Six Sigma Process Improvement Methodology TM 1 Purpose Provide An Overview of Six Sigma Layout the Process Improvement MethodologyTM 2 Code of Conduct Please listen as an ally… If you have a question at any time, ask! Use name tents Please be prompt in returning from breaks Turn off the mobile/pager system while in training 3 Expectations You will have a better understanding of Six Sigma What are your expectations for this session? 4 !!!!!Quality!!!!! Conformance to dimensions, fit, form, requirements, use, Customer Satisfaction. Problem solving • Condition of output • Changing gaps between good & bad. • Solutions are engineered well with statistical guidance to Engineering. • Who created problems in the first place could not be used to solve it 5 Pursuit of Quality Inspect for Quality Statistical Process Control Process (Deming) Modeling (Taguchi) Design for Six Sigma 1930 1940 1950 1960 1970 1980 1990 2000 6 !!!!!What’s new!!!!! Active Leadership Integration with strategy Quality net income Special Matrics Special roles Project Management Facts decide not judgement. Alignmenet of drivers & behaviour System Approach Remuneration linkage with six-sigma initiatives. 7 Six Sigma Sigma Breakthrough Technologies has a proven track record Methodology that is unique, systematic, proven, simple, lasting 8 Objectives * What Is 6 Sigma ? * Why Are We Doing 6 Sigma ? * How Are We Deploying 6 Sigma ? 9 Objectives * What Is 6 Sigma ? * Why Are We Doing 6 Sigma ? * How Are We Deploying 6 Sigma ? 10 What is Six Sigma? An approach to sustainable breakthrough improvement that: Fosters a common language and cross-functional cooperation within and between divisions Strengthens our productivity efforts Develops our process improvement core competency Uses statistical tools for significant variability reduction Helps Develop expert personnel and future leaders Increase capacity with minimal capital Meet productivity goals Improve customer service 11 Six Sigma Focus Improving performance by flawless execution Achieving rapid breakthrough improvement Applying advanced breakthrough tools that work Making a positive and deep cultural change Getting Real Financial Results Passion + Execution = Fast and Lasting Results 12 Overall Perspective Process Capabilities Safety Rolled Throughput Technology Yield Capabilities Customer Predictable Customer Robust COPQ, 4 Requirements Flexible Satisfaction Designs Wall Cost Factories Materials Capabilities Capacity Productivity Materials Organization Mangmnt & Capabilities Inventory 13 Six Sigma Systems Materials Six Sigma Data Management Systems Reliability Process Centered Maint. Six Sigma Customer New Product Leadership Operation Satisfaction Development and Control Systems Assessment Measurement Control Problem Human Resource Solving Involvement 14 What is Six Sigma? Simple: Eliminate variation and defects Eliminate the opportunity for variation and defects Complex Vision Metric (Standard of measurement) Benchmark Philosophy Method Tool for: Customer focus Breakthrough improvement Continuous improvement People Involvement Aggressive Goals 15 A Measurement Sigma PPM 2 308,537 3 66,807 4 6,210 5 233 6 3.4 16 Another Look . . . s % Non-Defective 2 69.1% 3 93.32% 4 99.379% 5 99.9767% 6 99.99966% 17 Practical Meaning 99% Good 99.99966% Good Postal System 20,000 Lost Articles Of Mail / Hr 7 Lost Articles / Hr Airline System Two Short/Long Landings / Day 1 Short / Long Per 5 Years Medical Profession 200,000 Wrong Drug Prescriptions / Year 68 Wrong Drug Prescriptions 18 What Does 6 Sigma Mean In Your Daily Life? PPM Prescription Writing Tax Advice Restaurant Bills 1,000,000 Payroll Processing 100,000 10,000 Baggage Handling 1,000 Best in 100 Class 10 Airline 1 Safety Rate 1 2 3 4 5 6 7 Sigma Level 19 Business Metrics USA Today Medical Article September 22, 1997 Number of antibiotic prescriptions issued in 1996: 282,631,000 JAMA reported that 21% of all antibiotic prescriptions written were to treat colds, bronchitis, and respiratory infections... 20 Business Metrics USA Today Medical Article September 22, 1997 Number of antibiotics prescriptions issued in 1996: 282,631,000 JAMA reported that 21% of all antibiotic prescriptions written were to treat colds, bronchitis, and respiratory infections... even though more than 90% of such infections are caused by viruses, which are immune to antibiotics. 53,000,000 defective prescriptions = 2.4 s 21 Business Metrics Tranquilizers / Anti-Anxiety Medications: 76,370,000 Sleeping Pills / Sedatives: 23,681,000 Anti-Obesity Drugs: 23,596,000 Sources: IMS America, Plymouth Meeting, PA. 22 Business Metrics Instructor’s Note: Despite being less than 3 sigma, we are “happy” to report Doctors are operating with very profitable returns. This only proves . . . You don’t have to be 6 Sigma to make money. 23 Reality of Escaping Defects Escaping Defects Escaping Defects Total Defects/Unit No matter how good your inspection and test processes are, the more defects you create, the more defects escape to the customer 24 Premise for Six Sigma Methods Sources of variation can be Identified Quantified and prioritized Eliminated by control or prevention 25 3 Sigma Process L o w e r Sp e c Uppe r Spe c s s s s s s 26 6 Sigma Process Lower Spec Upper Spec s s s s s s s s s s s s 27 Dissecting Process Capability Inadequate Measurement Supplier Capability Variation Inadequate Inadequate Process Design Capability LSL USL Margin Defects Process Capability 28 Dissecting Process Capability 1000 100 Percent 80 Count 60 500 40 20 0 0 Defect LSL USL Process Capability 29 Business Impacts of Variability Prevention Costs Internal Failure Education and training Scrap Quality planning Supplier caused losses Product design qualification Rework tests Retest / Re-inspection Supplier qualification Unplanned downtime Customer interface Trouble shooting Controlling processes Engineering change notices Appraisal Costs External Failures Incoming inspection Processing customer Maintenance and calibration inquiries of equipment Maintaining customer field Setup inspection and tests service Field testing Retro fit costs Process audits Incurring penalties/claims Product warranty Lost sales 30 Exercise Go through the list on the previous slide and indicate which costs are EASILY accessed through your current finance systems. Count the selected elements 31 Sigma Level 6 3s Cost of Failure : 20-25% of Sales 5 4 3 2 5% 10% 15% 20% 25% 30% Cost of Failure (% of Sales) What’s Your Cost Reduction Opportunity? 32 Objectives * What Is 6 Sigma ? * Why Are We Doing 6 Sigma ? * How Are We Deploying 6 Sigma ? 33 Six Sigma INITIATIVE METHODS & TOOLS Improvement Process Thinking Breakthrough Process Variation Focused Approach Facts, Figures, Data Right Projects DMAIC Right People 8 Key Tools Project Reviews Statistical Tools Sustain the Gains Minitab Results ($$) Critical Few Variables 34 Process Excellence: The Right Metrics Defects per 1000 Scrap 7 0.21 0.20 0.19 COPQ 0.18 RTY 65 0.17 0.16 0.15 55 0.14 0 5 10 0 5 10 Month Month Baseline Rate Goal Units per Day Actual 400 How is this process 350 0 5 Month 10 doing? 35 Actual Metrics Example Scrap Downtime Defects/Unit 36 Using Pareto’s to Select Projects Pareto Chart for Cause 1800 100 1600 1400 80 1200 Percent Count 1000 60 800 40 600 400 20 200 0 0 Defect Count 1328 198 164 34 Percent 77.0 11.5 9.5 2.0 u C m% 77.0 88.5 98.0 100.0 Process Related Scrap is the Highest Major Part Failure due to Process Knife Assembly and Inner 600 100 Gasket are the two major 500 80 process scrap drivers Percent Count 400 60 300 40 200 20 Two Potential Projects: 100 0 0 - Knife Assembly Defect Count 148 128 75 74 72 69 50 - Inner Gasket Percent u C m% 24.0 24.0 20.8 44.8 12.2 57.0 12.0 69.0 11.7 80.7 11.2 91.9 8.1 100.0 37 Six Sigma Everywhere SERVICE DESIGN ADMIN. PURCH. Six Sigma Methods QA MFG. MAINT. 38 The Process Improvement MethodologyTM Process Definition Process Measurement Process Analysis Process Improvement Process Control 39 The Process Improvement MethodologyTM Phase 0: Define Phase I: Process Measurement • Map process and Identify Inputs and Outputs •Scope and • Cause and Effects Matrix Boundary • Establish Measurement System Capability •Define Defects • Establish Process Capability Baseline •Team Charter and Sponsor Phase II: Process Analysis •Estimated $ Impact • Complete FMEA •Leadership • Perform Multi-vari Analysis approval • Identity Potential Critical Inputs • Develop Plan for Next Phase Phase III: Process Improvement • Verify Critical Inputs • Optimize Critical Inputs Phase IV: Process Control • Implement Control Plan • Verify Long Term Capability • Continuously Improve Process 40
"Six Sigma Concepts"