Six Sigma Pgdbm

8/13/2019 Six Sigma Pgdbm

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SIX SIGMA-AN OVERVIEW


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History & Early Pioneers

Six Sigma coined at in the 1980s

Adopted by Allied Signal (Honeywell) with great success

Later adopted by Jack Welch (GE) and further developed into

a true management system
http://www.scarabs.homestead.com/files/motorola.gif


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What is Six Sigma?

A philosophy that underlies efforts toimprove business performance and

customer satisfaction

Using facts and data to eliminate waste (muda)

and variation

Eliminating activities that dont add value!


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What is Six Sigma?

1. The term Sigma is a measurementof how far a givenprocess deviates from perfectiona measure of numberof defects. Six Sigma implies near zero defects.

2. A qualityimprovement methodo logythat appliesstatistics to measure and reduce variation in processes.

3. A management sy stem that iscomprehensive andflexible for achieving, sustaining, and maximizing

business success.


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What is Six Sigma

Six Sigma is a disciplined, data-driven

approach and methodology for eliminating

defects in any process -- from manufacturing

to transactional and from product to service.

To achieve Six Sigma, a process must not produce

more than 3.4 defects per million opportunities.

A Six Sigma opportunity is then the total quantity

of chances for a defect.


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Measurement: Variance is the Enemy

Time Intervals Time Intervals

Mean

Mean

W I D E Variat ion Slim Variat ion

Ex: MRI TAT Project

Time (Min.).

Target

Target

Customer

Upper LimitCustomer

Upper LimitDEFECTS ZERO

DEFECTS

Time (Min.).


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Measurement:Six Sigma as a Quality Goal

The higher the sigma, thefewer the defects.

A increase from 3 to 6 Sigmarepresents a 20,000 foldimprovement in quality.

3 697,672.15308,770.21

66,810.63

6,209.70

232.67

3.40

1

2

3

4

5

6

Defects Per

Million

Opportunities

697,672.15

308,770.21

66,810.63

6,209.70

232.67

3.40

1

2

3

4

5

6

Defects Per

Million

Opportunities

99% Good (3.8 Sigma)

No electricity for 7 hours per month

5,000 incorrect operations per week

20,000 wrong prescriptions per year

99.99966% Good (6 Sigma)

No electricity for 1 hour every 34 years

1.7 incorrect operations per week

68 wrong prescriptions per year


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8

World Class Performance

With 99 %

Quality

With Six Sigma

Quality

For every 300000

letters delivered

3,000 misdeliveries 1 misdelivery

For every week of TV

broadcasting per

channel

1.68 hours of dead air 1.8 seconds of dead

air

Out of every 500,000

computer restarts

4100 crashes Less than 2 crashes

Source: The Six Sigma Way by Peter Pande and Others


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Six Sigma DMAIC

DMAIC Definethe project goals and customer (internal and external)

deliverables

Measurethe process to determine current performance

Analyzeand determine the root cause(s) of the defects

Improvethe process by eliminating defects

Controlfuture process performance

When To Use DMAIC

The DMAIC methodology, should be used when a product orprocess is in existence at your company but is not meetingcustomer specification or is not performing adequately.


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Six Sigma DMAIC Roadmap

D - Define Phase:

Define Customers and Requirements (CTQs)

Develop Problem Statement, Goals and Benefits

Identify Champion, Process Owner and Team

Define Resources

Evaluate Key Organizational Support

Develop Project Plan and Milestones

Develop High Level Process Map


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M - Measure Phase:

Define Defect, Opportunity, Unit and Metrics

Detailed Process Map of Appropriate Areas

Develop Data Collection Plan

Validate the Measurement System

Collect the Data

Begin Developing Y=f(x) Relationship

Determine Process Capability and Sigma Baseline


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A - Analyze Phase:

Define Performance Objectives

Identify Value/Non-Value Added Process Steps

Identify Sources of Variation

Determine Root Cause(s)

Determine Vital Few x's, Y=f(x) Relationship


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I - Improve Phase:

Perform Design of Experiments

Develop Potential Solutions

Define Operating Tolerances of Potential System

Assess Failure Modes of Potential Solutions

Validate Potential Improvement by Pilot Studies

Correct/Re-Evaluate Potential Solution


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C - Control Phase:

Define and Validate Monitoring and Control System

Develop Standards and Procedures

Implement Statistical Process Control

Determine Process Capability

Develop Transfer Plan, Handoff to Process Owner

Verify Benefits, Cost Savings/Avoidance, Profit Growth

Close Project, Finalize Documentation

Communicate to Business, Celebrate


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Six Sigma DMADV

DMADV Definethe project goals and customer (internal and external)

deliverables

Measureand determine customer needs and specifications

Analyzethe process options to meet the customer needs

Design(detailed) the process to meet the customer needs

Verifythe design performance and ability to meet customer needs

When To Use DMADV A product or process is not in existence at your company and one

needs to be developed

The existing product or process exists and has been optimized (usingeither DMAIC or not) and still doesn't meet the level of customerspecification or six sigma level


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DMAIC Versus DMADV

The Similarities of DMAIC and DMADV

Six Sigma methodologies used to drive defects to less than 3.4

per million opportunities.

Data intensive solution approaches. Intuition has no place in SixSigma -- only cold, hard facts.

Implemented by Green Belts, Black Belts and Master Black Belts.

Ways to help meet the business/financial bottom-line numbers.

Implemented with the support of a champion and process

owner


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Improvement Methodology: Key Players

Team Members: Individuals who

receive specific Six Sigma training

and who support projects in their

areas

Champions/Sponsors: Trained business leaders who lead the

deployment of Six Sigma in a significant business area

Black Belts: Fully-trained Six Sigma experts who lead

improvement teams, work projects across the business

and mentor Green Belts

Green Belts:Fully-trained individuals who apply

Six Sigma skills to projects in their job areas

Master Black B elts:Fully-trained quality leaders responsible for

Six Sigma strategy, training, mentoring, deployment and results


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Key Success Factors CEO must own it and must have a clear vision for the initiative

Invest in resources and make a long term commitment

Dedicate best and brightest

Measure and hold people accountable

Change the systems and structures to support the effort

Establish early, ongoing and clear communications

Be flexible and patient

Select and scope projects carefully: Focus on critical issues tied tobusiness priorities, with measurable and manageable parameters

Use change management tools to identify cultural barriers, gainacceptance and build momentum

Establish shared need, values and vision

Recognize, reward and celebrate successes


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How is Six Sigma Different?

Six Sigma

Driven by the customer

Targets variation

Focuses on processes

Prospective; prevents defects

Focuses on quality & ROI

Attentive to total business

Training is integral to

management system

Other Qual ity Programs

Driven internally

Looks at averages

Focuses on outcomes

Retrospective; fixes defects

Focuses on quality

Attentive to production

Training is separate from

management system


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Industry $uccess!

In a study of Motorola, Allied Signal, GE, and Honeywell -

- companies with mature Six Sigma deployments and

associated culture changes --

savings as a percentage of revenue were observed tovary between 1.2% and 4.5%.

Charles Waxer (2003), Six Sigma Costs And Savings


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Industry Success -Quality & Innovation

General Electr ic- Reduced invoice defects and disputes with a key customer by 98%

- Improved a key call center performance measure from 76% to 99%

- Reduced vibrations in Power System rotors by 300%

- Developed breakthrough technology that reduced medical scan times from 3minutes to 30 seconds

All ied Signal (Honeywel l)

- Reduced defects by 68% in 4 months

Texas Ins trum ents- Improved yield from 84.3% to 99.8%since 1998

Documents

Six Sigma Pgdbm