ISBIS E14 Petenate Six Sigma

7/28/2019 ISBIS E14 Petenate Six Sigma

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Six Sigma and The Science and Art ofImprovement

Ademir J. Petenate

UNICAMPUniversidade Estadual de Campinas


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Organizations dont need Six Sigma!


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The Science of Improvement

Science

Knowledge or a system of knowledge coveringgeneral truths or the operation of general lawsespecially as obtained and tested throughscientific method (Merriam-Webster)

The Science of Improvement is concernedwith how knowledge of a specific subjectmatter is applied in diverse situations to

improve process, products and services


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Dr. Deming made an important contribution tothe Science of Improvement

He recognize four interdependent elementsthat are fundamental to improvement, forminga system

He gave these elements of knowledge thename System of Profound Knowledge. Profounddenotes the deep insight that this

knowledge provides in making changes that willresult in improvements in a variety of settings.

System denotes the emphasis on the interactionof the components rather than on the componentsthemselves.


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Appreciation of a

System

Theory of

Knowledge

Understanding

Variation

Psychology

Demings System of

Profound Knowledge

Content from Quality as a Business Strategy (API, 1998)


SPK is fundamental tocomprehend the workingsof a system and thus be

able to improve it


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Appreciation of a

System

Theory of

Knowledge

Understanding

Variation

Psychology

All work happens in a process

A system is an interdependent group of items, people, and processes with a commonpurposeIf each part of a system, considered separately, is made to operate as efficiently aspossible, then the system as a whole will not operate as effectively as possibleAppreciation of a system helps us to understand the interdependencies andinterrelationships among all components of a system and thus increases the accuracyof our predictions about the impact of changes throughout the system




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Appreciation of a

System

Theory of

Knowledge

Understanding

Variation

Psychology

Improvement comes from learning, which is accelerated by using theScientific MethodImprovement requires change, but not every change is an improvementBuilding knowledge by making changes and observing or measuring theresults is the foundation of the Science of Improvement




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Appreciation of a

System

Theory of

Knowledge

Understanding

Variation

Psychology

Variation in data can be due to common and special causesDifferent improvement strategies are required to improve stable and unstableprocessesImprovement based on reduction of variation almost always results in lower

costs




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Appreciation of a

System

Theory of

Knowledge

Understanding

Variation

Psychology

People are a key part of systems in organizationsKnowledge of Psychology helps us to understand people, how they interactwith each other and with a system.It helps us to predict how people will react to a specific change, why they resistchange, and how to overcome this resistance.

Changes that are aimed at improvement will have to recognize thesedifferences and account for them.




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The Art of Improvement

The human mind is a self-organizinginformation system

In a self-organizing information system,patterns are formed

These patterns are used to make judgmentsthat restricts the options for changes

Creativity is a method for cutting across

patterns. Creativity can be used for changing concepts

and perceptions


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Work as a process

Each work activity happens in a process

A Process is a set of causes and conditions thatrepeatedly come together in steps to transform inputs

into outputs

S I P O C

SuppliersProcess

InputOutput

Customers


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Production viewed as a system

This chart was first used in August 1950 at aconference with top management at the Hotel de Yama

on Mount Hakone in Japan (Out of the Crisis, 1986)

Design andRedesign Consumer

research

Receipt andtest of

materials

Consumers

Production, assembly, inspection DistributionABCD

Suppliers ofmaterials and

equipment

Tests of processes, machines,

methods, costs


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Deming called attention to the importance oflinking a system of production with a systemfor improvement and tying them to a commonaim for the future

He referred to this as viewing production asa system

Deming defined a system as a group ofinterdependent people, items, processes,products and services that have a commonpurpose


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Six Sigma

The Six Sigma concept was developed at Motorola at the

end of the 1980s Six Sigma rose to public prominence when Motorola won

the Malcolm Baldrige National Quality Award in 1988

Motorola focused on drastically reducing defects to the 3.4DPMO level (6-sigma level)

Those actions were quantified in dollar terms at $2 billionover a four year period

This was a figure which, not surprisingly, aroused theattention and admiration of a number of industrystrategists and planners

Beginning with the 1995 Annual Report, published in1996, Jack Welch talked about the commitment,investment, and anticipated payback of the program forGE

The rest is history


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Six Sigma meanings

A statistical measure

A system for improvement


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Six Sigma as a Statistical Measure

- 6s -5s -4s -3 s -2s -1s 0 +1s +2s +3s +4s +5s +6s

6s to LSL 6s to USL

Cp=2 Cpk=1.5Cp=2 Cpk=1.5

Cp=Cpk = 2

1.5sLSL

12.5% 12.5%

75%

3.4 PPM 3.4 PPM

USL

Source: Thomas A. Little Consulting


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Six Sigma as a Statistical measure

A measure of performance/quality of process and

products Brought more heat than light to the matter of measuring

performance/quality of process and products

The traditional ways of measuring performance/quality (%,

ppm, dpu, cp, cpk, etc) makes more sense to people Many times, people get involved in reaching Six Sigma

Quality without understanding what it really means

It reinforces the one measure before one measureafter way of deciding if the changes was an improvement

Dont work in the direction of making people understand

variation


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Six Sigma as a System for Improvement

A Management driven, scientific methodologyfor product and process improvement

A Business Strategy

It uses DMAIC as a Model for Improvement


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Why Six Sigma?

Six Sigma (DMAIC) is widely used byOrganizations

Many Organizations ask for Six Sigma whenthey want to implement a program for

improvement Big organizations demand that their suppliers

work with Six Sigma

Six Sigma is still a big wave in Quality

Do organizations need Six Sigma?


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Need

People, organization and the society itselfhas needs

An organization is created to fulfill one ormore need, offering products and/or services

Need last for a long time; products or servicesthat fulfill the need changes over time

Focus on the need helps to understand whypeople make business with the organization

Organizations need to improve continuouslytheir processes, products and services

Six Sigma is a great product to fulfill this need

today!


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Design andRedesign Consumer

research

Receipt andtest of

materials

Consumers

Production, assembly, inspection DistributionABCD

Suppliers ofmaterials and

equipment

Tests of processes, machines,methods, costs


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Organization viewed as a system

This figure is a slight modification of Production viewed

as a System (API, Quality as a Business Strategy)

Design andRedesign of

Processes andProducts

Marketresearch

Plan toImprove

Consumers

Production of Products and services DistributionABCD

Suppliers

Support Processes

NeedPurpose of theOrganization

Measurement& Feedback


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To understand an Organization as a Systemof production we must consider

1. Why we make what we make? Purpose (need)

2. How we make what we make? Linkage of Processes Family of measures

3. How we improve what we make? System for obtaining information

Planning to Improve

Managing improvement efforts

Based on a paper of Thomas Nolan, SilverSpring, Paul Batalden


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Marketresearch

Plan toImprove

ConsumersProduction of Products and services Distribution

ABCD

Suppliers

Support Processes

NeedPurpose of theOrganization


Why wemake?

How we

make?

How we

improve?


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OVS, SPK, Improvement and Six Sigma

Question 1 and 2 are Top Managementresponsibility

Most organizations have an answer for question 1in their Strategic Planning

Not many organizations have a clear view of theirprocesses and make the linkage of them

Both topics are contained in Appreciation of a

System of SPK


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Part of question 3 is Top Management responsibility Create a balanced family of measures of the system and use

this family of measures to manage the system

Organizations have difficulties in implementing abalanced family of measures

Organizations have tremendous difficulties inanalyzing and interpreting the family of measures

Top management have a poor Understanding of

Variation (SPK) and their decisions based on data

can have bad consequences


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Part of question 3 is Middle level

Management responsibility (Plan to Improve) Identifies key strategic improvement initiatives

Assigns technical resources (human) to keystrategic initiatives

Establishes objectives/measures/scope Secures resources and remove obstacles

Provides on-going support as required

Sign off on completion

Manage individual and team improvement efforts Need to have a good Understanding of

Variation, Psychology and Theory ofKnowledge (SPK)


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The last part of question 3 is Black Belt,Green Belt and team members responsibility

Design a new product or service

Redesign an existing product or service

Design a new process Redesign an existing process

Improve the system as a whole

Need to have a good Understanding of

Variation, Theory of Knowledge andPsychology (SPK)


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Everyone involved in improvement is

searching for a perfect road map to

accomplish an improvement project

Check

Act Plan

Do

ADDIE

(Analysis, Design, Development,

Implement, Evaluate)

The Joiner 7 Step Method

DMAICR

DMAICCSC

Model for Improvement


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There is fundamental link between Changeand Improvement

All improvement will require change

Not all change will result in improvement

How to know if a change is animprovement? What is improvement?

Any approach to Improvement must bebased on building and applying knowledge

How to improve the learning process for peopleworking in improvement?


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Langley, K. Nolan, T. Nolan, Norman andProvost proposed a set of three fundamentalquestions as a basis for improvement. Thequestions are:

1. What are we trying to accomplish? (aim)2. How will we know that a change is an

improvement? (criteria)

3. What changes can we make that will resultin improvement? (need to develop changes)

Any project for improvement should take inaccount these questions


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Both Dr. Shewhart and Dr. Demingrecognized the importance of the scientificmethod of hypothesis generation,experimentation, observation and hypothesis

testing. To help people in organizations to apply the

scientific method they propose the use of thePDSA cycle (Plan, Do, Study, Act)

The PDSA cycle can be used for developing,testing and implementing changes that willresult in improvement


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PDSA: A process to obtain knowledge

Source: API


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Langley, K. Nolan, T. Nolan,

Norman and Provostrecognized the importance ofusing PDSA cycles to answerthe Three Questions and

proposed a Model forImprovement based on theThree Questions and ThePDSA cycle

The improvement Guide, Langley, k.Nolan, T. Nolan, Norman and Provost

API Associates in ProcessImprovement


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The Model for Improvement

How to deploy the Model for Improvement?

First moment Use The System for Obtaining Information to measure

the performance of the system

Identified gaps move the organization to make Plans for

Improvement Second moment

Start to answer the First and Second Question

Need to do activities

Activities are done to obtain knowledge


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Third moment Work to answer the Third Question

Activities are done to obtain knowledge about thecauses system and to develop changes

To obtain knowledge make, use of the PDSA

cycle To be more effective on running PDSAs, use

tools

The activities are done in sequence or in

parallel The set of activities may be broken in phases

The phases can constitute a Road Map for theteam


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The Model for Improvement and Road Map

1. What are we trying to accomplish?

2. How will we know that a change is an

improvement?

3. What changes can we make that will

result in improvement?

Tools

API Associates in

Process Improvement


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If the team has much experience, they can move

along the project without a step-by-step road map.They can use a sequence of PDSAs

Beginners working on improvement feel morecomfortable if they have an explicit road map

In general, project sponsors find easy to manage theteam with road maps. They can use road maps tomake check points

Road maps can be changed depending if you are

Designing a new process, product or service Redesigning an existing process, product or service

Experience has shown that DMAIC is an excellentRoad Map for process improvement


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The Model for Improvement and Road Map

MEASURE

IMPROVE

CONTROL

ANALYSE

DEFINE



improvement?

3. What changes can we make that will

result in improvement?Tools


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How to integrate things?

1. Deming`s System of Profound Knowledge is the

foundation of a System for Improvement2. Organization viewed as a system provide a

structure for a Strategy for Improvement

3. The Three Questions are the beginning and the end

of any improvement project4. We can use a road map to answer the Three

Questions

5. To run a road map we do activities to improve

knowledge6. The activities are done using PDSAs

7. To run PDSAs we need concepts, skills, tools,creativity, substantive matter knowledge, etc.

Appreciation


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Appreciation

of a System

Theory of

Knowledge

Understanding

Variation

Psychology



Marketresearch

Plan toImprove

ConsumersProduction of Products and services Distribution

ABCD

Suppliers

Support Processes

Need

Purpose of theOrganization


MEASURE

IMPROVE

CONTROL

ANALYSE

DEFINE



improvement?

3. What changes can we make that will result in

improvement?

Tools


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3.4 PPM

$$$$$$

DMAICBB, GB, MBB, etc

Improvement & Six Sigma Iceberg


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3.4 PPM

$$$$$$

DMAIC

BB, GB, MBB, etc

Structure

Strategy

Concepts

Foundations

Improvement & Six Sigma Iceberg


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Conclusions

Organizations do not need Six Sigma

Organizations need to improve processes,products and services

Six Sigma is a great product to attend this

need SPK, OVS and the Model for Improvement

provide foundations, concepts, strategy andstructure for Six Sigma


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Thank You!

Documents

ISBIS E14 Petenate Six Sigma