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7/27/2019 Six Sigma an Overview
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Six Sigma
An Overview
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What is Six Sigma?
A Metric
Philosophy
Initiative Method / Tools
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Philosophy
Sources of variation can be
Identified
Quantified Eliminated
Controlled
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Initiative
Breakthrough Improvement
Systematic, Focused Approach
Projects Linked to Business Strategy
Key People Selected & Trained
Project Management & Reviews
Results
Strategic Process Improvement Financial Results
Sustain the Gains
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Method and Tools
Process Thinking
Process Variation
Facts, Figures, Data
Critical Few Drivers Customer Satisfaction
Cycle Time
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Six Sigma Organization
Champions
Master Black Belts
Black Belts Green Belts
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Champions
Provide direction and resources.
Facilitate the identification and
selection of projects with seniorleadership.
Track progress of projects.
Breakdown barriers.
Create support systems.
Six Sigma Catalysts
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Master Black Belts
Internal experts in Six Sigmamethods and tools.
Train and mentor Black Belts.
Develop and deliver training.
Assist Champions.
Leverage best practices. Six Sigma Experts
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Black Belts
Project Lead
Strategic high impact multi-
functional projects 2-4 projects per year
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Black Belts contd.
Mentor and coach Green Belts
Dedicated role for 18 30 months
Six Sigma Change Agents
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What Makes a Good BlackBelt?
Open mind.
Desire to find out why things happen.
Ability to lead and direct people.
Ability to handle conflict.
Capable of self-directed activity.
Sense of urgency.
Good grasp of computer skills and abasic understanding of math.
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Green Belts
Lead day-to-day functionalprojects and support strategicBlack Belt projects
Maintain current role inorganization with 20-50% of timededicated to a Six Sigma project
Sustain the gains
Six Sigma Institutionalizers
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Characteristics of a GoodProject
Problem is clearly connected tobusiness priorities Improvement in process metrics > 50%
Financial impact >
People will support a project they understandand see as important
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Characteristics of a Good Projectcontd.
Clear quantitative measures ofsuccess
Reasonable scope Do able in 4-6months
Has the support and approval ofmanagement needed to get resources
and remove barriers
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Examples of Black BeltProjects
Increase process throughput
Reduce cycle time of assembly
Reduce process downtime and scrap
Reduce freight costs Reduce costs of waste disposal
Reduce bulk material transportationcosts
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Reduce amount of accountsreceivable
Material loss: Reduce scrap &increase yield
Reduce warranty costs 50%
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Examples of Black BeltProjects (Actual)
Reduce road construction changeorders 20%.
Improve sewage plant efficiency by
25%. Reduce lime usage in water softening
at city water plant by 20%.
Reduce invoice to cash cycle time by
50%. Reduce processing time of billing
customers for 3rd party orders.
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Examples of Black BeltProjects (Actual) contd
Reduce overpayment of benefits.
Reduce document retention for legalcases.
Reduce cycle time of legal transcripttransmittals.
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Six Sigma Applies to AllProcesses in All Industries
Customer Service
Design
PurchasingManufacturing
Sales
MarketingAdministration
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Manufacturing
Financial
TelecommunicationsHealth Care
Government
Education
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What is Different? Why DoesSix Sigma Work?
Driven by top leadership
Top-down deployment - integratedwith business strategies
Bottom-line cost-benefit
Disciplined approach (Define-Measure-Analyze-Improve-Control)
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Sense of urgency (4-6 monthprojects)
Well defined roles &infrastructure (Champion, MBB,BB, GB, etc)
Statistical and data baseddecisions
Customer and process focus
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Analyze: Analyze data to assesspatterns and trends between inputsand outputs.
Improve: Verify critical inputs anddetermine optimum settings.Implement.
Control: Implement controls tosustain the gains.
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DMAICis a structured, disciplined andaggressive approach to processimprovement that consists of the above fivephases.
Each phase is linked logically to theprevious phase, and to the next phase atthe same time.
The purpose of this rigorous methodology isto achieve the overall goal of Six Sigma,which is 3.4 defects per million parts, oropportunities.
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PHASE ONE - DEFINE
In this phase, the project's purpose andscope are defined. Customer informationand background information on the process
is collected. The output of this phase is: 1. A clear statement of the intended
improvement.2. A high-level map of the process (SIPOC -
defined further later).3. A list of what is important to thecustomer (Voice of the customer).
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PHASE TWO - MEASURE
The goal of the Measure phase is to focusthe improvement effort by gatheringinformation on the current situation. The
output of Measure is: 1. Baseline data on current process
performance.2. Data that pinpoints problem location or
occurrence.3. A more focused problem statement.
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PHASE THREE - ANALYZE
The goal of the Analyze phase is toidentify root cause(s) and confirmthose with data.
The output is a theory that has beentested and confirmed.
The verified cause(s) will form the
basis for solutions in the next phase.
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PHASE FIVE - CONTROL
The goal of the Control phase is toevaluate the solutions and the plan,maintain the gains accomplished bystandardizing the process, andoutline steps for on-goingimprovements including
opportunities for replication.
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Step #1 - DEFINE
Project
SIPOC (Suppliers, Inputs, Process,Outputs and Customers )
VOC (Voice Of The Customer )
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In this phase, you will be settingproject goals and boundaries basedupon your knowledge of your
organization's business goals,customer needs, and the process thatneeds to be improved to get you to a
higher sigma level.
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Project Charter
The charter is a contract between theorganization's leadership and the teamcreated at the onset of the project with the
purpose of: Clarifying what is expected of the team.
Keeping the team focused. Keeping the team aligned with
organizational priorities. Transferring the project from thechampion to the team.
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Some examples could be:
Reduce inventory levels to reduce capitalinvestment in inventory.
Reduce time-to-market to increase
revenues through increased sales. Reduce equipment downtime to increase
capacity and production.
Reduce rejects and rework to decreasematerial costs rendering a greater ROI
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Six Sigma Deployment &
Baldrige Performance ExcellenceFramework
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Leadership
Set Values, Direction, & PerformanceExpectations, Manage Performance
Strategic
Planning
Strategy Formulation, Planning,Budgeting & Resource Allocation
Focus = Customer & MarketKnowledge
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Human Resource
Belt Selection
Compensation
Career Development
Training Process
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Management
Project Selection
Project Assign
Project Tracking
Review Results
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Business =Six Sigma Deployment
Information and Analysis
Organizational Environment,Relationships & Challenges
Data & IS Support
Mfg, Design & Service Capability
FinanceCommunication