Introduction to Six Sigma - PowerPoint by pengxiang

VIEWS: 58 PAGES: 97

									Introduction to
  SIX - SIGMA


        Presented by :
http://www.QualityGurus.com

                    QualityGurus.com
               Agenda

0750 - 0800   Participants introduction
0800 - 0930   Introduction to Six Sigma concept
              Key Concepts
0930 - 0945   Tea / Coffee Break
0945 - 1200   Forms of waste
              What is Sigma
              Components of Six Sigma
1200 - 0100   Lunch Break
0100 - 0200   Selecting a Project
0200- 0300    Open session / Q&A

                                     QualityGurus.com
          Participants
          Introduction
•   Your Name
•   Department
•   Your job profile
•   Your exposure to Quality Management/ Six
    Sigma




                                 QualityGurus.com
        Ground Rules
• Program success depends on your participation. Actively
  participate.
• Please avoid cross-talks.
• Observe specified timings.
• Please keep your mobile phones switched off.
• Feel free to ask question at any point of time.
  - Restrict question to specific issue being discussed, while
  general
    questions can be discussed during Q & A session.
• Enjoy the program !

                                          QualityGurus.com
Introduction to Six Sigma




        Purpose of six sigma :
To make customer happier and increase profits



                                 QualityGurus.com
  Origin of Six Sigma

• 1987 Motorola Develops Six Sigma
  – Raised Quality Standards

• Other Companies Adopt Six Sigma
  – GE
    •Promotions, Profit Sharing (Stock Options), etc.
    directly tied to Six Sigma training.
  – Dow Chemical, DuPont, Honeywell,
    Whirlpool


                                     QualityGurus.com
                    Time Line


                                   Allied Signal
                                                               Johnson & Johnson,
                                                               Ford, Nissan,
                       Motorola
                                            General Electric   Honeywell

          1985            1987        1992         1995          2002



Dr Mikel J Harry wrote a
Paper relating early failures to
quality




                                                          QualityGurus.com
     Pilot’s Six-Sigma
       Performance
                               Width of landing
                                    strip       1/2 Width
                                                of landing
                                                   strip




If pilot always lands
within 1/2 the landing strip
width, we say that he has
Six-sigma capability.


                                           QualityGurus.com
          Current Leadership
              Challenges
•   Delighting Customers.
•   Reducing Cycle Times.
•   Keeping up with Technology Advances.
•   Retaining People.
•   Reducing Costs.
•   Responding More Quickly.
•   Structuring for Flexibility.
•   Growing Overseas Markets.



                            QualityGurus.com
  Six Sigma— Benefits?
• Generated sustained success
• Project selection tied to organizational
  strategy
   – Customer focused
   – Profits
• Project outcomes / benefits tied to
  financial reporting system.
• Full-time Black Belts in a rigorous,
  project-oriented method.
• Recognition      and     reward    system
  established to provide motivation.

                            QualityGurus.com
 Management involvement?
• Executives and upper management drive
  the effort through:
  – Understanding Six Sigma
  – Significant financial commitments
  – Actively selecting projects tied to strategy
  – Setting up formal review process
  – Selecting Champions
  – Determining strategic measures


                                    QualityGurus.com
Management Involvement?
• Key issues for Leadership:
  – How will leadership organize to support Six
    Sigma ? (6  council, Director 6 , etc)
  – Transition rate to achieve 6 .
  – Level of resource commitment.
  – Centralized or decentralized approach.
  – Integration with current initiatives e.g. QMS
  – How will the progress be monitored?


                                   QualityGurus.com
   What can it do?
Motorola:
  – 5-Fold growth in Sales
  – Profits climbing by 20% pa
  – Cumulative savings of $14 billion over 11
    years
General Electric:
  – $2 billion savings in just 3 years
  – The no.1 company in the USA
Bechtel Corporation:
  – $200 million savings with investment of
    $30 million
                                 QualityGurus.com
          GE Six Sigma
           Economics
(in millions)           6 Sigma Project Progress
  2500

  2000

  1500
                                                                                                   Cost
  1000                                                                                             Benefit

   500

      0
                1996              1998                2000
                                                                          2002
      Source: 1998 GE Annual Report, Jack Welch Letter to Share Owners and Employees - progress based upon
      total corporation cost/benef its attributable to Six Sigma.


                                                                           QualityGurus.com
   Overview of Six
       Sigma
                             CHANGE
        6 SIGMA AS A
                               THE
        PHILOSOPHY
                              WORLD

                          TRANSFORM THE
                           ORGANIZATION
        6 SIGMA AS
                             GROWTH
        A PROCESS


                             COSTS OUT
  6 SIGMA AS A
STATISTICAL TOOL
                       PAIN, URGENCY, SURVIVAL



                                   QualityGurus.com
     Overview of Six
         Sigma
                                        It is a Process
                                              – To achieve this level of
                                                 performance you need to:
It is a Philosophy                            Define, Measure, Analyse,
      – Anything less than ideal is              Improve and Control
         an opportunity for
         improvement
      – Defects costs money
      – Understanding processes
         and improving them is the
         most efficient way to      It is Statistics
         achieve lasting results          – 6 Sigma processes will
                                             produce less than 3.4
                                             defects per million
                                             opportunities


                                                  QualityGurus.com
     Philosophy
• Know What’s Important
  to the Customer (CTQ)
• Reduce Defects
  (DPMO)
• Center Around Target
  (Mean)
• Reduce Variation
  (Standard Deviation)

                          QualityGurus.com
Critical Elements

•   Genuine Focus on the Customer
•   Data and Fact Driven Management
•   Process Focus
•   Proactive management
•   Boundary-less Collaboration
•   Drive for Perfection; Tolerance for failure




                                 QualityGurus.com
        Data Driven
         Decision
               Y=         f(X)
    •   Y                  •   X1 . . . Xn
    •   Dependent          •   Independent
    •   Output             •   Input-Process
    •   Effect             •   Cause
                           •   Problem
    •   Symptom
                           •   Control
    •   Monitor

The focus of Six sigma is to identify and control Xs
                                    QualityGurus.com
  Two Processes
       DMAIC                 DMADV

• Existing Processes       • New Processes
                           • DFSS


   •   Define          •   Define
   •   Measure         •   Measure
   •   Analyze         •   Analyze
   •   Improve         •   Design
                       •   Verify
   •   Control


                               QualityGurus.com
Key Concepts




          QualityGurus.com
 COPQ (Cost of Poor
     Quality)
            - Inspection
            - Warranty
            - Scrap
            - Rework                       Traditional Quality Costs:
            - Rejects                      - Tangible
                                           - Easy to Measure


- More Setups
                                                  Hidden Costs:
- Expediting Costs
- Lost Sales                                      - Intangible
- Late Delivery                                   - Difficult to Measure
- Lost Customer Loyalty    - Lost Opportunities
- Excess Inventory
- Long Cycle Times         - The Hidden Factory
- Costly Engineering Changes



          Average COPQ approximately 15% of Sales


                                                  QualityGurus.com
         COPQ v/s Sigma
             Level
Cost of Quality % Sales




                          Sigma Level


                                        QualityGurus.com
   CTQ (Critical-To-
      Quality)
• CTQ characteristics for the process,
  service or process
• Measure of “What is important to
  Customer”
• 6 Sigma projects are designed to improve
  CTQ
• Examples:
  – Waiting time in clinic
  – Spelling mistakes in letter
  – % of valves leaking in operation

                                 QualityGurus.com
  Defective and Defect
• A nonconforming unit is a defective unit
• Defect is nonconformance on one of many
  possible quality characteristics of a unit that
  causes customer dissatisfaction.
• A defect does not necessarily make the unit
  defective
• Examples:
   – Scratch on water bottle
   – (However if customer wants a scratch free bottle, then
     this will be defective bottle)

                                       QualityGurus.com
  Defect Opportunity
• Circumstances in which CTQ can fail to
  meet.
• Number of defect opportunities relate to
  complexity of unit.
• Complex units – Greater opportunities of
  defect than simple units
• Examples:
  – A units has 5 parts, and in each part there are 3
    opportunities of defects – Total defect opportunities are
    5 x 3 = 15



                                        QualityGurus.com
       DPO (Defect Per
        Opportunity)
• Number of defects divided by number of
  defect opportunities
• Examples:
  – In previous case (15 defect opportunities), if 10 units
    have 2 defects.
  – Defects per unit = 2 / 10 = 0.2
  – DPO = 2 / (15 x 10) = 0.0133333




                                        QualityGurus.com
   DPMO (Defect Per Million
      Opportunities)
• DPO multiplies by one million
• Examples:
  – In previous case (15 defect opportunities), if 10 units
    have 2 defects.
  – Defects per unit = 2 / 10 = 0.2
  – DPO = 2 / (15 x 10) = 0.0133333
  – DPMO = 0.013333333 x 1,000,000 = 13,333

 Six Sigma performance is 3.4 DPMO

        13,333 DPMO is 3.7 Sigma
                                        QualityGurus.com
  Yield
• Proportion of units within specification
  divided by the total number of units.
• Examples:
  – If 10 units have 2 defectives
  – Yield = (10 – 2) x 100 /10 = 80 %
• Rolled Through Yield (RTY)
  – Y1 x Y2 x Y3 x ……. x Yn
  – E.g 0.90 x 0.99 x 0.76 x 0.80 = 0.54



                                        QualityGurus.com
Forms of Waste




           QualityGurus.com
     What are the forms of
           waste?
1.   Waste of Correction
2.   Waste of Overproduction
3.   Waste of processing
4.   Waste of conveyance (or transport)
5.   Waste of inventory
6.   Waste of motion
7.   Waste of waiting


                           QualityGurus.com
    1. Waste of correction
 • Repairing a defect wastes time and
   resources (Hidden factory)      Hidden
                                                Factory
              Rework                      Rework

               Failure                     Failure
            Investigation               Investigation


Operation                   Operation
                Test                        Test    Product
    1                           2

                                        QualityGurus.com
         2. Waste of
       Overproduction
• Producing more than necessary or
  producing at faster rate than required
  – Excess labor, space, money, handling




                                QualityGurus.com
 3. Waste of processing
• Processing that does not provide value to
  the product
  – Excess level of approvals
  – Tying memos that could be handwritten
  – Cosmetic painting on internals of equipment
  – Paint thickness more than specific values




                                 QualityGurus.com
 4. Waste of conveyance
• Unnecessary movement of material from
  one place to other to be minimized because
  -
  – It adds to process time
  – Goods might get damaged
• Convey material and information ONLY
  when and where it is needed.



                              QualityGurus.com
   5. Waste of inventory
• Any excess inventory is drain on an
  organization.
  – Impact on cash flow
  – Increased overheads
  – Covers Quality and process issues
• Examples
  – Spares, brochures, stationary, …



                                QualityGurus.com
     6. Waste of Motion
• Any movement of people, equipment,
  information that does not contribute value
  to product or service




                              QualityGurus.com
    7. Waste of Waiting
• Idle time between operations
• Period of inactivity in a downstream
  process because an upstream activity does
  not deliver on time.
• Downstream resources are then often used
  in activities that do not add value, or worst
  result in overproduction.



                               QualityGurus.com
    Some more sources of
           Waste
•   Waste of untapped human potential.
•   Waste of inappropriate systems
•   Wasted energy and water
•   Wasted materials
•   Waste of customer time
•   Waste of defecting customers



                              QualityGurus.com
What is Sigma?




           QualityGurus.com
  Have you ever…
• Shot a rifle?
• Played darts?



   What is the point of these sports?
     What makes them hard?


                           QualityGurus.com
  Have you ever…
• Shot a rifle?
• Played darts?

                         Jack




                                   Jill



      Who is the better shooter?
                           QualityGurus.com
             Variability
• Deviation = distance between
  observations and the mean (or                     8
  average)                                          7
                                                    10
                                                    8
            Observations         Deviations         9

                       10      10 - 8.4 = 1.6            Jack
                           9    9 - 8.4 = 0.6
                           8   8 - 8.4 = -0.4

                           8   8 - 8.4 = -0.4
                           7   7 - 8.4 = -1.4

 averages              8.4               0.0
                                                          Jill
                                                QualityGurus.com
             Variability
• Deviation = distance between
  observations and the mean (or
  average)


            Observations         Deviations
                                                         Jack
                           7   7 - 6.6 = 0.4
                           7   7 - 6.6 = 0.4
                           7   7 - 6.6 = 0.4
                                                   7
                           6   6 - 6.6 = -0.6      6
                           6   6 - 6.6 = -0.6      7
 averages             6.6                0.0       7
                                                   6      Jill
                                                QualityGurus.com
              Variability

• Variance = average distance
  between observations and the                                   8
  mean squared                                                   7
                                                                 10
                                                                 8
                                                                 9
            Observations     Deviations     Squared Deviations
                                                                      Jack
                      10   10 - 8.4 = 1.6                 2.56
                       9   9 – 8.4 = 0.6                  0.36
                       8   8 – 8.4 = -0.4                 0.16
                       8   8 – 8.4 = -0.4                 0.16
                       7   7 – 8.4 = -1.4                 1.96
 averages            8.4             0.0                   1.0
                                                                      Jill
                                                      QualityGurus.com
                                                       Variance
                 Variability

 • Variance = average distance
   between observations and the
   mean squared

           Observations     Deviations     Squared Deviations
                                                                    Jack
                      7    7 - 6.6 = 0.4                0.16
                      7    7 - 6.6 = 0.4                0.16
                      7    7 - 6.6 = 0.4                0.16
                                                                7
                      6   6 – 6.6 = -0.6                0.36    6
                      6   6 – 6.6 = -0.6                0.36    7
averages            6.6             0.0                 0.24    7
                                                                6    Jill
                                                          QualityGurus.com
                                                          Variance
             Variability
• Standard deviation =
  square root of
  variance
                                                Jack


       Average   Variance   Standard
                            Deviation
Jack   8.4            1.0           1.0
Jill   6.6           0.24    0.4898979
                                                 Jill



        But what good is a standard deviation
                                   QualityGurus.com
   Variability

The world tends to
be bell-shaped




 Even very rare   Fewer         Most         Fewer Even very rare
 outcomes are     in the      outcomes        in the  outcomes are
    possible       “tails”   occur in the     “tails”    possible
                  (lower)      middle        (upper)


                                            QualityGurus.com
       Variability

Here is why:   Even outcomes that are equally
               likely (like dice), when you add
               them up, become bell shaped




                                 QualityGurus.com
“Normal” bell shaped
      curve
Normal distributions are divide up
into 3 standard deviations on
each side of the mean

Once your that, you
know a lot about
what is going on




      And that is what a standard deviation
                   is good for
                                  QualityGurus.com
         Causes of
         Variability
• Common Causes:
   – Random variation within predictable range (usual)
   – No pattern
   – Inherent in process
   – Adjusting the process increases its variation

• Special Causes
   – Non-random variation (unusual)
   – May exhibit a pattern
   – Assignable, explainable, controllable
   – Adjusting the process decreases its variation



                                        QualityGurus.com
             Limits
• Process and Control limits:
   – Statistical
   – Process limits are used for individual items
   – Control limits are used with averages
   – Limits = μ ± 3σ
   – Define usual (common causes) & unusual (special
     causes)
• Specification limits:
   – Engineered
   – Limits = target ± tolerance
   – Define acceptable & unacceptable
                                     QualityGurus.com
  Usual v/s Unusual,
Acceptable v/s Defective
                            Another View
         Off-Target                        Large Variation



   LSL                USL                  LSL          USL




                              On-Target

    Center                                  Reduce
    Process                                 Spread

                LSL                        USL    LSL = Lower spec limit
                                                  USL = Upper spec limit


              The statistical view of a problem

                                           QualityGurus.com
        More about limits
                                                           Poor quality:
                                                           defects are
                                                           common (Cpk<1)
Good quality:
defects are                                                          μ
                                                                   target
rare (Cpk>1)
                        μ
                      target




                    Cpk measures “Process Capability”
If process limits and control limits are at the same location, Cpk = 1. Cpk ≥ 2 is exceptional.
                                                               QualityGurus.com
   Process capability

 Good quality: defects are rare (Cpk>1)
 Poor quality: defects are common (Cpk<1)
                  =
            USL – x
                    = 24 – 20 =.667
              3σ       3(2)
Cpk = min
             =
                     = 20 – 15 =.833
             x - LSL
                3σ      3(2)




                                       14        20        26
                =     =                     15        24
    3σ = (UPL – x, or x – LPL)

                                            QualityGurus.com
A Six Sigma Process –
 Predictably twice as good as what
        the customer wants

LSL                                                                   USL
              -6                                      +6
                                   6
                    1   1   1        1   1       1




      1   2   3      4    5    6         7        8    9     10 11   12
                                                      QualityGurus.com
                 3  v/s 6 

                                               6 Sigma curve

LSL                                                                 USL


              3 Sigma curve




 1    2   3      4    5       6   7   8   9   10   11 12 13    14   15    16

                                                   QualityGurus.com
          Process shift
            allowed
                       1.5 SD               1.5 SD

LSL                                                              USL

              SD = 1




 1    2   3     4      5   6    7   8   9   10   11 12 13   14    15   16
                                                 QualityGurus.com
          Six Sigma
         Measurement
                                Sigma


                                          7
                                     6
                                 5
                            4                                0.02
                        3                                           DPMO
                                                       3.4
On one condition :
Calculate the defects                            233
and estimate the                              6210
opportunities in the
same way...                              66810

                                                 QualityGurus.com
         Six Sigma
        Measurement
Sigma     Defects
numbers   per million
 1.5s     500,000
 2.0s     308,300
 2.5s     158,650
 3.0s      67,000
 3.5s      22,700
 4.0s       6,220
 4.5s       1,350
 5.0s         233
 5.5s          32
 6.0s          3.4



                        QualityGurus.com
Components of Six Sigma




                QualityGurus.com
    Components

Two components of Six Sigma

  1. Process Power

      2. People Power

                  QualityGurus.com
Process Power




                QualityGurus.com
              P-D-C-A


         Act                 Plan
                A       P
Act on what                  Plan the change
was learned

      Check      C      D   Do
 Check the results          Implement the
                            change on a small
                            scale.

                             QualityGurus.com
Approach
     Practical
     Problem


     Statistical
      Problem


     Statistical
      Solution


     Practical
     Solution



                   QualityGurus.com
   DMAIC - simplified
• Define
  – What is important?
• Measure
  – How are we doing?
• Analyze
  – What is wrong?
• Improve
  – Fix what’s wrong
• Control
  – Ensure gains are
    maintained to guarantee
    performance

                              QualityGurus.com
  DMAIC approach

  D       Identify and state the practical problem
Define


          Validate the practical problem by collecting data
  M
Measure
          Convert the practical problem to a statistical one, define
  A       statistical goal and identify potential statistical solution
Analyze

   I      Confirm and test the statistical solution
Improve

  C       Convert the statistical solution to a practical solution
Control
                                                QualityGurus.com
          Define

  D       VoC - Who wants the project and why ?
Define


  M       The scope of project / improvement (SMART Objective)
Measure

  A       Key team members / resources for the project
Analyze

   I
Improve   Critical milestones and stakeholder review


  C
Control   Budget allocation
                                          QualityGurus.com
          Measure

  D        Ensure measurement system reliability
Define
           - Is tool used to measure the output variable flawed ?


  M
Measure

  A        Prepare data collection plan
Analyze    - How many data points do you need to collect ?
           - How many days do you need to collect data for ?
           - What is the sampling strategy ?
   I
Improve    - Who will collect data and how will data get stored ?
           - What could the potential drivers of variation be ?

  C
Control    Collect data
                                               QualityGurus.com
          Analyze

  D
Define
           How well or poorly processes are working compared with
             - Best possible (Benchmarking)
  M          - Competitor’s
Measure

  A        Shows you maximum possible result
Analyze

           Don’t focus on symptoms, find the root cause
   I
Improve

  C
Control
                                        QualityGurus.com
          Improve

  D        Present recommendations to process owner.
Define
           Pilot run
           - Formulate Pilot run.
  M
Measure    - Test improved process (run pilot).

  A        - Analyze pilot and results.
Analyze
           Develop implementation plan.

   I       - Prepare final presentation.
Improve
           - Present final recommendation to Management Team.
  C
Control
                                           QualityGurus.com
          Control

  D       Don’t be too hasty to declare victory.
Define


  M
Measure

  A
Analyze   How will you maintain to gains made?
          - Change policy & procedures
   I      - Change drawings
Improve
          - Change planning
          - Revise budget
  C
          - Training
Control
                                         QualityGurus.com
    Omitting a step in
     Step
          DMAIC?
            Consequences if the step is omitted
1. Define
2. Measure
3. Analyze
4. Improve
5. Control




                               QualityGurus.com
              Tools for DMAIC

   Define               Measure              Analyze                   Improve             Control
What is wrong?         Data & Process       When and where              How to get          Display
                         capability         are the defects            to six sigma       key measures




 Benchmark             7 Basic Tools       Cause & Effect           Design of       Statistical Controls
 Baseline              Defect Metrics       Diagrams                  Experiments      Control Charts
 Contract / Charter    Data Collection,    Failure Models &         Modelling        Time Series
 Kano Model             Forms, Plan,        Effect Analysis          Tolerancing       Methods
 Voice of the           Logistics           Decision & Risk          Robust Design   Non Statistical
  Customer              Sampling             Analysis                 Process Map     Controls
 Quality Function       Techniques          Statistical Inference                      Procedure
  Deployment                                 Control Charts                              adherence
 Process Flow Map                           Capability                                 Performance
 Project                                    Reliability Analysis                        Mgmt
  Management                                 Root Cause                                 Preventive activities
 “Management by                            Analysis                                     Poke yoke
   Fact” – 4 What’s                          5 Why’s
                                             Systems Thinking



                                                                              QualityGurus.com
              Components
 Two components of Six Sigma

                  1. Process Power


            2. People Power
Tell me, I forget. Show me , I remember. Involve me, I understand.

                                                       QualityGurus.com
              6  Training
                             Mentor, trainer, and coach of Black Belts and others
                Master       in the organization.
                Black
                 Belt

                                  Leader of teams implementing the six sigma
              Black Belts         methodology on projects.
Champions




                                    Delivers successful focused projects using
                                    the six sigma methodology and tools.
             Green Belts



            Team Members /               Participates on and supports the
                                         project teams, typically in the
              Yellow Belts               context of his or her existing
                                         responsibilities.


                                           QualityGurus.com
         Six Sigma
        Organization                           Master
                                               Black
                                                Belt
                           Champion

          Black       Black                      Black
           Belt        Belt                       Belt

Green     Green        Green          Green        Green
 Belt      Belt         Belt           Belt         Belt

                  Yellow                                   Yellow
                   Belt                                     Belt

                  Yellow                                   Yellow
                   Belt                                     Belt




                                              QualityGurus.com
                  6  Training
Position in Six Sigma                Typical Training                                     Expected Role
    Organisation                                                                          Post Training

     Senior                       Executive overview
                                      2/3 Days                                         Provide Leadership
   Executives

                                   Champions           Champions
  Champions /
Process owners
                                   Training - I    +   Training –II
                                                                                       Process Mgmt. &
                                                                                       Project
                                     2 days              3 days
                                                                                       champion
                                            (Total 5 days)


                                                                        Training /    Master Black-Belt
                                                                       Facilitation   -As Trainer
                        Week       Week     Week       Week
   Black-Belt                                                             skills      -Coach teams
                         1          2        3          4                             -Facilitate
                                                                                      improvement projects
                                     Black-Belt                       Project-work

                                                                                           of project teams
                                                                                      - Part
                                                                                       - Sometime lead the
   Green Belt                  1 Week Green-Belt Training             Project work            teams
                                                                                         - Generalprocess
   Employees                   1 / 2 Days core training on                                   control &
  (Yellow-Belt)                         Six-Sigma                                          improvement
                                                                                          - Project Team
                                                                                              Member

                                                                         QualityGurus.com
       Champion
• Plans improvement projects
• Charters or champions chartering process
• Identifies, sponsors and directs Six Sigma
  projects
• Holds regular project reviews in
  accordance with project charters
• Includes Six Sigma requirements in
  expense and capital budgets

                             QualityGurus.com
        Champion
• Identifies and removes organizational and
  cultural barriers to Six Sigma success.
• Rewards and recognizes team and
  individual accomplishments (formally and
  informally)
• Communicates leadership vision
• Monitors and reports Six Sigma progress
• Validates Six Sigma project results
• Nominates highly qualified Black Belt
  and/or Green Belt candidates QualityGurus.com
  Master Black Belt
             Roles                             Responsibilities
- Enterprise Six Sigma expert      - Highly proficient in using Six Sigma
- Permanent full-time change methodology to achieve tangible business
  agent                              results.
- Certified Black Belt with - Technical expert beyond Black Belt level
  additional specialized skills or on one or more aspects of process
  experience especially useful in improvement (e.g., advanced statistical
  deployment of Six Sigma analysis,                  project     management,
  across the enterprise              communications, program administration,
                                     teaching, project coaching)
                                   - Identifies high-leverage opportunities for
                                     applying the Six Sigma approach across
                                     the enterprise
                                   - Basic Black Belt training
                                   - Green Belt training
                                   - Coach / Mentor Black Belts

                                                     QualityGurus.com
           Black Belt
              Roles                              Responsibilities
- Six Sigma technical expert         - Leads          business          process
- Temporary, full-time change          improvement projects where Six
  agent (will return to other duties   Sigma approach is indicated.
  after completing a two to three - Successfully completes high-impact
  year tour of duty as a Black         projects that result in tangible benefits
  Belt)                                to the enterprise
                                     - Demonstrated mastery of Black Belt
                                       body of knowledge
                                     - Demonstrated proficiency at achieving
                                       results through the application of the
                                       Six Sigma approach
                                     - Coach / Mentor Green Belts
                                     - Recommends        Green      Belts    for
                                       Certification


                                                     QualityGurus.com
         Green Belt
            Roles                         Responsibilities
- Six Sigma Project originator      - Recommends Six Sigma projects
- Part-time Six Sigma change - Participates on Six Sigma project
  agent. Continues to perform         teams
  normal duties while participating - Leads Six Sigma teams in local
  on Six Sigma project teams          improvement projects
- Six Sigma champion in local
  area




                                             QualityGurus.com
              Yellow Belt
            Roles                         Responsibilities
- Learns and applies Six Sigma - Actively participates in team tasks
  tools to projects            - Communicates well with other team
                                 members
                               - Demonstrates basic improvement tool
                                 knowledge
                               - Accepts and executes assignments as
                                 determined by team




                                             QualityGurus.com
   Financial Analyst
• Validates the baseline status for each
  project.
• Validates the sustained results / savings
  after completion of the project.
• Compiles overall investment vs. benefits
  on Six Sigma for management reporting.
• Will usually be the part of Senior
  Leadership Team.

                              QualityGurus.com
Thought of the day

• We don't know what we don't know
• We can't act on what we don't know
• We won't know until we search
• We won't search for what we don't
  question
• We don't question what we don't measure
• Hence, We just don't know

                            QualityGurus.com
Project Selection




 The first step to implement Six Sigma
                             QualityGurus.com
Sources of Projects

• External Sources:
  – Voice of Customer
    • What are we falling short of meeting customer
      needs?
    • What are the new needs of customers?
  – Voice of Market
    • What are market trends, and are we ready to
      adapt?
  – Voice of Competitors
    • What are we behind our competitors?
                                    QualityGurus.com
 Sources of Projects
• Internal Sources:
  – Voice of Process
     • Where are the defects, repairs, reworks?
     • What are the major delays?
     • What are the major wastes?
  – Voice of Employee
     • What concerns or ideas have employees or
       managers raised?
     • What are we behind our competitors?


                                      QualityGurus.com
    Project Selection
• As a team List down at least 20 improvement
  projects related to your work areas …….


  A Problem Statement should be SMART:

   Specific - It does not solve world hunger
   Measurable - It has a way to measure success
   Achievable - It is possible to be successful
   Relevant - It has an impact that can be quantified
   Timely - It is near term not off in the future

                                        QualityGurus.com
Harvesting the Fruit of Six
         Sigma

                                                       Sweet Fruit
                                                       Design for Repeatability
                                                       Process Enhancement



                                                       Bulk of Fruit
                                                       Process Characterization
                                                       and Optimization

   -- --- --- --- --- --- --- --- --- --- --- --- -

                                                      Low Hanging Fruit
                                                      Seven Basic Tools

   -- --- --- --- --- --- --- --- --- --- --- --- -

                                                      Ground Fruit
                                                      Logic and Intuition

                                                           QualityGurus.com
   Types of Savings

• Hard Savings:
  – Cost Reduction
    • Energy Saving
    • Raw Material saving
    • Reduced Rejection, Waste, Repair
  – Revenue Enhancement
    • Increased production
    • Yield Improvement
    • Quality Improvement


                                    QualityGurus.com
    Types of Savings
• Hard Savings:
  – Cash flow improvement
    • Reduced cash tied up in inventory
    • Reduced late receivables, early payables
    • Reduced cycle time
  – Cost and Capital avoidance
    • Optimizing the current system / resources
    • Reduced maintenance costs




                                     QualityGurus.com
    Types of Savings

• Soft Savings:
  – Customer Satisfaction / Loyalty
  – Employee Satisfaction




                                  QualityGurus.com
  Cost of implementing
• Direct Payroll
  – Full time (Black Belts, Master Black Belts)
• Indirect Payroll
  – Time by executives, team members, data
    collection
• Training and Consulting
  – Black Belt course, Overview for Mgmt etc.
• Improvement Implementation Costs
  – Installing new solution, IT driven solutions etc.
                                     QualityGurus.com
  What Qualifies as a
  Six Sigma Project
• Three basic qualifications:
  – -There is a gap between current and desired
    / needed performance.
  – The cause of problem is not clearly
    understood.
  – The solution is not pre-determined, nor is
    the optimal solution apparent.

       How many projects out of 20 now
         qualify as Six sigma projects?

                                 QualityGurus.com
     Way forward


• Get Started
• Look for low hanging fruits
• Even poor usage of these tools will get
  results
• Learn more about Six Sigma



                             QualityGurus.com

								
To top