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1,SixSigmaByDanielWuFordLioHoMotorCompany,2,Outline,QualitylevelWhatisSixsigma?WhyweneedSixsigma?DevelopmentandDeploymentstrategyHowSixsigmamergesintoourdailybusiness?,3,Overview-FourQualityGurus,HistoricallycompanieshavefocusedonqualityissuesforcustomersatisfactionPriortosixsigmatherewerefourkeyqualitygurusthatmostcompaniesqualityprogramsfollowedDemingJuranCrosbyTaguchi,4,Deming,Demingtaught:ImportanceofunderstandingvariationinworkprocessesRoleofmanagementinleadingforqualityApplicationofstatisticsPlan-Do-Check-Act,5,DemingsContributiontoProfitability,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,JuransContribution,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,TaguchisContribution,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?”Its:“Howdowestaysuccessfully?”,13,Change,“Itisnotthestrongestthatsurvive,northefittest,butthosemostabletoadapttochange.”CharlesDarwinTheOriginofSpecies,“Peopledonotresistchange,peopleresistbeingchanged.”Beckhard,14,Challenge,Resistance-theuniversalreactiontochange.TechnicalresistancePoliticalresistanceOrganizationalresistanceIndividualresistance,15,SixSigma?,SixSigmaisnotabusinessfadtiedtoasinglemethodorstrategy,butratheraflexiblesystemforimprovedbusinessleadershipandperformance.Itisnotabouttheory,itsaboutaction.,Passion+Execution=FastandLastingResults,SixSigmaFocus,DelightingthecustomerthroughflawlessexecutionRapidbreakthroughimprovementAdvancedbreakthroughtoolsthatworkPositiveanddeepculturechangeRealfinancialresultsthatimpactthebottomline,Sigmaisastatisticalunitofmeasurethatreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,parts-permilliondefective,andtheprobabilityofafailure/error,(DistributionShifted1.5s),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,6LinkingPins,BusinessAreaInitiatives,Itunifiestheinitiativesandprovidesacommonlanguagewhichallpeoplecanunderstandandspeak.,HowDoWeImproveCapability,OurOutputs(Ys)aredeterminedbyourInputs(Xs).IfweknowenoughaboutourXswecanaccuratelypredictYwithouthavingtomeasureit.IfwedontknowmuchaboutourXs,thenwehavetoresorttoinspectionandtest(nonvalueaddedoperations).,ByknowingandcontrollingtheXs,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,WhatsInItForMe?,“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,StrategyConsumer-driven,focusonproduct,process,andservice.OrganizationAll-functioninvolvementandPersonalDevelopment.PolicyCompany-wideengagement,HR,IT,andFinancesupport.ManagementProject,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,PhaseICascading,EstablishdeploymentstructureExecutive,topmanagement,championawarenesstrainingBlackBelttrainingToolsimplementationtrainingLeadershiptraining,36,PhaseIIAcceleratedevelopment,Deploymentstructureimplementationanddispositionineachfunction.EverysalaryisGB.Begintoimplantintocurrentqualitysystem.ISO14000andQS9000integration.,37,PhaseIIIIntegration,ImplantsixsigmamethodologyinotherqualitytoolsPartnershipwithotherqualitysystem.Sixsigmatrainingtosupplierandfranchise.Sixsigmaindailybusiness.DFSS(DesignforSixSigma).BB/MBBinleadershipposition.,38,ItisAllaboutValue,TheCustomerValuePropositionDefinesBusinessStrategy,Customerschoosetobuyfromusbecause.Investorsentrusttheirmoneytousbecause.Employeeschoosetoworkforusbecause.,39,ThreeCustomerValuePropositionStrategies,ProductdifferentiationOperationalexcellenceCustomerpartnerships,40,Consumerv.s.Producer,CustomershigherexpectationDefect-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:“DoesntFailMechanically”“DoesntFailElectrically”“IsDurable”,BasicQuality,PerformanceQuality,ExcitementQuality,43,Businessinitiatives,Delivery,Cost,Quality,WhenwesaysomethingisaCTQ,canwedescribeitfromCustomersperspective?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.Conductsbusinessthroughtheconsumerseyesandsharesunfilteredinsightwithintheenterprise.Createsacompellingconsumerexperienceandinnovatesservicesaswellasproducts.Addsvalueintheeyesoftheconsumer.Integratestheproductandinformation.,48,TransformingCustomerFeedbackIntoSAQandthenSixsigmaProjects,SingleAgendaforQualityandCustomerSatisfaction,Top25issues,DevelopActionableProjects,IdentifyGenericCriticalXs,HighMileage,DFSS,NewProductContent,MeasureandMonitorCriticalXs,IdentifyCriticalXsOutofSpecification,DevelopActiontoRestoreCriticalXs,MBBAction,VRT(Processowner),BlackBeltProjectLeader,FPS&PlantOperations,QOS,DMAIC,GreenBeltProjects,49,ConsumerDriven6-Sigmaoffersastructuredproblemsolvingmethodologytoachievebreak
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