Sigma training and mentoring to Green and Yellow Belts.

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Green belt

In many organizations, Six Sigma's "entry level";

a Six Sigma-trained professional who does not work on Six Sigma projects exclusively, but whose duties include leading projects and teams and implementing Six Sigma methodology at the project level

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Yellow belt

The lowest level of Six Sigma expertise;

applies to a professional who has a basic working knowledge and who may manage smaller process improvement projects,

but who does not function as a project or team leader.

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Number game In hierarchy

one

15 - 20

100-5GB

20

Team members

Siddik • BASICS




Principles underlying six sigma

• Variability is necessary.• Total variability is the result of two types

of causes : chance causes and assignable causes . chance causes cant be identified and hence can not b e eliminated while assignable causes can be identified and immediately eliminated.

• Process means in real life can shift from the nominal mean by 1.5 times of standard deviation.

• Defects are randomly distributed throughout the units, and parts and processes are individual.

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Continue…….

6.For execution of any operation certain standard is specified for the output and some variations are allowed from the ideal measure.These requirements are usually stated in terms of USL=upper specification limitLSL=lower specification limitDefects are randomly distributed throughout the units and parts and processes are individual. since measured values follow a normal distribution with mean and standard deviation, the process capability of the process will be equal to mean.

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Continue………….

•Since process mean in real life can shift from nominal by 1.5 times the standard deviation due to gradual drift or as a result of sudden drift, defects rates in practice expected at a different sigma levels are higher than in the mean centered process.

•Measurements are the key elements

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How six sigma can reduce defects?

•By reducing the value of variation (standard deviation).

•Increasing the design width.

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Defects in six sigma.

•Six sigma is extracting but not exciting

•Detraction from creativity

•Six sigma not for small business

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Examples : GE

1995 Operating margin—13.5%

1998 Operating margin—16.7%

Result: $600million bonus

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Example : Dabbawalas

Example : Dabbawalas

Summary

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Documents

Final Six Sigma