Transcript What is Six Sigma?

What is Six Sigma?
Six Sigma Quotes
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"... the most powerful breakthrough management tool
ever devised"
Mikel Harry and Richard Schroeder
Six Sigma: The BREAKTHROUGH Management Strategy Revolutionizing the World's Top Corporations
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"Six Sigma is arguably the most important business and
industry initiative that has involved statistical thinking
and methods."
Ronald D. Snee
"Impact of Six Sigma on Quality Engineering"
Quality Engineering Volume 12, Number 3, 2000
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"Six Sigma has spread like wildfire across the company
and its transforming everything we do."
Jack Welch, CEO, GE
Business Week special report
June 8, 1998
Six Sigma Vs.
Lean Manufacturing
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Six sigma and lean manufacturing are methods to improve business and
manufacturing processes and drive profitability of companies. Both six sigma
and lean manufacturing, are proven concepts and have saved companies
billions of dollars and are the leading continuous improvement methods
utilized today.
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Lean Manufacturing Focuses on eliminating the 7 or 8 wastes and is based
on the philosophy of getting all levels of an organization involved. It was
developed by Toyota in the late 1950’s.
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Six sigma is a philosophy of doing business with a focus on eliminating
defects through fundamental process knowledge. Six sigma methods
integrate principles of business, statistics and engineering to achieve tangible
results.
7 or 8 Wastes of Lean
1. Defects
2. Overproduction
3. Transportation
4. Waiting
5. Inventory
6. Motion
7. Processing
8. Skills – Not utilizing people’s talents
Six Sigma Vs.
Lean Manufacturing
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Huge difference between "lean Tools" and Six
Sigma tools.
Lean = Improved process flow and the elimination
of waste in a continual mode of improvement
Any of the following mean Lean Manufacturing:
Continuous Improvement, Kaizen, Lean
Manufacturing, JIT
Six Sigma = Reduced process variation
Six Sigma holds the improvement process in the
hands of a select group of “belted” individuals
Six Sigma
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In 1986, Bill Smith, a senior engineer and scientist at Motorola,
introduced the concept of Six Sigma to standardize the way defects
are counted.
Six Sigma provided Motorola the key to addressing quality concerns
throughout the organization, from manufacturing to support
functions. The application of Six Sigma also contributed to Motorola
winning the Malcolm Baldrige National Quality award in 1988.
Since then, the impact of the Six Sigma process on improving
business performance has been dramatic and well documented by
other leading global organizations, such as General Electric, Allied
Signal, and Citibank.
Today, Motorola continues to implement Six Sigma throughout its
own enterprise, and extends the benefit of its Six Sigma expertise to
other organizations worldwide through Motorola University.
Six Sigma was derived from the statistical term of sigma which
measures deviations from perfection
Six Sigma History
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1986: Motorola Defines Six Sigma and in 1987 Chief Executive declares
Motorola will be at 6σ by 1992 (5-year goal)
1988: Six Sigma consortium is formed:
Motorola, Raytheon, ABB, CDI, Kodak
1989/1990: IBM, DEC try Six Sigma -- and fail
1993: AlliedSignal adds a new level to Six Sigma : Dedicated Black Belts
with a supporting infrastructure
1995: Jack Welch of General Electric adopts Six Sigma
1996-1998: Six Sigma implementation expands significantly as companies
observe the success of Allied and GE :Siebel, Bombardier, Whirlpool,
Navistar, Gencorp, Lockheed Martin, Polaroid,Sony, Nokia, John Deere
Siemens, BBA, Seagate, Compaq, PACCAR, Toshiba, McKesson,
AmEx...
1999: Starting to see exponential growth. Formal Six Sigma training begins
at ASQ: Johnson & Johnson, Air Products, Maytag, Dow Chemical,
DuPont, Honeywell, PraxAir, Ford, BMW, Johnson Controls, Samsung
Sigma Levels
Sigma Level
A value from 1 to 6 that signifies the maximum number
of defects per million:
1 Sigma = 690,000 defects/million = 31% accurate
2 Sigma = 308,537 defects/million = 69.1463%
accurate
3 Sigma = 66,807 defects/million = 93.3193% accurate
4 Sigma = 6,210 defects/million = 99.3790% accurate
5 Sigma = 233 defects/million = 99.9767% accurate
6 Sigma = 3.4 defects/million = 99.999997% accurate
Six Sigma Key Concepts
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At its core, Six Sigma revolves around a few key
concepts.
Critical to Quality: Attributes most important to the
customer
Defect: Failing to deliver what the customer wants
Process Capability: What your process can deliver
Variation: What the customer sees and feels
Stable Operations: Ensuring consistent, predictable
processes to improve what the customer sees and feels
Design for Six Sigma (DFSS): Designing to meet
customer needs and process capability
Six Sigma Methodology
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Six Sigma has two key methodologies:
DMAIC and DMADV.
DMAIC is used to improve an existing business
process.
DMADV is used to create new product designs
or process designs in such a way that it results in
a more predictable, mature and defect free
performance.
Statistical Process Control Methodology
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Statistical process control is an important part of Six Sigma
methodology, which proceeds through the following steps, also
called DMAIC (Define, Measure, Analyze, Improve and
Control):
1. Define - benchmarking, process flow mapping, flowcharts
2. Measure - defect metrics, data collection, sampling
3. Analyze - Fishbone diagrams, failure analysis, root cause
analysis
4. Improve - modeling, tolerance control, defect control, design
changes
5. Control - SPC control charts, performance management
Six Sigma Five Phases
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Basic methodology consists of the following five phases
DMADV (Define, Measure, Analyze, Design, and Verify):
Define - formally define the goals of the design activity that are
consistent with customer demands and enterprise strategy.
Measure - identify CTQs (Critical to Quality), product
capabilities, production process capability, risk assessment, etc.
Analyze - develop design alternatives, create high-level design
and evaluate design capability to select the best design.
Design - develop detail design, optimize design, and plan for
design verification. This phase may require simulations.
Verify - verify design, setup pilot runs, implement production
process and handover to process owners. This phase may also
require simulations.
Six Sigma Key People Roles
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Executive Leadership includes CEO and other key top management team members.
They are responsible for setting up a vision for Six Sigma implementation. They also
empower the other role holders with the freedom and resources to explore new ideas
for breakthrough improvements.
Champions are responsible for the Six Sigma implementation across the organization
in an integrated manner. The Executive Leadership draws them from the upper
management. Champions also act as mentor to Black Belts.
Master Black Belts, identified by champions, act as in-house expert coach for the
organization on Six Sigma. They devote 100% of their time to Six Sigma. They assist
champions and guide Black Belts and Green Belts. Apart from the usual rigor of
statistics, their time is spent on ensuring integrated deployment of Six Sigma across
various functions and departments.
Black Belts operate under Master Black Belts to apply Six Sigma methodology to
specific projects. They devote 100% of their time to Six Sigma. They primarily focus
on Six Sigma project execution, whereas Champions and Master Black Belts focus on
identifying projects/functions for Six Sigma.
Green Belts are the employees who take up Six Sigma implementation along with
their other job responsibilities. They operate under the guidance of Black Belts and
support them in achieving the overall results.
Recognized Training
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GE
Motorola
ASQ American Society for Quality
Six Sigma Academy
Institute of Industrial Engineers
ISSSP International Society of Six Sigma
Professionals