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Six Sigma By Daniel Wu Ford Lio Ho Motor Company 天马行空官方博客:/tmxk_docin ;QQ:1318241189;QQ群:1755696321 Outline qQuality level qWhat is Six sigma? qWhy we need Six sigma? qDevelopment and Deployment strategy qHow Six sigma merges into our daily business? 天马行空官方博客:/tmxk_docin ;QQ:1318241189;QQ群:1755696322 Overview-Four Quality Gurus uHistorically companies have focused on quality issues for customer satisfaction uPrior to six sigma there were four key quality gurus that most companies quality programs followed uDeming uJuran uCrosby uTaguchi 3 Deming Deming taught: Importance of understanding variation in work processes Role of management in leading for quality Application of statistics Plan-Do-Check-Act 4 Demings Contribution to Profitability EXTERNAL INTERNAL CUSTOMER SATISFACTION MARKET SHARE PROFIT PRODUCTIVITY QUALITY -Better products & services -Improved processes -Compete with value PRICE -Compete with Price -Decreased cycle time -Eliminate set-up times COST -Opportunity for profit PRODUCT QUALITY PROCESS QUALITY -Reduce rework -Eliminate in-process inspection -Reduce scrap -Increase product life -Eliminate incoming testing PlanDo CheckAct 5 Juran Juran taught: Breakthrough performance Pareto effect Importance of management principles Quality by design and planning 6 Jurans Contribution Planning Cost of Poor Quality (Percent of operating costs) Production Begins Original zone of process control New zone of process control 0 20 40 0 Control Time Improvement Lessons Learned Sporadic spike from observed problem Chronic Waste (an opportunity for improvement) Control Special cause variation Common cause variation 7 Crosby Crosby taught: Customer requirement is performance standard Quality maturity is a journey Preventive action as basic approach 8 Taguchi Taguchi taught: Cost of poor quality is loss to society as a whole Robust quality is designed for consistent production Design control is more important than production control 9 Taguchis Contribution Lower Specification LimitUpper Specification LimitNominal Value Region of Customer Complaints Region of Customer Complaints Region of Questionable Performance Region of Questionable Performance Region of Specified Performance Mean Lower Control Limit Upper Control Limit Region of Desired Performance Cos t 10 What Are the Limits to Improvement? 2 Sigma3 Sigma4 Sigma5 Sigma6 Sigma Basic Quality Tools Statistical Tools Design for Six Sigma (DFSS) Basic Tools WallDesign Wall Clean Sheet 11 Challenge in the millennium Question confronting business leaders and managers: It is not: “How do we succeed?” Its: “How do we stay successfully?” 12 Change “It is not the strongest that survive, nor the fittest, but those most able to adapt to change.” Charles Darwin The Origin of Species “People do not resist change, people resist being changed.” Beckhard 13 Challenge uResistance-the universal reaction to change. uTechnical resistance uPolitical resistance uOrganizational resistance uIndividual resistance 14 Six Sigma? uSix Sigma is not a business fad tied to a single method or strategy, but rather a flexible system for improved business leadership and performance. uIt is not about theory, its about action. 15 Passion + Execution = Fast and Lasting Results Six Sigma Focus uDelighting the customer through flawless execution uRapid breakthrough improvement uAdvanced breakthrough tools that work uPositive and deep culture change uReal financial results that impact the bottom line Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error (Distribution Shifted 1.5s) 2308,537 366,807 46,210 5233 63.4 s PPM Process Capability Defects per Million Opp. Six Sigma corresponds to parts per billion if process is centered Six Sigma - Goal 3 Sigma 6 Sigma 5 Sigma 4 Sigma 93.32 % 99.379 % 99.9767 % 99.99966 % Historical Current Intermediate Long-term SigmaLong-Term YieldStandard Six Sigma - Performance Target To Produce Improved Rolled Throughput Yield, Defects Per Unit, & Defects Per Million Opportunity Reduced Cost of Poor Quality (COPQ) Improved Capacity and Productivity Reduced Variation In Our Processes / Products $s A Problem Solving Methodology Characterize Optimize Breakthrough USL T LSL USL T LSL T USL LSL USLLSL The Strategy Customer Focused - Both Internally & Externally Which Business Function Needs It? As long as there is a process that produces an output whether it is a manufactured product, data, an invoice, etc. we can apply the Six Sigma Breakthrough Strategy. For these processes to perform to a customer standard they require correct inputs! 6 Sigma Methods MFG DESIGNSERVICE ENG MAINT. ADMIN. QA PURCH. Data is derived from objects, situations, or phenomenon in the form of measurements. Data is used to classify, describe, improve, or control objects, situations, or phenomenon. 1. We only use experience, not data. 2. We collect data, but just look at the numbers. 3. We group the data so as to form charts and graphs. 4. We use census data with descriptive statistics. 5. We use sample data with descriptive statistics. 6. We use sample data with inferential statistics. Levels of Analysis: What level are we? The Foundation of the Six Sigma Tools The Role of Six Sigma Six sigma is the best means to realize the philosophy, values, and goals associated with your business initiatives. Region BA 6 Linking Pins Business Area Initiatives It unifies the initiatives and provides a common language which all people can understand and speak. 23 How Do We Improve Capability Our Outputs (Ys) are determined by our Inputs (Xs). If we know enough about our Xs we can accurately predict Y without having to measure it. If we dont know much about our Xs, then we have to resort to inspection and test (non value added operations). By knowing and controlling the Xs, we reduce the variability in Y, which decrease the number of defects, improves RTY, cycle time, etc. We can also eliminate or reduce inspection, test, and rework. The Sources of Six Sigma Quality by controlling.by designing. Continuously Reduce Process Variability Tighter Upper & Lower Limits Target values Lower Limits 1. Design best target for performance 2. Design system values to reduce variability of performance - - - Attractive Implicit Waste Expressed Q1. If provided would you be. .indifferent?.happy? Q2. If not provided. .indifferent? .unhappy? Q3. If not provided. .indifferent? .unhappy? - - - - - - - - - by listening. .to what the customer says he/ she wants .performance tolerant to real world .process variability, not by inspection of defective output 25 Developing and Reinforcing Values Cycle of Refinement VALUES BEHAVIOR ATTITUDESCULTURE 26 The Role of Leadership New Questions New Values New Measures Leadership(Humility/Listening) New Behaviors 27 Leadership plays the role uValues are a function of behaviors uMeasuring the right things is key uChange must be supported and driven from the top uWill is a key element for a successful deployment 28 Why are we here? “There is a recognition that leadership needs to be a key component of Consumer Driven 6-Sigma within any organization trying to undertake 6-Sigma deployment.” Mikel Harry / Richard Schroeder 29 Whats In It For Me? “ the best statistical analysis in the world is useless if those handling the information are paralyzed by corporate fear. When data suggests one direction but corporate culture or convention dictates another, fear can rule and the potential for change is lost. Only strong leadership can eradicate the fear factor and allow an organization to realize its potential. Statistics alone cannot achieve breakthrough.” Mikel Harry / Richard Schroeder 30 Define Future State Leadership in Six Sigma Orientation Present State Future State PTS Leadership Skills Business Basics Project Management Personal Development PTSPTSPTSPTS DEFINEMEASUREANALYZEIMPROVECONTROL DefinePlanManageClose Team Management Team Development Meeting Facilitation Team Management Develop Transition Plan Change Management Analyze Present State 31 Six sigma structure uStrategy Consumer-driven, focus on product, process, and service. uOrganizationAll-function involvement and Personal Development. uPolicyCompany-wide engagement, HR,IT,and Finance support. uManagementProject, Team, and Change Management. 32 Deployment Structure Master Black Belts (Full-Time) Project Champions (Part-Time) Black Belts (Full-Time) Green Belts (Part-Time) Executive Leadership (Part-Time) Deployment Directors (Full/Part-Time) 33 6s Project Champions 6s Deployment Champion(s) SM Business Unit Leader CEO Corporate 6s Senior Champion SM HR Deployment Champion SM IT Deployment Champion SM Finance Deployment Champion SM PR Deployment Champion SM Business Operations Leaders 6s HR Manager 6s Financial Manager Green Belts SM 6s IT Manager Training Deployment Champion SM 6s Master Black Belts SM 6s Comm. Manager 6s Training Manager 6s Project Champions SM 6s Black Belts SM 6s Deployment Infrastructure 6s Executive Council Six Sigma Deployment Roles 34 Phase ICascading uEstablish deployment structure uExecutive, top management, champion awareness training uBlack Belt training uTools implementation training uLeadership training 35 Phase IIAccelerate development uDeployment structure implementation and disposition in each function. uEvery salary is GB. uBegin to implant into current quality system. uISO14000 and QS9000 integration. 36 Phase IIIIntegration uImplant six sigma methodology in other quality tools uPartnership with other quality system. uSix sigma training to supplier and franchise. uSix sigma in daily business. uDFSS(Design for Six Sigma). uBB/MBB in leadership position. 37 It is All about Value The Customer Value Proposition Defines Business Strategy uCustomers choose to buy from us because. uInvestors entrust their money to us because. uEmployees choose to work for us because. 38 Three Customer Value Proposition Strategies uProduct differentiation uOperational excellence uCustomer partnerships Competitive advantage! 39 Consumer v.s. Producer uCustomers higher expectation uDefect-free quality uProduct uService uProducer -planning for changes to meet customer requirements. uStrategic: changing the way every level of a business is managed on a daily basis. uTactical: six sigma methodology and cross-functional. uCultural: out of box thinking, everyone involved and common language is data. Customers want to purchase high quality products and services at the lowest cost, just as companies want to produce high quality goods and services at the lowest possible cost. 40 Maximizing Customer Value Deriving value from the Need - Do Interaction Model NeedDo Customers and suppliers exchange value through the Need-Do interaction. CustomerSupplier Interaction 41 Value-Capturing the voice of Customers uPartial Kano Analysis Degree of Achievement Customer Satisfaction Surprise: “Ergonomically Delighting” Desire: “Operate Quietly” Necessities: “Doesnt Fail Mechanically” “Doesnt Fail Electrically” “Is Durable” Basic Quality Performance Quality Excitement Quality 42 Business initiatives Delivery Cost Customer requirements Quality When we say something is a CTQ, can we describe it from Customers perspective? Our perspective? Can we demonstrate the relationship? PRODUCT QUALITY SHIPMENT ACCURACY CONDITION FILL RATE/ ON-TIME DELIVERY ORDER SERVICE/ INFORMATION PROFITABLE CUSTOMER GROWTH Customer Satisfaction 43 Building the relationship Internal Others External Segment Databases from VOC Data extraction & transformation Departmental data mart Intelligence reports for projects Correlation analysis 44 Data transformation uWhat should we do to make it easily accessible as information to managers and subordinates? uWhat sort of analysis can we conduct? uHow does that analysis add value? uHow can we further extend the value of our data analysis? 45 Opportunity and alternative uFocus on the best opportunities uStratify to define target arenas uDefine real options uBuild a portfolio of opportunities to pursue uMeet customer requirements by running the business as we do? uOr need to change to get prodigious improvement? Six sigma? 46 Consumer-driven six sigma uRequires consumer strategy, product strategy, and infrastructure strategy and link them inextricably together. uConducts business through the consumers eyes and shares unfiltered insight within the enterprise. uCreates a compelling consumer experience and innovates services as well as products. uAdds value in the eyes of the consumer. uIntegrates the product and information. 47 Transforming Customer Feedback Into SAQ and then Six sigma Projects Single Agenda for Quality and Customer Satisfaction Top 25 issues Develop Actionable Projects Identify Generic Critical Xs High Mileage DFSS New Product Content Measure and Monitor Critical Xs Identify Critical Xs Out of Specification Develop Action to Restore Critical Xs MBB Action VRT (Process owner) Black Belt Project Leader FPS & Plant OperationsFPS & Plant Operations QOS DMAIC Green Belt Projects 48 Consumer Driven 6-Sigma offers a structured problem solving methodology to achieve break-through improvements by systematically identifying root causes and eliminating them using an integrated set of statistical tools, problem solving techniques, data, and disciplines. Six Sigma in process improvement Improve Control Define Measure Analyze Modify Design? No Yes Redesign 49 Six Sigma Mindset Define Measure Analyze Improve Control What does the customer want? What is the defect we want to reduce? Are we sure we can trust the data? What does the data tell us? What are the main influencing factors? Does the data confirm this? What are we going to change? Is improvement tangible and optimal? How are we going to maintain the improvement forever? How to cascade feedback to system? Jonathan Holbrook 6 Sigma Deployment 50 DEFINE PROBLEM / ISSUE Strategy Prevent defect(s) Eliminate defect(s) CHARACTERIZE DEFINE OPTIMIZE VERIFY MEASURE ANALYZE IMPROVE CONTROL Black belt project to improve mfg. capability Mfg. process cannot provide sufficient improvement. Need reduced product sensitivity to mfg. noise. The Overall Perspective: DMAIC and DCOV 51 Breakthrough Improvement 5 S workplace Visual Factory Standardized Work DMAIC Quality ToolsSix Sigma Methodology Phase World class quality We cant sustain a visual factory without 5S We cant sustain standardized work without visual factory We cant sustain six sigma without standardized work Quality tool is the engine, Six sigma is Turbo-charge DFSS We cant meet six sigma without six sigma discipline

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