Introduction to Six Sigma Business Improvement.ppt

introductiontosixsigmabusinessimprovement 2 whatissixsigma avehicleforstrategicchange anorganizationalapproachtoperformanceexcellence operationalexcellencebusinessprocesses toolsandmethodologiestargetedatreducingvariationthroughrootcauseanalysisanddramaticallyimprovingprocesses transformationalchangeacross the board large scaleintegrationoffundamentalchangesthroughouttheorganization processes culture andcustomers toachieveandsustainbreakawayresults 3 whysixsigma generalelectricresults annualnetbenefitfromsixsigma inbillions 1996 1997 1998 annualnetbenefit source 1998and1999geannualreport 30m 400m 750m 1999 2 0b 1 0 2 0 0 2000 3 0 4 today sixsigmaisfocusedsquarelywhereitmustbe onhelpingourcustomerswin agrowingproportionofsixsigmaprojectsnowunderwayaredoneoncustomerprocesses manyoncustomerpremises theobjectiveisnottodeliverflawlessprojectsandservicesthatwethinkthecustomerwants butratherwhatthecustomersreallywantwhentheywantthem jackwelch 2000 sixsigmaatgeneralelectric source 5 sixsigmaatdowchemical whydiddowadoptsixsigma toaccelerateimplementationoftheirglobalbusinessstrategies dowexpectstoachieve 1 5billion ebit by2003 dowhastargeted3 ofitsemployeepopulationasfulltimeblackbeltsover1000sixsigmablackbeltsarecurrentlydeliveringprojectresultsacrossallpartsofdow sbusiness dowisachievingover 250 000innetresultsperproject 6 sixsigmaatford whydidfordadoptsixsigma todelivercustomersatisfactionandcostimprovementresultsfasterandtosustainthemoverthelong term fordbelievesit sdeploymentstrategyofsixsigmawillbeuniqueintwoways primaryfocuswillbeonthoseissuesmostimportanttocustomers integrationofleadershipskilltrainingintosixsigmatraining sixsigmablackbeltsarebeingdeployedthroughoutfordinengineering manufacturing service salesandoperations 7 costofpoorqualityisreducedviaassignmentofblackbeltprojectteamstostrategicallyselectedimprovementprojects seasonedblackbeltscompletethreetofiveprojectsannuallysomeearlyprojects especiallyinautos chemicalsandpetroleum haveyieldedonetotwomilliondollars 175 000 200 000averagesavingsperprojectannualsavingsdeliveredperblackbelt 575 000 1 000 000ruleofthumbfornumberofblackbelts 1 3 ofemployees valueextraction 8 sixsigmaappliestothewholebusiness sixsigmahasthegreatestimpactwhenitisappliedacrossallcorebusinessprocesses acorebusinessprocessisasetofinterrelated cross functionalprocessesthathaveaprofoundimpactoncustomersatisfaction eitherpositiveornegative productdevelopmentmarketing sales custserproductionplanningproductmanufacturingquality testingtechnologysupportdistributionbilling contracts 9 sigmabusinessimprovement 10 anobjectiveofsixsigmaistoreducevariationandmoveproductorserviceoutputspermanentlyinsidecustomerrequirements curveatob 11 sigmaimprovementvalueproposition sigmavs costofpoorquality copq 30 25 20 15 10 5 69 93 3 99 4 99 98 99 9997 copqasapercentofsales 2 3 4 5 6 rty defect free derivedfromalliedsignalexperience 12 howdoyoumeasurequality youdon tknowwhatyoudon tknow youcan timprovewhatyoudon tknow youcan timproveifyoudon tmeasure howdoyoumeasurethequalityofyourproducts servicestoday 13 sixsigmaisalsoameasureofvariability itisanamegiventoindicatehowmuchofthedatafallswithinthecustomers requirements thehighertheprocesssigma themoreoftheprocessoutputs productsandservices meetcustomers requirements or thefewerthedefects sigmaisthegreekletterthatisastatisticalunitofmeasurementusedtodefinethestandarddeviationofapopulation itmeasuresthevariabilityorspreadofthedata whatissixsigma 14 2sigma 69 146 ofproductsand orservicesmeetcustomerrequirementswith308 538defectspermillionopportunities 4sigma 99 379 ofproductsand orservicesmeetcustomerrequirements buttherearestill6 210defectspermillionopportunities 6sigma 99 99966 asclosetoflaw freeasabusinesscanget withjust3 4defectspermillionopportunitiesinyourproductorservice howcloseareyoutoconsistentlymeetingyourcustomer sneeds 15 sixsigmadeploymentsuccessmodel 16 thesixsigmasuccessfactors establishingthesefactorsprovidestheseedsofsuccess theyneedtobeintegrateduniquelytofiteachbusiness theyareallnecessaryforthebestresult themostpowerfulsuccessfactoris committedleadership 17 implementationroles responsibilities keyimprovementareaidentificationblackbeltselectionanddevelopmentprojectselectionandreviewsponsorprojects divisionalimprovementagenda typicalsixsigmaleadership projectmanagementstructure executiveleadershipimprovementagenda ceo sixsigmaprojectmanager strategicdirectioncommunicationincentives 19 sixsigmaprojectselection 20 selectstrategicareasforimprovement sais thatwillhavethegreatestimpactonimprovingthebusiness skeyperformanceindicators drivingbusinessstrategy solvingcriticalcustomerissues andstrengtheningcoreprocesses formalassessmentsprovidevaluableinsightsonperformancegaps aswell sixsigmaprojectselection strategy customerissues coreprocesses sais performanceassessments keyperformanceindicators 21 activeprojects sai1 sai5 sai3 potentialprojects 1 definestrategicimprovementpriorities 2 prioritizepotentialprojectsvs impactonbusinessgoals 3 selectcurrentprojectsbystrengthofalignmentwithbusinessgoals strategy customerrequirements coreprocesses kias keyperformanceindicators sais sai2 sai4 potentialprojectsquickhitsleansixsigma potentialprojects 22 opportunity warrantycostsreached 10millionlastyear y1 y2 y3 x1 1 x1 2 x1 3 x1 4 x1 n x2 1 x2 2 x2 3 x2 4 x2 n x3 1 x3 2 x3 3 x3 4 x3 n y4 yn x4 1 x4 2 x4 3 x4 4 x4 n y businesssuccessisachievedthroughmultipleprojects reducebearingfailuresinproducta improvekeysupplierquality reducewarrantycostsby25 byendoffiscalyear reduceleaksinproductb 23 example teamcharter deliveryofproducts 24 blackbeltselection development 25 characteristicsofbestblackbeltteamleadercandidates criteriastrongprocessorientationfirmgroundinginanalyticaltechniquesstrongfacilitationandteachingskillsstrongcommunicationskillsfuturebusinessleaderschangemanagementexperiencestrongteambuildingskillsexperiencedinseveralfunctionalareas 26 thethreeprincipalmethodsusedintheimplementationphaseofsixsigmaare thesigmaimprovementprocess dmaic designforsixsigma dfss andprocessmanagement dfssgeneratesnewprocesses products services andorplantssigmaimprovementprocessimprovesexistingprocessperformanceprocessmanagementisthesystemthatenablesleverageandsustaininggainsachievedbydfssandsigmaimprovementprocess 27 themethodologyincludesskilltransferthroughjust in timedevelopmentandfacilitationofprojectteamsandblackbelts sigmaimprovementprocess dmaic focuseson realproblems directlyrelatedtothebottom linerealizesresultsin4 6monthsutilizesmultipletoolsandtechniquesincludingrigorousstatisticalmethodswhenneededsustainsimprovementoverthelong termdisseminatesimprovementthroughouttheorganizationactsasanagentofchange 28 blackbelttraining dmaic week1 define measure sixsigmasimulationprojectcharteringprocessmappingvoiceofcustomerdatacollectionsamplingmsevariationsigmacalculations leanmanufacturingprinciples week2 analyze reviewofd mstatisticalthinkingstratificationrootcauseanalysisregressiontopicshypothesistestingcreativity week3 doe designofexperimentswithcasestudies week4 improve control generateimprovementideasselectsolutionsmanagechangepilotingsolutionsprocessmanagementprojectcloseout week5 minitabsoftwareisusedforallstatisticalapplications typicalblackbelttraining dmaic 29 determiningwhethertoimproveorredesign 30 themethodologyincludesskilltransferthroughjust in timedevelopmentandfacilitationofprojectteamsandblackbelts designforsixsigma dmedi focusesondevelopmentofnewproducts services processes andplantsthatpreciselymeetcustomercurrentandfutureneedsrealizesresultsin6 36monthsdependingontypeofprojectutilizesmultipletoolsandtechniquesincludingrigorousstatisticalmethodswhenneededsustainsimprovementoverthelong termdisseminatesimprovementthroughouttheorganizationactsasanagentofchange defineopportunities measurecustomerneeds exploredesignconcepts developdetaileddesign implementdetaileddesign 31 blackbelttraining dfss session1 define session2 measure session3 explore session4 develop processmodeltm qfdcapturetm andothersoftwareareusedfordevelopingthenewdesign session5 implement developprojectcharterplanthedesign