Transcript Six Sigma Orientation

Six sigma
Orientation
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expectations
•What is Quality?
•Know Six Sigma
•Awareness with respect to origin
and history of Six Sigma.
•The utility and benefits
•Introduction to Six Sigma as
methodology
•The Six Sigma organization
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What is Quality?
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Evolution of Quality
Reactive Quality
Quality Checks (QC) - Taking the
defectives out of what is produced
Historically
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Proactive Quality
“Create process that will produce
less or no defects”
Contemporary
Segments in Quality
Methodologies
•Six Sigma
•Lean
Scientific way
to improve
capability?
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Standards
•ISO 9000, ISO
14000 etc.
•COPC
•Malcolm Baldrige
Sharing
Benchmarked
practices“Standardizing”
Capability Models
•eSCM
•CMM
•CMMI
Best practices
to build
capability
What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes that perform at high
standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique
Six Sigma is not:
• A standard
• A certification
• Another metric like percentage
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Two Meanings of Sigma

• The term “sigma” is used to designate the distribution or spread about the
mean (average) of any process or procedure.
• For a process, the sigma capability (z-value) is a metric that indicates how well
that process is performing. The higher the sigma capability, the better. Sigma
capability measures the capability of the process to produce defect-free
outputs. A defect is anything that results in customer dissatisfaction.
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Path to Six Sigma
6 Sigma
Sigma levels and
Defects per million
opportunities
(DPMO)
5 Sigma
4 Sigma
3 Sigma
2 Sigma
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3.4 Defects
233 Defects
6,210 Defects
66,807 Defects
308,537 Defects
What it means to be @ Six Sigma
Is 99% (3.8) good enough?
99.99966% Good – At 6
20,000 lost mails per hour
7 lost mails per hour
Unsafe drinking water almost 15
minutes each day
One minute of unsafe drinking
water every seven months
5,000 incorrect surgical
operations per week
1.7 incorrect surgical operations
per week
2 short or long landings at most
major airports daily
One short or long landing at major
airports every five years
200,000 wrong drug prescriptions
each year
68 wrong drug prescriptions each
year
Example quoted from GE Book of Knowledge - copyright GE
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Origin of Six Sigma
Motorola
the company that invented Six Sigma
• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola
• Late 1970s - Motorola started experimenting with problem solving through
statistical analysis
• 1987 - Motorola officially launched it’s Six Sigma program
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The Growth of Six Sigma
GE
the company that perfected Six Sigma
• Jack Welch launched Six Sigma at GE in Jan,1996
• 1998/99 - Green Belt exam certification became the criteria for management
promotions
• 2002/03 - Green Belt certification became the criteria for promotion to
management roles
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The Growth of Six Sigma
The GE model for process improvements
Define
Measure
Analyze
Improve
Control
Combination of change management & statistical analysis
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The Growth of Six Sigma
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Three Methodologies of Six Sigma
BPMS
Business Process Management System
DMAIC
Six Sigma Improvement Methodology
DMADOV
Creating new process which will perform @ Six Sigma
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BPMS
Business Process Management System
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The Need of BPMS
• To understand the process; it’s mission, flow and scope
• To know the customers and their expectations
• To identify, monitor and improve correct performance measures for the process
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The Methodology
Map process
steps, identify
input/ output
measures
Define Process
Mission
Define purpose
of the process,
its goal and its
boundaries
Map
Process
MSA, DCP,
indicators and
monitors
VOC and
VOP
Identify Critical
to Quality and
Critical to
process
Build
PMS
Service
excellence and
process
excellence
Develop
Dashboar
ds
Visual
representation
of performance
The DMAIC
cycle
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Identify
Improve
ment
Opportun
ities
DMAIC
Six Sigma Improvement Methodology
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What is DMAIC ?
• A logical and structured approach to problem solving and process improvement
• An iterative process (continuous improvement)
• A quality tool with focus on change management
E
Effectiveness
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=
Q
x
Quality
Improvement
A
Acceptance
The Approach
Practical
Problem
Statistical
Problem
Statistical
Solution
Practical
Solution
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Methodology
D
Define
M
Measure
A
Analyze
Identify and state the practical problem
Validate the practical problem by collecting data
Convert the practical problem to a statistical one, define
statistical goal and identify potential statistical solution
I
Improve
Confirm and test the statistical solution
C
Control
Convert the statistical solution to a practical solution
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Define
D
Define
VoC - Who wants the project and why ?
M
Measure
The scope of project / improvement
A
Analyze
Key team members / resources for the project
I
Improve
Critical milestones and stakeholder review
C
Control
Budget allocation
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D
Measure
D
Define
Ensure measurement system reliability
- Is tool used to measure the output variable flawed ?
- Do all operators interpret the tool reading in the same way ?
M
Measure
A
Analyze
I
Improve
C
Control
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Prepare data collection plan
-
How many data points do you need to collect ?
How many days do you need to collect data for ?
What is the sampling strategy ?
Who will collect data and how will data get stored ?
What could the potential drivers of variation be ?
Collect data
M
Analyze
D
Define
M
Measure
Understand statistical problem
Baseline current process capability
A
Analyze
I
Improve
C
Control
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Define statistical improvement goal
Identify drivers of variation (significant factors)
A
Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)
•
A brainstorming tool that helps define and display major causes, sub causes and
root causes that influence a process
•
Visualize the potential relationship between causes which may be creating
problems or defects
Primary Cause
Secondary Cause
Problem
Backbone
Root Cause
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A
Analyze – Identify Drivers of Variation
Control – Impact Matrix
•
A visual tool that helps in separating the vital few from the trivial many
Impact
Control
Vital Few
Cost Ineffective
High Control – High Impact
Low Control – High Impact
Cost Ineffective
Trivial Many
High Control – Low Impact
Low Control – Low Impact
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A
Analyze – Identify Drivers of Variation
Pareto Chart
•
Pareto principle states that disproportionately large percentage of defects are
caused due to relatively fewer factors (generally, 80% defects are caused by 20%
factors)
35
100%
30
25
80%
60%
20
15
40%
10
5
20%
0
0%
L
K
A
Frequency
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F
B
C
G
R
D
Cumulative Frequency
A
Analyze – Identify Drivers of Variation
Process Map Analysis
•
Visually highlights hand off points / working relationships between people,
processes and organizations
•
Helps identify rework loops and non value add steps
Customer
Process A
Process B
Vendor
A
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Analyze – Identify Drivers of Variation
Hypothesis Testing
•
A statistical tool used to validate if two samples are different or whether a
sample belongs to a given population
Null Hypothesis (Ho) is the statement of the status quo
Alternate Hypothesis (Ha) is the statement of difference
Homogeneity of
Variance
Chi-Square
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One way ANOVA
Moods Median
Regression
A
Improve
D
Define
Map improved process
M
Measure
A
Analyze
Pilot solution
I
Improve
C
Control
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Identify operating tolerance on significant factors
I
Control
D
Define
M
Measure
Ensure measurement system reliability for
significant factors
- Is tool used to measure the input / process variables flawed ?
- Do all operators interpret the tool reading in the same way ?
Improved process capability
A
Analyze
I
Improve
C
Control
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Sustenance Plan
- Statistical Process Control
- Mistake Proofing
- Control Plan
C
Control – Sustenance Plan
Control Plan
•
Have the new operating procedures and standards been documented ?
•
What Statistical Process Control (SPC) tools will be used to monitor the process
performance ?
•
Who will review the performance of the output variable and significant factors
on closure of the project and how frequently ?
•
What is the corrective action or reaction plan if any of the factors were to be
out of control ?
C
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Six Sigma Organization
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Six Sigma - Three Dimensions
Customer
Define
Measure
Analyze
Improve
Process A
Process B
Vendor
Control
Driven
by
customer
needs
Process Map Analysis
LSL
Led by
Senior
Mgmt
Methodology
Organization
Tools
US
L
••••••••
•
•
•
•
••
••••••
••• •
Upper/Lower
specification
limits
Regression
35
100%
30
25
80%
60%
20
15
Enabled by quality
team.
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Process variation
40%
10
5
20%
0
0%
L
K
A
Frequency
F
B
C
G
R
D
Cumulative Frequency
Pareto Chart
The Quality Team
Master Black Belt
Black Belt
Black Belt
Green Belt
Green Belt
Green Belt
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- Thought Leadership
- Expert on Six Sigma
- Mentor Green and Black Belts
-
Backbone of Six Sigma Org
Mentor Green Belts
Full time resource
Deployed to complex or “high
risk” projects
- Part time or full time resource
- Deployed to less complex projects
in areas of functional expertise
Six Sigma – Career Option!
Green Belt (GB)
•
•
•
•
Basic - Six Sigma Awareness
Green Belt Projects
Participate in Black Belt Projects
Assist business functions with day to day
activities
Black Belt (BB)
•
•
•
•
Mentor/Train Green Belts
Black Belt Projects
Change Agents
Work along with the business owners
Master Black Belt (MBB)
• Mentor/ Train Black Belts
• Run Strategic projects
• More Strategic than tactical role
Highly paid!
Work like a Consultant!
Huge demand in the industry!
Overall…A high flying Career!!
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Thank You
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