PRESENTED BY ALI IRFAN

SIX SIGMA MASTER BLOACK BELT (IQF) COO & CHIEF TRAINER IDEAS

BREAKTHROUGH IMPROVEMENT IN H&S PERFORMANCE THROUGH 6 SIGMA

PRESENTATION INCLUDES

What is Six Sigma? Why Six Sigma? Why Six Sigma used for HSE

improvement? Case Study?

What is six sigma?

a management methodology• Customer focused• Data driven decisions• Breakthrough performance gains• Validated bottom line results

Origin of Six Sigma

1987 Motorola Develops Six SigmaRaised Quality Standards

Other Companies Adopt Six SigmaGE

○Promotions, Profit Sharing (Stock Options), etc. directly tied to Six Sigma training.

Dow Chemical, DuPont, Honeywell, Whirlpool

Data Driven Decisions

Why should we test or inspect Y, if we know this relationship?

• Y• Dependent• Output• Effect• Symptom• Monitor• Response

• X1 . . . XN• Independent• Input-Process• Cause• Problem• Control• Factor

To get results, should we focus our behavior on the Y or X ?

f (X)Y=

Y = f(X1 + X2 + ... Xn).

• 2 short or long landings at almost all major airports each day

• Unsafe drinking water almost 15 minutes each day

• 5,000 incorrect surgical operations per week

• 50 Newborn Babies Dropped At Birth By Doctors Each Day

• 200,000 wrong drug prescriptions each year

•

If world have performance level of 99% !!!!

Then We Would Have… One Hour Of Unsafe Drinking Water Every

Month Two Unsafe Plane Landings Per Day At O’Hare

International Airport In Chicago

500 Incorrect Surgical Operations Each Week 50 Newborn Babies Dropped At Birth By Doctors

Each Day 32,000 Missed Heartbeats Per Person, Per Year

If We Accepted The Goal Of 99.9% Quality

Breakthrough performance gains

Sigma is a statistical unit of measure which reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error.

If your yield is: Your DPMO is: Your Sigma is:

30.9% 690,000 1.0

62.9% 308,000 2.0

93.3 66,800 3.0

99.4 6,210 4.0

99.98 320 5.0

99.9997 3.4 6.0

Traditional TQM approach

ProcessInputs (x) Output (Y)

Six Sigma Approach.......

ProcessInputs OutputKPIVs

VIPs

Key Process Input Variables

Variation Inducing Parameters

CVIP Critical Variation Inducing Parameter

What are HSE Defects?

- Fatalities

- Reputation of injuries

- Injuries (LTI)

- Days / Time away from work (LTA)

Philosophy

• Know What’s Important to the Customer / safety (CTQ/ CTS)

• Reduce Defects (DPMO)

• Center Around Target (Mean)

• Reduce Variation (Standard Deviation)

COPS (Cost of Poor Safety)

- Lost Opportunities

- The Hidden Factory

- Workers Compensations- Insurance claim- Lost production- Late Delivery- Lost Customer Loyalty- Costly Engineering

Changes- Company image

Average COPS approximately 15% or even higher of Sales

Hidden Costs:- Intangible- Difficult to Measure

Traditional Costs:- Tangible- Easy to Measure

- HSE Inspection- Insurance- HSE certification- Employees training

Six Sigma MethodologyDefineMeasureAnalyzeImproveControl

Six Sigma Case …..

Reducing Motor Vehicle Accidents (MVAs) is just one Goal of company’s overall commitment to safety and health

From September 1, 2006, to August 31, 2007, there were 25 work-related MVAs.

The drivers involved in the accidents were the Operations personnel who drive to client sites and the employees who drive vehicles on-site at company facilities.

In addition, the MVAs contributed to lost sales and productivity while the company employees were away from work recovering from their injuries.

Six Sigma Case…….

Phase 01

DEFINE

Phase 01 - Define

To address the MVA problem, Company created an MVA project team.

After creating a project charter, which defined the project’s timelines and objectives as below.

Reducing MVAs by 50 percent over a 12-month period

Phase 02

MEASURE

the team began to collect information on the variables associated with MVAs. These included factors related to ;the accident (output), the driver (Input) and the vehicle driven (Input) ,

along with details of the accident itself.

Phase 02 - Measure

Phase 03

ANALYZE

After identifying the variables associated with MVAs, the team divided them into three categories of possible risk factors (Input):

Methods, People, and Environment.

Phase 03 - Analyze

Phase 03 - Analyze

Possible MVA Risk Factors (KPIVs)Methods People Environment

Not adjusting mirrors/seats Hurrying Slippery surfaceNot "Aiming High" in steering

Inattention to construction Reduced lanes

Not utilizing a spotter when backing

Pulling forward before stopping/looking

Heavy traffic

Not checking behind vehicle before backing

Inattention while backing Unfamiliar area

 Not Wearing Seat Belt Left a running vehicle unattended    Tired    Eating    Using cell phone/radio    Not getting clear picture of

surroundings 

  Driving on autopilot    Inattention    Driving too fast for conditions  

Analyze- (contd.)

Variables in the methods category were related to driving skills;

Risk factors in the people category were largely behavioral; and

Variables in the environment category were related to both the driver and the condition of the environment.

Analyze- (contd.)

The team next performed a root-cause evaluation that analyzed the probability of each risk factor occurring and determining whether it was measurable.

The team studied the police and accident reports of the MVAs and surveyed the drivers involved to determine which factors played key roles in the accidents.

Analyze- (contd.)

The analysis confirmed that the following four variables (VIPs) contributed to (i.e., were the root causes of) most of the Company’s MVAs: 1. Not focusing on driving tasks in general;

2. Not having a clear picture of surroundings (e.g., not properly evaluating road conditions, other drivers); and

3. Not checking behind the vehicle before backing.

4. Not wearing Seat Belt while driving.

Analyze- (contd.)

Through its analysis, the team determined that all of the accidents involving backing up and due to seat belt were avoidable as were 81 percent of the other accidents.

It means that these two factors are C-VIPs

Phase 04

IMPROVE

Phase 4- Improve

the team developed a series of driver procedures or steps to address the risk factors. For Example

All drivers involved in MVAs are now required to complete a course on defensive driving and have their driving observed by a supervisor in an "in-car" driver improvement course.

Improve- (contd.)

These drivers develop a "Learning Experience Report," which is shared with other employees.

In addition, topics pertaining to driving are

discussed at monthly environmental, health and safety meetings.

Improve- (contd.)

Every employee must also review a 10-step "Arrive Alive" checklist before driving a company-owned or -leased vehicle, and suggested procedures for backing up and guidelines for using cell phones are provided.

10 Steps to Arrive Alive 1. I realize that my number 1 priority right now is

to drive this vehicle safely and without incident to my destination.

2. I have checked behind the vehicle for obstacles; it is safe to back this vehicle if needed.

3. I am mentally and physically alert and am capable of making this trip.

4. I have securely fastened my seat belt and adjusted it for proper fit.

5. I am aware of the weather and realize that it can change during my trip. I will adjust my driving technique to allow for darkness, fog, rain, ice, etc.

6. I will be alert for traffic and road hazards and adjust my driving to safely allow for them.

7. I will obey all posted highway traffic signs.

8. I have a good attitude toward my driving, and I will be courteous and allow for other drivers’ mistakes.

10 Steps to Arrive Alive

10 Steps to Arrive Alive 9. I am devoting my undivided attention to

safely operating this vehicle, and I will not allow distractions to take my mind away from driving.

10. I know the five keys to safe driving 1. Aim high in steering

2. Get the big picture,

3. Make sure they see you,

4. Keep your eyes moving, and

5. Leave yourself an out,

and I will practice them as I drive to my destination.

Phase 05

CONTROL

Phase 5 - Control

The project team developed and held a series of specific presentations, some with general information geared to all drivers, and others with more in-depth information for drivers involved in MVAs and/or who drive over 30,000 miles per year in an assigned vehicle.

Phase 5 - Control The project team also established new

criteria for investigating future MVAs that provide for the continuing collection of relevant data.

All MVAs are now the subject of root-cause investigations, and the findings are reviewed and tracked by an MVA reduction team.

As new risk behaviors are identified, this team is responsible for developing appropriate corrective measures and employee education programs.

Result ……..

The company experienced only 8 MVAs during 2008-2009.

Reduction in MVAs is 68%, which is more than the targeted 50%.

Questions ? ?