What is Six Sigma

What is Six Sigma Black Belt or Black Magic? Six Sigma – 10/30/2008 TechHelp Black Belt or Black Magic? Six Sigma - 10/30/2008 TechHelp 2 What Do The Experts Say? www.isixsigma.com • A goal of products and processes that experience only 3.4 defects per million or are 99.99966% good. - Nablusi Six Sigma - 10/30/2008 TechHelp 3 What Do The Experts Say? www.isixsigma.com • Six Sigma is a business system for achieving and sustaining success through customer focus, process management and improvement and the use of wise facts and data. - Anon. - Lean - TPM - TQM - Quality is Free - ____ - Baldridge - Empowerment - Re-engineering - ISO Six Sigma - 10/30/2008 TechHelp 4 What Do The Experts Say? www.isixsigma.com • Let us be very clear that 6 sigma is not a new finding. It was there since the inception of the use of statistical control methods in the industry…. Six sigma is a measure of the nonconformance of a process … be it a manufacturing process or a non-manufacturing process like making sales invoices. Every company works … to reduce cost by adopting various methods. Most powerful amongst [these methods] is a statistical method … for reducing variability … till such time the process becomes … defect free. Such a … process is called 6 sigma. When you reach [6 sigma] … cost of quality is the lowest, reflected in the profits of the company. - Jawadekar Six Sigma - 10/30/2008 TechHelp 5 What Do The Experts Say? www.isixsigma.com • I’m sorry, I don’t understand what your message is saying - Anon. • Six Sigma is a problem solving method for continuous improvement. This method focuses on the statistical analysis of data for making decisions for change. As a problem solving methodology it can be applied to almost any situation. - Duckworth • Six Sigma uses statistical analysis to graphically present data so even managers can make intelligent decisions - Mach Six Sigma - 10/30/2008 TechHelp 6 What Do The Experts Say? www.isixsigma.com • Six Sigma is nothing but simplification of product and processes which aims to take the defects to zero level. - Zeeshan Six Sigma - 10/30/2008 TechHelp 7 What Do The Experts Say? www.isixsigma.com • Six Sigma is a management methodology that combines a number of the tools and techniques we have always used in "quality initiatives". …this … data-driven approach requires that we … define defects, measure processes, analyze their capability and improve our processes from the shop floor to the back office. … we place appropriate control tools in place to … ensure that savings we have realized continue or increase. The success … lies in the ability to tie project results directly to bottom line savings and/or improved consumer satisfaction. - Johnson Six Sigma - 10/30/2008 TechHelp 8 What Do The Experts Say? www.isixsigma.com • Six Sigma is a customer centered, systematic, data driven method for doing things better - Customer centered means that projects start with, and are measured by, meeting customer wants and needs. - Systematic means that the Six Sigma tools are applied in concert, which makes them vastly more powerful than they are alone. - Data driven means that facts and data are used for making decisions. • Doing things better means, in some measurable, meaningful way, improving the situation of customers, workers, or shareholders of the organization. - Denton Bramwell, Sr. Master Black Belt, denton@bramwell.org Six Sigma - 10/30/2008 TechHelp 9 Where Did Six Sigma Come From? The Motorola Experience • Competition - Foreign – Japanese implementation of Deming - Domestic – Crosby “Quality is Free” • Zero Defects - 1970’s quality was: 3 sigma 99.933000% 67,000 DpM 4 sigma 99.993800% 99.999998% 99.999997% 6,200 DpM 2 DpM 3.4 DpM - Cut the distribution in half !: 6 sigma - A process shift of: 1.5 sigma Six Sigma - 10/30/2008 TechHelp 10 Where Did Six Sigma Come From? The Motorola Experience • Included quality tools and lessons from previous experience • A focus on: - Defect Prevention - Cycle Time Reduction - Cost Savings • Baldridge Quality Award 1988 - Quality can be defined as “the value added by a productive endeavor” Potential (maximum possible value) – Actual (current value) = Waste Six Sigma - 10/30/2008 TechHelp 11 Where Did Six Sigma Come From? The Motorola Experience “One of Motorola’s most significant contributions was to change the discussion of quality from one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. Motorola correctly pointed out that … old ideas about acceptable quality levels were no longer acceptable.” Motorola’s Six Sigma Program – Thomas Pyzdek Six Sigma - 10/30/2008 TechHelp 12 Where Did Six Sigma Come From? Six Sigma - 10/30/2008 TechHelp 13 Where Did Six Sigma Come From? “Quality requires us to look … at our processes from the outside-in. By understanding the transaction lifecycle from the customer’s needs & processes, we can discover what they are seeing and feeling. With this knowledge… we can add significant value or improvement from their perspective.” What is Six Sigma? The Roadmap to Customer Impact www.ge.com/sixsigma Six Sigma - 10/30/2008 TechHelp 14 The Critical Elements of Six Sigma? Key Concepts • Critical to Quality - Most important attributes to the customer • Defect - Failure to deliver what the customer wants • Variation - What the customer sees and feels • Seek the elimination of defects Six Sigma - 10/30/2008 TechHelp 15 The Critical Elements of Six Sigma? “Customers … define Quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear & correct transaction processing & more. … being good is not enough. Delighting our customers is a necessity. Because if we don’t do it, someone else will !” - GE Six Sigma Six Sigma - 10/30/2008 TechHelp 16 The Critical Elements of Six Sigma? Key Concepts • Process Capability – What your process can deliver • Stable Operations – Ensuring consistent predictable processes to improve what the customer sees and feels • Variance – A change in a process or business practice that may alter its expected outcome Six Sigma - 10/30/2008 TechHelp 17 The Critical Elements of Six Sigma? “The central idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible.” - GE Six Sigma Six Sigma - 10/30/2008 TechHelp 18 The Critical Elements of Six Sigma? Key Concepts • Executive Engagement – Visible, consistent support and an active role in communication and reward • Stable Operations – Advocating and creating a “common language”. Including employees, customers and suppliers • Education and Training – Acquire, apply and foster the use of new or existing Knowledge to improve capabilities • Alignment – Engage the entire organization to improve every process and practice Six Sigma - 10/30/2008 TechHelp 19 The Critical Elements of Six Sigma? Defining Six Sigma for your Business or Organization – Zack Swinney Key Concepts • Customer Focus – Integrate the customer into the organization. Listen to them! • Data Driven – Critical to Quality (CTQ), Defects, Pareto Charts, Root Cause Analysis, Process Mapping, Control Charts, Statistical Process Control, Gage R&R, Brainstorming, FMEA (Failure Mode Effect Analysis), Design of Experiments • Robust Methodology – (1) DMAIC (Define, Measure, Analyze, Improve, Control) - Continued improvement on existing processes. (2) DMADV (Define, Measure, Analyze, Design, Verify) – New product or processes. Six Sigma - 10/30/2008 TechHelp 20 Black Belt or Black Magic? “Six Sigma’s magic isn’t in statistical or high-tech razzledazzle. Six Sigma relies on tried and true methods that have been around for decades. In fact, Six Sigma discards a great deal of the complexity that characterized Total Quality Management (TQM). By one expert’s count, there were over 400 TQM tools and techniques. Six Sigma takes a handful of proven methods … the tools are applied within a simple performance improvement model known as DMAIC.” Six Sigma Revolution Thomas Pyzdek Six Sigma - 10/30/2008 TechHelp 21 Black Belt or Black Magic? Master Black Belt Train-the-trainer An expert who trains and mentors Six Sigma project leaders “Journeyman” expert Responsible for implementation of Six Sigma projects Project Team Leader F/T 1/1000 Black Belt F/T 1/100 Green Belt P/T 1/10 Six Sigma - 10/30/2008 TechHelp 22 Black Belt or Black Magic? • Success requires 3 things only - Recognize the problem - Take ownership - Work out the details “Experts who can “work out the details” are a dime-a-dozen. Hire a full-time person or rent a consultant.” - Doug Welter Six Sigma - 10/30/2008 TechHelp 23 Is That All There Is? “Some people, including me, believe that garden variety six sigma doesn't go far enough. In fact, even zero defects falls short. … Progressive people in the six sigma camp … looks for criticalto-quality (CTQ) characteristics in a product or service. CTQ features are those that customers expect and consider explicitly … A product or service that doesn't provide the CTQ features that customers expect suffers lower customer satisfaction. But even this definition isn't enough. ” Six Sigma and Beyond Thomas Pyzdek Six Sigma - 10/30/2008 TechHelp 24 Is That All There Is? The Kano Model Six Sigma - 10/30/2008 TechHelp 25 Where To From Here? “Long-term success requires the customer to be excited by unexpected innovations provided by a company's products and services: Continued survival requires that your organization continuously innovate. Innovation is the result of creative activity, not of analysis. Creativity can't be achieved "by the numbers." In fact, excessive attention to a rigorous process such as six sigma actually detracts from creativity.” Six Sigma and Beyond Thomas Pyzdek Six Sigma - 10/30/2008 TechHelp 26 Where To From Here? The Kano Model Six Sigma - 10/30/2008 TechHelp 27 Six Sigma or Lean? Kaizan or Kanban? • Lean is about reducing or eliminating all activities that do not add value. It reduces or eliminates 8 principle sources of waste: - Waiting - set-up, changeover, no work, no operator, downtime - Inventory - stagnant Work-in-Process, spare parts, just-in-case - Overproduction - batch runs, minimum run rates - Extra Processing - rework, conditioning - Motion - non-adjacent processing, go-fer - Transportation - moving product - Defects - rejects - Underutilized People - THE GREATEST WASTE OF ALL! 28 Six Sigma - 10/30/2008 TechHelp Six Sigma or Lean? Kaizan or Kanban? LEAN SIX SIGMA Tools in the Toolbox Six Sigma - 10/30/2008 TechHelp 29 Six Sigma: Black Belt or Black Magic? Six Sigma is: Customer Centered • Systematic • Data Driven Customer Centered • Critical to Quality: Attributes defined by customer • Defect: Failure to Deliver what the customer expects • Variation – Customer Impression • Continuous Improvement: 3 sigma 6 sigma Zero Defects Six Sigma - 10/30/2008 TechHelp 30 Six Sigma: Black Belt or Black Magic? Six Sigma is: Customer Centered • Systematic • Data Driven Systematic • DMAIC or DMADV - Stable Operations (consistent, predictable), Control Variance, Process Capability (reach & improve) • Executive Engagement: Visible, consistent support and active • Communication: Common language – customers, employees & suppliers • Education and Training: Acquire, apply and foster knowledge • Alignment: Engage the entire organization to improve every process Six Sigma - 10/30/2008 TechHelp 31 Six Sigma: Black Belt or Black Magic? Six Sigma is: Customer Centered • Systematic • Data Driven Data Driven • Use the tools in the toolbox (old favorites or new tools) • Use the right tool in the right way • Lean – Six Sigma Six Sigma - 10/30/2008 TechHelp 32 Six Sigma: Black Belt or Black Magic? Six Sigma is: Customer Centered • Systematic • Data Driven AND • Doing things Better - Innovate! Delight Your Customer! If you don’t, someone else will!!! Six Sigma - 10/30/2008 TechHelp 33 For additional information contact: Michelle Brown 208.364.4999 mbrown@uidaho.edu Six Sigma – 10/30/2008 TechHelp