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0613 Silicon valleySixsigma
Introduction to Six sigma(Presented for Silicon Valley SPIN)
Compiled & Presented by Govind Ramu, P.Eng,ASQ CQMgr, CQE, CSSBB, CQA, CSQE, CRE,
Senior Member ASQ,QMS 2000 Principal Auditor IRCA (UK)
Past Section Chair Ottawa Valley- ASQ Canadahttp://www.asq.org/sixsigma/about/govind.html
Source of the material: Various, mostly web search.
Objectives• Gain an introductory-level understanding of Six
Sigma methodology.• Brief history of Six sigma • Tools & applications.• Understand the roles and responsibilities of Six
Sigma practitioners• Identify some of the benefits of Six Sigma as a
business improvement methodology• Global Trends• ASQ Certification/ others – Six sigma
What Six Sigma Means
“Past definitions of quality focused on conformance to standards, as companies strived to create products and services that fell within certain specification limits.” -Mikel Harry and Richard Schroeder
What Six Sigma Does
“...this Six Sigma journey will change the paradigm from fixing products so they are perfect to fixing processes so that they produce nothing but perfection, or close to it.” - Jack Welch
Performance in Context
• 20,000 lost articles of mail per hour
• Unsafe drinking water for almost 15 minutes each day
• 5,000 incorrect surgical operations per week
• 340 Passengers with Misplaced Luggage every day
• 200,000 wrong drug prescriptions each year
• Seven articles lost per hour
• One unsafe minute every seven months
• 1.7 incorrect operations per week
• 6 Passengers with Misplaced luggage each month
• 68 wrong prescriptions per year
99.73% Good (3.0 Sigma) 99.99966% Good (6 Sigma)
Basic Six Sigma Philosophy
Shift the Focus of Quality from Inspecting the outputs (critical To Quality characteristics)
to…
Inspecting the Key inputs/controls to the process (critical to Process characteristics) to
ensure a high yield output
The Focus of Six Sigma
f (X)f (X)Y=Y=
If we are so good at X, why do we constantly test and inspect Y?
• Y• Dependent• Output• Effect• Symptom• Monitor
X1 . . . XN
IndependentInput-ProcessCauseProblemControl
• To get results, should we focus our behavior on the Y or X ?
Design Opportunity
1000:1PRODUCT
DEFINITION 100:1PRODUCTDESIGN 10:1
PROCESSDESIGN 1:1
PRODUCTION PRODUCTIMPROVEMENT
1000:1ROBUST
TECHNOLOGY
LOW VISIBILITYHIGH RETURNS
HIGH VISIBILITYLOW RETURNS
Six Sigma - Some Key Players
• Pioneered by Motorola in 1980’s– Coined by Bill Smith in 1984
– Developed methodology to focus resources on solving problems to increase customer satisfaction with an emphasis on profits (bottom line)
• Some Key Players in Six Sigma History:– Mikel Harry - one of the original Motorola architects who
later founded Six Sigma Academy
– Jack Welch, CEO General Electric
– Larry Bossidy, CEO Allied Signal– These CEOs are largely responsible for the spread of Six Sigma by embracing the
methodology and demonstrating it’s potential in their respective companies
Mikel Harry
Methodologies
• DMAIC–Define–Measure–Analyze–Improve–ControlWhen a process needs to be improved
• DMADV–Define–Measure–Analyze–Design–VerifyWhen a process needs to be invented(aka. DFSS-Designed For Six Sigma)
• Two distinctly different methodologies
DMAIC Vs IDOV
MEASURE
ANALYZE
IMPROVE
CONTROL
Is achieving entitlement acceptable?
IDENTIFY
DESIGN
OPTIMIZE
VALIDATE
Process Capable
DMAIC IDOV
YESNO
NO
DEFINE
YES
Comparison of MethodologiesCI CYCLE SIX SIGMA 8D
PLAN Define Establish the Team
Measure Describe the Problem
Develop an “ICA”
DO Analyze Define / Verify Root Causes
STUDY Improve Choose / Verfiy Permanent Corrective Action (PCA)
ACT Improve Implement / Validate PCA
Control Implement/Validate Preventive Action
Recognize Team
The Normal Probability DistributionThe Normal Probability Distribution
µµ Mean -A measure of
the central tendency
The Standard DeviationThe Standard Deviation
1σ1σ
3σ
A measure of dispersion or variation
σ2 = Variance
The Standard DeviationThe Standard Deviation
µµ
1σ1σ
68%95%99.7%
The Normal Curve and CapabilityThe Normal Curve and Capability
LSL USL
Probability of Defects
Probability of Defects
Probability of Defects
LSL USL
Probability of Defects
A B
Center the Process and Reduce VariabilityCenter the Process and Reduce VariabilityCp = 2.0, Cpk = 2.0Cp = 2.0, Cpk = 2.0
ButBut……..Processes Drift..Processes Drift
LSL
Short-Term Capability
Long-Term Capability
Short-Term Capability
USL
Over time, a process tends to shift by approximately 1.5σ.Over time, a process tends to shift by approximately 1.5σ.
Six Sigma - SHIFT HAPPENS !
The Improvement Methodology
Identify Customer Wants• Who are your customers?
– Internal vs. external customers• Collect VOC-Voice Of Customer data
– Interviews– Surveys– Complaints– Focus groups
• Define CTQs-Critical To Quality measures– How does the customer judge your product or
service?
DefineDefineDefine
need
VOCI want…
CTQ
CTQ
CTQ
CTQ
CTQ
CTP
CTP
CustomerNeeds
Business Needs
Product CTQs
Need Drivers CTQs
Customer Drivers
Business
Drivers
CTP
CTP
CTP
Primary Needs
Secondary Needs
Tertiary Needs
CTPs
General Specific
Hard to measure Easy to measure
need
VOCI want…
Need Drivers CTQs/ CTCs
General Specific
Hard to measure Easy to measure
CTPs
I want my pizza to be crispyI want my pizza to have fresh toppings
I want my pizza to be quickerEvery time I get either wrong pizza or wrong toppings! Not so expensive
Average order-deliveryTime
Quantity &Right product
CustomerRecovery
Complaint handlingtime
Vegetable aging (days)
Order delivery time (By type & volume)Material Cost
Processing Cost
Yield %
Margin %
I want to get the replacement for the mistake
Order check
Response time
Replacement time
Oven Process ControlTempr. X1 deg +/- 5 deg F
Product Quality
Delivery
Cost
ServiceQuality
I want tasty pizzaI want hot Pizza
Taste
Selling Price
Raw material Aging (days)
Oven Process ControlTime. X2 min +/- 2 min
Order Processing time
Order handling time
• Project scope• Business case• Cost benefit• Roles & responsibilities• Milestones• Deliverables
Project CharterDefineDefineDefine
Action PartRequest
ReceivePart into
WIP
Use /Consume
Part
Fulfill &Ship Part to
Vendor /NPC
Part Required fora Service Call
Part Removedfrom WIP
Create PartRequest
High-level Process MapDefineDefineDefine
INPUTS 1) Part Request2) Physical Inventory 3) Call Transfers 4) Parts5) Customer/Equipment
data
SUPPLIERS
PROCESS
OUTPUTS
CUSTOMERS1) Technicians2) Buyers3) NPC4) Refurb5) Vendors6) NSC
1) Part Usage2) Inventory3) Credit/Debit to P&L 4) Part5)
1) Finance2) Technicians3) Buyers4) NPC5) Vendors
SIPOC / COPIS
Measure
DefineDefineDefine MeasureMeasureMeasure AnalyzeAnalyzeAnalyze ImproveImproveImprove ControlControlControl
Deliverables1. Identify CTQ characteristic2. Collect data3. Calculate sigma
Identify CTQ CharacteristicMeasureMeasureMeasure
• Getting down to the thing that the project will target using tools like:– Detailed process mapping– QFD-Quality Functional Deployment– Cause & effect analysis– FMEA-Failure Modes & Effects Analysis
MeasureMeasureMeasure Collect Data
• Create a data collection plan• Perform a MSA
– Measurement Systems Analysis• Gage R & R• Attribute R & R• Test re-test study
• Collect data
Analyze
DefineDefineDefine MeasureMeasureMeasure AnalyzeAnalyzeAnalyze ImproveImproveImprove ControlControlControl
Deliverables1. Identify possible causes2. Narrow down to root cause3. Confirm the benefit
15
CTP Vs CTQ
Screening DOE
EngineeringJudgment
CTP Vs CTQExplore InteractionsInterrelationships
Similar idea Referenced by : Mikel Harry : http://www.isixsigma.com/forum/ask_dr_harry.asp?ToDo=view&questId=82&catId=11
• Identify sources of variation using:– Process map
analysis– Graphical
analysis– Brainstorming
Identify Possible CausesAnalyzeAnalyzeAnalyze
Narrow To Root CausesAnalyzeAnalyzeAnalyze
Regression Plot• Confirm statistically significant factors through:– Hypothesis
testing– DOE-Design
Of Experiment
R-Sq = 87.9 %Y = 1026.02 + 98.0500X
P value = 0.000
Improve
DefineDefineDefine MeasureMeasureMeasure AnalyzeAnalyzeAnalyze ImproveImproveImprove ControlControlControl
Deliverables1. Generate and select solution2. Implement solution3. Confirm results
• Comprehensive pilot planning– Detailed process maps– SOP-Standard Operating Procedures– Monitoring plans– Contingency planning– Risk management plan
Implement SolutionImproveImproveImprove
• Ensure that an improvement has been made and is consistent with expectations– Learn and adapt– Re-assess measurement systems– Adjust improvements as required– Re-calculate sigma– Confirm improvement is statistically significant
Confirm ResultsImproveImproveImprove
Control
DefineDefineDefine MeasureMeasureMeasure AnalyzeAnalyzeAnalyze ImproveImproveImprove ControlControlControl
Deliverables1. Standardization and documentation2. Process monitoring and control3. Closing the project
ControlControlControl Standardize and Document
• Rollout confirmed solution across business with updated information from pilot– Detailed process maps– SOP-Standard Operating Procedures– Monitoring plans– Contingency planning– Risk management plan
ControlControlControl Monitoring and Control
• Ensure project x’sand y’sremain in statistical control– SPC-
Statistical Process Control
Four Key Phases & Associated Quality Tools
MeasureMeasureMeasure AnalyzeAnalyzeAnalyze ImproveImproveImprove ControlControlControl
Process MapsControl Charts Capability StudiesBasic Tools
fishbonechecksheetparetohistograms)
Gage Repeatability and Reproducibility Failure Mode and Effects Analysis
Process MapsControl Charts Capability StudiesBasic Tools
fishbonechecksheetparetohistograms)
Gage Repeatability and Reproducibility Failure Mode and Effects Analysis
Box plotsScatter diagramst testF testANOVA
Box plotsScatter diagramst testF testANOVA
DOEMistakeproofing
DOEMistakeproofing
SPCControl Plans
SPCControl Plans
Enterprise LeadershipUnderstand leadership roles in the deployment of six sigma
(e.g. resources, organizational structure)
Senior Management – Sponsorship Training
Master Black Belt Candidates – MBB Training
Management – Executive Training
Black Belt Candidates – BB Training
Supervisors – Overview Training
Green Belt Candidates - BB Training
Everyone – Six Sigma Orientation Training
Six Sigma Roles & Responsibilities
Understand the roles/responsibilities of black belt, master black belt, green belt, champion, executive, process owners
Provides strategic direction for project selection &
monitors program effectiveness
Champions(Leadership Team)
Sponsors Six Sigma Projects in area of
responsibilityProcess Owner
Facilitates Leadership Team, Guides Project and Candidate
Selection, Provides Training and Project Mentoring
MASTER BLACK BELT
BLACK BELT
A Certified Skill Set. May also be a full time position. Applies skills on projects,
assists other team members and green belts
Works part time on Six Sigmaprojects - provides local level
support and deployment.GREEN BELT
Champions & Master Black Belts
Champions Master Black Belts
•Create the vision of Six Sigma•Define the path to implement Six Sigma across the organization
•Carefully select high-impact projects•Develop a comprehensive training plan for implementing the Six Sigma strategy
•Ask Black Belts and Green Belts many questions to ensure that they are properly focused
•Make sure that project opportunities are acted upon by organization’s leadership and the finance department
•Recognize people for their efforts
•Understand the big business picture•Develop and deliver training to various levels of the organization
•Assist in the identification of projects•Coach and support Black Belts in project work
•Participate in project reviews to offer technical expertise
•Take on leadership of major programs
•Facilitate sharing of best practices across the corporation
Black Belts & Green Belts
Black Belts Green Belts
•Act as Six Sigma experts•Lead and direct teams in project execution
•Coach and Mentor Green Belts
•Ensure that the results are sustained
•Identify potential barriers to project completion
•Report progress of both BB and GB projects to appropriate leadership
•Function as Green Belts on a part-time basis
•Participate on Black Belt projects as content experts
•Lead Green Belt projects•Identify potential Six Sigma projects
Return on Investment• In 2000 GE’s gross annual benefit was $6.6 billion.
• CEO Larry Bossidy brought AlliedSignal back from the verge of bankruptcy. Cumulative benefits $2 billion in direct savings
• Raytheon improved its cost of doing business by more than $1 billion annually in 2001.
• Average financial benefit per project $120,000
• Motorola claims a Six Sigma ROI of between 10:1 & 50:1
Six sigma Certifications• ASQ’s Six sigma Black belt and Greenbelt
certifications are the most recognized among Six sigma community.
• International Society for Six sigma professionals also offer Six sigma certifications.
• International Quality Federation is the another organization that offer Black belt certifications.
• Several reputed consultancy offer training and certification. Body of Knowledge is defined by them for their certification.
Six sigma Trend• There are over 5000 ASQ Six Sigma Black belt
certifications so far with USA having over 4000, India with over 300, Canada close to 300 certifications. Rest of the world share over 400 certifications.
• A search in Beta tool of Google trends reveal the key word “Six sigma” is being searched in India than any other country in the world.
• In the recent years Six sigma is implemented in combination with Lean Enterprise to get the most benefit to the organizations.