6725792 six sigma overview
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Six Sigma Overview
Process ImprovementConsultant
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What is Six Sigma?
A Metric
Philosophy
Initiative Method / Tools
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Philosophy
Sources of variation can be
Identified
Quantified Eliminated
Controlled
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Initiative
Breakthrough Improvement
Systematic, Focused Approach
Projects Linked to Business Strategy
Key People Selected & Trained
Project Management & Reviews
Results Strategic Process Improvement
Financial Results
Sustain the Gains
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Method and Tools
Process Thinking
Process Variation
Facts, Figures, Data
Critical Few Drivers
Customer Satisfaction, DPM, COPQ, Cycle Time
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Define-Measure-Analyze-Improve-Control
8 Key Tools
Process Map, C&E Matrix, Gage R&R,
Capability Analysis, Multi-Vari Studies /Hypothesis Testing, FMEA, DOE,SPC/Control Plans
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Define-Measure-Analyze-Improve-Control
Define: Define the problem, measures andprocess associated with the problem; quantifybenefits; and identify project team.
Measure: Determine the capability of the currentprocess and the measurement system.
Analyze: Analyze data to assess patterns andtrends between inputs and outputs.
Improve: Verify critical inputs and determineoptimum settings. Implement.
Control: Implement controls to sustain thegains.
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Overall Approach
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Six Sigma Organization
Champions
Master Black Belts
Black Belts Green Belts
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Champions
Provide direction and resources.
Facilitate the identification and selection
of projects with senior leadership. Track progress of projects.
Breakdown barriers.
Create support systems. Six Sigma Catalysts
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Master Black Belts
Internal experts in Six Sigma methods and tools.
Train and mentor Black Belts.
Develop and deliver training.
Assist Champions.
Leverage best practices.
Six Sigma Experts
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Black Belts
Lead strategic, high impact multi-functional projects
? $175,000 per project 2-4 projects peryear
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Master Six Sigma methods andtools
Mentor and coach Green Belts
Dedicated role for 18 30 months Six Sigma Change Agents
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What Makes a Good Black Belt?
Open mind.
Desire to find out why things happen.
Ability to lead and direct people.
Ability to handle conflict.
Capable of self-directed activity.
Sense of urgency. Good grasp of computer skills and a basic
understanding of math.
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Green Belts
Lead day-to-day functional projects andsupport strategic Black Belt projects
Maintain current role in organization with20-50% of time dedicated to a Six Sigmaproject
$50,000 100,000 per project
Sustain the gains
Six Sigma Institutionalizers
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Characteristics of a GoodProject
Problem is clearly connected to businesspriorities Improvement in process metrics > 50%
Financial impact > $175,000/yr People will support a project they understand and see as
important
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Clear quantitative measures of success
Reasonable scope Do able in 4-6 months
Has the support and approval ofmanagement needed to get resources andremove barriers
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Examples of Black Belt Projects
Increase process throughput $400k
Reduce cycle time of assembly $420k
Reduce process downtime and scrap $320k
Reduce freight costs $700k
Reduce costs of waste disposal $1200k
Reduce bulk material transportation costs $270k
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Reduce amount of accounts receivable$500k
Reduce caustic use of Process Z $2000k Material loss: Reduce scrap & increase
yield $150k
Reduce wet milling operations costs$300k
Reduce warranty costs 50% $500k
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Examples of Black Belt Projects
Reduce road construction change orders 20%.
Improve sewage plant efficiency by 25%.
Reduce lime usage in water softening at city
water plant by 20%. Reduce invoice to cash cycle time by 50%.
Reduce processing time of billing customers for3rd party orders.
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Reduce overpayment of benefits.
Improve mortgage center first call rate
from 76% to 99%. Reduce document retention for legal
cases.
Reduce cycle time of legal transcripttransmittals.
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Six Sigma Applies to AllProcesses in All Industries
CustomerService
Design
Purchasing
Manufacturing Sales
Marketing
Administration
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Manufacturing
Financial
Telecommunications Health Care
Government
Education
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2001 AQC Six Sigma Sessions
United States Mint
El Camino Hospital CNH Capital
DuPont Legal
Albemarle Corporation Froedtert Memorial Lutheran Hospital
American Express Financial Corporation
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What is Different? Why Does SixSigma Work?
Driven by top leadership
Top-down deployment - integrated with businessstrategies
Bottom-line cost-benefit $$$$ Disciplined approach (Define-Measure-Analyze-
Improve-Control)
Sense of urgency (4-6 month projects)
Well defined roles & infrastructure (Champion,MBB, BB, GB, etc)
Statistical and data based decisions
Customer and process focus
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Additional Slides
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Common Define Pitfalls Project Scope
Non-financialObjectives
Boil the Ocean Scope
Reduce waste across manufacturing 50% Improve count control 25%
Micro-focused Scope
Reduce waste for aesthetic defects by50% on parts
sold to MNO Solution in Mind Scope
Add XY123 to product ABC to improve yield
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Common Measure Pitfalls - Tools
Process Map too detailed first time through
Do not see the forest for the trees
Measurement System not capable and no actiontaken to improve
An incapable measurement system must either be
improved
, replaced
, ord
ropped.
No action taken on high RPN items in FMEA
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Initial Process Map Detail
Initial Process Map Detail
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Incapable Measurement System
StdDev Study Var %Study Var %Tolerance
Source (SD) (5.15*SD) (%SV) (SV/Toler)
Total Gage R&R 0.383784 1.9764945.10 197.65
Repeatability 0.331525 1.7073538.96 170.74
Reproducibility 0.193341 0.99571 22.7299.57
OPERATOR 0.193341 0.99571 22.7299.57 Part-To-Part 0.7595823.9118589.25391.18
Total Variation 0.8510324.38281 100.00 438.28
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Common Analyze Pitfalls - Tools
Exclude noise inputs in analysis.
Small sample sizes.
Rely completely on graphical analysisversus hypothesis testing, regressionanalysis, etc.
Choose the wrong tool - confuse tests onthe mean with tests on variance.
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Analyze Tools
Single Output, Single Input
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Common Improve Pitfall DOE Planning
Fail to clearly state experiment objectives andlink to project objectives.
Measurement System(s) not capable. Inadequate resources.
Fail to think through the logistics.
Fail to review experiment proposal with
appropriate personnel. Operations, maintenance, safety, quality,
engineering.
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Common Control Pitfalls OperationalDiscipline
Fail to Incorporate Management of Change
Personnel Technology
Subtle Change
Fail to Link to Existing Systems
ISO / QS 9000 Safety
Training
Procedures
Fail to Audit
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Deployment Elements
Process Performance Metrics
Project Filters/Criteria
Project List / Hopper Champions
Black Belt / Green Belt Selection
Training Plan
Roles & Responsibilities
Project Reporting & Tracking
Reward & Recognition
Communication Plan / Process
Mana ement Review
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Baldrige Performance ExcellenceFramework
Leadership
Set Values, Direction, & Performance Expectations,
Manage Performance Strategic
Planning
Strategy Formulation, Planning, Budgeting &
Resource Allocation Customer
& Market
Focus
Customer & Market Knowledge
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HR
Focus
Belt Selection, Compensation/ R&R, Career
Development, Training Process
Mgmt
Project Selection, Project Assign, Project Tracking &
Review Results
Business, Six Sigma
Deployment
Information and Analysis
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