six sigma
TRANSCRIPT
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Purpose of six sigma : Purpose of six sigma : To make customer happier and increase To make customer happier and increase
profitsprofits
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Six Sigma originated as a set of practices designed to improve manufacturing processes and eliminate defects, but its application was subsequently extended to other types of business processes as well. In Six Sigma, a defect is defined as anything that could lead to customer dissatisfaction
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Continuous efforts to achieve stable and predictable process results (i.e. reduce process variations)
Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled.
Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.
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1987 Motorola Develops Six Sigma Raised Quality Standards
Other Companies Adopt Six Sigma GEPromotions, Profit Sharing (Stock
Options), etc. directly tied to Six Sigma training.
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Delighting Customers. Reducing Cycle Times. Keeping up with Technology
Advances. Retaining People. Reducing Costs. Responding More Quickly. Structuring for Flexibility. Growing Overseas Markets.
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Generated sustained success Project selection tied to organizational
strategy Customer focused Profits
Project outcomes / benefits tied to financial reporting system.
Full-time Black Belts in a rigorous, project-oriented method.
Recognition and reward system established to provide motivation.
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It is a Philosophy– Anything less than
ideal is an opportunity for improvement
– Defects costs money– Understanding
processes and improving them is the most efficient way to achieve lasting results
It is a Process– To achieve this level of
performance you need to:
Define, Measure, Analyse, Improve and Control
It is Statistics– 6 Sigma processes will
produce less than 3.4 defects per million opportunities
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• Know What’s Important to the Customer (CTQ)
• Reduce Defects (DPMO)
• Center Around Target (Mean)
• Reduce Variation (Standard Deviation)
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• Y• Dependent• Output• Effect• Symptom• Monitor
• X1 . . . XnX1 . . . Xn• IndependentIndependent• Input-ProcessInput-Process• CauseCause• ProblemProblem• ControlControl
f(X)f(X)Y=Y=
The focus of Six sigma is to identify and control XsThe focus of Six sigma is to identify and control Xs
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• Define• Measure• Analyze• Improve• Control
• DefineDefine• MeasureMeasure• AnalyzeAnalyze• DesignDesign• VerifyVerify
DMAICDMAIC DMADVDMADV
• Existing Processes • New ProcessesNew Processes• DFSSDFSS
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Key Concepts
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CTQ characteristics for the process, service or process Measure of “What is important to Customer” 6 Sigma projects are designed to improve CTQ Examples:
Waiting time in clinic Spelling mistakes in letter % of valves leaking in operation
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A nonconforming unit is a defective unit Defect is nonconformance on one of many
possible quality characteristics of a unit that causes customer dissatisfaction.
A defect does not necessarily make the unit defective
Examples: Scratch on water bottle (However if customer wants a scratch free
bottle, then this will be defective bottle)
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Circumstances in which CTQ can fail to meet.
Number of defect opportunities relate to complexity of unit.
Complex units – Greater opportunities of defect than simple units
Examples: A units has 5 parts, and in each part there are 3
opportunities of defects – Total defect opportunities are 5 x 3 = 15
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Number of defects divided by number of defect opportunities
Examples: In previous case (15 defect opportunities), if 10
units have 2 defects. Defects per unit = 2 / 10 = 0.2 DPO = 2 / (15 x 10) = 0.0133333
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DPO multiplies by one million Examples:
In previous case (15 defect opportunities), if 10 units have 2 defects.
Defects per unit = 2 / 10 = 0.2 DPO = 2 / (15 x 10) = 0.0133333 DPMO = 0.013333333 x 1,000,000 = 13,333
Six Sigma performance is 3.4 DPMO
13,333 DPMO is 3.7 Sigma
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Proportion of units within specification divided by the total number of units.
Examples: If 10 units have 2 defectives Yield = (10 – 2) x 100 /10 = 80 %
Rolled Through Yield (RTY) Y1 x Y2 x Y3 x ……. x Yn E.g 0.90 x 0.99 x 0.76 x 0.80 = 0.54
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What is Sigma?
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Shot a rifle? Played darts?
What is the point of these sports?What makes them hard?
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Jack
Jill
Who is the better shooter?
Shot a rifle? Played darts?
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Deviation = distance between observations and the mean (or average)
Observations Deviations
10 10 - 8.4 = 1.6
9 9 - 8.4 = 0.6
8 8 - 8.4 = -0.4
8 8 - 8.4 = -0.4
7 7 - 8.4 = -1.4
averages 8.4 0.0
Jack
871089
Jill
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Deviation = distance between observations and the mean (or average)
Observations Deviations
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
6 6 - 6.6 = -0.6
6 6 - 6.6 = -0.6
averages 6.6 0.0
Jack
Jill
76776
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Sigma level
DPMOPercent
defectivePercentage yield
1 691,462 69% 31%
2 308,538 31% 69%
3 66,807 6.7% 93.3%
4 6,210 0.62% 99.38%
5 233 0.023% 99.977%
6 3.4 0.00034% 99.99966%
7 0.019 0.0000019% 99.9999981%
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Variance = average distance between observations and the mean squared
Observations Deviations
10 10 - 8.4 = 1.6
9 9 – 8.4 = 0.6
8 8 – 8.4 = -0.4
8 8 – 8.4 = -0.4
7 7 – 8.4 = -1.4
averages 8.4 0.0
Squared Deviations
2.56
0.36
0.16
0.16
1.96
1.0
Variance
Jack
871089
Jill
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Variance = average distance between observations and the mean squared
Observations Deviations
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
7 7 - 6.6 = 0.4
6 6 – 6.6 = -0.6
6 6 – 6.6 = -0.6
averages 6.6 0.0
Squared Deviations
0.16
0.16
0.16
0.36
0.36
0.24
Variance
Jack
Jill
76776
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Standard deviation = square root of variance
Average Variance Standard Deviation
Jack 8.4 1.0 1.0
Jill 6.6 0.24 0.4898979
Jack
Jill
But what good is a standard deviation
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The world tends to be bell-shaped
Most outcomes
occur in the middle
Fewer in the “tails”
(lower)
Fewer in the “tails” (upper)
Even very rare outcomes are
possible
Even very rare outcomes are
possible
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Add up the dots on the dice
0
0.05
0.1
0.15
0.2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Sum of dots
Pro
ba
bili
ty 1 die
2 dice
3 dice
Here is why: Here is why: Even outcomes that are equally Even outcomes that are equally likely (like dice), when you add likely (like dice), when you add them up, become bell shapedthem up, become bell shaped
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Normal distributions are divide upinto 3 standard deviations on each side of the mean
Once your that, you know a lot about what is going on
And that is what a standard deviation is good for
“Normal” bell shaped curve
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Common Causes: Random variation within predictable range
(usual) No pattern Inherent in process Adjusting the process increases its variation
Special Causes Non-random variation (unusual) May exhibit a pattern Assignable, explainable, controllable Adjusting the process decreases its variation
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Process and Control limits: Statistical Process limits are used for individual items Control limits are used with averages Limits = μ ± 3σ Define usual (common causes) & unusual
(special causes) Specification limits:
Engineered Limits = target ± tolerance Define acceptable & unacceptable
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Another View
LSL USL USLLSL
Off-Target Large Variation
On-Target
CenterProcess
Reduce Spread
The statistical view of a problem
USLLSL LSL = Lower spec limit
USL = Upper spec limit
LSL = Lower spec limit
USL = Upper spec limit
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Good quality: defects are rare (Cpk>1)
Poor quality: defects are common (Cpk<1)
Cpk measuresmeasures “Process Capability”
If process limits and control limits are at the same location, Cpk = 1. Cpk ≥ 2 is exceptional.
μtarget
μtarget
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Good quality: defects are rare (Cpk>1)Poor quality: defects are common (Cpk<1)
Cpk = min
USL – x3σ
=
x - LSL3σ
=
3σ = (UPL – x, or x – LPL) = =
14 20 26 15 24
24 – 203(2)
= =.667
20 – 153(2)
= =.833
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1 122 3 4 5 6 7 8 9 10 11
1 1 1 1 116
LSL USL
A Six Sigma Process –
Predictably twice as good as what the customer wants
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2 3 4 5 6 7 8 9 1210 16151413111
LSL USL
6 Sigma curve
3 Sigma curve
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2 3 4 5 6 7 8 9 1210 16151413111
LSL USL
SD = 1
1.5 SD 1.5 SD
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34
5
6
7
66810
6210
233
3.4
Sigma
DPMO
On one condition :
Calculate the defects and estimate the opportunities in the same way...
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0
100,000
200,000
300,000
400,000
500,000
600,000
1.5 2.5 3.5 4.5 5.5
# of Sigmas
# o
f D
efe
ct p
er
Mill
ion
Sigma Defects numbers per million
1.5s 500,000 2.0s 308,300 2.5s 158,650 3.0s 67,000 3.5s 22,700 4.0s 6,220 4.5s 1,350 5.0s 233 5.5s 32 6.0s 3.4
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Components of Six Sigma
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Two components of Six Sigma
1. Process Power
2. People Power
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P
DC
APlan
DoCheck
Act
Act on what was learned
Check the results
Plan the change
Implement the change on a small scale.
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Practical Problem
StatisticalProblem
Statistical Solution
Practical Solution
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Define What is important?
Measure How are we doing?
Analyze What is wrong?
Improve Fix what’s wrong
Control Ensure gains are
maintained to guarantee performance
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DDefine
MMeasure
AAnalyze
IImprove
CControl
Identify and state the practical problem
Validate the practical problem by collecting data
Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution
Confirm and test the statistical solution
Convert the statistical solution to a practical solution
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DDefine
MMeasure
AAnalyze
IImprove
CControl
VoCVoC - Who wants the project and why ?
The scope of project / improvement (SMART Objective)
Key team members / resources for the project
Critical milestones and stakeholder review
Budget allocation
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Ensure measurement system reliability
Prepare data collection plan
Collect data
- Is tool used to measure the output variable flawed ?
- How many data points do you need to collect ?- How many days do you need to collect data for ?- What is the sampling strategy ?- Who will collect data and how will data get stored ? - What could the potential drivers of variation be ?
DDefine
MMeasure
AAnalyze
IImprove
CControl
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How well or poorly processes are working compared with- Best possible (Benchmarking)- Competitor’s
Shows you maximum possible result
Don’t focus on symptoms, find the root cause
DDefine
MMeasure
AAnalyze
IImprove
CControl
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Present recommendations to process owner.
Pilot run- Formulate Pilot run.
- Test improved process (run pilot).
- Analyze pilot and results.
Develop implementation plan.
- Prepare final presentation.
- Present final recommendation to Management Team.
DDefine
MMeasure
AAnalyze
IImprove
CControl
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Don’t be too hasty to declare victory.
How will you maintain to gains made?
- Change policy & procedures
- Change drawings- Change planning- Revise budget- Training
DDefine
MMeasure
AAnalyze
IImprove
CControl
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Step Consequences if the step is omitted
1. Define
2. Measure
3. Analyze
4. Improve
5. Control
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Benchmark Baseline Contract / Charter Kano Model Voice of the Customer Quality Function Deployment Process Flow Map Project Management “Management by Fact” – 4 What’s
7 Basic Tools Defect Metrics Data Collection, Forms, Plan, Logistics Sampling Techniques
Cause & Effect Diagrams Failure Models & Effect Analysis Decision & Risk Analysis Statistical Inference Control Charts Capability Reliability Analysis Root Cause Analysis 5 Why’s Systems Thinking
Design of Experiments Modelling Tolerancing Robust Design Process Map
Statistical Controls Control Charts Time Series Methods Non Statistical Controls Procedure adherence Performance Mgmt Preventive activities Poke yoke
DefineWhat is wrong?Define
What is wrong?MeasureData & Process
capability
MeasureData & Process
capability
Analyze When and whereare the defects
Analyze When and whereare the defects
ImproveHow to get to six sigma
ImproveHow to get to six sigma
ControlDisplay
key measures
ControlDisplay
key measures
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Two components of Six Sigma
1. Process Power
2. People PowerTell me, I forget. Show me , I remember. Involve me, I understand.
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Master Black Belt
Black Belts
Green Belts
Team Members / Yellow Belts
Ch
amp
ion
s
Mentor, trainer, and coach of Black Belts and others in the organization.
Leader of teams implementing the six sigma methodology on projects.
Delivers successful focused projects using the six sigma methodology and tools.
Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
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Champion
BlackBelt
BlackBelt
BlackBelt
GreenBelt
GreenBelt
GreenBelt
GreenBelt
GreenBelt
YellowBelt
YellowBelt
YellowBelt
YellowBelt
MasterBlackBelt
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SeniorExecutives
Champions /Process owners
Black-Belt
Green Belt
Employees(Yellow-Belt)
Executive overview2/3 Days Provide Leadership
Champions Training - I
2 days
Champions Training –II
3 days
Process Mgmt. & Project champion
Week 2
Week 3
Week 4
Training /Facilitation
skills
Project-work
Master Black-Belt-As Trainer-Coach teams-Facilitateimprovement projects
1 Week Green-Belt Training
- Part of project teams- Sometime lead the
teams
1 / 2 Days core training on Six-Sigma
- General process control &
improvement- Project Team
Member
Black-Belt
Project work
Position in Six Sigma Organisation
Typical Training
Expected Role Post Training
+
(Total 5 days)
Week 1
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• Plans improvement projects
• Charters or champions chartering process
• Identifies, sponsors and directs Six Sigma projects
• Holds regular project reviews in accordance with project charters
• Includes Six Sigma requirements in expense and capital budgets
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• Identifies and removes organizational and cultural barriers to Six Sigma success.
• Rewards and recognizes team and individual accomplishments (formally and informally)
• Communicates leadership vision
• Monitors and reports Six Sigma progress
• Validates Six Sigma project results
• Nominates highly qualified Black Belt and/or Green Belt candidates
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Roles Responsibilities
- Enterprise Six Sigma expert
- Permanent full-time change agent
- Certified Black Belt with additional specialized skills or experience especially useful in deployment of Six Sigma across the enterprise
- Highly proficient in using Six Sigma methodology to achieve tangible business results.
- Technical expert beyond Black Belt level on one or more aspects of process improvement (e.g., advanced statistical analysis, project management, communications, program administration, teaching, project coaching)
- Identifies high-leverage opportunities for applying the Six Sigma approach across the enterprise
- Basic Black Belt training
- Green Belt training
- Coach / Mentor Black Belts
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Roles Responsibilities
- Six Sigma technical expert
- Temporary, full-time change agent (will return to other duties after completing a two to three year tour of duty as a Black Belt)
- Leads business process improvement projects where Six Sigma approach is indicated.
- Successfully completes high-impact projects that result in tangible benefits to the enterprise
- Demonstrated mastery of Black Belt body of knowledge
- Demonstrated proficiency at achieving results through the application of the Six Sigma approach
- Coach / Mentor Green Belts
- Recommends Green Belts for Certification
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Roles Responsibilities
- Six Sigma Project originator
- Part-time Six Sigma change agent. Continues to perform normal duties while participating on Six Sigma project teams
- Six Sigma champion in local area
- Recommends Six Sigma projects
- Participates on Six Sigma project teams
- Leads Six Sigma teams in local improvement projects
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Roles Responsibilities
- Learns and applies Six Sigma tools to projects
- Actively participates in team tasks
- Communicates well with other team members
- Demonstrates basic improvement tool knowledge
- Accepts and executes assignments as determined by team
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• Hard Savings:– Cost Reduction
• Energy Saving• Raw Material saving• Reduced Rejection, Waste, Repair
– Revenue Enhancement• Increased production• Yield Improvement• Quality Improvement
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• Hard Savings:– Cash flow improvement
• Reduced cash tied up in inventory• Reduced late receivables, early payables• Reduced cycle time
– Cost and Capital avoidance• Optimizing the current system / resources• Reduced maintenance costs
Types of Savings
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• Soft Savings:– Customer Satisfaction / Loyalty– Employee Satisfaction
Types of Savings
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• Direct Payroll– Full time (Black Belts, Master Black Belts)
• Indirect Payroll– Time by executives, team members, data
collection
• Training and Consulting– Black Belt course, Overview for Mgmt etc.
• Improvement Implementation Costs– Installing new solution, IT driven solutions etc.
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• Three basic qualifications:– -There is a gap between current and
desired / needed performance.– The cause of problem is not clearly
understood.– The solution is not pre-determined, nor is
the optimal solution apparent.
How many projects out of 20 now qualify as Six sigma projects?