Six Sigma Green Belt Course Six Sigma Overview About This Module… Six Sigma Overview This module is an overview of Six Sigma’s Define phase which applies primarily to Executive training. Six Sigma, A Quest for Process Perfection Meet Goals and Attack Variation What We Will Learn… Six Sigma Overview 1. The many facets of Six Sigma. 2. The driving need for customer satisfaction and how customer satisfaction requires process improvement. 3. Roles, responsibilities and time required of a Six Sigma Team. 4. Technologies and curriculum of Six Sigma methodology 5. Results of other companies that are implementing Six Sigma. Process Perfection through Defect Reduction “We committed to Six Sigma 100% from the beginning, made no exceptions and insisted that the result would be a fundamental and permanent change in the way we operate the company.” “… Six Sigma, which is now being used within all business lines across the company to measure and improve the results we produce for customers and shareholders.” Bank of America, Annual Report 2003 “Broad application of Six Sigma will allow us realize margin benefits through greater efficiency and through increases in revenues. Its application to our business will be a major pillar of our strategy going forward.” -Douglas A. Warner III, Chairman, JP MorganChase What is Six Sigma? Key Focus of Six Sigma - Chain of Causation Our survival is dependent upon growing the business. Our business growth is largely determined by customer satisfaction. Customer Satisfaction is governed by quality, price and delivery. Quality, price and delivery are controlled by process capability. Our process capability is greatly limited by variation. Process variation leads to an increase in defects, cost and cycle time. To eliminate variation, we must apply the right knowledge. In order to apply the right knowledge, we must first acquire it. To acquire new knowledge means that we must have the will to survive. 6s Dr. Mikel J. Harry Six Sigma Academy A Little Six Sigma History ... Design Motorola Developedby Bill Smith, 1985 - 1992 Texas Instruments Motorola Quality Asea Brown Boveri Refinement Manager 1993-1994 Allied Signal Implementation began Results General Electric at Motorola in 1987 1994-1996 Nokia Mobile Phones Helped Motorola to win Bombardier, Siebe, ... the first Baldrige Award Competitive Awareness 1996-1997 Lockheed Martin, Sony, in 1988 Crane, Polaroid, Avery New Technology Majorcompanies Dennison, Shimano, JP 1997-1998 throughout the world Morgan, City of Fort have adopted Wayne Enlightenment Six Sigma. 1999-2005 Bank of America, American Express Competitive advantage gained via 6s education! What is Six Sigma? Six Sigma, a Strategy and a Measurement of Strategies Six Sigma is an overall strategy to accelerate improvements in processes and services (create breakthrough). Six Sigma is a measurement of how effective strategies are in eliminating defects and variations from processes and services to increase yield. = + + + ... Y = F(x1, x2, x3 …) Understand and control the x’s, and you’ll never have to ask “Y”. Variation is the Enemy Sigma refers to standard deviation, a measure of variation. Six Sigma refers to a process having six standard deviations (short term) between the target and the nearest specification limit. Six Sigma quality will minimize lost opportunity. Lower Target Upper Spec Spec Continuously…... Improve yields Eliminate defects Reduce the cost of poor quality and Lower Process Upper Reduce cycle time Control Center Control 6 Standard Deviations ...for each process. 6 Sigma Six Sigma Defines Problems Statistically Focus on Y or X? Y= f (X) Y X1 . . . XN Dependent Independent Output Input-Process Effect Cause Symptom Problem Monitor Control The output is used to evaluate the process. If our processes to produce X is so good, why are we constantly inspecting Y? In Summary... “Six Sigma is a philosophy of doing business (providing any product or service) ... … encompassing the methodologies of defect prevention rather than detection ... … through the use of statistical tools that can vary from Pareto charts to Design of Experiments (DOE)” Bill Ross Six Sigma meshes with other improvement activities. Sources of Variation Code Order Forms 2 1 3 Design ? 1 1 Material $ Process Capability 2 2 3 3 Measurement 1 System 3 2 Supplier and Customer Satisfaction Relationship Internal Metrics Cycle Time Delivery Cost Price Defects Quality External Metrics Customer Satisfaction is a Business Issue Robust Designs Customer Requirements Process Capabilities Material Capabilities Predictable Factory Customer Satisfaction High Quality Superior Reliability Consistent Performance On-time Delivery Lower Costs Business Results Customer Satisfaction at the Lowest Possible Cost Defeat competition by understanding and then exceeding customer expectations. Set stretch goals - target Six Sigma standards Constantly measure key metrics to detect improvement: Internal Metrics Delivery Cycle Time simplify processes to reduce cycle time Price reduce cost by increasing efficiency and Cost eliminating non value-added steps Quality Defects eliminate variation External Metrics Six Sigma goals are directly and quantifiably connected to business goals. Customer Needs Translated into “Critical To” (CT) Characteristics Customer Focus Y = f (X1, X2, … Xn) Translation of customer needs into… process, service or deliverable requirements in terms of… quality, delivery and cost. Characteristics of the CT Matrix are: Y CTQ CTD CTC Critical to Quality Critical to Delivery Critical to Cost Breakdown of • Area where projects are identified by the relationship between the processes service or deliverable requirements and processes. required to produce the • Area where the process parameters that affect the requirements service or are later identified (X , X , … X ) deliverable. 1 2 n • Area where leverage processes are identified. Customer Focus CTQ, CTD, CTC and Critical to Processes (CTP) CTQ Defect Opportunity CTP Control Opportunity A CTQ, CTD or One of the “vital few” CTP Leverage Principle CTC requirement variables which can leverage Y. Y = f(X) Trivial Vital Many Example Few Pareto Analysis of Process Inputs LSL USL LSL USL 84 Product Process Capability Capability Percentage DPU/DPMO Y X 10 3 2 1 Probability of Probability of A B C D E Defects Nonconformance to Standard Developing a CT Matrix Product System A System B System C Sub-System 1 Sub-System 2 Sub-System 3 Element A Element B Element C Characteristic 1 Characteristic 2 Characteristic 3 Characteristic 2 Characteristic 3 Operation 2 Operation 3 Process C Tool C Process B Factor Tool B CTP Process A Characteristic 1 Operation 1 Tool A CTQ Y = f (X) = Leverage Point CTS, CTQ, CTP Relationships CTY Tree Critical to Satisfaction (CTS) Business Success Critical to Quality (CTQ) ... CTX Tree (Process Tree) Customer Satisfaction Process Input Critical to Process (CTP) Product Quality ... CTQ The CT Matrix Structure CTQ, CTD and CTC Requirements Process Tree Subsystem Level All details properly properly identified Process correctly details and assy Complete list of Delivery as per All assemblies dimension Example of CTS characteristics defined as delivered schedule identified ... critical requirements: CTQ, CTD, CTC Bid Preparation • Bid Preparation Program or Contract Start-up Process Tree Subsystem Level • Program or contract start-up • Development of process logistics Technical Data Preparation • What document and how definition • Process logistics implementation Production of 1st and Subs • Tools Management • Supplying external services and supplies • Supplying data • Process elements • Application steps • Process sub-components • Customer order management • Management of customer process sequence changes Testing and Commissioning • Testing and delivery of the units • Change management • Pilot results • Scale-up • Process improvement • Nonconformance management CTQ Matrix Example Message/Package Delivery Time Distance – Check-in to Elevators Distance – Entrance to Check-in Time to Receive Room Key Length of Check-in Desk Correct Room Attributes Bellhop Availability Attractive Uniforms Message Accuracy Number of Clerks Clerk Knowledge Clerk Demeanor Clerk Authority Primary Want Secondary Want Get My Room Key Quickly The “Right” Room Get the Room I Reserved Clerk Should Be Friendly Check-In Provide Packages & Experience Messages Upon Arrival Resolve Problems Quickly Provide Directions & Advice - Local Information Provide Information - Hotel Services Help With Luggage My “Stuff” Short Distance to Carry Luggage Difference Between Average and Best-in-Class Customer Focus Yield PPMO COPQ Sigma 99.9997% 3.4 <10% 6 World Class Benchmarks 99.976% 233 10-15% 5 99.4% 6,210 15-20% 4 Industry Average 93% 66,807 20-30% 3 65% 308,537 30-40% 2 Non Competitive 50% 500,000 >40% 1 Source: Journal for Quality and Participation, Strategy and Planning Analysis PPM The Basic Objective 1000000 100000 10000 1000 Average A focus on TDPU reduces cycle time/unit, WIP, 100 Company inventory carrying costs, delivered defects, 10 Best-in-Class 1 early life failure rate and defect analysis and 3 4 5 6 repair costs/unit Sigma Scale of Measure Difference Between Average and Best-in-Class (Cont.) Customer Focus 4s 5s 6s 99.4% error free 99.977% error free 99.9997% error free Expect cold showers 54 hours each Cold showers are reduced to 4s 6s year! less than 2 minutes a year! Approximately 6,210 transactions out Only three transactions in every 4s 6s of every million would be out of spec! million would be out of spec! Lights would be out almost one hour Light outage would be reduced 4s 6s per week! to two seconds a week! Assumes one opportunity How to Scale the Five Sigma Wall 4s 5s Requires 27-fold performance improvement! 5s 6s Requires another 69-fold performance improvement! 3s Design for Six Sigma 6s Organizational Roles and Responsibilities Six Sigma Roles Executives Project Team Members Own vision, direction, Part-time integration, results Project-specific Lead change Champions Green Belts All employees Project owner Part-time Understand vision Implement solutions Help Black Belts Apply concepts Black Belt managers Master Black Black Belts Belts Fulltime Devote 50% - 100% of time to Black Belt activities Train and coach Facilitate and practice problem solving Black and Green Belts Train and coach Green Belts and project teams Statistical problem solving experts Executives Supply Vision and Objectives Identify, rank and communicate Executive Training corporate values and overall SixSigma Business Strategy strategic objectives and examine Defining Values ways to maximize customer Business Measurement satisfaction. Business Benchmarking Identify consistent business Implementation Strategy metrics. Establish a business Lessons Learned scorecard. Choose high-potential individuals Support Champions and Black to become Champions and BB’s. Belts by consistently removing obstacles to project Participate in/support training. completion. Six Sigma is deployed by 6s BB’s on a project-by-project basis. Buy-in from the top down is critical. Executives establish the corporate commitment to achieve 6s process performance. Champions Direct Overall Objectives Champions lead, plan, facilitate and implement Six Sigma. They direct the company’s overall strategic SS deployment objectives. Identify critical projects and Champion Training metrics. SixSigma Strategy Defining Values Develop Six Sigma deployment Process Characterization & Capability strategies. Basic Statistics Graphical Analysis Authorization to start approvals. Deploying Six Sigma Financial Management Consistent project reviews. Project Guidelines and Selection Select and mentor Black Belts and consistently remove obstacles to project completion. Role of a Six Sigma Black Belt Six Sigma Roles In addition to using Six Sigma tools to maximize critical business processes, a Black Belt: Mentors - a network of supporting individuals Teaches - usage of tools and strategies Coaches - one-on-one Shares - new strategies at Symposia, etc. Discovers - new applications for Six Sigma strategies Identifies - new business opportunities Sells - Six Sigma strategies throughout the organization To assure business success, a Black Belt must devote AT LEAST 50% of his / her time to Black Belt activities. Keys to Success 6s Highly visible top-down management commitment to the initiatives. 6s A measurement system (metrics) to track the progress. 6s Internal and external benchmarking of products, services and processes. 6s Setting stretch goals (10x, 100x improvement, etc.). 6s Success stories showing how the tools of improvement can be applied and the results which can be achieved. (Networking) 6s Champions and Black Belts promoting initiatives and providing the necessary planning, teaching, coaching and consulting to all levels of the organization. Typical Results and Possible Time Allocation for 6s Activities Six Sigma Roles The typical Black Belt improvement project requires 4-6 months for completion and yields an average return of $183,000. Black Belts can conduct 3-4 projects/annually. The annual benefit per Black Belt exceeds $500K. Percentage of Time Allocated 100 90 80 6s 70 60 50 40 30 20 10 0 Executives Project Line Green Champions BBs Master BBs Team Management Belts Members Characterization and Optimization Phase 1: Breakthrough Technologies for Success Define Phase 2: Measure Characterization Phase 3: Analyze Breakthrough Strategy Phase 4: Improve Optimization Phase 5: Optimization Control Commitment Y Region of Success PPM The Basic Objective = Current Level 1000000 100000 10000 1000 Characterization X 100 Average Commitment Company Best-in-Class 10 1 3 4 5 6 Sigma Scale of Measure Application Roadmap 1. Create Problem Statement Measure Capability OK? Define 2. Select CTQ Characteristic 3. Define Performance Standards Y N 4. Understand Process and Validate Measure Measurement System Redesign Analyze 5. Determine Process Capability 6. Finalize Performance Objectives 7. Identify Variation Sources Analyze Modify Design? Y 8. Screen Potential Causes N 9. Determine Y=f (x) 10. Establish Operating Tolerances Improve Improve 11. Confirm Results and Validate Improvements 12. Validate Process Capability N Capability OK? Control and Measurement System 13. Implement Process Controls Y 14. Complete Project Documentation Control Measurement is the Key to Harvesting the Benefits of Six Sigma Benchmark Design for Six Sigma Process Entitlement Process Characterization and Optimization - - - - - - - - - - - - - - - - - - - - - - - -- - - - - Basic Tools What is your baseline? ------------------------- --- Logic and Intuition Baseline Black Belts at Work Breakthrough Technologies for Success Select Key Process Create Process Tree D Define Performance Variables Create Process Map Measure Performance Variables Establish Performance Capability M Select Performance Variable Benchmark Performance Metric Find Best-in-Class Performance A Conduct Gap Analysis Identify Success Factors Define Performance Goal Select Performance Variable Select Causal Variable Diagnose Variable Performance Define Control System Propose Causal Variables Validate Control System Confirm Causal Variables Implement Control System Establish Operating Limits Verify Performance Improvement I C Audit Control System Monitor Performance Metrics Six Sigma Technologies Breakthrough Technologies for Success Customer Competitive Process Technology Organization Business Six Sigma Focus Capability Capability Capability Capability Metrics Fundamentals Define Nature of Opportunities CTX Process Process Six Sigma Six Sigma Variables For Defect Tree Mapping Baselines Projects Deployment Scales of Data Measurement Statistical Static Dynamic Special Measure Collection Error Distributions Statistics Statistics Measure Topics Continuous Discrete Six Sigma Process Diagnostic Simulation Statistical Analyze Decision Decision Statistics Metrics Tools Tools Hypotheses Tools Tools Experiment Robust Risk DFSS Special Emperical Statistical Improve Design Design Analysis Principles Topics Modeling Tolerances Tools Tools Tools Continuous Static Dynamic Process and Pre-control Discrete SPC Special Control SPC Control Control Quality Tools Tools Topics Tools Systems Systems Audits = Executive and/or Champion Black = Core Blue = Advanced = Black Belt Black Italics = Management Technologies for Success Breakthrough Technologies for Success Six Sigma Breakthrough Technology Tools Define Measure Analyze Improve Control Analysis of Means X X ANOVA – N-way X X ANOVA-one-way X X X ANOVA-two-way random X X X Bar Chart X X Benchmark – chart X X X X Benchmark – sigma X X X X Box Plot X X X X Process Maps X X Cause & Effect Diagram X Gage R&R X X X X Capability Analysis X X X FMEA X X X X SPC X DOE X X Control Plans X X These tools allow teams to focus on problems, not dwell on personalities! Applying PTAR to Black Belt Development Breakthrough Technologies for Success Define Measure Analyze Improve Control Management Management Management Management Management P lan Coordination Coordination Coordination Coordination Coordination Meeting Meeting Meeting Meeting Meeting Optional Pre-training (2-3 days) T rain Measure Analyze Improve Control Kickoff training training training training (1 week) (1 week) (1 week) (1 week) (1 week) Measure Analyze Improve Control A pply application application application application (3 weeks) (3 weeks) (3 weeks) (3 weeks) R eview Four standard Realization Review after end-of-phase reviews completion of project Black Belt Curriculum Overview by Week Understanding the basic concepts of Six Sigma 1 Developing the language of Six Sigma and statistics How to compute and apply basic statistics How to establish and benchmark process capability Understanding the theory of sampling and hypothesis testing How to apply key statistical tools for testing hypotheses 2 Understanding the elements of successful application planning How to apply/manage the breakthrough strategy How to identify and leverage dominant sources of variation How to establish realistic performance tolerances The basic principles of experimentation How to design and execute multi-vari experiments 3 How to interpret and communicate the results of an experiment How to plan/execute a variable search study How to manage a Six Sigma project How to manage change in project implementation 4 Understanding the basics of process control How to construct, use and maintain charts for variable and attribute data How to plan/implement process control systems Green Belt and Awareness Training for the Company Include… Green Belts Understanding Six Sigma Process Mapping FMEA MSE SPC Higher level defect reduction Company-Wide Awareness Understanding Six Sigma Seven Basic Tools Process Mapping FMEA Data Collecting Some Defect Reduction Results of 600 Project/Processes Six Sigma Success Stories 500,000 50% 300,000 Average +68% Defect-Free Yield (%) Improvement Defects PPM 200,000 75% 150,000 Auto - Avg. 168,000 ppm Aero - Avg. 200,000 ppm EMS - Avg. 78% Yield 98% 75,000 January February March April The entire organization succeeds! What We Have Learned Six Sigma Overview 1. The many facets of Six Sigma. 2. The driving need for customer satisfaction and how customer satisfaction requires process improvement. 3. Roles, responsibilities and time required of a Six Sigma Team. 4. Technologies and curriculum of the Six Sigma Breakthrough Strategy. 5. Results of other companies striving for Six Sigma.
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