What is Six Sigma?

THE KILLING OF THE LOCUSTS - BRUTE FORCE At the height of Mao Zedong’s cultural revolution in China, the fields of one Chinese village were being attacked by swarms and swarms of locusts. Seeing their crops decimated, the villagers turned to Mao’s little red book for guidance on how to get rid of this plague. They searched in vain. Nothing the great helmsman wrote seemed to fit until they came upon a piece of sound of advice. Mao wrote that in the absence of any directive, people should devise their own solutions! That inspired the villagers to round up all able-bodied people and dispatch them to the fields to kill the locusts by hand, one by one. For seven days, hundreds of them labored long and hard until all the locusts lay dead. Had the same problem arises today, a few bags of insecticides would have done the job in one hour! 1 Six Sigma Program What does Sigma (s) mean? Sigma (s) is  Letter from the Greek Alphabet Mean s s  Originally developed by Motorola, adopted and enhanced by Honeywell and GE  Highly structured approach to process improvement  A strategy  Statistical measure of variation from the mean.  Metric that indicates how well that process is performing.  Measures the capability of the process to perform defect-free work.  A discipline - DMAIC 6s The Sigma value indicates how often defects are likely to occur in a process 1 What Is Six Sigma?  Two meanings  Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO)  A program designed to reduce defects, lower costs, and improve customer satisfaction Sigma Level & Cost of Failure Relationship COST OF FAILURE ( % of Sales ) 30 25 20 15 10 5 Cost Of Poor Quality (COPQ) Problems (Rejects) = Money Lost Cost of Doing Things Wrong Price of Non-Conformance  Internal Cost  External Cost Php 300 Million + Cost to Ensure Doing Things Right Price of Conformance  Internal Cost  External Cost 3 SIGMA LEVEL 233 6,210 66,807 308,537 500,000 Defects per Million 6 5 4 3 2 1 A Php 80 Mio Cost Reduction Opportunity Metric of Quality Manufacturing Example Steel Rolling Mill Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Sheet Thickness is a CTQ (Critical to Quality Parameter) Nominal Thickness Customers are expecting 1000 µm but will allow some variation within the Spec Range = 1000 mm Nominal Thickness Minimum Spec Maximum Spec = 950 mm = 1050 mm No Less Than 1000 µm No More Than 950µm 1050µm Scrap Production averages 100 meter / Coil 2 Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Steel Strip Thickness Actual Micrometer Measurements Steel Strip Thickness Scrap Scrap No Less Than No More Than No Less Than No More Than 950mm 1050mm 950µm 1050µm Quite some Variation -Ending up as Scrap Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Standard Deviation Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Standard Deviation 25µm Let’s Look at some Basic Statistics Mean Thickness = 993 µm Standard Deviation = 25 µm 25µm How Capable is our Process to Produce within Spec? Sigma Rating = Spec Width / 2* SD = 100 / 50 Mean Thickness Spec Width (1050-950) 993µm 100µm = 2 On Average it’s OK - it’s a Variation issue 3 Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Standard Deviation Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit 25µm Reducing Variation is Clearly the Key to Improving Process Capability Reducing Variation is Clearly the Key to Improving Process Capability Spec Width Spec Width (1050-950) 100 µm Std Dev 25 µm 100µm 2s Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Reducing Variation is Clearly the Key to Improving Process Capability Spec Width Reducing Variation is Clearly the Key to Improving Process Capability Spec Width 100 µm Std Dev 17 µm 3s 100 µm Std Dev 12 µm 4s 4 Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Reducing Variation is Clearly the Key to Improving Process Capability Spec Width Reducing Variation is Clearly the Key to Improving Process Capability Spec Width 100 µm Std Dev 8 µm 100 µm Std Dev 10 µm 5s 6s Scrap Production is significantly reduced - but by how much? Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Lower Specification Limit Upper Specification Limit Metric of Quality Manufacturing Example - Steel Strip Thickness 2s Spec Width 100 Standard Deviation 25 Sigma Level 2 DPMO % In Spec 69.1 308,500 6 Sigma Lingo Unit : Each Measurement Defect : Measurement out of Spec Defect Opportunities per Unit :1 Spec Width 100 3s Standard Deviation 25 17 Sigma Level 2 3 DPMO % In Spec 69.1 93.3 308,500 66,800 100 6 Sigma Lingo Unit : Each Measurement Defect : Measurement out of Spec Defect Opportunities per Unit :1 Quality expressed as DPMO ( Defects per Million Opportunities) Quality expressed as DPMO ( Defects per Million Opportunities) 5 Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Lower Specification Limit Upper Specification Limit Metric of Quality Manufacturing Example - Steel Strip Thickness 4s Spec Width 100 100 100 Standard Sigma Deviation Level 25 17 12 2 3 4 DPMO % In Spec 69.1 93.3 99.4 308,500 66,800 6,200 6 Sigma Lingo Unit : Each Measurement Defect : Measurement out of Spec Defect Opportunities per Unit :1 Quality expressed as DPMO ( Defects per Million Opportunities) 5s Spec Width 100 100 100 100 Standard Sigma Deviation Level 25 17 12 10 2 3 4 5 DPMO % In Spec 69.1 93.3 99.4 99.98 308,500 66,800 6,200 233 6 Sigma Lingo Unit : Each Measurement Defect : Measurement out of Spec Defect Opportunities per Unit :1 Quality expressed as DPMO ( Defects per Million Opportunities) Metric of Quality Manufacturing Example - Steel Strip Thickness Lower Specification Limit Upper Specification Limit Lower Specification Limit Upper Specification Limit Metric of Quality Manufacturing Example - Steel Strip Thickness 6s Spec Width 100 100 100 100 100 Standard Sigma Deviation Level 25 17 12 10 8 2 3 4 5 6 DPMO % In Spec 69.1 93.3 99.4 99.98 99.9997 308,500 66,800 6,200 233 3 6 Sigma Lingo Unit : Each Measurement Defect : Measurement out of Spec Defect Opportunities per Unit :1 Quality expressed as DPMO ( Defects per Million Opportunities) Spec Width 100 100 100 100 100 6s Standard Sigma Deviation Level 25 17 12 10 8 2 3 4 5 6 DPMO % In Spec 69.1 93.3 99.4 99.98 99.9997 308,500 66,800 6,200 233 3 6 Sigma Lingo Unit : Each Measurement Defect : Measurement out of Spec Defect Opportunities per Unit :1 Quality expressed as DPMO ( Defects per Million Opportunities) 6 Metric of Quality Process Capability needs to be Better than you think ! Activity Mail Delivery Drinking Water Hospital Surgery Air Travel Defects @ 99% ( 3.8 Sigma ) 20,000 lost articles of mail per hour Unsafe drinking water for 15 mins per day 5000 incorrect procedures per week 2 abnormal landings at most airports each day Defects @ 99.9997% ( 6 Sigma ) 7 lost articles of mail per hour Unsafe drinking water for 2 mins per year 2 incorrect procedures per week 1 abnormal landing every 5 years Method/Tool for Improvement SIX SIGMA IMPROVEMENT MODEL D M AI C Define Measure Analyze Improve Control Sometimes 99% is just not good enough Six Sigma 1. Define critical outputs and identify gaps for improvement 2. Measure the work and collect process data 3. Analyze the data 4. Improve the process 5. Control the new process to make sure new performance is maintained DMAIC Approach Method/Tool for Improvement SIX SIGMA IMPROVEMENT MODEL D M ADV Define Measure Analyze re-Design Verify 7 SUPPLIERS CUSTOMERS SIX SIGMA ASSOCIATES GREEN BELTS BLACK BELTS MASTER BLACK BELTS Leaders of Change Picker of Low Hanging Fruits Key to Culture Change Consistent Executioner Leadership Growth Quality Program 6s The Six Sigma Players CHAMPIONS EXECUTIVE LEADERSHIP Supporter & Balancer of the Pyramid “Foundation of Success” Metaphor for the support 6s needs to succeed SIX SIGMA MASTER BLACK BELTS EXECUTIVE LEADERSHIP  Possess internal will and executive commitment that lays the foundation of success SIX SIGMA CHAMPIONS  SENIOR CHAMPION  Executive leader of a business, who selects individual who will champion Six Sigma within the business  Ensure that all the key functions of the organization is connected to six sigma.  PROJECT CHAMPION  Must have key executive leadership roles in the business.  Lead the initialization, deployment and implementation of six sigma.  Oversee Black belts and focus on Six Sigma at the project level.  Break down barriers, create support system & make sure financial resources are available.  DEPLOYMENT CHAMPION  Full time and plays a major role in terms of leadership and commitment.  Responsible in the Six Sigma Program’s Strategy for deployment and implementation.  Able to develop business wide focus in terms of six sigma results.  Responsible for the continuous improvement & education in six sigma program. Champions are the “FORCES” that keeps the initiative moving forward      Full time individual selected by Champions to act as in-house experts in Six Sigma. Work with Champions to coordinate project selection and training. Train and coach Black Belts and Green Belts. Help inculcate Six Sigma into an organization’s culture. Responsible for creating lasting changes in an organization in terms of six sigma aspects. SIX SIGMA BLACK BELTS            Leaders of teams responsible for measuring,analyzing, improving & controlling key processes. Train and coach Green Belts and Six Sigma Associates Knowledgeable and practitioner of six sigma tools. Change agent and pivotal in to Six Sigma Success. They identify and execute projects. Must possess management and technical skills. Employees throughout the organization who execute Six Sigma as part of their job. Focused on projects that tie directly to their day to day work. Help deploy the success of six sigma technique. Lead small scale Six Sigma projects within their respective area. Train and Coach Six Sigma Associates. SIX SIGMA GREEN BELTS 8 SIX SIGMA ASSOCIATES Six Sigma Implementation  Emphasize defects per million opportunities as a standard metric     Hourly workers that are trained in the fundamentals of six sigma. Assist Black belts and Green Belts in the execution of projects. “White Belts” - newcomers to the Six Sigma Infrastructure. Multiplier of Six Sigma Success. “The long-term objective of any company wanting to successfully implement the Six Sigma program is to train all its employees in such a way that they make the methodology integral to improving everything they do.” Mikel Harry  Provide extensive training  Focus on corporate sponsor support (Champions)  Create qualified process improvement experts (Black Belts, Green Belts, etc.)  Set stretch objectives This cannot be accomplished without a major commitment from top level management 9