Six Sigma
Six Sigma
Introduction
The Lean System crossing
Lean
CM
6 Sigma
Six Sigma
Lean Definition
Value Stream Map
Current State
Future State
A strategy for achieving Continual Improvement in performance
through the Enhancement of VALUE in all resources and time
invested throughout the total business process.
Why I am here...
Six Sigma
Business Strategy
Product Family
Identification
Current State Map
Lean System
Where I am...
Customers
Process & Information
Flow
Suppliers
Where I
want to be...
Future State Map
How Im going to get there...
5S
6 Sigma
TPM
[When I dont have the solution]
SMED
Continuous Flow
Lean Tools
[When I know the solution]
Pull
Standardized Work
Poka-Yoke
Implementation
Plan
Constraint Management
When Im going
to get there
[Control while Im Improving]
What Are The Steps
VSM
Six Sigma
Strategy Definition
Current State Map
Future State Map
Implementation Plan
Constraint Management
Kaizens
6 Sigma Tools
Lean Tools
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Six Sigma
What is the Six Sigma Concept?
Developed at Motorola in the 1980s
Uses facts (or data) and statistics
Focused on problem solving
Helps drive defects to near zero and reduce waste
Can be used in all departments
Not another Quality Program
Institutions
OurFinancial
Customers
Large Manufacturers
Small Manufacturers
WHOS USING
IT?
Telecoms
Hospitals Large Cities
Our Competitors
Universities
A TOOL TO DRIVE BUSINESS RESULTS
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What is Six Sigma?
Six Sigma
Six sigma is the fastest growing business management system in
industry today.
Centred on a powerful problem solving and process optimisation
methodology.
The main thrust of six sigma is the application of statistical tools in the
context of a well-disciplined, easy to follow methodology.
Six sigma is a defect reduction methodology. It uses Define,
Measure, Analyse, Improve and Control tools to reduce variation &
improve areas of the business.
Most companies have between 35000 and 50000 defects per million
operations, or about 3 sigma.
The goal is to reduce defects to the point where errors would be
almost non existent: 3.4 defects per million, or 6 sigma
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Six Sigma
Six Sigma
Greek letter looks like this
A sigma level measures the process
[its ability to generate no defects]
The higher the sigma level the better
[the less likelihood a defect will occur]
As the sigma level of a process increases
Costs decrease
Defects decrease
Cycle time decreases
Customer Satisfaction increases
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Six Sigma
How Does 6 Measure
Sigma
% Good
% Bad
DPMO
30.9%
69.1%
691,462
69.1%
30.9%
308,538
93.3%
6.7%
66,807
99.38%
0.62%
6,210
99.977%
0.023%
233
99.9997%
0.00034%
3.4
Six Sigma
6 Practical Meaning?
99%
99% Good
Good Four
Four Sigma
Sigma
99.99966%
99.99966% Good
Good Six
Six Sigma
Sigma
U.S.
U.S. Postal
Postal System
System
20,000
20,000 lost
lost articles
articles of
of mail/hour
mail/hour
U.S.
U.S. Postal
Postal System
System
Seven
Seven lost
lost articles
articles of
of mail/hour
mail/hour
Airline
Airline
Airline System
System
Airline System
System
Two
One shortshort- // long-landing/five
long-landing/five years
years
Two shortshort- // long-landings/day
long-landings/day One
Medical
Medical Profession
Profession
200,000
200,000 wrong
wrong drug
drug
prescriptions/year
prescriptions/year
Medical
Medical Profession
Profession
68
68 wrong
wrong drug
drug prescriptions/year
prescriptions/year
Long-Term Yield
Six Sigma
The Focus of Six Sigma...
Y = f(x1, x2, x3, x4 xn)
Good Carrot cake = a function of (flour, carrots, recipe, sugar,
cinnamon, eggs, frosting, oil, baking soda, heat, to last item)
Output is a function of a number of inputs.
In other words Garbage in yields garbage out
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Six Sigma
Premise for Six Sigma Methods
A defect is process output outside of
customer expectations
Variation can result in defects
Sources of variation can be
Identified
Quantified
Eliminated by control or prevention
Measurements are critical
Show me the Data!
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Six Sigma
Measurements Are Critical ...
If we cant accurately
measure something,
we really dont know
much about it.
If we dont know much
about it, we cant
control it.
If we cant control it, we
are at the mercy of
chance.
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Six Sigma Objectives
Six Sigma
Gaining process knowledge
Achieving continuous process improvement
Making fact-based decisions
Applying the right tools to achieve business objectives
Making positive behavioral changes
Getting Real Business Results
Customer Satisfaction
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Six Sigma Comparison
Traditional
Traditional
Six Sigma
Six
Six Sigma
Sigma
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Improvement Roadmap
Six Sigma
Objective
The 5-step
Six Sigma
Problem
Solving
Process
Define the problem
Phase
Phase1:
1:
Define
Define
Phase
Phase2:
2:
Measure
Measure
Take measurements & verify accuracy
Phase
Phase3:
3:
Analyze
Analyze
Identify the critical few factors which
directly influence the problem
Phase
Phase4:
4:
Improve
Improve
Determine ways to improve the results
Phase
Phase5:
5:
Control
Control
Make sure the problem does not
re-occur by controlling the few factors
What is the problem?
How do we know?
Whats causing it?
How can it be improved?
How do we keep it on track?
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Remember Y=f(x1, x2 xn.)?
Six Sigma
DEFINE
MEASURE
Practical
Practical Problem
Problem
Statistical
Statistical Problem
Problem
What are the X's?
y f ( x1 , x2 ,..., xn )
What is the relationship of the Xs?
Practical
Practical Solution
Solution
CONTROL
ANALYSE
What are the main inputs, their effects
and optimum values
Statistical
Statistical Solution
Solution
IMPROVE
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Six Sigma Roadmap Phases & Tools
Six Sigma
Define
Measure
Analyze
Improve
Control
VSM
Thought & Process Map
Cause & Effect Matrix
Potential Failure Mode Effects Analysis
Measurement Systems Analysis
Statistical Process Control
Components of Variation Study
Design of Experiments
Capability Study
Control Plans
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Six Sigma
Logic Behind a Six Sigma Project
DEFINE
Clarify business
strategy and
customer input
Select projects:
VSM, strategy,
customers, etc.
Assign resources:
Champion, BB, GB,
other
Develop initial
Thought Map
Determine major
outputs: Big Ys of
the project (CTQs)
Define baseline,
and objectives for
key project metrics
Define Project
Charter and agree
on savings
Define project team
and review /
support structure
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Six Sigma
Logic Behind a Six Sigma Project
D
MEASURE
Develop Process
Map with inputs (xs)
and outputs (ys)
Classify inputs (xs)
in Process Map
(C / NC)
Develop Cause
and Effect Matrix
Identify key inputs
(top xs) from C&E
Matrix x
Define actions for
inputs (xs) with high
RPN Control Plan
Complete MSA for
inputs (xs) / outputs
of interest
Update Thought
Map and revise
Project Charter
Complete FMEA for
key inputs (top xs)
Define baseline for
key outputs (ys)
SPC / Capability
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Logic Behind a Six Sigma Project
Six Sigma
ANALYZE
Define major
effects: key inputs
outputs
Multi-Vari / COV
Understand effects:
Chi-Square,
ANOVA and
Regression
Develop Design of
Experiments plan
Conduct Design of
Experiments
DOE
Define relationships
between inputs and
outputs y=f(x)
Define how to
eliminate / reduce
output variation (ys)
Conduct
confirmation studies
and DOEs
Define improvement
opportunities and
update Thought
Map
Monitor process for
critical xs and ys
SPC / Capability
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Logic Behind a Six Sigma Project
Six Sigma
IMPROVE
Implement process
improvements for
critical xs and ys
Continue to learn
about y=f(x) and
update Thought
Map
Conduct DOE
optimization studies
(Response
Surface)
Update Process
Map, MSA, FMEA
and Control Plan
Document / monitor
improvements
SPC / Capability
Define follow-up
actions and
responsibilities
Define financial
impact of
improvements
Update Project
Charter
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Logic Behind a Six Sigma Project
Six Sigma
CONTROL
Define control
methods for critical
xs / ys: Control
Plan
Finalize Process
Map and FMEA
Establish / review
Quality System
procedures
Establish process
control for critical
xs / ys: SPC
Ensure capable
measurement
systems: MSA
Document product /
process changes
Finalize financial
benefits with
Controller
Update Project
Tracking and Cost
Out
Assure that gains
are sustained
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Lean & Six Sigma
Six Sigma
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LEAN SIX SIGMA
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THEORY OF CONSTRAINTS
(TOC)
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