618week2 introduction

8/8/2019 618week2 Introduction

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CSUNEngineeringManagement

Six Sigma QualityEngineering

Week 2Introduction to Six Sigma

Macro model of Six Sigma Management


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Chapters 1,2 & 3 Outline

Values of Six Sigma

Development & Timeline of Six Sigma Management

Benefits of Six Sigma Management

Voice Of the Process (VOP)

Variation in a Process Voice Of the Customer (VOC)

Roles and responsibilities in Six Sigma Management

Technical terminology of Six Sigma Management

Six Sigma Methodology (DMAIC) Six Sigma Macro Model (Dashboards)\

Six Sigma BB project presentation


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Six Sigma is a process that enables companies toincrease profits dramatically by streamlining operations,improving quality, and eliminating defects or mistakes ineverything a company does, from raw materials to finishgoods. A Six Sigma process generates a defect probability

of 3.4 parts per million (PPM).

Key activities in Six Sigma are:

1. Understanding customer needs (in quantifiable terms)2. Translating the needs into the measurable outcomes

Key objectives in Six Sigma are:

1. Understanding & measuring the process inputs2. Looking at the root causes of variation

Values of Six Sigma


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Ifwe are so good at X, why do we constantly test and inspect Y?

X1 . . . XN

Independent

Input-Process

Cause

Problem

Control

f (X)Y=

The Focus ofSix Sigma

Y

Dependent

Output

Effect

Symptom

Monitor


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Allied Signal

Boeing

Caterpillar

General Electric

John Deere & Co

Lockheed Martin

Motorola

Polaroid

Sony

Six Sigma Companies

Process

Capability

NonconformitiesPMO

2 308,770

3 66,811

4 6,210

5 233

6 3.4

W

Parts per Million

Opportunities

The sigma scale

ofmeasure is

perfectly

correlated to

suchcharacteristics

as defects-per-

unit, parts-per

million

defective, and

the probability

ofa failure/error.


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1978 Poor Quality!!! Motorola sells it TV business. When asked why,VP states QUALITY STINKS!

Did not co-operate across division

Ignored customer requirements

Diluted culture with new employees without training

Did not realize that Sigma had limitations

Was an internally focused program

Timeline of Six Sigma Management


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1980 Corporate Quality Officer appointed

1981 Training Center established

1985 Began to measure total defects/unit

1987 Corporation adopts Six Sigma program, Six Sigma goal to beachieved by 1992

1988 Motorola wins Malcolm Baldridge Awardat the corporate level

1990 Six Sigma Research Institute formed.

1992 Blackbelt infrastructure developed and implemented atMotorola, Kodak, TI, IBM, and Digital.

1993 Motorola hires 40,000 new employees and removes the 40hour quality training program. Revenue growth averages 27%growth.



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1994 Motorola owns 60% of the wireless phone market. Six SigmaAcademy formed.

1998 Motorola owns 34% of the wireless phone market. Revenuegrowth is 5%. Shareholder value is 1%; it had averaged 54% inprevious 3 years.


SixSigma Companies

Produce superior, reliable, and customer-satisfyingproducts

Are faster, better, cheaper, and more efficient than theircompetitors


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Benefits of Six Sigma Management

Improve process flows

Reduce total defects

Reduce process cycle time

Enhance Customer and Employee satisfaction

Help reduce inventory Help improve capacity and output

Help increase quality and reliability

Help decrease product costs

Help improve product delivery to custumer


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Voice Of the Process (VOP)

A process is a collection of interacting components thattransform inputs into outputs toward a common aim.

Components

Machines

Operators

Assembly

Test

Final Inspection

Ship to Customer

Customer receives

product

Inputs Process Outputs


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Variation in a Process

What is Variation? The enemy of certainty

The enemy of customer satisfaction

Drives the unknown

Adds to customer (and employee) disbelief

Adds to lack of confidence in the ability of processes

Increases risk that a result will not meet expectations

Variation is a driver of defects

For any process, variation is the main reasonfor poor performance...

Variation is the key focus of Six Sigma


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Variation in a Process

Feedback Loops A feedback loop relates information about outputs from any stage

or stages back to another stage or stages to make an analysis ofthe process.

Inputs Process Outputs

Feedback Loop


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It is vital that we understand and are able to quantify what iscritical to the customer's satisfaction.

Voice Of the Customer (VOC)

No Good

Loss

Unhappy

Customer

No Good

Loss

Unhappy

Customer

Good

No Loss

LSL USL

Nominal Value


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Critical to Customers satisfactions:

High quality

Lowest possible price

Products deliver on time

Therefore

Producers should bring forth these products in a

manner that minimizes cost and cycle time andmaximizes profit



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We need to ask ourselves...

How easy it is for our customers to do business with us?

Are we making assumptions about what customers need?

How often do we ask our customers (internal andexternal) what they need?

Is this information properly communicated throughout ourorganization.


We must place a value and emphasis on thecustomer, take measurements and measure inputs,

not just outputs


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Historically 1 in 25 unsatisfied customers express their

dissatisfaction

Do you have dissatisfied customers?

1 unsatisfied customer typically tells 7-16 others.

It cost about five times more to attract a newcustomer as it does to keep an old one.

Customer Satisfaction?


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Roles and responsibilities in Six SigmaManagement

Senior Executive Provides the impetus, direction & alignment necessary for Six Sigmaultimate success. Senior Executive should:1. Study Six Sigma management

2. Link companys objectives to Six Sigma projects

3. Champion Six Sigma projects

4. Constantly review Six Sigma projects progress

Executive Committee Member They are the top management of an organization. Executive Committee

Members should:1. Deploy Six Sigma throughout the organization

2. Prioritize and manage Six Sigma portfolio

3. Assign champion, BB and GB to Six Sigma projects

4. Remove barriers to Six Sigma management

5. Provide resources for Six Sigma management


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Champion Take a very active sponsorship and leadership role in conducting and

implementing Six Sigma projects. Champions should:1. Identify the project on the organizational dashboard

2. Provide an ongoing communication link between the project team andExecutive committee

3. Keep the team focused on the project by providing direction and guidance

4. Assure that Six Sigma methods and tools are being used in the project

Master Black Belt Takes a leadership role as keeper of the Six Sigma process and advisor

to executives or business unit managers. Master Black Belt should:1. Counsel senior executives and business unit managers on Six Sigma

management2. Continually improve and innovate the organizations Six Sigma process

3. Apply Six Sigma across across both operations and transactions-basedprocess

4. Mentor Green Belts and Black Belts


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Black Belt Is a full time change agent and improvement leader. Black Beltsshould have the following characteristics:1. Technical and managerial process improvement/innovation skills

2. Understand the psychology of individuals and teams

3. Not intimidated by upper management

4. Has a customer focus

The responsibilities of a Black Belt include:1. Communicate with the champion and process owner about progress

of the project

2. Help team members design and analyze experiments

3. Provide training in tools and team functions to project team members

4. CoachGreen belts leading projects limited in scope


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Green Belt Is an individual who works on projects part time, either as a team

member for complex projects or as a project leader for simpler projects.Green Belts have the following responsibilities:1. Define & review project objective with projects champion

2. Facilitate the team through all phases of the project

3. Analyze data through all phases of the project

4. Train team members in the use of Six Sigma tools and methods through allphases of the project

Process Owner Is the manager of a process. The process owner should be identified and

involved in all Six Sigma projects relating to the process owner area. A

process ownerhas the following responsibilities:1. Empower employees to follow and improve best practice methods

2. Accept and manage the improved process after completion of the Six Sigmaproject

3. Understand how the process works, the capability of the process, and therelationship of the process to other processes in the organization


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Technical terminology of Six SigmaManagement

Critical-To-Quality (CTQ): Is a measure of what is important to acustomer.

Defect: Is a nonconformance on one of many possible qualitycharacteristics of a unit that causes customer dissatisfaction

Defects per Million opportunities (DPMO): A quality metric often

used in the Six Sigma process. It is calculated by the number ofdefects observed divided by the number of opportunities fordefects compared to 1 million units.

Yield: Is the proportion of units within specification divided bythe total number of units.

Rolled Throughput Yield (RTY): Is the product of the yields fromeach step in a process.


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Project Name:Estimated

completion

date

Actual

completion

date

y Define Customers and Requirements (CTQs)

y Develop Problem Statement, Goals and Benefits

y Identify Champion, Process Owner and Team

y Define Resources

y Evaluate Key Organizational Support

y Develop Project Plan and Milestones

y Develop High Level Process Map

y Define Defect, Opportunity, Unit and Metrics

y Detailed Process Map of Appropriate Areas

y Develop Data Collection Plan

y Validate the Measurement System

y Collect the Data

y Begin Developing Y=f(x) Relationship

y Determine Process Capability and Sigma Baseline

Met Measure Phase Criteria No

Measure

Define

Met Define Phase Criteria

StatusDMAIC PROCESS AND PHASE GATE

No

Six Sigma Methodology (DMAIC)


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Six Sigma Methodology (DMAIC)

y Define Performance Objectives

y Identify Value/Non-Value Added Process Steps

y Identify Sources of Variation

y Determine Root Cause(s)

y Determine Vital Few x's, Y=f(x) Relationship

y Perform Design of Exper iments

y Develop Potential Solutions

y Define Operating Tolerances of Potential System

y Assess Failure Modes of Potential Solutions

y Validate Potential Improvement by Pilot Studies

y Correct/Re-Evaluate Po tential Solution

y Define and Validate Monitoring and Control System

y Develop Standards and Procedures

y Implement Statistical Process Control

y Determine Process Capability

y Develop Transfer Plan, Handoff to Process Owner

y Verify Benefits, Cost Savings/Avoidance, Profit Growth

y Close Project, Finalize Documentation

y Communicate to Business, Celebrate

Analyzeet Analyze Phase Criteria No

Improve

et Improve Phase Criteria No

Control

et Control Phase Criteria No


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Six Sigma Macro Model (Dashboards)

A dashboard is a tool used by management to clarify and assignaccountability for the critical few key objectives, key indicators,

and project tasks needed to steer an organization toward its mission

statement.

There are four basic categories of dashboard key objectives:

Financial Key Objectives

Process Improvement Key Objectives

Innovation/Customer Satisfaction Key Objectives

Employee Growth and Development Key Objectives


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Supplier toPlant eliver - os ngeles,Supplier toPlant eliverSupplier toPlant eliver -- os ngeles,os ngeles,MONTHLY

ERFORMANCE

ACTION

LANS

F o c us Ar e a s Action s w n e r D u e D a te

Rec eived early

H igh vo lum e, low dollar supp liers li e Chavers asket and Bora are s hi pp ing ea rly . Ca lled

owners to en sure they understand the new five day early , on t ime de livery w indow.

Mendoz a

Com plet eRec eived early Metr ic ear ly tolerance c hanged from infinite to5 days. Policy enf orc em ent Mendoz a

ngo ing

Supp lier Failure U.S . B a ll Corp. stock ing prog ram (another high vo lum e low cos t supp lier)T. Mendoz a 50 com p let e

11/30/2004

Supp lier Failure Rat iona liz ing supp lier base (A lpine, W CL , B levins, V ik ing)T. Mendoz a/

Qua li ty mgr.

ngo ing

P lan ning P roblem Supp liers now have forward vis ib ili ty for s ub-c ontract P

's to p lan the ir capac ity needs. T. Mendoz a Com plet e

CMC added as Cert ified Supp lier - 62 ofCMC parts are now shi p to s tock and a thrid of a ll

rec iepts are s hi p to s tock .

Mendoz a

Com plet e

REASONCODES

60.0%

70.0%

80.0%

90.0%

100.0%

2003

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Actual

Goal

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Rec'd Early SupplierFailure Planning Problem

Supplier toPlant eliver - os ngeles,Supplier toPlant eliverSupplier toPlant eliver -- os ngeles,os ngeles,MONTHLY ERFORMANCE

ACTION LANS

F o c us Ar e a s Action s w n e r D u e D a te

Rec eived early

H igh vo lum e, low dollar supp liers lik e Chavers asket and Bora are s hi pp ing ea rly . Ca lled

owners to en sure they understand the new five day early , on t ime de livery w indow.

Mendoz a

Com plet eRec eived early Metr ic ear ly tolerance c hanged from infinite to5 days. Policy enf orc em ent Mendoz a

ngo ing

Supp lier Failure U.S . B a ll Corp. stock ing prog ram (another high vo lum e low cos t supp lier)T. Mendoz a 50 com p let e

11/30/2004

Supp lier Failure Rat iona liz ing supp lier base (A lpine, W CL , B levins, V ik ing)T. Mendoz a/

Qua li ty mgr.

ngo ing

P lan ning P roblem Supp liers now have forward vis ib ili ty for s ub-c ontract P

's to p lan the ir capac ity needs. T. Mendoz a Com plet e

CMC added as Cert ified Supp lier - 62 ofCMC parts are now shi p to s tock and a thrid of a ll

rec iepts are s hi p to s tock .

Mendoz a

Com plet e

REASONCODES

60.0%

70.0%

80.0%

90.0%

100.0%

2003

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Actual

Goal

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Rec'd Early SupplierFailure Planning Problem


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618week2 introduction

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