Transcript Six Sigma in Ten Minutes

Six Sigma in Ten Minutes
Elad Haber & Noam Rosen
PRESENTATION LAYOUT
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The Cost of Poor Quality - The “Hidden Factory”
What is Sigma and Six Sigma?
Why Six Sigma?
Six Sigma Methodology, Variability, DMAIC, DMADV and DFSS
Lean an Six Sigma As Merging process
Engineering Drive Cost - Key Roles for Six Sigma
The Human Factor in Lean Six Sigma
Six Sigma Companies and Financial Services
Conclusion
Sample of Keywords & Dictionaries
References
The Cost of Poor Quality
The “Hidden Factory”
Inspection
Scrap
Warranty
Rejects
Tangible Quality Costs
Rework
Lost sales
Lost Opportunities
Late delivery
More Setups
Hidden Factory
Expediting costs
Engineering change orders
Lost Customer Loyalty
Long cycle times
Excess inventory
Department of Mechanical Engineering, The Ohio State University
WHAT IS SIGMA ?
• A term (Greek) used in statistics to represent
standard deviation from mean value, an indicator
of the degree of variation in a set of a process.
• Sigma measures how far a given process deviates
from perfection. Higher sigma capability, better
performance
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Defects per
Million Opp
1
691462
2
308537
3
66807
4
6210
5
233
6
3.4
Defects
WHAT IS SIX SIGMA ?
• A strategy for:
– For cutting costs, increasing quality, shortening lead-times,
boosting efficiency etc in a very rapid manner.
• A methodology and a tool-box.
– Well proven quality tools packed in effective project
models.
– A common vocabulary and language.
• A mindset and cultural change.
– Reveals non-value add costs to operational leaders and
brings “a sense of urgency” culture to the organization.
– A non-firefighting approach that is focusing on critical
business areas.
WHY SIX SIGMA ?
3.8 Sigma = 99% Good
 20,000 articles of mail lost
6 Sigma = 99.99966% Good
7 articles lost per hour
each hour
 15 minutes of unsafe
2 minutes unsafe water per year
drinking water every day
 5,000 incorrect surgical
2 incorrect procedures per week
operations per week
 2 short or long landings at
most major airports each day
 200,000 wrong drug
1 short or long landing every 5
years
68 wrong prescriptions per year
prescriptions each year
99% Good Isn’t Always Good Enough
SIX SIGMA METHODOLOGY
• Reducing Variability
LSL
USL
USL
LSL
• DMAIC
Six Sigma Improvement Methodology of existing
process
LSL’
• DMADV
Creating new process which will perform at Six
Sigma
USL’
WHAT IS DMAIC ?
• DMAIC
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existing product or process
Define the project goals and customer (internal and external) deliverables
Measure the process to determine current performance
Analyze and determine the root cause(s) of the defects
Improve the process by eliminating defects
Control future process performance
• When To Use DMAIC
– The DMAIC methodology should be used when an existing product or
process does not meet customer specification or is not performing
adequately.
WHAT IS DMADV ?
new product or process
• DMADV
– Define the project goals and customer (internal and external) deliverables
– Measure and determine customer needs and specifications
– Analyze the process options to meet the customer needs
– Design (detailed) the process to meet the customer needs
– Verify the design performance and ability to meet customer needs
• When To Use DMADV
– A product or process does not in exist at your company, or redesigning of
existing product or process
WHAT IS DFSS ?
new product or process
• DFSS – Design For Six Sigma
– A methodology for designing new products and/or processes
– A methodology for re-designing existing products and/or processes
– A way to implement Six Sigma methodology as early in the product or
service life cycle
– A way to “design in” quality when costs are lowest
• When To Use DFSS
– A part of the development process
Lean and Six Sigma
As Merging process
Comparison of Lean & Six Sigma Approaches
Lean and Six Sigma
As Merging process
Six Sigma strives for quality by:
• eliminating variation
• measuring performance
Lean strives for speed by:
• improving processes
• optimizes flow
• reducing cycle time
• eliminating wastes
Continuous flow cannot be achieved
without high quality processes
The Human Factor
in Lean Six Sigma
Six Sigma Companies
Six Sigma and Financial Services
CONCLUSION
Six Sigma is methodology used for
Improving value by minimizing variation
Lean is methodology used for
Improving value by optimizing process flow
Lean Six Sigma is a methodology that maximizes
shareholder value by achieving the fastest rate of
improvement in customer satisfaction, cost, quality,
process speed, and invested capital”.
(Lean Six Sigma, Michael George, p. 13)
References
1. P. S. Pande, R. P. Neuman, R. R. Cavanagh “The Six Sigma Way” McGrawHill 2002 ISBN 0-07-137314-4
2. “Introduction to Lean Six Sigma Methods” MIT open courseware,
http://ocw.mit.edu/courses/aeronautics-and-astronautics/16-660introduction-to-lean-six-sigma-methods-january-iap-2008/
3. “Six Sigma” Department of Mechanical Engineering,
The Ohio State University
4. Various Internet resources
Keywords
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Six Sigma
Hidden Factory
DMAIC
DMADV
DFSS
LEAN
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LEAN Six Sigma
DPMO
Value
Value Sream
Flow
Internal & External customers
Normal distribution
THANKS
Q&A