Main Assignment
Main Assignment
sectors of industry. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction and/or profit increase). The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modelling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a byword for the management and engineering practices used to achieve it. Six Sigma is a management philosophy developed by Motorola that emphasizes setting extremely high objectives, collecting data, and analyzing results to a fine degree as a way to reduce defects in products and services. The Greek letter sigma is sometimes used to denote variation from a standard. The philosophy behind Six Sigma is that if you measure how many defects are in a process, you can figure out how to systematically eliminate them and get as close to perfection as possible. In order for a company to achieve Six Sigma, it cannot produce more than 3.4 defects per million opportunities Six Sigma what does it mean? Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process from manufacturing to transactional and from product to service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to
develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement. Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master Black Belts. According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per project and can complete four to 6 projects per year. General Electric, one of the most successful companies implementing Six Sigma, has estimated benefits on the order of $10 billion during the first five years of implementation. GE first began Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. Since then, thousands of companies around the world have discovered the far reaching benefits of Six Sigma. Many frameworks exist for implementing the Six Sigma methodology. Six Sigma Consultants all over the world have developed proprietary methodologies for implementing Six Sigma quality, based on the similar change management philosophies and applications of tools. What is Six Sigma? Six Sigma is a business initiative, not a quality initiative. Six Sigma is an umbrella term for a philosophy and way of running a business that improves quality and productivity and increases profits. There are three major components to Six Sigma: The environment or culture of the organization as established by the senior leaders in the organization The improvements tools such as SPC, design of experiments, process mapping, data display and analysis, problem-solving, and root cause analysis, and The infrastructure which includes systems that support the use of the tools. Why do companies implement Six Sigma? The reason that companies should use Six Sigma is to increase profitability. Sometimes however, the impetus to get started on a Six Sigma process is brought on by customer demands. How can Six Sigma help companies improve quality and productivity? Six Sigma as a philosophy will create a heightened awareness of the need for on-going and everlasting quality improvement efforts. Six Sigma as a process will provide employees with the tools and skills they need to embrace the Six Sigma philosophy. By striving to achieve a six sigma level of quality, companies reduce costs related to scrap, rework, inspection, and customer dissatisfaction. How does Six Sigma work? Six Sigma starts at the top of an organization and requires constant attention by senior managers who are responsible for establishing the Six Sigma culture. In addition, senior management must enable the creation of an infrastructure to support Six Sigma improvement projects. What are some mistakes companies make when they implement Six Sigma? Here are the top reasons why Six Sigma does not work:
Thinking that six sigma is just using the tools and ignoring the improvement cultural component. Seeing Six Sigma as a temporary activity rather than a way of on-going business operations. Not understanding the power and importance of data and statistics. Assigning responsibilities to implement Six Sigma without giving the authority and training necessary to carry through on Six Sigma efforts. Not measuring processes or ignoring the story the measurers are telling. Not linking compensation to six sigma performance.
How can my company get started implementing Six Sigma? The first step in implementing Six Sigma is learning how it works and buying into the philosophy. While there are many resource available to satisfy this need, one of the best references is a book called Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations by Mikel Harry. What is the best way to teach people how to use Six Sigma? Six Sigma covers a broad range of topics beginning with a general overview of what six sigma is and then going into specific detailed topics related to the environment, tools, and infrastructure of six sigma. Resource Engineering has developed computer-based training programs to support Six Sigma efforts including the Six Sigma Start-Up. One of the foundations of the Six Sigma philosophy is statistics and statistical process control. SPC Workout is a computer-based training program on the use and application of SPC in manufacturing. Another cornerstone of the Six Sigma philosophy is preventing problems from occurring rather than waiting for them to occur and then having to detect them and eliminate them. Mistake-Proofing is a Six Sigma tool that helps teams identify and implement solutions that make it impossible to make mistakes. Failure Mode and Effects Analysis (FMEA) is a natural precursor to Mistake-Proofing as it provides a means for analyzing failure potential and prioritizing potential failures based on severity, chance of occurrence, and ability to detect the failure before it occurs. Resource Engineering has computer-based training programs on both Mistake-Proofingand FMEA. Accurate measurements and a reliable measurement system is also a critical part of the Six Sigma formula. Gage Mentor teaches people how to use and manage gages and other measuring equipment Six Sigma Infrastructure for Large Companies: For successfully implementing Six Sigma, a complete and well-connected infrastructure is necessary. The infrastructure includes: Core Team, Master Black Belt, Black Belt, Green Belt, Yellow Belt, MAIC discipline, and an incentive system. The Core Team defines and reviews Six Sigma projects progress, and acts as the political leader, removing the barriers for the project teams. The Master Black Belt acts as a technical coach and provides the knowledge of quality tools for the project team. There is typically one Master Black Belt for every 1,000 employees.
The Black Belt controls the project. There are typically 10 to 20 Black Belts per 1,000 employees.
The Green Belt supports Black Belt. There are typically 3 to 5 Green Belts on the Project Team with the Black Belt. There are typically 300 Green Belts per 1,000 employees.
Yellow Belts are the balance of your population. They provide information and support to the Six Sigma project teams, and are a source for future Green Belts.
The MAIC discipline sets up a clear protocol to expedite internal communication. The incentive system facilitates Six Sigma projects to generate results.
The infrastructure and the necessary training programs for different levels are described as follows: Core Team: Six Sigma involves changing major business value streams that cut across organizational barriers. It is the means by which the organization's strategic goals are to be achieved. Top management's commitment and involvement are critical to Six Sigma implementation. Hence, the core team is formed by top management. Its main responsibility is selecting high financial leverage projects, derived from the organization's strategic plan. While the projects are progressing, the team regularly reviews the projects. To understand the Six Sigma approach, a two-day (leadership) training program could use as a foundation selected topics from the list below: Six Sigma overview and implementation
Knowledge-centered activity focus and process improvement Overview of descriptive statistics and experimentation
Understanding the 10 Six Sigma Success Factors and how to deploy them throughout your organization Master Black Belts: This is the highest level of technical and organizational proficiency. They provide technical leadership of the Six Sigma program and ensure business is self-sustaining in training. They are in-house experts in Six Sigma tools and methodology. Their roles are: Coach and support projects for results.
Develop and deliver Six Sigma training. Assist in project identification. Partner with Six Sigma Champions.
Two one-week Master Black Belt training sessions can involve the expansion of topics or addition of other related topics not included in the normal Black Belt training. The training of Master Black Belts can also involve the critique of their training of Black Belts. The training prescription in advanced quality and statistical thinking. Black Belts: Black Belts are change agents for institutionalizing the Six Sigma improvements and methodology. Their roles are: Lead strategic and high impact process improvement projects.
Master basic and advanced quality tools and statistics. Deploy techniques of measurement, analysis, improvement and control.
An effective approach to the training of the Six Sigma concepts is the use of four weekly modules spread over four months. Between workshop sessions, attendees apply the concepts previously learned to their projects. During this time they also get one-on-one coaching of the application of the techniques to their project. Green Belts: They are technical process experts and change agents who work in their own functional area. Their roles are: Lead important process improvement projects.
Green Belt training sessions that are two weeks long can include topics and exercises as desired from the Black Belt's four-week training sessions. Yellow Belts: They are the balance of your population. They are provided 3-days of training so that they can understand and apply basic statistical concepts that are used in problem solving. They provide support to the Six Sigma project team and offer insights on root causes for the project team to investigate.
Six Sigma Belts: Terms used to describe the level of expertise attained by a Six Sigma-trained professional. There are four "belt" levels: Yellow Belt (YB) the lowest level of Six Sigma expertise; applies to a professional who has a basic working knowledge and who may manage smaller process improvement projects, but who does not function as a project or team leader; Green Belt (GB) in many organizations, Six Sigma's "entry level"; a Six Sigma-trained (and sometimes certified) professional who does not work on Six Sigma projects exclusively, but whose duties include leading projects and teams and implementing Six Sigma methodology at the project level; Black Belt (BB) a Six Sigma-trained professional who has usually completed an examination and been certified in its methods; all job duties include implementation of Six Sigma methodology throughout all levels of the business, leading teams and projects, and providing Six Sigma training and mentoring to Green and Yellow Belts; and Master Black Belt (MBB) the highest level of Six Sigma expertise; all duties involve implementation of Six Sigma, including statistical analysis, strategic and policy planning and implementation, and training and mentoring of Black Belts.
Overview:
Six Sigma is all about mindset and culture shift that eliminates the marginal methods that have been used in the past and replacing them with a set of simple yet sophisticated statistical/analytical tools that continually produce exceptional results in how processes operate. It helps to create a high performance organization. This is a 4days certificate program consisting of 6 modules that is designed to teach the six sigma way of process improvement. Each module contains theory followed by case studies These sessions include group time and teaching/applying the Six Sigma body of knowledge including:
The identification of core processes Defining customer requirements Measuring current performance
Defining opportunities for improvement Measuring the relevant processes requiring improvement Gathering and analyzing the data required to investigate causes Improving, controlling, and redesigning the processes.
Acquire the necessary abilities and skills to implement six sigma effectively and economically. Acquire certification in a set of management disciplines that are fast-becoming indispensable to meeting world-class standards of performance. In firms undertaking the six sigma transformation, this program equips participants to play a major role in its initiation and implementation. Acquire the prerequisites for accepting a leadership role in six sigma transformations. Acquire the understanding and skills required be a high impact player in the six sigma transformations. Become highly visible to top management as a result of participation in successful six sigma transformations.
Develop a core group of managers and professional personnel who can work as a team in the implementation of six sigma. Develop a comprehensive and integrated approach to six sigma that takes in to account the necessary training required in all functions and at all levels within the organization. Develop an approach to six sigma that is appropriate for the management team, resources, technology, and work force of the organization. Develop a more accountable and responsible management group capable of becoming industry leaders.
Become more effective operationally in the following ways: Shorter cycle times for all key processes.
Striving for and/or meeting six sigma quality standards Continuous cost reduction based on continuous process improvements Increased productivity as both management, staff, and workforce become more disciplined in the six sigma methodology Synchronous work flow based on more effective process linkage Elimination of waiting time within and between processes Waste reduction resulting from meeting more demanding performance standards Improved customer service based on more robust and dependable process designs More efficient use of resources resulting from both improved process designs and better management practices Elimination of silo management in the organization structure
Topics:
Six Sigma and achieving competitive advantage Understanding roles of leadership and key players Overview of DMAIC methodology
Define:
Identifying customers and customer requirements Developing team objectives, goals and targets Process Mapping, SIPOC
Measure:
Analyze:
Exploratory data analysis Sources of variation Hypothesis testing Introduction to ANOVA Regression Analysis
Improve:
Developing solutions Design of experiments Process Optimization Response Surface Methodology Evolutionary Operations
Control:
Statistical process control Advanced statistical process control Implementing process controls Attribute and variable control charts Monitoring progress
Six sigma process: There are two Six Sigma processes: Six Sigma DMAIC and Six Sigma DMADV, each term derived from the major steps in the process. Six Sigma DMAIC is a process that defines, measures, analyses , improves, and controls existing processes that fall below the Six
Sigma specification. Six Sigma DMADV defines, measures, analyses , designs, and verifies new processes or products that are trying to achieve Six Sigma quality. All Six Sigma processes are executed by Six Sigma Green Belts or Six Sigma Black Belts, which are then overseen by a Six Sigma Master Black Belts, terms created by Motorola.
Methods: Six Sigma projects follow two project methodologies inspired by Deming's Plan-DoCheck-Act Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV. DMAIC is used for projects aimed at improving an existing business process. DMAIC is pronounced as "duh-may-ick". DMADV is used for projects aimed at creating new product or process designs. DMADV is pronounced as "duh-mad-vee". DMAIC: The DMAIC project methodology has five phases: Define the problem, the voice of the customer, and the project goals, specifically. Measure key aspects of the current process and collect relevant data. Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation. Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards , visual workplaces, and continuously monitor the process. DMADV or DFSS: The DMADV project methodology, also known as DFSS ("Design For Six Sigma"),[14] features five phases: Define design goals that are consistent with customer demands and the enterprise strategy. Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phase may require simulations. Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).
six sigma DMAIC and DMAICT process elements: D - Define opportunity M - Measure performance A - Analyse opportunity I - Improve performance C - Control performance, and optionally: T - Transfer best practice (to spread the learning to other areas of the organization) Quality management tools and methods used in Six Sigma: Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes many established quality-management tools that are also used outside Six Sigma. The following table shows an overview of the main methods used. 5 Whys Analysis of variance Chi-squared test of independence and fits Correlation Cost-benefit analysis Regression analysis Scatter diagram Benefits of six sigma: Creates methods/trains members within organization how to effectively decreases costs per procedures; generates high savings for hospitals and health industry Reduced medication and laboratory errors, thereby improving patient safety Efficient, organized, and reliable internal operations: Leads to greater market share and satisfied shareholders Helps shorten length of patient stay in hospital/reduce admission time Minimize the use of materials and devices Optimize use of available capacities Staff reduction Improvement of cash flow Streamlines the process of healthcare delivery Improved productivity, customer satisfaction, enhanced quality of services, reduced cost of operations Cost effectiveness and higher processes quality; Six Sigma yields long term benefits as an indicator of future performance and growth.
Merits: Six Sigma proponents claim that its benefits include up to 50% process cost reduction, cycletime improvement, less waste of materials, a better understanding of customer requirements, increased customer satisfaction, and more reliable products and services.
Demerits: It is acknowledged that Six Sigma can be costly to implement and can take several years before a company begins to see bottom-line results.
List of Six Sigma companies: The following companies claim to have successfully implemented Six Sigma in some form or another: 3M Cognizant Technology Solutions Dell DHL Flextronics Ford Motor Company General Electric HCL Technologies Honeywell HSBC Group ITC Welcomgroup Hotels, Palaces and Resorts LG Group Motorola Mumbai's dabbawalas PepsiCo Samsung Group The McGraw-Hill Companies Toshiba Vodafone Whirlpool Wipro Xerox Seagate Sony US Army US Air Force United Technologies UPS