SixSigmabrief.ppt

,QIA,ImproveQuality,ReduceCost,ProductivityImproves,CaptureMarket,Providesjobsandmorejobs,Modelsoftherelationshipsaffectingqualityandbusinessperformance,DemingsModel:,lessrework,lessscrap,Increasecycletime,increasethroughput,betterquality,lowerprice,Overallsocietybenefits,COSTOFPOORQUALITY(COPQ),ExternalFailureCostsWarrantyAdjustmentsRepairsCustomerServiceReturnedGoodsReturnedRepairedGoodsProductRecallsProductLiabilitySuitsOpportunityCosts,InternalFailureCostsScrapReworkRE-INSPECTIONofReworkDowngradingBecauseofDefectsLossesCausedbyVendorScrapDowntimeCausedbyDefectsFailureAnalysis.,AppraisalCostsReceivingInspectionIn-processInspectionLaboratoryInspectionOutsideLaboratoryEndorsementsSetupforTestingMaintenanceofTestEquipmentQualityAuditsCalibrationofQualityEquipment.,PreventionCostsQualityEngineeringDesignandDevelopmentofQualityEquipmentDesignVerificationandReviewtoEvaluatetheQualityofNewProductsQualityTrainingQualityImprovementProjectsQualityDataGatheringAnalysisandReportingOtherProcessControlActivitiesUsedtoPreventDefects,LostOpportunity,Scrap,Rework,Inspection,Warranty,Rejects,Lostsales,Latedelivery,Engineeringchangeorders,Longcycletimes,Expeditingcosts,Excessinventory,TheCostofPoorQuality(COPQ)“Iceberg”,TraditionalQualityCosts,AdditionalCostsofPoorQuality,(intangible),(tangible),4-8%,25-35%,(EasilyIdentified),(Difficultorimpossibletomeasure),LostCustomerLoyalty,MoreSetups,SixSigmaPhilosophy,WeareinbusinesstomakemoneyWemakemoneybysatisfyingneedsWeareabletosatisfyneedsbydoingEveryneed/dopairisaninteractionTheaimofcustomerfocusisonimprovingneed/dointeractionRepetitionofthesameactionconstituteaprocessImproveourbusinessmeansimprovementofourprocessesCustomersneedproducts/serviceson-time,withzerodefects,withlowercostAsprocesscapabilityimproves,theproductqualityincreasesAsqualityincreases,costsandcycle-timegodown.Thereductionofdefects,cycle-time,costleadstoimprovedcustomersatisfactionAscustomersatisfactionimproves,thelikelihoodofdoingbusinessincreasesAsbusinessincreases,we(asindividualandsociety)growandprosper,WhatisSixSigma?,Sigmaisastatisticalunitofmeasurewhichreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,partspermilliondefective(PPM),andaprobabilityofafailure/error.Thesigmavalueindicateshowoftendefectsarelikelytooccur.Thehigherthesigmavalue,thelesslikelyaprocesswillproducedefects.Assigmaincreases,costsgodown,cycletimegoesdown,andcustomersatisfactiongoesup.,Whatisthemeaningofquality?,99%Good(3.8Sigma)99.9997%Good(6Sigma)20,000lostarticlesofmailperhourSevenarticlesofmaillostperhourUnsafedrinkingwaterforalmostOneunsafeminuteeverysevenmonths15minuteseachday5,000incorrectsurgicaloperations1.7incorrectoperationsperweekperweek2shortorlonglandingsatmostmajoroneshortorlonglandingeveryfiveairportseachdayyearsateachairport200,000wrongdrugprescriptionsperyear68wrongdrugprescriptionsperyearNoelectricityforsevenhourseachmonthOnehourwithoutelectricityevery34years,SixSigmaIs.,SixSigmaisdisciplinedmethodologyforcontinuousimprovementforReducingprocessvariabilityandkeepingitreducedachievebenefitsfromimprovementsin:betterproduct/processqualityreducescarpandreworkreducecycletimebetterproduct/processdesignreducemajorexpansesAtoolsettomakethatchangepracticalEmpoweredpeoplehavethecontroltheyneedtoimprovethewaytheyworkAcommonlanguagefordiscussing,measuringandcomparingprocesscapabilitiesApowerfulcompetitiveadvantage.,-6-5-4-3-2-1X+1+2+3+4+5+6,NormalDistributionShifted1.5,ProcessCapability(Sigma)PPMYield2308,53769%366,80793.3%46,21099.3%523399.98%63.499.9997%,SigmaMeasures-ProcessCapability,Performance,Level,SIGMA,%Yield,#ofDefectsper,Million(DPM),A+,6,99.99966,3.4,A,5,99.9767,233,B,4,99.3790,6,210,C,3,93.3,66,807,D,2,69,308,537,F,1,31,691,462,CostofQuality%,1%ofsales,5-15%ofsales,15-25%ofsales,25-40%ofsales,C,93.3,66,807,3,EstablishorganizationalmeasurementsIdentifythesigmalevelEstablishCOPQmeasurementprocessIdentifythemajorareasforimprovement,3to4sigmameans15%to25%costofsales:-Whichmeansifyoursalesis$100millions,youcansaveupto$25millionsbyimplementingSixSigmaprogram.Thesavingsiscontinuousbasisyearoveryear,WhatistheBenefitsofSixSigma?,OutputMeasurement,Failurerate(internalandexternal)WarrantycostRepaircostperunitCycletimeperunitCycletimefornewproductdevelopment#ofengineeringchangesSupplierissuesWIPinventorycostFinishedgoodsinventoryDefectsproductarrivalatcustomer#ofserviceevents,LearnhowthecompanieslikeGeneralElectric,AlliedSignal,Motorola,LockheedMartin,AmericanExpress,J.P.Morgan&Chase,andothersuseSixSigmamethodologiestoreducedefects,improveprocesses,lowercost,higherprofit,increasecustomersatisfaction,anddriveimprovementtoanewlevels.“TheSixSigmaQualityinitiativeshasloweredGEscostsbydramaticallyreducingrework,simplifyingprocesses,andreducingdirectmaterialcosts.Designforsixsigmahasbeenakeytotheintroductionofnumeroushigh-qualitynewproductswithsignificantlyenhancedfeatures.”JohnF.Welchjr.,GeneralelectricChairmanandChiefExecutiveOfficer,GEAnnualReport2000.,bKnowledgeManagementKnowledgeManagementb,BusinessResultsOpsReview,StrategyReview,LeadershipValues,Vision,Mission,LearningandGrowth,StrategyManagementBalancedScorecard,ProcessManagement,CustomerManagement,KnowledgeManagement,QualityManagement,QMS,TheSixSigmaSystem,Customers,Requirements,Satisfaction,Customers,Continuousimprovementofthequalitymanagementsystem,Managementresponsibility,Resourcemanagement,Productrealization,Measurementanalysisandimprovement,Product,Input,Output,SixSigmaProcess,CustomerSatisfaction,IncreaserevenueandprofitIncreasemarketshareDecreasecost,QualityManagementSystemVSSixSigma,QualityManagementSystem,SixSigmaSystem,CustomerSatisfaction,BusinessObjectives,BusinessStrategy,ProcessImprovement,BusinessGovernanceModel,DeliveryReturnRateWarranty$ProblemResolutionNewprodPerformanceCust.SurveyMfgQualitySupplierPerformance,RevenueCostProfitMarketShareGrowth,BusinessResultsAssessment,PDPProductLCMSupplierDevelopmentPlanningMarketingCustomerServiceManufacturing,ISO/QS9000Process,SixSigmaProcess,QIASixSigma,QIASixSigmaImplementationModel,UnderstandingofSixSigmaProcess(ExecutiveTraining),DefineBusinessStrategy(Values,Vision,Mission),AdoptSixSigmaProcessasLongTermBusinessStrategyforContinuousImprovement(QMSProcess),DevelopMeasurementsandGoals(BalancedScorecard)fortheBusiness,GapAnalysis(Understandthestrength&weakness),AreasforImprovement,DevelopBusinessGovernanceModeltoMonitorBusinessPerformance,DefineRoles&ResponsibilitiesforSixSigmaDeployment,DeveloptheRoadmapforSixSigmaProcessDeployment,IdentifyResourceRequirements,DevelopSixSigmaGovernanceProcess,DevelopSixSigmaTrainingandCertificationprogram(SSL,MBB,BB,GB),IdentifyProjectsforImprovements,AssessBusinessPerformancerelatedtoSixSigmaProcess(QMSProcess),SixSigmaContinuousImprovementPriorities,Overallfocuswill:DramaticallyreducetheCostofQualitybyimproving:processimprovementproductandserviceimprovementdesignimprovementsupplierimprovementtrainingDevelopandimplementasystematicapproachtodriveperformanceimprovementsthroughoutthebusinessMakeCustomerSatisfactionadrivingforceinallbusinessdecisionsImplementabalancedscorecardthatmeasuresthesuccessofourefforts,Leader/Champion,MasterBlackBelt(MBB),BlackBelts(BB),GreenBelts(GB),ProjectTeamMembers,SixSigma-Roles&Responsibilities,Isresponsibleforcoordinatingabusinessroadmaptoachieve6.Selectsprojects,executescontrol,andalleviatesroadblocksforthe6projectsinhisorherareaofresponsibility.,Ismentor,trainer,andcoachofBlackBeltsandothersintheorganization.Bringsthebroadorganizationuptotherequired6competencylevel.,Isaleaderofteamsimplementingthe6methodologyonprojects.Introducesthemethodologyandtoolstoteammembersandthebroaderorganization.,Deliverssuccessfulsmall,focuseddepartmentalprojectsusingthesuccessstrategy.,Participatesontheprojectteams.Supportsthegoalsoftheproject,typicallyinthecontextofhisorherexistingresponsibilities.Isexpectedtocontinuetoutilizelearned6methodologyandtoolsaspartofhisorhernormaljob.,QIA