6-SigmaConcept.ppt

SixSigmaConcept Youhavethequalityyoudeserve WhatisSixSigma The hottest qualityprogramItisaframeworkforoperationaldevelopmentManagementPeopleToolbox Abreakthroughstrategyforprofitability 6s WORLD SixSigmaisagoalforprocessimprovementthatforcesustoputourvisionofqualityinnumericalterms Goodqualitydoesnotnecessarilymeanhighquality Itmeansapredictabledegreeofuniformityanddependabilityatlowcostwithaqualitysuitedtothemarket Dr W EdwardsDeming BuildingBlocks SixSigma CustomerFocus BusinessProcessRe engineering ISO9001 14001 SPC StatisticalProcessControl TQM TotalQualityManagement WhySixSigma SixSigma systematicreductionofvariationLessinventoryHigherthroughputLowercostHigherpredictabilityMorenimbleWehavedefinableprocesses automaticdatacaptureandlotsofopportunitiesfordefects SixSigmainaNutshellVision6s 3 4defectsper1millionopportunities 99 99997 yieldPeopleBlackBelts YellowBelts WehavethepeopletodoitToolsStatisticsandTeamwork Weprovidethetoolstodothework e Operationschallenges Timesensitive demandingcustomersFreeordiscountedshipping handlingConventionalbestpracticesforretailchannelefficiencyarenotbeingusedLargetransactionsSmalltransactionsRetailpick upHomedeliveryUsevalue addingDirectrelationshipschannelmemberswithcustomers Afewsubtleties Variousproductslikebooks music video toys consumerelectronics software homeimprovements whoknowswhat snextAquisitionslikeToolCribandBacktoBasicsVerysteeprampsFournewdistributioncenters16 millioncustomersin160countries20007500employeeslastyear Itisanewworld but CustomerstillwantvalueCompaniesstillhavetoimproveproductivityThebasicmathremainsthesame Reducevariationandcycletime Focusonleadership Chancefavourstheprepared e Commerce it sstillabusiness ChangingyouqualitymeansChanging Today squalityistheresultofyesterday smanagement Tomorrow squalitywillbetheresultoftoday smanagement Ifyoualwaysdowhatyou vealwaysdone you llalwaysgetwhatyoualwaysgot Ifyoucontinuetomanagethebusinessthewayyouhavealwaysmanagedit youwillcontinuetoachievethesameresults Continuingtomanagethebusinessasyouhavealwaysmanagedit andbelievingthatsomehow mysteriously performancewillimprove Weneedtochangethewaywedothings Ifwewantthingstoimprove Variation Ourbusinessenemy 1 WhatisVariation Unit1 Unit2 Unit3 Unit4 Unit1 Unit2 Unit3 Unit4 Unit1 Unit2 Unit3 Unit4 Unit1 Unit2 Unit3 Unit4 Process1 Process2 Process1 Process2 Process1 Process2 Time WhatisVariation s m 99 9999998 99 999943 99 9937 99 73 95 45 68 27 1 2 3 4 5 6 6s 5s 4s 3s 2s 1s01s2s3s4s5s6s 1 TheNormalDistribution 6 6 99 9999998 yield 99 9999998 yield reducevariation increasetolerance 99 73 yield HowDoYouGetToSixSigmaPerformance Short term LSL USL 6s 5s 4s 3s 2s 1s01s2s3s4s5s6s Short term 99 9999998 or0 002DPMO 1 5 99 99966 or3 4DPMO ShortTermVersusLongTerm SixSigmaConcept MajorSourcesofVariation PoordesignUnstablepartsandmaterialInsufficientProcessCapabilitySkillsandBehaviourMeasurementSystem s DPMO 63 45233462103668072308537 ProcessCapability DefectsPerMillionOpportunities Sigma DefectReduction SigmaLevelandPerformance SigmaYieldDowntimeLevelCp PPMperyear1 0 3330 2697 700255days2 0 6769 12308 800112days3 1 093 3266 81024days4 1 3399 3796 21054hours5 1 6799 9767233121minutes6 2 099 999663 4107seconds with 1 5 shift Concept Definition Critical To QualityCharacteristics CTQ Customerperformancerequirementsaproductorservice Defect AnyeventthatdoesnotmeetthespecificationsofaCTQcharacteristic DefectOpportunity Anyeventwhichcanbemeasuredthatprovidesachanceofnotmeetingacustomerrequirement ConceptofDefectsisaCoreofSixSigma Areyouconfidentthatyourcustomerswouldrankyourproductsamongtheindustry sbest Haveyougivenmuchthoughttoimprovingqualityinyourproductsandprocessesinthepast Inthepastyearhaveyoudoneanybenchmarkingatothercompaniestofindoutwhattheyaredoingtoimprovequality Inthelastyearhaveyouundertakenaspecificprogramtoimprovequality YES NO HowdoyourateQuality Source TheGEWayFieldbook WhatistheCostOfPoorQualityToYourBusiness TheHiddenFactory Test Process1 Process2 Test Analyze Fix Analyze Fix Product ValueAdded Non ValueAdded Output outturn product production turnout1 somethingyielded product especially theamountorquantityproducedorreturned2 thecapacityofyieldingproduce YieldDefinition 230unitsproduced14defectsfound Process RolledThroughYield Process Process Process Yield 90 Yield 95 Yield 85 RolledThroughYield 0 90 x0 95x0 85 72 7 NormalizedYield Process Process Process Yield 90 Yield 95 Yield 85 RolledThroughYield 0 90 x0 95x0 85 72 7 Normalized CostOfPoorQuality TraditionalQualityCosts CustomerReturns InspectionCosts Recalls Waste Rejects Rework TestingCosts 2 3 CostOfPoorQuality CustomerReturns InspectionCosts Recalls Waste Rejects Rework TestingCosts CustomerAllowances IncorrectlyCompletedSalesOrder ExcessInventory Incorrectordersshipped TimewithDissatisfiedCustomer LatePaperwork ExcessiveOvertime PremiumFreightCosts ExcessiveFieldServiceCosts PricingorBillingErrors ComplaintHandling OverdueReceivables EmployeeTurnover ExpeditingCosts PlanningDelays DevelopmentCostofFailedProducts 20 40 UnusedCapacityLostgoodwillDelays HowIsASixSigmaProgramStructured SixSigmaDeployment ExecutiveManagement BlackBelts YellowBelts SixSigmaChampion MasterBlackBelts VisionPrioritizeDefineprojects SupportTeach MeasureAnalyzeImproveControl Communication Coordination KeyRoles ExecutiveManagementSetgoalsEstablishinfrastructureSelectprojectsandteamsSupportprojectsandmonitorprogressAskingtherightquestionsSixSigmaChampionUnderstandtheuseofSixSigmatoolsSupportsandcoachesBlackBeltsReviewsprojectsDevelopesstrategiestodrivedowncostsandincreaseprofitabilityMasterBlackBeltTrainsandcoachesBlackBeltsProvidesconsultingassistancetoChampionsandExecutiveManagement KeyRoles 2 BlackBeltsDevelop implement andsustainprocessimprovementsStimulatethinkingbyposingnewwaysofdoingthingsChallengeconventionalwisdomSeekoutandpilotnewtoolsCreateinnovativestrategiesDevelopotherstofollowintheirfootstepsYellowBeltsFundamentalSixSigmaconceptsStatisticalliteracy basicstatistics processcontrolTeamskills TopmanagementattentionisamustFollowsomerigoroussystemreligiouslyMeasurecostofpoorqualityandpostvisibleRewardgoodresultsTraineveryoneUseateam basedapproachStresscross functionalworkInvolvesuppliers distributorsandallfunctions Successfulqualityprograms SixSigmaMaturityModel Level1UseaveragesandpercentsDonotconsidervariationHavedifficultiesindesigningclearandsimplegraphs butusuallyfondofoverloadeddiagrams DonotlookcriticalondataUnawareofthepossibilities Level2AbletogatherplannedmeasurementdataDataisacceptedaspartoftheargument butstatisticsismainlyforproduction notdesignorotherengineeringAbletocalculatecapabilityindicessuchasCp Cpketc ImpressedbyprogramssuchasSixSigma Level3StatisticsisusedonalllevelsofengineeringDataisthefoundationofmostmanagementdecisionsAbletouseseveraltoolstoexplorethesamesetofdataCaneasilycommunicatewithprofessionalstatisticiansandknowthepotentialofstatistics PuttingAConceptIntoPractice Youarethegeneralmanagerofaverysuccessfulmovietheatre Youwillbeoutofthecountryforthreemonthsandhaveaskedyourstafftofaxyouaweeklyreport Whatinformationwouldyouliketoseeinthatreport 1 2 3 4 5 Youareheadingtothemovieswithsomefriends Themovieyouwouldliketoseeisplayingatseveraltheatresinyourarea Allareaboutthesametraveltimefromyourhome theticketscostthesameandtheseatsareaboutthesame Howdoyoudecidewhichtheatretogoto 1 2 3 4 5 AnIntroductionToSomeSixSigmaTools DefineIdentify prioritizeandselecttherightprojects MeasureIdentifykeyproductcharacteristicsandprocessparameters AnalyzeIdentifykeyprocessparametersaffectingtheprocessoutput ImproveEstablishpredictionmodelandoptimizeprocessperformance ControlDeterminestandardoperatingproceduresandholdthegains SixSigmaMethodology DefineproblemY MeasureY InvestigateXicausingtheoutputY Findthevitalfew FindY f Xi andoptimizeoutputY ControlYviavitalfewXi SixSigmaMethodology ChangeManagementCommunicationHighPerformanceTeams 5Why sInternalBusinessAssessmentQualityFunctionDeploymentParetoCharts ProcessMappingQuality