01 02- introduction to six sigma & bpms
TRANSCRIPT
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Introduction to Six Sigma3rd May 2008
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Does This Sound Familiar?
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The Quality Imperative
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Its the Customer, Stupid!
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The Six Sigma Philosophy
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Business is driven by Processes
Customers hate variation in process output
The variation in output is caused by variation in inputs and in processdeployment
If we can control the variation in inputs and process, we can control
the variation in output
CONTROL Xs TO CONTROL Y
f(X)=
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The Six Sigma Approach
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Practical
Problem
Practical
Solution
StatisticalProblem
StatisticalSolution
Statistical Approach to ProblemSolving
Systematic Provides a Structure
Data Driven
Focused on Statistically SignificantRoot Causes & Solutions
Customer Focused . . .Bottom Line Driven
Traditional
Approach
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Statistical Objective of Six Sigma
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Target
USLLSL
Center the Process, and Reduce the Variation
Process Off Target Excessive VariationTarget
USLLSL
Target
USLLSL
CenterProcess
USL Upper Specification limit
LSL Lower Specification Limit
Defects
ReduceSpread
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Two Meanings of Sigma . . .
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Generally Sigmais used todesignate the distribution or
spread (standard deviation) aboutthe mean (average) of anyprocess or procedure.
For a business ormanufacturing process, the
Sigma Capability (Z-value)isa metric that indicates how wellthe process is performing.
D
As DefectsGo Down . . .
Z. . . SigmaCapabilityGoes Up
s308,537
66,807
6,210
233
3.4
PPM*
Defects per
MillionOpportunities
*PPM: Parts Per Million
2s
3s
4s
5s
6sProcess
Capability
Z
A Near Perfect Quality Goal
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Getting a Sense of Six Sigma Quality
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20,000 lost articles of mail per hour
~15minutes each day of unsafedrinking water
5,000 incorrect surgical operationsper week
2 short or long landings at mostmajor airports daily
200,000 wrong drug prescriptionseach year
7hours without electricity eachmonth
The Classical View of Quality
99% Good (3.8s)
7 lost articles of mail per hour
1minute every 7 months ofunsafe drinking water
1.7 incorrect surgical operationsper week
1 short or long landing at mostmajor airports every 5 years
68 wrong drug prescriptions eachyear
1hour without electricity every 34years
The Six Sigma View of Quality
99.99966% Good (6s)
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So, What is Six Sigma?
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Is Is notA focus on customer needs
A method for making data driven
decisions
A focus on reducing variabilityA disciplined approach for designing
products & processes
A prediction of product quality during
design
An end in itself
A replacement for engineering,
scientific or process knowledge
Applicable to every problem in itsentirety
A set of tools only; it is also a
methodology and a cultural change
DMAIC and DFSS are the vehicles for deliveringSix Sigma
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Key Six Sigma Terms
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CTQ Critical-to-Quality characteristics.An attribute important to the customer.A Y Response.
Opportunity Any measurable event that provides a chanceof not meeting specification limits of a CTQ.
Specification Range in variation acceptable to the
Limit customer (lower and upper)
Defect Anything that results in customer dissatisfaction.Anything that results in a non-conformance.
DPMO Defects Per Million Opportunities.
Sigma The probability of defect, a measure ofCapability process capability, measured in (Z-value) units of(Z-value) standard deviations.
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The DMAIC Framework
11Y = f(X)
DefineWhat is important tocustomer?
Define the Y
MeasureHow is the process performing?What does it look / feel like to thecustomer?
How good is the data (gage
R&R)?
Measure the Y
ImproveHow do we remove the causesof the defects & variation?
Improve the Xs
ControlHow can we maintain theimprovements?
Control the Xs So
Customer Never SeesVariation in the Y
5 4
2 3DefineWhat is important tocustomer?
Define the Y
1AnalyzeWhat are the most importantcauses of the defects &variation?
Find & Measurethe Xs
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The 12 + 3 Step DMAIC Strategy
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How good am I today? How good do I need to be What factors make a difference
Whats at the Root of the Problem?How can I predict the Output?
How tight does the control have to be?
Can I trust the in-process data?Have I reached my goal?How can I sustain the improvement?
Step 1:- Select CTQ Characteristic-Project yStep 2:- Define Performance Standard
Step 3:- Validate Measurement system
What do I want to Improve?Whats the best way to measure?Can I trust the output data?
Step 4:- Establish Process CapabilityStep 5:- Define Performance ObjectivesStep 6:- Identify Variation Sources
Step 7:- Screen Potential CausesStep 8:- Discover Variable Relationships
Step 9:- Establishing OperatingTolerances
Step 10:- Validate X Measurement SystemsStep 11:- Determine Process CapabilityStep 12:- Implement Process Control
Step A:- Identify Project CTQ-Big YStep B:- Define Team CharterStep C:- Wing to Wing Process Map
What is important to the Customer Why do the Project Who is the Customer
A
D
M
I
C
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Knowing What to Measure An Introduction to BPMS
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You cannot improve what you cannot measure
You cannot measure if you dont know WHAT to measure
Business Process Management System (BPMS) is a framework to
Identify the relevant input, process and output metrics
Develop a systematic measurement plan free of Gauge errors
Collect, publish and review the metrics at regular intervals toidentify improvement needs
Not just a set of Dashboards / Process Maps, but a StructuredMethodology for Sustainable Process Performance
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Three Phases of BPMS Deployment
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Document
CTQs
Develop
Dashboards
1 2 3 4 5 6 7 8 9
Document
Process
ID Process
Measures
Create
PM System
Data
CollectionPlan
Performance
Monitoring
Infrastructure Implementation Execution
Infrastructure can becompleted in one / twosessions over 5 - 10 days.
Must be revisited regularly tore-validate information.
Implementation may require 1- 2 Months of continuous datacollection
Requires Gauge R & Rvalidation
Execution is a continuousprocess, which may takeseveral cycles to establish
Must be continually re-validated against baseline.
Aligning Process Goals with Key Customer Requirements
CreateProcess
Mission
ImproveProcess
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Top Down Driven
Determines Role ProcessPlays in Business Strategy
Should be set by ProcessChampion / Process Ownerand involve key processassociates
Collaborative Effort
Determines What the
Process Must do to Achieve
Vision
Should be set by jointly byProcess Champion, ProcessOwner and Process Team.
Bottom-Up Driven
Determines How to Achieve
Strategic Objectives
Should be Set by ProcessingTeam with Buy-in fromProcess Owner
Model Allows for Role Segmentation:Leaders Lead, Managers Coach, Process Teams Execute
VISION STRATEGY EXECUTIONPhase
Steps
Characteristics
1 2
3
4 5 6
8 9
6 7
8 9
Leading BPMS Deployment Vision, Strategy and Execution
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Experience Sharing Facilitatinga BPMS Exercise
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Creating Process Mission
Think the Big Picture your process output is a customer process input
Document Existing Process
Drill deep to identify key steps
Capture variation between operators
Document Process CTQs (Ys) Obtain / Validate from Customer
Translate into measurable parameters (e.g. What does Smooth Delivery imply?Turn-around Time < 8 hours? Accuracy > 95%? Both?)
Identify Process Measures (Xs)
Use a brainstorming approach to identify key attributes that influence processdelivery - Detailed Process Map useful document for guiding the discussion
Wherever possible, choose Continuous Data over Discrete Data
Err on the side of Caution easier to drop later than to include later
i Sh i ili i
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Experience Sharing Facilitatinga BPMS Exercise
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Data Collection
Continual exercise hence buy-in at process associate level a MUST Watch out for consistency (R&R) issues validate an initial sample
A Carrot and Stick approach might be required for adherence
Performance Monitoring and Dashboards
Monitor CTQs and Xs on a regular basis
Analyze target misses / variation in Y to identify significant Xs
Report out on a regular basis to the process owner as well as the customer
Improve Process
Improvement opportunities typically classified as waste elimination (LEANprojects) or Variance Reduction (Six Sigma Projects)
Continuous Involvement of Process Associates Key to theSuccess and Sustainability of the exercise
BPMS is a dynamic activity need to periodically revisit to
maintain relevance to changing business processes
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The Lean Six Sigma Framework
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Lean Philosophy is about Waste Elimination
Typically attacks low-hanging fruits by identifying non-value added(NVA) activities through Value Stream Mapping (VSM) exercises
Little or no use of statistical data analysis
Roadmap for integrating Lean and Six Sigma in Quality initiatives:
Identify processes with customer dissatisfaction issues,bottlenecks, or high time / resource consumption
Prepare detailed VSMs to identify process inefficiencies
Eliminate simple NVAs through short projects Lean ideas
Use BPMS data on input and process metrics to identify six sigmainitiatives
Start with Lean to create awareness and momentum
Use Six Sigma projects to take process capability to the
next level
S i i Th L dd f
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Summarizing - The Ladder ofProcess Improvement
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Breakthrough Improvement:Best-In-Class
Six Sigma Projects
Process Stabilization
ContinuousImprovement
Focus
LevelofImprovem
ent
LeanBPMS
Time
Voice of the Customer
Process Entitlement
Benchmarking
Customer Impact
Best-in-Class
Metric Performance
Minimize Variation
VoC Performance
Eliminate Waste
Simplify, Digitize
Empower