Description
This is a presentation explaining about six sigma.
Six Sigma
Why do quality efforts fail?
• •
Maintaining outdated business processes Poor process and job design
• •
Outdated business systems
Lack of `people’ centered approach Failure to manage learning and innovation More . . . . . . .
•
•
Value as a driving force
?
Customer expects value for money The business is for creating value Ultimately we are responsible for value
?
?
?
Focus of the value chain
Need to unbundle the value blocks and do something more . . . . . . .
?
How do we deliver value?
? ? ?
Identify the processes which affect the customer
Identify activities (which add value) Create a yard stick to measure the performance of the existing processes Identify the processes which need improvement Prepare an improvement plan Mobilize team Get the resources for implementation Implement the plan, monitor and measure the performance
? ? ? ? ?
?
Compare after and before performances
Does this sounds like PDCA approach?
PLAN
?
P : PLAN D : DO C : CHECK
?
ACT
DO
?
?
A : ACT
CHECK
What is sigma (?)?
?
A measure of variation around the mean – the desired value of the process or product parameter
?
Indicate the inconsistency in the process
Should be minimized through a planned approach
?
Variation vs. Loss
Dr. Taguchi’s loss function concept
T
(Target value)
x
L (LOSS) = k (T – x) 2 OR L (LOSS) = k ? 2
Concept of 3 Ms & Sigma (?) : Problem Indicators
Muri : strain - excessive efforts, exertion or tension
Mura : inconsistency – unequal in size, shape, strength, ability, value, rank, number or amount, etc., iregular, uneven, not uniform Muda : waste - activity which does not add value, unneccesary or avoidable
?
?
?
What is Six Sigma (6?)?
3.4 defects per million
6?
6?
Lower Specification Limit
Upper Specification Limit
99.99966 %
Why six sigma (6?) – The process management approach?
INPUT
PROCESS
OUTPUT
MEASURE
SOURCES OF VARIATION
OF VARIATION
Process capability measurement
MEASUREMENT OF VARIATION : Cp & Cpk
Cp = PROCESS CAPABILITY (MEASURE OF SPREAD) SPECIFICATION WIDTH
Cp =
PROCESS WIDTH (± 3 ? )
Cpk = PROCESS CAPABILITY INDEX (MEASURE OF CENTERING & SPREAD) MEAN - LSL , 3? USL - MEAN 3?
Cpk = MIN
Process capability measurement
?
DEFECTS PER UNIT (DPU)
TOTAL NOS. OF DEFECTS
DPU =
?
TOTAL NO OF UNITS
DEFECTS PER MILLION OPPORTUNITES FOR ERROR UNIT (DPMO)
DPU X 1, 000, 000
DPMO =
TOTAL NO OF OPPORTUNITIES PER UNIT
Influence of Six Sigma
BAD
PERFORMANCE
SIX SIGMA BREAKTHROUGH
OLD STANDARD
NEW STANDARD GOOD
TIME
Six Sigma (6?) applicable in all functions
ADMINIS TRATION SERVICE
DESIGN
PURCHASE
SIX SIGMA METHODS
SALES QUALITY ASSURANCE MANUFA CTURING STORES
Six Sigma (6?) Values ISSUES
Aim Behavior Direction
CLASSICAL SIX SIGMA
Company Reactive Internal Customer Proactive Global benchmark
Manufacturability
Outlook
Trial & error
Short term
Quality & time
Robust design
Six Sigma (6?) Values
ISSUES
People
CLASSICAL SIX SIGMA
Cost Asset
Problems
Training
Fixing
Luxury
Preventing
Necessary
Six Sigma (6?) Goals
?
Six sigma = 3.4 ppm This can be reached by – Quality assurance at incoming stage : supplier relationship Highly capable processes : process design & engineering
?
Six Sigma (6?) Challenges
99 % GOOD PERFORMANCE (3.8 ?)
20, 000 lost articles of mail per hour
99.99966 % GOOD PERFORMANCE (6 ?)
7 lost articles of mail per hour
Unsafe drinking water for One minute unsafe drinking almost 15 minutes each day water for every month
5, 000 incorrect surgical operations per week
1.7 incorrect surgical operations per week
Six Sigma (6?) Challenges
99 % GOOD PERFORMANCE (3.8 ?)
2 short or long landings at most major airports each day 200,000 wrong drug prescription each year No electricity for almost 7 hours each month
99.99966 % GOOD PERFORMANCE (6 ?)
1 short or long landing at most major airports evry 5 years 68 wrong drug prescription each year 1 hour without electricity in every 34 years
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY
Spends 15 – 25 % of sales turnover on cost of failure
THE THREE SIGMA ( 6 ?) COMPANY
Spends 5 % of sales turnover on cost of failure
Produces 2700 defects per million opportunities
Produces 3.4 defects per million opportunities
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY THE THREE SIGMA ( 6 ?) COMPANY
Relies on inspection to find Relies on capable defects processes which do not produce defects
Believes that high quality is Appreciates that high expensive quality is low cost
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY THE THREE SIGMA ( 6 ?) COMPANY
Does not have a disciplined Uses measures, analyse, approach to gather and improve and control analyze data Benchmarks against their competitors Benchmarks against the best in the world
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY
Believes that 99 % is good enough
THE THREE SIGMA ( 6 ?) COMPANY
Believes that 99 % is unacceptable
Defines critical-to-quality Defines critical-to-quality (CTQ) targets internally (CTQ) targets externally
Six Sigma (6?) Implementation – Project
Selection
?
Remember 3Ms and Loss function – they indicate about quality problems!
Gap what is intended or should be and what is
?
?
? ? ? ? ?
The problem could be one or more of the following –
Conformance problem – not meeting the specifications Unstructured performance problems – absence of a system Efficiency problem – for example cost and efficiency issues Product design problem – not meeting the users’ needs Process design problem – need benchmarking or reengineering
Six Sigma (6?) Implementation – Project
Selection
?
Problems selection could be top-down or bottom-up Top-down : strategic initiatives, broad scope, needs detailed planning and integration across the functions Bottom-up : initiated by Black Belts, according to capabilities of the team members, to ensure alignment to the strategic priorities
Six Sigma (6?) Implementation – Project
Selection
? ?
May span the organization, division or one function Possible considerations –
? ? ? ?
?
Financial returns : cost, revenue, etc. Impact on customer or organizational effectiveness Probability of success Impact on employees Fit to strategy and competitive advantage
Six Sigma (6?) Problem Solving
Approach
Identify key processes which cause defects in CTQ characteristics
For each products or process CTQ – measure, analyze, improve & control
Identify customer – driven criticalto-quality (CTQ) characteristics
SIX SIGMA IS A RIGOROUS ANALYTICAL PROCESS FOR SOLVING PROBLEMS
Six Sigma (6?) Implementation
IDENTIFY CUSTOMER – DRIVEN CRITICAL –TO– QUALITY (CTQ) CHARACTERISTICS
?
Identify the customers – internal, external
What do we provide to the customers? What is critical to quality for customers?
?
?
Six Sigma (6?) Implementation
IDENTIFY KEY PROCESSES WHICH CAUSE DEFECTS IN A CRITICAL – TO – QUALITY (CTQ) CHARACTERISTIC
?
What are the processes for providing products or services CTQs to the customers? Where do defects occur in these processes – quantitative assessment?
?
Six Sigma (6?) Implementation
FOR EACH PRODUCT OR PROCESS CRITICAL – TO – QUALITY (CTQ) CHARACTERISTIC – MEASURE, ANALYSE, IMPROVE & CONTROL MEASURE : What is the frequency of defect?
ANALYSE : When and where do defects occur?
IMPROVE : How can we fix the process?
CONTROL : How can we make the process stay fixed?
DMAIC Methodology
DEFINE
?
Different from project selection which is based on symptoms of the problem (vague problem statement) Description of problem in operational terms
?
DMAIC Methodology
MEASURE
?
How to measure the internal processes that impact CTQ? Need to establish the cause-effect relationship Identify the metrics to measure
?
?
DMAIC Methodology
ANALYSE
?
Why did the problem occur? Lack of knowledge, lack of control – material or equipment, bad design, lack of training, etc. Need to know the ‘root-cause’ : ‘5 Why’ technique or Fishbone Diagram
?
?
Usage of statistical techniques to establish the root cause – hypothesis testing or similar methods
DMAIC Methodology
IMPROVE
?
Remove the root cause and improve the CTQ
?
Need to gather the creative ideas and prevent from taking superficial action without considering the long term implications
Usage of brainstorming or similar methods Decision on implementation may involve resources, time, etc.
?
?
DMAIC Methodology
CONTROL
?
How to maintain the improvement?
?
May involve establishing new standards, procedures, training, etc.
Usage of brainstorming or similar methods Decision on implementation may involve resources, time, etc.
?
?
Six Sigma (6?) deployment
Typical Six Sigma Project Team structure –
?
?
?
?
?
Champion : senior level manager who promotes and lead the six sigma initiative – to set a strategic direction Master Black Belt : Full time six sigma expert and leader, engaged in six sigma strategy planning, training, mentoring, deployment and results, advanced knowledge about tools Black Belts : Trained experts with 160 hours of training to work on full time basis, trained in advanced tools, need leadership and communication skills, mentor the Green Belts Green Belts : Functional employees trained in simple six sigma tools Team Members : Individuals from functional areas to support a specific project
Team and project management approach are important
Six Sigma (6?) tools and techniques
Nothing new (Deming, Juran, etc.) Simple problem solving tools (not an exhaustive list)
?
?
?
?
Elementary statistical tools – basic statistics, hypothesis testing, regression and correlation Advanced statistical tools – design of experiment, analysis of variance, etc. Measurement – process capability, measurement system analysis Process control – statistical process control
Design for Six Sigma (6?) : DFSS
?
Optimize CTQs for six sigma product and system performance by balancing cost, schedule and quality
DFSS includes – ? High level architectural view of the design ? Usage of CTQ with well-defined technical specification ? Application of statistical tools and simulation ? Predicting defects, avoiding defects and performance prediction ? Examining full range of product performance
Session Ends
doc_496475424.ppt
This is a presentation explaining about six sigma.
Six Sigma
Why do quality efforts fail?
• •
Maintaining outdated business processes Poor process and job design
• •
Outdated business systems
Lack of `people’ centered approach Failure to manage learning and innovation More . . . . . . .
•
•
Value as a driving force
?
Customer expects value for money The business is for creating value Ultimately we are responsible for value
?
?
?
Focus of the value chain
Need to unbundle the value blocks and do something more . . . . . . .
?
How do we deliver value?
? ? ?
Identify the processes which affect the customer
Identify activities (which add value) Create a yard stick to measure the performance of the existing processes Identify the processes which need improvement Prepare an improvement plan Mobilize team Get the resources for implementation Implement the plan, monitor and measure the performance
? ? ? ? ?
?
Compare after and before performances
Does this sounds like PDCA approach?
PLAN
?
P : PLAN D : DO C : CHECK
?
ACT
DO
?
?
A : ACT
CHECK
What is sigma (?)?
?
A measure of variation around the mean – the desired value of the process or product parameter
?
Indicate the inconsistency in the process
Should be minimized through a planned approach
?
Variation vs. Loss
Dr. Taguchi’s loss function concept
T
(Target value)
x
L (LOSS) = k (T – x) 2 OR L (LOSS) = k ? 2
Concept of 3 Ms & Sigma (?) : Problem Indicators
Muri : strain - excessive efforts, exertion or tension
Mura : inconsistency – unequal in size, shape, strength, ability, value, rank, number or amount, etc., iregular, uneven, not uniform Muda : waste - activity which does not add value, unneccesary or avoidable
?
?
?
What is Six Sigma (6?)?
3.4 defects per million
6?
6?
Lower Specification Limit
Upper Specification Limit
99.99966 %
Why six sigma (6?) – The process management approach?
INPUT
PROCESS
OUTPUT
MEASURE
SOURCES OF VARIATION
OF VARIATION
Process capability measurement
MEASUREMENT OF VARIATION : Cp & Cpk
Cp = PROCESS CAPABILITY (MEASURE OF SPREAD) SPECIFICATION WIDTH
Cp =
PROCESS WIDTH (± 3 ? )
Cpk = PROCESS CAPABILITY INDEX (MEASURE OF CENTERING & SPREAD) MEAN - LSL , 3? USL - MEAN 3?
Cpk = MIN
Process capability measurement
?
DEFECTS PER UNIT (DPU)
TOTAL NOS. OF DEFECTS
DPU =
?
TOTAL NO OF UNITS
DEFECTS PER MILLION OPPORTUNITES FOR ERROR UNIT (DPMO)
DPU X 1, 000, 000
DPMO =
TOTAL NO OF OPPORTUNITIES PER UNIT
Influence of Six Sigma
BAD
PERFORMANCE
SIX SIGMA BREAKTHROUGH
OLD STANDARD
NEW STANDARD GOOD
TIME
Six Sigma (6?) applicable in all functions
ADMINIS TRATION SERVICE
DESIGN
PURCHASE
SIX SIGMA METHODS
SALES QUALITY ASSURANCE MANUFA CTURING STORES
Six Sigma (6?) Values ISSUES
Aim Behavior Direction
CLASSICAL SIX SIGMA
Company Reactive Internal Customer Proactive Global benchmark
Manufacturability
Outlook
Trial & error
Short term
Quality & time
Robust design
Six Sigma (6?) Values
ISSUES
People
CLASSICAL SIX SIGMA
Cost Asset
Problems
Training
Fixing
Luxury
Preventing
Necessary
Six Sigma (6?) Goals
?
Six sigma = 3.4 ppm This can be reached by – Quality assurance at incoming stage : supplier relationship Highly capable processes : process design & engineering
?
Six Sigma (6?) Challenges
99 % GOOD PERFORMANCE (3.8 ?)
20, 000 lost articles of mail per hour
99.99966 % GOOD PERFORMANCE (6 ?)
7 lost articles of mail per hour
Unsafe drinking water for One minute unsafe drinking almost 15 minutes each day water for every month
5, 000 incorrect surgical operations per week
1.7 incorrect surgical operations per week
Six Sigma (6?) Challenges
99 % GOOD PERFORMANCE (3.8 ?)
2 short or long landings at most major airports each day 200,000 wrong drug prescription each year No electricity for almost 7 hours each month
99.99966 % GOOD PERFORMANCE (6 ?)
1 short or long landing at most major airports evry 5 years 68 wrong drug prescription each year 1 hour without electricity in every 34 years
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY
Spends 15 – 25 % of sales turnover on cost of failure
THE THREE SIGMA ( 6 ?) COMPANY
Spends 5 % of sales turnover on cost of failure
Produces 2700 defects per million opportunities
Produces 3.4 defects per million opportunities
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY THE THREE SIGMA ( 6 ?) COMPANY
Relies on inspection to find Relies on capable defects processes which do not produce defects
Believes that high quality is Appreciates that high expensive quality is low cost
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY THE THREE SIGMA ( 6 ?) COMPANY
Does not have a disciplined Uses measures, analyse, approach to gather and improve and control analyze data Benchmarks against their competitors Benchmarks against the best in the world
Six Sigma (6?) Language
THE THREE SIGMA ( 3 ?) COMPANY
Believes that 99 % is good enough
THE THREE SIGMA ( 6 ?) COMPANY
Believes that 99 % is unacceptable
Defines critical-to-quality Defines critical-to-quality (CTQ) targets internally (CTQ) targets externally
Six Sigma (6?) Implementation – Project
Selection
?
Remember 3Ms and Loss function – they indicate about quality problems!
Gap what is intended or should be and what is
?
?
? ? ? ? ?
The problem could be one or more of the following –
Conformance problem – not meeting the specifications Unstructured performance problems – absence of a system Efficiency problem – for example cost and efficiency issues Product design problem – not meeting the users’ needs Process design problem – need benchmarking or reengineering
Six Sigma (6?) Implementation – Project
Selection
?
Problems selection could be top-down or bottom-up Top-down : strategic initiatives, broad scope, needs detailed planning and integration across the functions Bottom-up : initiated by Black Belts, according to capabilities of the team members, to ensure alignment to the strategic priorities
Six Sigma (6?) Implementation – Project
Selection
? ?
May span the organization, division or one function Possible considerations –
? ? ? ?
?
Financial returns : cost, revenue, etc. Impact on customer or organizational effectiveness Probability of success Impact on employees Fit to strategy and competitive advantage
Six Sigma (6?) Problem Solving
Approach
Identify key processes which cause defects in CTQ characteristics
For each products or process CTQ – measure, analyze, improve & control
Identify customer – driven criticalto-quality (CTQ) characteristics
SIX SIGMA IS A RIGOROUS ANALYTICAL PROCESS FOR SOLVING PROBLEMS
Six Sigma (6?) Implementation
IDENTIFY CUSTOMER – DRIVEN CRITICAL –TO– QUALITY (CTQ) CHARACTERISTICS
?
Identify the customers – internal, external
What do we provide to the customers? What is critical to quality for customers?
?
?
Six Sigma (6?) Implementation
IDENTIFY KEY PROCESSES WHICH CAUSE DEFECTS IN A CRITICAL – TO – QUALITY (CTQ) CHARACTERISTIC
?
What are the processes for providing products or services CTQs to the customers? Where do defects occur in these processes – quantitative assessment?
?
Six Sigma (6?) Implementation
FOR EACH PRODUCT OR PROCESS CRITICAL – TO – QUALITY (CTQ) CHARACTERISTIC – MEASURE, ANALYSE, IMPROVE & CONTROL MEASURE : What is the frequency of defect?
ANALYSE : When and where do defects occur?
IMPROVE : How can we fix the process?
CONTROL : How can we make the process stay fixed?
DMAIC Methodology
DEFINE
?
Different from project selection which is based on symptoms of the problem (vague problem statement) Description of problem in operational terms
?
DMAIC Methodology
MEASURE
?
How to measure the internal processes that impact CTQ? Need to establish the cause-effect relationship Identify the metrics to measure
?
?
DMAIC Methodology
ANALYSE
?
Why did the problem occur? Lack of knowledge, lack of control – material or equipment, bad design, lack of training, etc. Need to know the ‘root-cause’ : ‘5 Why’ technique or Fishbone Diagram
?
?
Usage of statistical techniques to establish the root cause – hypothesis testing or similar methods
DMAIC Methodology
IMPROVE
?
Remove the root cause and improve the CTQ
?
Need to gather the creative ideas and prevent from taking superficial action without considering the long term implications
Usage of brainstorming or similar methods Decision on implementation may involve resources, time, etc.
?
?
DMAIC Methodology
CONTROL
?
How to maintain the improvement?
?
May involve establishing new standards, procedures, training, etc.
Usage of brainstorming or similar methods Decision on implementation may involve resources, time, etc.
?
?
Six Sigma (6?) deployment
Typical Six Sigma Project Team structure –
?
?
?
?
?
Champion : senior level manager who promotes and lead the six sigma initiative – to set a strategic direction Master Black Belt : Full time six sigma expert and leader, engaged in six sigma strategy planning, training, mentoring, deployment and results, advanced knowledge about tools Black Belts : Trained experts with 160 hours of training to work on full time basis, trained in advanced tools, need leadership and communication skills, mentor the Green Belts Green Belts : Functional employees trained in simple six sigma tools Team Members : Individuals from functional areas to support a specific project
Team and project management approach are important
Six Sigma (6?) tools and techniques
Nothing new (Deming, Juran, etc.) Simple problem solving tools (not an exhaustive list)
?
?
?
?
Elementary statistical tools – basic statistics, hypothesis testing, regression and correlation Advanced statistical tools – design of experiment, analysis of variance, etc. Measurement – process capability, measurement system analysis Process control – statistical process control
Design for Six Sigma (6?) : DFSS
?
Optimize CTQs for six sigma product and system performance by balancing cost, schedule and quality
DFSS includes – ? High level architectural view of the design ? Usage of CTQ with well-defined technical specification ? Application of statistical tools and simulation ? Predicting defects, avoiding defects and performance prediction ? Examining full range of product performance
Session Ends
doc_496475424.ppt