Description
concept of six sigma and six sigma managment appraoch, DMAIC six sigma improvement model, six sigma organizational strucuture, benefits of six sigma projects.
CROSSBY?S “FOUR ABSOLUTES”
The Definition Quality is conformance to requirements, not goodness Prevention, not appraisal Zero Defects; not “that?s close enough” The Price of non-conformance to requirements (cost of Quality, not quality indices
The System The Performance Standards The Measurement
1
Variation Which Pilot Would You Choose?
X
X
X X X X X X X X X XX XX XX XX XX
Airplane landing example
1
Six Sigma Process
– A Six Sigma process is one that has at least six standard deviations between the process mean and the nearest specification limit when centred.
Upper Design Specification
Lower Design Specification 1.5 s 1.5 s
+/- 6 sigma 99.99996% *
2
Mean Value
*Distribution shifted +/- 1.5 s
Six Sigma as a Metric
Sigma = s = Deviation
( Square root of variance ) Axis graduated in Sigma
-7 -6 -5 -4 -3 -2 -1
s
s?
? ( xi ? x)2 ? n ?1
1
6
2
3
5
0
between + / - 1s between + / - 2s between + / - 3s between + / - 4s between + / - 5s between + / - 6s
68.27 % 95.45 % 99.73 % 99.9937 % 99.9943 % 99.99966 %
4
7
317300 ppm outside (deviation)
45500 ppm 2700 ppm
63 ppm
57 ppm
3.4 ppm
3
Non-Liner Decrease
s 1 2 Industry Average 317,300 45,500
3
4 5
2,700
63 57
6 Process Capability
3.4
Defects per Million Opportunities
4
Examples of Sigma
Electric companies if operated at
4 Sigma = no power for 1 hour/week 6 Sigma = no power for 2 seconds/week
Telephone Companies
4 Sigma = No phone service: 4 hours/month 6 Sigma = No phone service: 9 seconds/month
5
99.99% Good (4 Sigma)
20,000 lost articles of mail/hour Unsafe drinking water for 15 minutes every day 5,000 incorrect surgical operations per week
99.99966% Good (6 Sigma)
7 lost articles of mail/hour 1 unsafe minute of drinking water every 7 months 1.7 incorrect surgical operations per week
200,000 wrong drug prescriptions 68 wrong drug prescriptions each each year year 2 short or long landings at major airports each day 1 long or short landing at major airports every 5 years 6
History of Six Sigma
•Six Sigma had its birth at Motorola in 1979.
•Six Sigma was developed by Mikel Harry. •A quantum leap in manufacturing technology occurred at Motorola when it applied Six Sigma. •Within four years, Six Sigma had saved the company $2.2 billion.
7
What is Six Sigma ?
• Measure of how well a process is performing - Six Sigma process produces 3.4 defects per million opportunities - Most companies are at 3-4 sigma level • Philosophy of reducing defects so we can improve customer satisfaction and reduce costs • Business Strategy that increases process performance resulting in enhanced customer satisfaction and improved bottom line.
8
CONCEPT OF SIX SIGMA
• • • • • Six-sigma is an approach to continually improve and reduce variations in the process that contribute to waste and poor quality. It is a measure of how well a process is performing. Six sigma is a well structured, data driven methodology for eliminating defects, waste, or quality control problems of all kinds in every area. It Focus on not making mistakes (Mistake proofing) and reducing the variability in the processes. Six Sigma properly implemented will •Improve customer satisfaction, •significantly improve quality, •improve the way we launch new products, and •create a continuous improvement mindset. 9
?
“A disciplined method of using extremely rigorous data gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them”
Harry & Schroeder, 2000
Contd….
10
?
Six Sigma is both a philosophy and a goal
? Focus on continuous improvement through customer satisfaction ? Critical processes at 3.4 defects per million opportunities (DPMO)
? The focus is not on DPMO but on a systematic method to reduce variability within the manufacturing process ? Six Sigma projects are lead by individuals selected and trained in the application of this systematic method
? Requires clear definition of roles and
11
?
Six Sigma is based around a number of central themes
? ? ? ? ? ? A genuine focus on the customer Data and fact driven Management Team based problem solving projects Process focus, management & improvement Proactive management Drive for perfection, tolerance for failure
Contd….12
?
A genuine focus on the customer
? Six Sigma measures start with customer satisfaction ? Emphasis on understanding customer expectations and requirements
?
Data and fact driven Management
? Speaking with data (not opinions!) ? Management decisions based on fact ? Develop understanding of internal processes Contd….13
?
Process focus, management & improvement
? Understanding the process is the key aspect ? Control the inputs, and improve process
?
Proactive management
? Understanding of Six Sigma principles ? Defining the root cause of problems ? Setting and maintaining aggressive improvement targets ? Challenging „why? things are done this way
Contd….
14
?
Team based collaboration
? ? ? ?
Six Sigma is teamwork focused Project lead by process expert Facilitated by Six Sigma Black Belt Multi-skill experts within project team
?
Drive for perfection, tolerance for failure
? Being prepared to fail during improvement ? Understanding why something failed ? Improving it next time
15
?
General Electric started to use Six Sigma in 1995
? Total savings estimated to be $15 Billion ? Over 10,000 GE managers and employees have been trained in Six Sigma methods
?
AlliedSignal/Honeywell started Six Sigma improvement in the early 1990s
? Estimated to be saving over $600 million pa ? Market value increased by compounded 27% pa ? “Its changed the way we think and communicate. We
never used to talk about the process or the customer, now they?re part of our everyday conversation”
16
?
Motorola established the first Six Sigma improvement programme in 1987
? Used to track and compare customer requirements ? Over the ten years 1987-97
? ? ? ? Five-fold increase in sales Profits increasing at nearly 20% per year, Share price equal annual increase of over 21% per year Cumulative savings based on Six Sigma at over $14 billion
17
Statistical Process Control
Design of Experiments
Process Design/ Redesign Continuous Improvement Process Management
7 Quality Control Tools
Balanced Scorecards
Six Sigma
Voice of the Customer
Creative Thinking 18
Six Sigma Improvement Strategy
• • • • • Phase 0: Process Definition Phase I: Process Measurement Phase II: Process Analysis Phase III: Process Improvement Phase IV: Process Control
19
DMAIC Six Sigma Improvement Model
Define Measure
Control Improve
Analyze
20
Six Sigma Structure
Management Team
Master Black Belt Green Belt
Project Champion
Functional Groups HR, Finance, IT Engg, QA, etc.
Black Belt and Team
21
SIX SIGMA ORGANIZATIONAL STRUCTURE
A typical six sigma structure in manufacturing organization Quality Leader/ Manager (QL/QM) - The quality leader’s responsibility is to represent the needs of the customer and to improve the operational effectiveness of the organization. Master Black Belt (MBB) - Master Black Belts are typically assigned to specific area or function of a business or organization. Black Belt (BB) - Black Belts lead quality projects and work full time until they are complete. Green Belt (GB) - Green Belts are employees trained in six sigma who spend a portion of their time in completing projects, but maintain their regular work role and responsibilities. 22
Six Sigma & TQM: Complementary or Conflict?
• Many of the objectives of TQM are echoed within the Six Sigma approach • Focus on customers • Team based activity • Dependent on people • Produces an improved business position Yet there are significant differences in approach • Focused on hard „process based? deliverables • Precise definition and simple message • Cross functionality of approach • Well defined project time-scales • Well defined project structure • Well defined training objectives 23
Benefits of Six Sigma Projects
•Reduced cycle time. •Increased productivity and added value. •Improved capacity and output. •Reduced total defects. •Increased product reliability. •Decreased work in progress. •Improved process flow. •Faster return on investment. •Improved overall customer satisfaction
24
Summary
• Six Sigma - It is different - It works if you follow the process - Produces significant bottom line results • Change is required by all persons who get involved with the initiative • Six Sigma will last as long as it produces bottom line results.
25
Case Study Bombay Tiffenwallas
26
28
Case Study Bombay Tiffenwallas
(Source: Forbes Magazine)
Bombay Tiffanwallas (Raghunath Medge – president)
- They make one Error on every 16 millions transactions 5000 Tiffanwallas deliver 175,000 lunches everyday and take the empty tiffin back - They make one mistake in 2 month
175,000x2(transaction per day) x30 (days)=10,500,000 10,500,000x2 months= 21,000,000 (21 millions)
26
Case Study Bombay Tiffenwallas
(Source: Forbes Magazine) The charge for this service = 150 Rupees per month Tiffenwallah monthly income= Rs 3,250 Tiffenmen’s Association gets Rs 10 per worker Send to Charity = Rs. 50, 000 per month Superb!!! Service and Charity Too Can anyone ask for more????
SALAM TO THE SPIRIT OF BOMBAY
27
THANKS!!!
28
doc_744040628.pptx
concept of six sigma and six sigma managment appraoch, DMAIC six sigma improvement model, six sigma organizational strucuture, benefits of six sigma projects.
CROSSBY?S “FOUR ABSOLUTES”
The Definition Quality is conformance to requirements, not goodness Prevention, not appraisal Zero Defects; not “that?s close enough” The Price of non-conformance to requirements (cost of Quality, not quality indices
The System The Performance Standards The Measurement
1
Variation Which Pilot Would You Choose?
X
X
X X X X X X X X X XX XX XX XX XX
Airplane landing example
1
Six Sigma Process
– A Six Sigma process is one that has at least six standard deviations between the process mean and the nearest specification limit when centred.
Upper Design Specification
Lower Design Specification 1.5 s 1.5 s
+/- 6 sigma 99.99996% *
2
Mean Value
*Distribution shifted +/- 1.5 s
Six Sigma as a Metric
Sigma = s = Deviation
( Square root of variance ) Axis graduated in Sigma
-7 -6 -5 -4 -3 -2 -1
s
s?
? ( xi ? x)2 ? n ?1
1
6
2
3
5
0
between + / - 1s between + / - 2s between + / - 3s between + / - 4s between + / - 5s between + / - 6s
68.27 % 95.45 % 99.73 % 99.9937 % 99.9943 % 99.99966 %
4
7
317300 ppm outside (deviation)
45500 ppm 2700 ppm
63 ppm
57 ppm
3.4 ppm
3
Non-Liner Decrease
s 1 2 Industry Average 317,300 45,500
3
4 5
2,700
63 57
6 Process Capability
3.4
Defects per Million Opportunities
4
Examples of Sigma
Electric companies if operated at
4 Sigma = no power for 1 hour/week 6 Sigma = no power for 2 seconds/week
Telephone Companies
4 Sigma = No phone service: 4 hours/month 6 Sigma = No phone service: 9 seconds/month
5
99.99% Good (4 Sigma)
20,000 lost articles of mail/hour Unsafe drinking water for 15 minutes every day 5,000 incorrect surgical operations per week
99.99966% Good (6 Sigma)
7 lost articles of mail/hour 1 unsafe minute of drinking water every 7 months 1.7 incorrect surgical operations per week
200,000 wrong drug prescriptions 68 wrong drug prescriptions each each year year 2 short or long landings at major airports each day 1 long or short landing at major airports every 5 years 6
History of Six Sigma
•Six Sigma had its birth at Motorola in 1979.
•Six Sigma was developed by Mikel Harry. •A quantum leap in manufacturing technology occurred at Motorola when it applied Six Sigma. •Within four years, Six Sigma had saved the company $2.2 billion.
7
What is Six Sigma ?
• Measure of how well a process is performing - Six Sigma process produces 3.4 defects per million opportunities - Most companies are at 3-4 sigma level • Philosophy of reducing defects so we can improve customer satisfaction and reduce costs • Business Strategy that increases process performance resulting in enhanced customer satisfaction and improved bottom line.
8
CONCEPT OF SIX SIGMA
• • • • • Six-sigma is an approach to continually improve and reduce variations in the process that contribute to waste and poor quality. It is a measure of how well a process is performing. Six sigma is a well structured, data driven methodology for eliminating defects, waste, or quality control problems of all kinds in every area. It Focus on not making mistakes (Mistake proofing) and reducing the variability in the processes. Six Sigma properly implemented will •Improve customer satisfaction, •significantly improve quality, •improve the way we launch new products, and •create a continuous improvement mindset. 9
?
“A disciplined method of using extremely rigorous data gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them”
Harry & Schroeder, 2000
Contd….
10
?
Six Sigma is both a philosophy and a goal
? Focus on continuous improvement through customer satisfaction ? Critical processes at 3.4 defects per million opportunities (DPMO)
? The focus is not on DPMO but on a systematic method to reduce variability within the manufacturing process ? Six Sigma projects are lead by individuals selected and trained in the application of this systematic method
? Requires clear definition of roles and
11
?
Six Sigma is based around a number of central themes
? ? ? ? ? ? A genuine focus on the customer Data and fact driven Management Team based problem solving projects Process focus, management & improvement Proactive management Drive for perfection, tolerance for failure
Contd….12
?
A genuine focus on the customer
? Six Sigma measures start with customer satisfaction ? Emphasis on understanding customer expectations and requirements
?
Data and fact driven Management
? Speaking with data (not opinions!) ? Management decisions based on fact ? Develop understanding of internal processes Contd….13
?
Process focus, management & improvement
? Understanding the process is the key aspect ? Control the inputs, and improve process
?
Proactive management
? Understanding of Six Sigma principles ? Defining the root cause of problems ? Setting and maintaining aggressive improvement targets ? Challenging „why? things are done this way
Contd….
14
?
Team based collaboration
? ? ? ?
Six Sigma is teamwork focused Project lead by process expert Facilitated by Six Sigma Black Belt Multi-skill experts within project team
?
Drive for perfection, tolerance for failure
? Being prepared to fail during improvement ? Understanding why something failed ? Improving it next time
15
?
General Electric started to use Six Sigma in 1995
? Total savings estimated to be $15 Billion ? Over 10,000 GE managers and employees have been trained in Six Sigma methods
?
AlliedSignal/Honeywell started Six Sigma improvement in the early 1990s
? Estimated to be saving over $600 million pa ? Market value increased by compounded 27% pa ? “Its changed the way we think and communicate. We
never used to talk about the process or the customer, now they?re part of our everyday conversation”
16
?
Motorola established the first Six Sigma improvement programme in 1987
? Used to track and compare customer requirements ? Over the ten years 1987-97
? ? ? ? Five-fold increase in sales Profits increasing at nearly 20% per year, Share price equal annual increase of over 21% per year Cumulative savings based on Six Sigma at over $14 billion
17
Statistical Process Control
Design of Experiments
Process Design/ Redesign Continuous Improvement Process Management
7 Quality Control Tools
Balanced Scorecards
Six Sigma
Voice of the Customer
Creative Thinking 18
Six Sigma Improvement Strategy
• • • • • Phase 0: Process Definition Phase I: Process Measurement Phase II: Process Analysis Phase III: Process Improvement Phase IV: Process Control
19
DMAIC Six Sigma Improvement Model
Define Measure
Control Improve
Analyze
20
Six Sigma Structure
Management Team
Master Black Belt Green Belt
Project Champion
Functional Groups HR, Finance, IT Engg, QA, etc.
Black Belt and Team
21
SIX SIGMA ORGANIZATIONAL STRUCTURE
A typical six sigma structure in manufacturing organization Quality Leader/ Manager (QL/QM) - The quality leader’s responsibility is to represent the needs of the customer and to improve the operational effectiveness of the organization. Master Black Belt (MBB) - Master Black Belts are typically assigned to specific area or function of a business or organization. Black Belt (BB) - Black Belts lead quality projects and work full time until they are complete. Green Belt (GB) - Green Belts are employees trained in six sigma who spend a portion of their time in completing projects, but maintain their regular work role and responsibilities. 22
Six Sigma & TQM: Complementary or Conflict?
• Many of the objectives of TQM are echoed within the Six Sigma approach • Focus on customers • Team based activity • Dependent on people • Produces an improved business position Yet there are significant differences in approach • Focused on hard „process based? deliverables • Precise definition and simple message • Cross functionality of approach • Well defined project time-scales • Well defined project structure • Well defined training objectives 23
Benefits of Six Sigma Projects
•Reduced cycle time. •Increased productivity and added value. •Improved capacity and output. •Reduced total defects. •Increased product reliability. •Decreased work in progress. •Improved process flow. •Faster return on investment. •Improved overall customer satisfaction
24
Summary
• Six Sigma - It is different - It works if you follow the process - Produces significant bottom line results • Change is required by all persons who get involved with the initiative • Six Sigma will last as long as it produces bottom line results.
25
Case Study Bombay Tiffenwallas
26
28
Case Study Bombay Tiffenwallas
(Source: Forbes Magazine)
Bombay Tiffanwallas (Raghunath Medge – president)
- They make one Error on every 16 millions transactions 5000 Tiffanwallas deliver 175,000 lunches everyday and take the empty tiffin back - They make one mistake in 2 month
175,000x2(transaction per day) x30 (days)=10,500,000 10,500,000x2 months= 21,000,000 (21 millions)
26
Case Study Bombay Tiffenwallas
(Source: Forbes Magazine) The charge for this service = 150 Rupees per month Tiffenwallah monthly income= Rs 3,250 Tiffenmen’s Association gets Rs 10 per worker Send to Charity = Rs. 50, 000 per month Superb!!! Service and Charity Too Can anyone ask for more????
SALAM TO THE SPIRIT OF BOMBAY
27
THANKS!!!
28
doc_744040628.pptx