SixSigma-ByDanielWuFordLioHoMotorCompan.ppt

1 SixSigmaByDanielWuFordLioHoMotorCompany 2 Outline QualitylevelWhatisSixsigma WhyweneedSixsigma DevelopmentandDeploymentstrategyHowSixsigmamergesintoourdailybusiness 3 Overview FourQualityGurus HistoricallycompanieshavefocusedonqualityissuesforcustomersatisfactionPriortosixsigmatherewerefourkeyqualitygurusthatmostcompanies qualityprogramsfollowedDemingJuranCrosbyTaguchi 4 Deming Demingtaught ImportanceofunderstandingvariationinworkprocessesRoleofmanagementinleadingforqualityApplicationofstatisticsPlan Do Check Act 5 Deming sContributiontoProfitability EXTERNAL INTERNAL CUSTOMERSATISFACTION MARKETSHARE PROFIT PRODUCTIVITY QUALITY Betterproducts services Improvedprocesses Competewithvalue PRICE CompetewithPrice Decreasedcycletime Eliminateset uptimes COST Opportunityforprofit PRODUCTQUALITY PROCESSQUALITY Reducerework Eliminatein processinspection Reducescrap Increaseproductlife Eliminateincomingtesting Plan Do Check Act 6 Juran Jurantaught BreakthroughperformanceParetoeffectImportanceofmanagementprinciplesQualitybydesignandplanning 7 Juran sContribution Planning CostofPoorQuality Percentofoperatingcosts ProductionBegins Originalzoneofprocesscontrol Newzoneofprocesscontrol 0 20 40 0 Control Time Improvement LessonsLearned Sporadicspikefromobservedproblem ChronicWaste anopportunityforimprovement Control SpecialcausevariationCommoncausevariation 8 Crosby Crosbytaught CustomerrequirementisperformancestandardQualitymaturityisajourneyPreventiveactionasbasicapproach 9 Taguchi Taguchitaught CostofpoorqualityislosstosocietyasawholeRobustqualityisdesignedforconsistentproductionDesigncontrolismoreimportantthanproductioncontrol 10 Taguchi sContribution LowerSpecificationLimit UpperSpecificationLimit NominalValue RegionofCustomerComplaints RegionofCustomerComplaints RegionofQuestionablePerformance RegionofQuestionablePerformance RegionofSpecifiedPerformance Mean LowerControlLimit UpperControlLimit RegionofDesiredPerformance Cost 11 WhatAretheLimitstoImprovement 2Sigma 3Sigma 4Sigma 5Sigma 6Sigma BasicQualityTools StatisticalTools DesignforSixSigma DFSS CleanSheet 12 Challengeinthemillennium Questionconfrontingbusinessleadersandmanagers Itisnot Howdowesucceed It s Howdowestaysuccessfully 13 Change Itisnotthestrongestthatsurvive northefittest butthosemostabletoadapttochange CharlesDarwinTheOriginofSpecies Peopledonotresistchange peopleresistbeingchanged Beckhard 14 Challenge Resistance theuniversalreactiontochange TechnicalresistancePoliticalresistanceOrganizationalresistanceIndividualresistance 15 SixSigma SixSigmaisnotabusinessfadtiedtoasinglemethodorstrategy butratheraflexiblesystemforimprovedbusinessleadershipandperformance Itisnotabouttheory it saboutaction Passion Execution FastandLastingResults SixSigmaFocus DelightingthecustomerthroughflawlessexecutionRapidbreakthroughimprovementAdvancedbreakthroughtoolsthatworkPositiveanddeepculturechangeRealfinancialresultsthatimpactthebottomline Sigmaisastatisticalunitofmeasurethatreflectsprocesscapability Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects per unit parts permilliondefective andtheprobabilityofafailure error DistributionShifted 1 5s 2 308 537 3 66 807 4 6 210 5 233 6 3 4 s PPM ProcessCapability DefectsperMillionOpp SixSigmacorrespondstopartsperbillionifprocessiscentered SixSigma Goal 3Sigma 6Sigma 5Sigma 4Sigma 93 32 99 379 99 9767 99 99966 Historical Current Intermediate Long term Sigma Long TermYield Standard SixSigma PerformanceTarget ToProduce ImprovedRolledThroughputYield DefectsPerUnit DefectsPerMillionOpportunityReducedCostofPoorQuality COPQ ImprovedCapacityandProductivity ReducedVariationInOurProcesses Products s AProblemSolvingMethodology CharacterizeOptimizeBreakthrough T USL LSL USL LSL TheStrategy CustomerFocused BothInternally Externally WhichBusinessFunctionNeedsIt Aslongasthereisaprocessthatproducesanoutputwhetheritisamanufacturedproduct data aninvoice etc wecanapplytheSixSigmaBreakthroughStrategy Fortheseprocessestoperformtoacustomerstandardtheyrequirecorrectinputs 6SigmaMethods MFG DESIGN SERVICE ENG MAINT ADMIN QA PURCH Dataisderivedfromobjects situations orphenomenonintheformofmeasurements Dataisusedtoclassify describe improve orcontrolobjects situations orphenomenon 1 Weonlyuseexperience notdata 2 Wecollectdata butjustlookatthenumbers 3 Wegroupthedatasoastoformchartsandgraphs 4 Weusecensusdatawithdescriptivestatistics 5 Weusesampledatawithdescriptivestatistics 6 Weusesampledatawithinferentialstatistics LevelsofAnalysis Whatlevelarewe TheFoundationoftheSixSigmaTools 23 TheRoleofSixSigma Sixsigmaisthebestmeanstorealizethephilosophy values andgoalsassociatedwithyourbusinessinitiatives Region BA 6 LinkingPins BusinessAreaInitiatives Itunifiestheinitiativesandprovidesacommonlanguagewhichallpeoplecanunderstandandspeak HowDoWeImproveCapability OurOutputs Y s aredeterminedbyourInputs X s IfweknowenoughaboutourX swecanaccuratelypredictYwithouthavingtomeasureit Ifwedon tknowmuchaboutourX s thenwehavetoresorttoinspectionandtest nonvalueaddedoperations ByknowingandcontrollingtheX s wereducethevariabilityinY whichdecreasethenumberofdefects improvesRTY cycletime etc Wecanalsoeliminateorreduceinspection test andrework 25 TheSourcesofSixSigmaQuality bycontrolling bydesigning bylistening towhatthecustomersayshe shewants performancetoleranttorealworld processvariability notbyinspectionofdefectiveoutput 26 DevelopingandReinforcingValues CycleofRefinement VALUES BEHAVIOR ATTITUDES CULTURE 27 TheRoleofLeadership New Questions New Values New Measures Leadership Humility Listening New Behaviors 28 Leadershipplaystherole ValuesareafunctionofbehaviorsMeasuringtherightthingsiskeyChangemustbesupportedanddrivenfromthetopWillisakeyelementforasuccessfuldeployment 29 Whyarewehere ThereisarecognitionthatleadershipneedstobeakeycomponentofConsumerDriven6 Sigmawithinanyorganizationtryingtoundertake6 Sigmadeployment MikelHarry RichardSchroeder 30 What sInItForMe thebeststatisticalanalysisintheworldisuselessifthosehandlingtheinformationareparalyzedbycorporatefear Whendatasuggestsonedirectionbutcorporatecultureorconventiondictatesanother fearcanruleandthepotentialforchangeislost Onlystrongleadershipcaneradicatethefearfactorandallowanorganizationtorealizeitspotential Statisticsalonecannotachievebreakthrough MikelHarry RichardSchroeder 31 DefineFutureState LeadershipinSixSigma Orientation PresentState FutureState PTS LeadershipSkills BusinessBasics ProjectManagement PersonalDevelopment PTS PTS PTS PTS DEFINE MEASURE ANALYZE IMPROVE CONTROL Define Plan Manage Close DevelopTransitionPlan ChangeManagement AnalyzePresentState 32 Sixsigmastructure Strategy Consumer driven focusonproduct process andservice Organization All functioninvolvementandPersonalDevelopment Policy Company wideengagement HR IT andFinancesupport Management Project Team andChangeManagement 33 DeploymentStructure 34 6sProjectChampions 6sDeploymentChampion s SM BusinessUnitLeaderCEO Corporate6sSeniorChampionSM HRDeploymentChampionSM ITDeploymentChampionSM FinanceDeploymentChampionSM PRDeploymentChampionSM BusinessOperationsLeaders 6sHRManager 6sFinancialManager GreenBeltsSM 6sITManager TrainingDeploymentChampionSM 6sMasterBlackBeltsSM 6sComm Manager 6sTrainingManager 6sProjectChampionsSM 6sBlackBeltsSM 6sDeploymentInfrastructure 6sExecutiveCouncil SixSigmaDeploymentRoles 35 PhaseI Cascading EstablishdeploymentstructureExecutive topmanagement championawarenesstrainingBlackBelttrainingToolsimplementationtrainingLeadershiptraining 36 PhaseII Acceleratedevelopment Deploymentstructureimplementationanddispositionineachfunction EverysalaryisGB Begintoimplantintocurrentqualitysystem ISO14000andQS9000integration 37 PhaseIII Integration ImplantsixsigmamethodologyinotherqualitytoolsPartnershipwithotherqualitysystem Sixsigmatrainingtosupplierandfranchise Sixsigmaindailybusiness DFSS DesignforSixSigma BB MBBinleadershipposition 38 ItisAllaboutValue TheCustomerValuePropositionDefinesBusinessStrategy Customerschoosetobuyfromusbecause Investorsentrusttheirmoneytousbecause Employeeschoosetoworkforusbecause 39 ThreeCustomerValuePropositionStrategies ProductdifferentiationOperationalexcellenceCustomerpartnerships 40 Consumerv s Producer Customers higherexpectationDefect freequalityProductServiceProducer planningforchangestomeetcustomerrequirements Strategic changingthewayeverylevelofabusinessismanagedonadailybasis Tactical sixsigmamethodologyandcross functional Cultural outofboxthinking everyoneinvolvedandcommonlanguageisdata Customerswanttopurchasehighqualityproductsandservicesatthelowestcost justascompanieswanttoproducehighqualitygoodsandservicesatthelowestpossiblecost 41 MaximizingCustomerValue DerivingvaluefromtheNeed DoInteractionModel Need Do CustomersandsuppliersexchangevaluethroughtheNeed Dointeraction Customer Supplier Interaction 42 Value CapturingthevoiceofCustomers PartialKanoAnalysis DegreeofAchievement CustomerSatisfaction Surprise ErgonomicallyDelighting Desire OperateQuietly Necessities Doesn tFailMechanically Doesn tFailElectrically IsDurable BasicQuality PerformanceQuality ExcitementQuality 43 Businessinitiatives Delivery Cost Quality WhenwesaysomethingisaCTQ canwedescribeitfromCustomer sperspective Ourperspective Canwedemonstratetherelationship PRODUCTQUALITY SHIPMENTACCURACYCONDITION FILLRATE ON TIMEDELIVERY ORDERSERVICE INFORMATION PROFITABLECUSTOMERGROWTH 44 Buildingtherelationship Internal Others External Segment DatabasesfromVOC Dataextraction transformation Departmentaldatamart Intelligencereportsforprojects Correlationanalysis 45 Datatransformation Whatshouldwedotomakeiteasilyaccessibleasinformationtomanagersandsubordinates Whatsortofanalysiscanweconduct Howdoesthatanalysisaddvalue Howcanwefurtherextendthevalueofourdataanalysis 46 Opportunityandalternative FocusonthebestopportunitiesStratifytodefinetargetarenasDefinerealoptionsBuildaportfolioofopportunitiestopursueMeetcustomerrequirementsbyrunningthebusinessaswedo Orneedtochangetogetprodigiousimprovement Sixsigma 47 Consumer drivensixsigma Requiresconsumerstrategy productstrategy andinfrastructurestrategyandlinktheminextricablytogether Conductsbusinessthroughtheconsumers eyesandsharesunfilteredinsightwithintheenterprise Createsacompellingconsumerexperienceandinnovatesservicesaswellasproducts Addsvalueintheeyesoftheconsumer Integratestheproductandinformation 48 TransformingCustomerFeedbackIntoSAQandthenSixsigmaProjects SingleAgendaforQualityandCustomerSatisfaction Top25issues DevelopActionableProjects IdentifyGenericCriticalX s HighMileage DFSS NewProductContent MeasureandMonitorCriticalX s IdentifyCriticalX sOutofSpecification DevelopActiontoRestoreCriticalX s MBBAction VRT Processowner BlackBeltProjectLeader FPS PlantOperations QOS DMAIC GreenBeltProjects 49 ConsumerDriven6 Sigmaoffersastructuredproblemsolvingmethodologytoachievebreak