Introduction of Six Sigma.ppt

IntroductionofSixSigma BeltonGroupRexWong ScopeofModule WhatisSixSigmaWhytheneedforSixSigmaHowtoapplySixSigma WhatisSixSigma SixSigmaisacomprehensiveandflexiblesystemforachieving sustainingandmaximizingbusinesssuccess Itisuniquelydrivenbycloseunderstandingofcustomerneeds disciplineduseoffacts dataandstatisticalanalysis withdiligentattentiontomanaging improvingandreinventingbusinessprocesses PeterSPande RobertPNeuman RolandRCavanaghTheSixSigmaWay McGrawHill 2000 SixSigmaIsThreeThings AstatisticalmeasurementAbusinessstrategyAphilosophy 1 SixSigma AStatisticalMeasurement Itprovidesaquantitativeperformanceassessmentofourproducts servicesandprocesses Itallowsforcomparisonsagainstothersimilarordissimilarproducts servicesandprocesses Itprovidesfeedbackonhowfaraheadorbehindweare SixSigmahelpstoestablishourcourseandtogaugeourpaceintheracefortotalcustomersatisfaction SixSigma Abusinessstrategy ImprovedSigma RatingofProcess CostOfPoorQuality COPQ LostOpportunityHiddenFactory Difficultorimpossibletomeasure COPQisafunctionofSigmaCapability InspectionWarrantyScrapReworkRejects MoreSetupsExpeditingCostsLostsalesLateDeliveryLostCustomerLoyaltyExcessInventoryLongCycle TimesEngineeringChangeOrders CostOfPoorQuality COPQ 3 SixSigma Aphilosophy SixSigmaisaboutworkingsmarter notharder Discoverandneutralizeharmfulsourcesofvariation Mistakesarereduced oreliminated Improvedprocesscapability Sigmaratinggoesup QualityBreakthrough WhyneedsofSixSigma ThegoalofSixSigmaisnottoachievesixsigmalevelsofquality i e 3 4dpmo SixSigmaisaboutimprovingprofitability improvedqualityandefficiencyareimmediateby products SixSigma aggressivegoal Sigmaisastatisticalunitofmeasurethatreflectsprocesscapability Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects per unit parts permilliondefective andtheprobabilityofafailure error PPM ProcessCapability DefectsperMillionOpp SixSigmaProcess m PointofInflection 1s T USL p d 123456 s BenefitofSixSigma CostreductionProductivityimprovementMarket sharegrowthCustomerretentionCycle timereductionDefectreductionCulturechangeProduct servicedevelopment Profits Customers Needs InternalMetrics Delivery Price Quality Customer Supplier Need CycleTime Cost Defects Do HowtoapplySixSigma Unlikeconventionalimprovementprogramswhichfocusesonimprovingthedefectsonthe output SixSigmafocusesonthe process thatcreatesoreliminatesthedefects SixSigmaseekstoreducevariabilityinaprocessbymeansofasystematicapproachcalledtheBreakthroughStrategy SixSigmaapproach IdentifytheCustomer sNeed CenteraroundtheTarget FocusofSixSigma Theoutput Y isperceivedasafunctionoftheinput X BreakthroughStrategy BreakthroughStrategy Define TheDefinephasesetsthestageforasuccessfulSixSigmaprojectbyaddressingthefollowingquestions Whatistheproblemofourfocus What sourgoal Andbywhen Who sthecustomerimpacted WhataretheCTX sin concern What stheprocessunderinvestigation ProjectDefinition ImprovetimetomarketforallproductsLeadtheindustryinkeytechnologiesCreateworld classmanufacturingprocessesDevelopstrategicsupplierrelationshipsProvidebest in classproductandprocessqualityDevelopstrategicrelationshipswithkeycustomersBecomeanemployerofchoice BaselineMetricData BaselineTheaveragelong termdefectlevelofaprocesswhenallinputvariablesintheprocessarerunninginanunconstrainedfashion EntitlementThebest caseshort termdefectlevelofaprocesswhenallinputvariablesintheprocessarecenteredandin control BenchmarkThedefectleveloftheprocessdeemedbycomparisontobethebestprocesspossible eg bestWinBenchnumbersagainstMaxtor Fujitsudrives BreakthroughImprovement CostofQuality HardSavingsPotentialSavingsSoftSavings Measure TheMeasurephaseservestovalidateorrefinetheproblem andtobeginthesearchforrootcauses Itaddresses thefocusandextentoftheproblem basedonmeasuresoftheprocess thekeydatarequiredtonarrowtheproblemtoitsmajorfactorsorvitalfewrootcauses CapabilityAnalysis ConventionalMetrics RejectRateinpercent e g 7 4 inratio e g 0 074 inpartspermillion e g 74 000DPPM Yieldinfirst timeyieldinfinalyield CapabilityAnalysis Defectperunit DPU DefectsPerUnit Theaveragenumberofdefectsperunitproduced DefectRate Defects Units 7 5 1 4dpu DefectsPerMillionOpportunities DPMO Opportunities Thenumberofpossibilitiesfordefectcreationinanyunitofproductprocessorsequenceofprocesses 1 ArmHeight2 Armthickness3 BoreholeDia4 SwgaeholeDia5 Roughness6 Teardropprofile7 Roll8 Pitch NumberofOpportunities OpportunitiesperUnit NumberofUnits 8 5 40DefectRate Defects Opportunities 7 40 106 175 000dpmo DPMOvsSigmaCapability First timeyield Yft First TimeYieldisthenumberofunitsthatpassaparticularinspection comparedwiththetotalnumberofunitsthatpassthroughthatpointintheprocess First TimeYield Yft 968 1000 0 968 Throughputyield Ytp ThroughputYieldistheprobabilitythataunitofproductorservicewillpassthroughagivenprocesssteperror free ThroughputYield Ytp e DPU 40Defects ThroughputYield Ytp e 40 1000 0 961 FinalYield Yf ProcessA ProcessB ProcessC FinalYield Yf QuantityShipped QuantityBuilt 800 1 000 0 80 Ashortcomingoffinalyieldisthatitfailstoconsiderthe hiddenfactory orrework HiddenFactory adhocsystemsandprocessessetuptocorrecterrorsmadeduringthemainstreamprocess RolledThroughputYield Yrp RolledThroughputYield Ytp A Ytp B Ytp C 0 7408 0 6393 0 5824 0 2758 ProcessA 50 Scrap Rework 200 150 ProcessB 800 Input 950 25 Scrap Rework 300 275 ProcessC 650 Input 925 125 Scrap Rework 250 125 Defects 300Ytp A e 300 1 000 0 7408 Defects 425Ytp B e 425 950 0 6393 Defects 500Ytp C e 500 925 0 5824 Defects 300 RolledThroughputYield Yrp Therolledthroughputyieldistheprobabilitythataunitofproductorserviceisabletopassthroughtheentireprocessdefect free Itisafunctionofthedefectrate andhenceprovidesabetterestimateoftheamountofreworkrequired Rolledthroughputyieldcanbeimprovedby havinghigherthroughputyieldsateachprocessstep reducingthenumberofprocesssteps SigmaValue SigmaValue Z Score Thesigmavalueisderivedfromtheprobabilityofadefectinaprocessandisusedtocompareperformanceacrossproductsorprocessesz Scoreismostaccuratelydeterminedbyusingtheequationofz e DPU Analyze IntheAnalyzephase practicalbusinessproblemsareturnedintostatisticalproblems Thestatisticaltoolsandtheorderinwhichtheyareappliedwilldependontheproblemandprocess andtheapproachtotheproblem Improve TheImprovephaseseekstoaddressthefollowing Whatpossibleactionsorideasrequiredtoaddresstherootcauseoftheproblem andtoachievethegoal Whichoftheideasareworkablepotentialsolutions Whichsolutionwillmostlikelyachievethegoalwiththeleastcostordisruption Howcanthechosensolutionbetestedforeffectiveness andthenimplementedpermanently Control IntheControlphase actionsareestablishedtoensurethattheprocessismonitoredcontinuouslyforconsistencyinqualityoftheproductorservice Implementongoingmeasuresandactionstosustainimprovement Realization IntheRealizephase ownershipoftheprojectistransferredtothefinancerepresentative fortrackingoffinancialbenefitsoftheproject Champion DefinethepathforSixSigmaimplementationacrosstheorganization Carefulselectionofhigh impactprojects Supportdevelopmentof statisticalthinking RealizethegainsbysupportingSixSigmaprojectsthroughallocationofresourcesandremovalofroadblocks ImplementationofBlackBeltrecommendations Ensurethatprojectopportunitiesareacteduponbytheorganization sleadershipandthefinancedepartment Recognitionofeffortsandcontributionsbythepeople BlackBelt ActasBreakthroughStrategyexpertsandenthusiasts Identifythebarriers Managementofproject fromplanning throughexecution torealization Reportprogresstoappropriateleadershiplevels Determinethemosteffectivetoolstoapply Gatherinputfromknowledgeablesources fromoperatorstomanagers GreenBeltTrainingMonitor provideguidanceofGreenBeltprojects GreenBelt FunctionasGreenBeltsonapart ti