six sigma session for production and project team by lt col vikram bakshi
DESCRIPTION
This training ppt was given to the team to bring in the lean culture in the new lean plan we have made.TRANSCRIPT
SIX SIGMA SESSION FOR PRODUCTION AND PROJECT TEAM
( COVERING BROADLY YELLOW & GREEN BELT TOPICS)
BYLT COL ( RETD) VIKRAM BAKSHI (BLACK BELT)
Topics• Introduction
– Quality tools and Six Sigma Mistaking Proofing
• Process Chart / CTQ /CTP/ DEFECT determination/DPMO/Sigma Calculations
• Six Sigma Methodologies & Tools– How to make a Flow Chart– Check Sheet of data collection– Cause and effect Diagram (Fish Bone)– Pareto Chart– Histogram– Scatter Diagram– Control Chart
• Value Stream Process• Failure Mode and Effect Analysis
• How YOU can use Six Sigma: DMAIC Process
INTRODUCTION
What do you mean by“Quality Control”
• Fitness for Use• The component are said
to be in good quality if they work well in the equipment for which they are meant to be
Give so much to customer as he values
• Grade/Quality Characteristics
• Appearance /performance life / reliability/taste/ odor/maintainability/time
• VOC
• Who is the customer> VOC> Quality characteristics> CTQs
What are the KPI of any Organization
• Functional Targets
– Profitability– Sales Turn over– Market Share– Share Prices
• But Customer is Not Interested
• Quality> Product and Support Quality
• Cost• Delivery Schedule
Traditional Management• Time, cost, quality--
choose any two• QA function to
independently check up on and "control" production
• Remove and rework defective product through inspection P/F
• Cost of quality, optimal inspection and rejection
• Focus is on achieving Functional goal of Sales/ Design/ Purchase/ HR/ Production/ Logistics/ Accounts/ Administration
• VALUE IS TO THE ORGANIZATION
SIX SIGMA• FOCUS IS ON QCD
• VALUE IS TO CUSTOMER• ENSURES LONG RUN GOOD WILL AND LOYALTY
OF CUSTOMER
• ULTIMATE GOALIS ROCE
RETURN ON CAPITAL INVESTMENTS
• TOTAL SAVING FOR ANY BLACK BELT PROJECT IS 20
LAKHS PER ANNUM
• - It is a management methodology that helps organization to improve profitability
• Disciplined Data Collection and statistical analysis to achieve
– Reduce defects– Eliminate Wasteful practices– Delight internal and external
customer by fulfilling present and future needs
CTP: What are the actions required to achieve the CTQ
• What does my customer need from our process
• How is our process performance from the customer perspective
• How does my customer measure my process
• How does my customer view my process
• What can we do better
• How would my customer like for our process to perform
• What is the measurement information to be captured? What is the metric?
• How is the information going to be collected? Does a form need tobe developed?
• Can it come from an existing source?
• When will it be collected? How granular does the team need to be?
• Is continuous information needed?
• Will a week-end or month-end number suffice (a point in time number versus continuous)?
Difference between QA and TQM/6 Sigma.
GMManagerStatus
Plan Do AuditCheck
Inspection Analysis
Function
PreventionAppraisalSystem
Before the Beginning
On LineArea of Action
All ProcessesProdnprocesses
SCOPE
TQM/SIX SIGMA
QAPHASE
Well defined Time linesNo time Line
Tech processes+ Business issues like cost /cycle times/ attrition rates/meeting delivery schedules
Tech processes
Profitability is mainNo Bottom line goal
Break through Improvement
Continual Improvement
Internal and ExternalChange triggered by internal customer
AllQuality circle is middle mgmt and tech personnel
6 SIGMATQM
Improvement firstDocumentation later
Documentation first Implementation later
TQM/TPS is the baseQA is base
Lead to Profit improvements
Leads to Certification
How to doWhat to doSIX SIGMAISO9000
Lean Tools and Approaches
Six Sigma and Lean concepts and methods are
often combined into Lean Six Sigma.
• Both are driven by customer requirements.
• Both try to eliminate waste, reduce costs, speed things up, and improve quality.
• Both focus on real dollar savings.
• Both rely on a systematic methodology.
DMAIC Toolkit for Lean Six Sigma
1212
DefineDefine the purposeAnd scope. CollectBackground info.•Charter•SIPOC•VOC•Affinity Diagram•CTQ Defined•Oper. Definitions•Pareto•Communication
Plan•Gantt Chart
MeasureUnderstand the Current process•Data Collection/Sampling Plan•Run Time/ControlCharts•Frequency Plots•Scatter Plots•Test for Normality•Transformations•Process Sigma•Flowcharts•Histograms
AnalyzeIdentify and confirmRoot Causes w/Data•Hypothesis tests•C&E Diagrams•Run/Control Charts•Histograms•Stratified Frequency
Plots•Regression •DOE•Validated Root
Cause List
ImprovePilot solutions, evaluate resulting data•Pugh Matrix•FMEA•New Paretos•New Process Sigma•Ideal Flowcharts•Pilot Studies•Commitment Scale•Tree Diagrams•Gantt Charts•Planning Grids•Affinity Diagram
ControlMaintain theGain, standardize•Standardization•Training•Control Plans•Run/Control Charts•Process Audits•Communication
Plans•Ownership
transition•Multiply
Solutions
PROCESS TOOLS
•Value Stream Mapping•Takt Time•Eight Wastes•Visual Factory•Error-Proofing•Workload Balancing•Change Control
•Autonomation•JIT•Visual Stds./Controls•Kanban•Standardization•5S•Future State
•Operational Analysis•Six Big Losses•OEE•SMED•TPM•One-Piece Flow•Kaizen
6σ
Lean
• Management Deployment System
•Vendor Scorecards•Real-time Dashboards•Simple Graphical
Analysis•Go to Gemba
ALL TOPICS OF LEAN AND SIX SIGMACAN BE COVERED IN FUTURE SESSIONS FOR IMPLEMENTATIONS
Extend learning Build POKA YOKEThink proactiely to build prevention in processes before things go wrong
First find root cause( Fish bone)Build POKA YOKA to prevent occurrence of root cause
Rectifying the mistake that has occurredDamage control
Preventive Action
Corrective Action
CORRECTION
Six sigma is all about building Prevention Processes
If processes does not allow mistakeNo need to inspect mistake
• How Do we achieve Prevention
• RCO > Reduced chance of Occurrence
• ( Pen Drive)
• ICD> Increase chance of detection
• (Car seat belt alarm)• (Railway signal)• (CCTV)
The Six Sigma Evolutionary Timeline
1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve.
1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique.
1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems.
1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”.
1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis.
1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram.
1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing.
1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality.
1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola
1994: Larry Bossidy launches Six Sigma at Allied Signal.
1995: Jack Welch launches Six Sigma at GE.
Six Sigma Companies
Six Sigma and Financial Services
How do Others Perform?
17
Defe
cts
per M
illio
n
1,000,000
100,000
10,000
1,000
100
12
IRS Tax Advice(phone in)
Doctor Prescription Writing
Airline Baggage Handling
Deaths caused by anesthesia during surgery
Domestic Airline Fatality Rate
Average Company
Best-in-Class
3 4 5 6 7
Sigma Scale of Measure
1% of Hospitalized Patients Injured by Negligence
Understanding Six Sigma
STATISTICALLYSix Sigma refers to a process that produces only 3.4 defects per million opportunities.
STATISTICALLYSix Sigma refers to a process that produces only 3.4 defects per million opportunities.
Sigma DPMO2 308,537
3 66,807
4 6,210
5 233
6 3.4
Most US Businesses
Goal
Business Strategy
An overall strategy that encompasses your organization’s quality philosophy. It sets the vision for achieving Six Sigma levels in key processes.
Tools And Tactics
A set of statistical tools and a disciplined methodology used by specially trained individuals to improve processes by reducing variation and defects. 18
BASICS OF SIX SIGMA FOR BEGINNERS
QUALITY GOAL OF SIX SIGMAAs defined by Motorloa Less than 3.4 defects per million opportunities for error
ie .00034 % ie and accuracy of 99.99966%
• VOC >CTQ to satisfy the customer satisfaction or requirements
• Define your Product /Service defects– Does not meet Customer (
Internal and external) specification or requirements
– Causes customer dissatisfaction
– Does not fulfil functional or physical requirements
• Define Your Product Unit– A unit is something that is
quantified by customer – Measurable and observable
output of your business process
• Define your product Opportunities of Error– Total Number of Chances per unit
to have a defect .– Each opportunity must be
independent o other opportunities
Customer Needs vs. Customer CTQ’s
• Customer needs are the data collected from customers that gives information about what they need or want from your process. Customer needs are often high level, vague, and non-specific
“I need a quick response!”“I need accurate information!”
• CTQ’s are customer needs translated into critical process requirements that are specific and measurable.
• A fully developed CTQ has three elements: Y metric, target, specification/tolerance limits 21
• CTQ– Stated Needs:
Specified by customer Policies/tender/LOI
– Unstated Needs:Are not specified (labor need legal
requirements)
• Expectations:Delighters of the customer
Getting to the CTQ’sTranslating a customer need into a fully developed CTQ
Quick Response
Time from inquiry to resolution (Y metric)
5 minutes or less (Target)
Not greater than 60 minutes
(specification / tolerance limit)
CTQ
Example:
22
Define – Customer RequirementsWhat are the CTQs? What motivates the
customer?
Voice of the CustomerVoice of the Customer Key Customer IssueKey Customer Issue Critical to QualityCritical to QualitySECONDARY RESEARCH
PRIMARY RESEARCH
SurveysSurveys
OTM
Market Data
Indu
stry
Int
elLi
sten
ing
Post
s
Industry Benchmarking
Focus Groups
Customer Service
Customer Correspondence
Obser-vations
Examples• Area: Call Center• Customer Complaint: I wait
consistently too long to speak to to an executive
• CTQ Name: Executive Responsiveness
• CTQ Measure: Time on Hold seconds) • CTQ Specification: Less than 60
seconds from call connection to automated response system
• Defect : Call with holds time equal and greater than 60 seconds
• Unit : Call• Opportunity : 1 per call• Sigma ?
• Area: Book Publisher• Customer Complaint: I cant stand
any typing error in books I purchase
• : Typograpghic Quality• CTQ name CTQ measure:
Number of typography mistakes• CTQ Specification: Zero
typographic mistakes
• Defect: Any typogrpahic mistake • Unit : Word• Opportunity: No of letter per word
DPU AND DPMO• Take the data collected based on the data
collection plan, using an appropriate sample size.
• Calculate the number of defects in the sample based on the Operational Definitions.
• Define what an opportunity is. Be cautious in defining too many opportunities; this will artificially inflate the Sigma Level
• Suppose that a project is focused on a billing process. The team wants tohave correct bills sent to the customer. They have defined one opportunity for this process - either the bill is correct or not. All of the bills produced are the same in terms of complexity. The team took a sample of
250 bills and found 60 defects
• Calculate the Defects Per Million Opportunities using the following formula:
• DPMO = Defects x 1 Milliondivided by No of Units
processed at that review point x Opportunities for error in that unit
DPMO= 60 x1000000 divided by 250 x 1
=240 000
• Using a conversion table, the team found the Sigma Level to be about 2.2. They used this information to baseline the current process performance.
Use the table to convert DPMO into the SigmaLevel
Another example• A purchase order has 20
Opportunities for error. The person who enters the order makes one defect on an average. What is Sigma level for this process
• DPU= No of defects divided by No of units = 1 divided by1=1
• DPMO= DPU X 1000000 DIVIDED BY OPPORTUNITIES FOR ERROR IN THAT UNIT
• = 1X 1000000DIVIDED BY 20
= 50,000
SIGMA LEVEL= 3.1
CALCULATION SIGMA LEVEL FOR THE ENTIRE ORGANIZATION
5 w/o POOrder 20Sales
SIGMA LEVEL
DPMODPUOpportunity for error
No of defects
No of units
Sub process
8 DELAYED 23HR
10 MISTAKES
GRN Bills25
Fin
25 MISTAKES
100Production
DPUOPPTOTAL
SPC• Capability Indices• Process capability is the ability of
the process to meet the requirements set for that process.
• One way to determine process capability is to calculate
• capability indices.
• Capability indices are used for continuous data and are
• unit less statistics or metrics.
• There are many capability indices but the two most commonly used are Cp and Cpk (or Pp and Ppk).
• Cp = USL – LSL divided by 6s
• Cp is the potential capability indicating how well a process could be if it were centered on target. This is not necessarily its actual performance because it does not consider the location of the process, only the spread.
• It doesn't take into account the closeness of the estimated process mean to the specification limits.
DPU AND DPMO• Take the data collected based on the
data collection plan, using an appropriate sample size.
• Calculate the number of defects in the sample based on the Operational Definitions.
• Define what an opportunity is. Be cautious in defining too many opportunities; this will artificially inflate the Sigma Level
• Suppose that a project is focused on a billing process. The team wants to have correct bills sent to the customer. They have defined one opportunity for this process - either the bill is correct or not. All of the bills produced are the same in terms of complexity. The team took a sample of 250 bills and found 60 defects
• Calculate the Defects Per Million Opportunities using the following formula:
• DPMO = Defects x 1 Milliondivided by Units x
Opportunities
DPMO= 60 x1000000 divided by 250 x 1
=240 000
• Using a conversion table, the team found the Sigma Level to be about 2.2. They used this information to baseline the current process performance.
PROCESS CAPABILITY• A control chart statistically determine upper and
lower limits either side of a process average . IN CONTROL
• Process width = UCL - LCLUCL= X bar + 3 sigmaLCL= Xbar – 3 Sigma
PW= 6 SIGMA
Specification Width is given by customer UCL AND LCL must remain within USL and LSL
= USL - LSL
Cp= SW divided by PW
= SW divided by 6 sigma
PROCESS IS SAID TO BE CAPABLE ONLY IF Cp > 1
Cpk and Control Charts Not being covered
• How do we calculate X bar Mean andsigma also called as standard deviation :WILL COVER LATER IN PPT IN HISTOGRAM PORTION
WILL COVER IN DETAIL IN NEXTSESSION INCLUDING Cpk
Is 99% Good ?
99% AccuracyPractical Meaning of “99% Good”
• 20,000 lost articles of mail per hour
• Unsafe drinking water almost 15 minutes each day
• 5,000 incorrect surgical operations per week
• 2 short or long landings at most major airports each day
• 200,000 wrong drug prescriptions each year
• No electricity for almost 7 hours each month
99% Is NOT Good Enough Anymore
6 – The Measurement99.0% = 3.85
99.9996% = 6
Is there really a big difference between 99.0% & 99.9996%?
µ
σ
What’s in a name?• Sigma is the Greek letter representing the standard
deviation of a population of data.
• Sigma is a measureof variation(the data spread)
Facts• All work is a process• All processes have variation and waste• Variation causes defects waste causes loss• Processes can be improved by understanding
the nature of the variation and waste
What does variation mean?• Variation means that a
process does not produce the same result (the “Y”)every time.
• Some variation will exist in all processes.
• Variation directly affects customer experiences.
Customers do Customers do notnot feel averagesfeel averages!!
-10
-5
0
5
10
15
20
Measuring Process PerformanceThe pizza delivery example. . .
• Customers want their pizza delivered fast!
• Guarantee = “30 minutes or less”
• What if we measured performance and found an average delivery time of 23.5 minutes?– On-time performance is great, right?– Our customers must be happy with us, right?
How often are we delivering on time?Answer: Look at
the variation!
• Managing by the average doesn’t tell the whole story. The average and the variation together show what’s happening.
s
x
30 min. or less
0 10 20 30 40 50
Reduce Variation to Improve PerformanceHow many standard deviations can you
“fit” within customer
expectations?
• Sigma level measures how often we meet (or fail to meet) the requirement(s) of our customer(s).
s
x
30 min. or less
0 10 20 30 40 50
41
Another Example
Roller Bearing Manufacturing
Diameter is a CTQ
(Critical To Quality Parameter)
Nominal diameter = 2.5mm
Minimum Spec = 2.25mm
Maximum Spec = 2.75mm
41
42
Example (Cont.)
Nominal
Diameter
2.5 mm
No Less Than
2.25 mm
No More Than
2.75 mm
Lower Specification
Limit
Upper Specification
Limit
Customer is expecting 2.5 mm
But will allow some variation within the Spec range.
42
43
Example (Cont.)
Manufactured Roller Bearing Diameter
Actual Micrometer Measurements
43
44
Example (Cont.)
Manufactured Roller Bearing
Diameter
Variation ending up as a
defect
44
45
Example (Cont.)
Let’s Look at Some Basic Statistics
Mean diameter = 2.50 mm
Standard Deviation = 0.125 mm
45
On Average it’s OK
It’s a Variation issue
46
Example (Cont.)
Reducing Variation is Clearly the Key to Improving Process
Capability
246
47
Example (Cont.)
Reducing Variation is Clearly the Key to Improving Process
Capability
347
48
Example (Cont.)
Reducing Variation is Clearly the Key to Improving Process
Capability
448
49
Example (Cont.)
Reducing Variation is Clearly the Key to Improving Process
Capability
549
50
Example (Cont.)
Reducing Variation is Clearly the Key to Improving Process
Capability
650
I think now we know what we mean by SIX SIGMALETS AGAIN REWIND
0.00034(80Times)
3.46
0.023(30 Times)
2305
0.62(10 Times)
62104
6.68(5 Times)
668003
30.8(2 Times)
3080002696900001
DefectCount in %
DPMOProcess capability (Sigma Level)
• The Objective of 6 Sigma is to achieve level of 3.4 defects or errors out of every million defect opportunities.
• This translates into 99.9997% perfection
• While everybody talks about customer satisfaction and world class quality, here we are transferring Quality into Quantifiable language
Six Sigma Approach focuses on:Customer needs
Data-driven improvementsThe inputs of the processAnd this results in:
Reducing or eliminating defects
Reducing process variationIncreasing process capability
Managing Up the Sigma Scale
3.40.00034%99.9997%62330.023%99.977%5
6,2100.62%99.38%466,8076.7%93.3%3308,53830.9%69.1%2691,46269.1%30.9%1DPMO% Bad% GoodSigma
Table Comparison of 99.9% Vs 99.9997%
Error Nos with99.9997 %Quality
Error Nos with 99.9 % QualityActivity/Operation
< 2 BAGS LOST IN A WEEK
60 bags lost in a dayHandling of 60,000 nos bagagages by airline in a day
< 1 wrong clearance
200 wrong clearance Clearance of 200,000 cheques in a week
<2 CRASHES500 Crashes 60
1 Mis delivery 300 mis deliveriesDelivery of 300,000 Letters
Six Sigma is. . .• A performance goal, representing 3.4
defects for every million opportunities to make one.
• A series of tools and methods used to improve or design products, processes, and/or services.
• A statistical measure indicating the number of standard deviations within customer expectations.
• A disciplined, fact-based approach to managing a business and its processes.
• A means to promote greater awareness of customer needs, performance measurement, and business improvement.
• Who is the Customer
• What are the Quality Characteristics required by him
• CTQ
• Actions required to achieve the CTQs
Examples of the Sigma ScaleIn a world at 3 sigma. . .
• There are 964 U.S. flight cancellations per day.
• The police make 7 false arrests every 4 minutes.
• In MA, 5,390 newborns are dropped each year.
• In one hour, 47,283 international long distance calls are accidentally disconnected.
In a world at 6 sigma. . .
• 1 U.S. flight is cancelled every 3 weeks.
• There are fewer than 4 false arrests per month.
• 1 newborn is dropped every 4 years in MA.
• It would take more than 2 years to see the same number of dropped international calls.
PART THREE
ANYBODY FOR A SMOKE BREAK OR CONTINUE!
• Six Sigma Methodologies & Tools– How to make a Flow Chart– Check Sheet of data collection– Cause and effect Diagram (Fish Bone)– Pareto Chart– Histogram– Scatter Diagram– Control Chart
Process Maps
• Another important set of deliverables of the Define phase are process
• maps.
• The maps should be based on the actual state of the process, or "asis“ maps.
• They should not show the desired state at this point in the project.
High Level Process MapsDevelop high level process maps to include next-level subprocess overviews, identify process linkages and gaps to ensure that the teams are aligned.Deliverables:
a. Sub Team Processes Mapped to Critical Steps
b. Team Leaders Met and Reviewed & Aligned Maps
SIPOC.• The first stage would be to create
a SIPOC. SIPOC stands for Suppliers, Inputs, Process, Outputs and Customers.
• The SIPOC is a very top-level view of the process to be improved.
• By starting the mapping process at this level, it allows the team to quickly develop a common understanding of the process to improve and the key customers and suppliers
• Establish a name for the process.
• Define the starting point and the ending point of the process to be improved. These should already be listed in the scope section of the team Charter.
• List the key outputs of the process. Usually, this list includes up to three or four main outputs even though the process may produce more.
• Define who receives those outputs, i.e. the customers. These customers may be internal (part of the business) or external.
• State the top-level process steps of the process. Keep the list to four to eight main steps. These steps do not contain any decision points or feedback loops.
• List the inputs to process. Stick with one to four main inputs.
• Define who supplies the inputs to the process.
SIRPORC
PROCESS OUTPUT CUTOMERREQUIREMENT
OFSUPPLIER
SOURCESUPPLIER
CUSTOMERREQUIREMENT
OF THEPROCESS
INPUTS
AREA OF PROCESSWHERE WE EXPECT TO FOCUSOUR INITIAL MEASUREMENTS
SUBPROCESS
SIPOC – Suppliers, Inputs, Process, Outputs, Customers
You obtain inputs from suppliers, add value through your process, and provide an output that meets or exceeds your customer's requirements.
Process Understanding
SHOP FLOOR EXAMPLE
FLOW CHART• What people are presently doing/
internal and external interconnections
• Relation ship Map how various function and individual interface with each other
• Maps and Flow Chart to make work visible
• Identify alternative way
• Improvement opportunities
• Analysis tool
START/FINISH
ACTIVITY/OPERATION
DECISION STAGE
LINK TO NEXT ACTIVITY
A DOCUMENT OR DIAGRAM
TOP DOWN MAP• However, the SIPOC is probably not
detailed enough to find opportunities for making the process better.
• More detailed mapping is required The next stage of mapping may be a top-down chart.
• The top-down chart takes the information from the SIPOC and adds a second level of information.
• For each step listed in the SIPOC, the team defines the associated sub-steps.
• There are still no feedback loops or decision points
• The steps for creating a top-down chart are:
Agree on the start point and end point for the process map.
These are already listed in the SIPOC.
• Identify four to eight major steps that describe the process from beginning to end.
List those steps horizontally across a flipchart page.
These are also taken from the SIPOC.
• Break each major step into three to seven sub-steps. List the substepsunder the corresponding major step.
•
TOP DOWN SUB PROCESSAFTER WE MAKE SIPOC CHART
Review the map and make corrections as necessary. Rearrange steps, combine sub-steps, or Revise the descriptions of the major steps or sub-steps soAccurately describe the process. Agree on a presentation format for the process map.
FROM SIPOC PHASE MAKE YOUR FLOW CHART
ANOHER EXAMPLE
NEXT MAKE THEFUNCTIONAL DEPLOYMENT MAP
• The third stage of mapping is to create a more detailed "as-is" picture
• The functional deployment map displays the steps of a process in sequential order.
• The functional deployment process map also illustrates what function performs the process step.
The steps for creating a functional deployment map are:
• Review the top-down chart with the team.
• List each of the process steps in sequential order in the first column.
• Use the horizontal axis across the top to show the location/ responsibility or department for each step performed.
• Depict individuals (by job title/position), specific locations, or work functions.
• Indicate the steps, activities, and decisions that make up the process under the associated functional column.
• Identify the sequential order in which the steps are actually performed.
• Use arrows to indicate the direction of the process flow
• Review the final map and correct as necessary.
POSSIBLE PROCESS MAP OF SCM FACILITY
Annotating Process Maps
• After the map is complete, additional information can be added depending on the project goals.
• For instance, if the goal is to reduce cycle time,the time for each step may be added.
• If the goal is to reduce defects, yield information may be added. T
• This may help the team identify the areas on which to focus.
• However, this type of information may not be readily available and, often, after the data are collected in the Measure phase, the maps are updated
Process Map – should allow people unfamiliar with the process to understand the interaction of causes during the work-flow. Should outline Value Added (VA) steps and non-value add (NVA) steps.
Process Understanding
R e c e ip t / E x t r a c t
R e q u a l G r o u p
R e m it
D a t a C a p
I n v e n t o r y
S ta r t S iz e S o r t s C o n t r o l
D o c sO p e n P u l l & S o r t
V e r if y
P a s s 1
K e y f r o m im a g e B a la n c e
P a s s 2R u lr s
P e r f e c t io n
N o
P r e p c k s S h ip t o I P
F u l l F o r m Q C R e v ie w
S h ip t o C u s t
V o u c h O K
P r e p F o ld e r s /
B o x
Y e s
N o
V o u c h e rs
F u ll F o rm
C k / V o u c h
Y e s P r e p c k s , r o u t e v o u c h
Operations
HR / Recruit
Training
Start
Manually Update HR
Billet Request
Create Staff Billet
Review Staff Billet
Check off desired returnee
staff & "need to retrain"
list
Send Letters to desired
staff
Do they respond?
Call (3x)
No
Have we hired
enough?
Stop!
Yes
Rev original billet &
call uncheck
ed
Interview / pre-hire
Meet Fleet hiring
criteria
Stop!
No
Place into dept
Yes
show up orienta
tion
Call3X
No
To Floor
schedule for
training
Show up?
Call1X
No
Train
Pass?
Need OJT Re-Tng
No
HR sends req for staffing
nos.
Create daily peak staff need plan
Add 30% to the required
no.
What if the returnee is
already working here on another program? Currently
send the ltr anyways
Do they want to
work this peak?
Do they want to
stay on the list
No
Take off IPS
system
No
Set 14 month flag (on IPS?)
Yes
Yes
Add 40% to staff needed
Yes
New & Other People call in
Wait List
No Rank as "1 2 3"
New
Update IPS
Compare to original Billet rpt
Call employee(3x)
Can they make it?
Action Plan
No
To FloorYes
ReachYes
Update IPS
Gen rpt for Ops Kronos
Recruit
Gen Event Roster rpt in IPS
No
NoYes
OJTMake
it?
Yes
Yes
No
Yes
Hire in 1-2 order (3's are
not placed)
Notify HR
Need re-train
No Yes
Do they want to
work this peak?
Do they want to
stay on the list
No
Yes
Set 14 month flag (on IPS?)
Take off IPS
system
Have we hired
enough?
Call Wait List
NoYes
Stop!
Yes
No
No
Yes
Yes
Process Understanding
QUICK WINS• Criteria for Good Quick Wins• After the mapping activity is done, the team should then use the
maps to assess if there are some obvious opportunities for Quick Wins.
• Quick Wins should be changes that are easy, fast, and cheap to implement, andthat fall within the team's responsibility.
• In addition, the team may want• to ensure that the changes are easy to reverse since these ideas
may not be validated with data.
SECOND TOOL: CHECK SHEET OF DATA COLLECTION
• How many times each value occurred
• Shows frequency of a particular defect and how often it occurs in a specific location
• Enables Operator to spot the problem
• Easily set the priorities•• Part with highest number of
defects carries highest priority for correction
IIII IIIIIPin Holes
IIIIICracks
IIITotal
IIIIIFiberes
IIIIIIIMold cracked
Total26Aug 2012
25Aug 2012
Defect item
THIRD TOOL : PROCESS APPROACH AND PROCESS MODEL
• CONTROL BOUNDARY
Must Know what people are presently doing, where are the contributions in relation to customer internal and external
Relationship Map View Make work Visible Uncover non valued
added Improved opportunities Also used as Anlytcla tool
TransformationsCONTROL
Using resources and Mgmt Activities
INPUTX1X2
X3…Xn
OUTPUTY
To Identify potential breakdowns,rework loops and source of variation
in process
Fish Bone Diagram - A tool used to solve quality problems by brainstorming causes and logically organizing them by branches. Also called the Cause & Effect diagram and Ishikawa diagram
Provides tool for exploring cause / effect and 5 whys
FOURTH TOOL :CAUSE AND EFFECT DIAGRAM (FISH BONE)
Cause and Effect Matrix• The Cause and Effect Matrix gives weights to
each y indicating the importance of that y.• Man Material Money Machine Method
Environment
• Then, each x is rated in terms of its correlation to each y. Calculations are made based on the importance and Correlation, and higher scoring x's are the best candidates for data collection.
• Rate the degree to which the x affects or is correlated to each y.
• Use the following scale:– 0 - no effect or correlation– 1 - small effect or weak correlation– 3 - medium effect or medium correlation– 9 - strong effect or strong correlation.
• This scale ensures that the x data that the team thinks has the strongest effect on the y will stand out.
• Multiply each rating by the weight and sum across the row, putting the result in last column.
• The x's with the highest totals are the ones that the team should try to collect.
ANOTHER EXAMPLE OF
FIFTH TOOL :THE PARETO CHART
• Another powerful teaming tool is the Pareto chart. The Pareto chart is based on the Pareto principle.
• Pareto was an economist in the early 1900's who discovered that 80% of all the wealth was held by 20% of all the people.
• This became known as the 80/20 rule and it was found to be applicable to more than the economy.
• Eighty percent of the warehouse space is taken up by 20% of the part numbers. Eighty percent of the defects are caused by 20% of the defect types
• The Pareto chart is a bar chart. The height of the bars indicates the count, or frequency, of occurrence. The bars represent one grouping of the data,such as defect type.
• The idea motivating this chart is that 80% of the count will be due to 20% of the categories.
• The bars are arranged in descending order, therefore the dominant group can be determined and it will be the first bar on the left. This chart can be used in a variety of places in a Six
PARETO CHART
• Pareto Mean 80:20• After data has been collected we draw
pareto to focus on the Vital few.
• The remaining factors are called Trival Many
• Reasons for Customer Dissatisfaction– Wrong Items: 17– Delivered Late: 4– Transit Damage: 8– Late Vehicle : 12– Late Installation: 3– Absentee of Engineer: 1– Others: 3………………….IN LAST– Failure of items: 2
– 17 divided by 50 x 100 = 34 so on
• We will draw a Pareto Chart• Arrange all data in descending order• Arrange data in percent with No of readings• Convert Data into Cumulative
3H9421G9242F8863E8284D74168C582412B343417A
Cumlative%Descending
IDENTFYING VITAL FEW IN PARETO CHART 80:20
0102030405060708090
100
A to D areVital
CTP
ANOTHER EXAMPLE
Step 2: Measure Step 2: Measure –– Pareto ToolPareto Tool
• MS Excel and QC Tools software used to construct graphs• Tool used to rank data by groups from the group that
contains the most data points to the group that contains the fewest data points.
• Look for a “large bar” or “young mountain”
Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late
162
29 25
12 9 7 5 2
99.2%97.2%
94.4%90.8%
86.1%
76.1%
64.5%
0
50
100
150
200
250
DOCS LLR RS NFL O&E START QUESTION RS, DOCS
Request Type
# of
Req
uest
s
0
10
20
30
40
50
60
70
80
90
100
% o
f Tot
al
n = 251
ANOTHER EXAMPLE
SIXTH TOOL HISTOGRAM
• Displays frequency of distribution of continuous /variable data
51384
50232
53475
56556
58627
61689
66777
73826
81913
90961
Defect in PuneDefectIn Savli
No of Defective Boilers
CONSIDER A DATA OF DEFECTS
OCCURRED INPRODUCTION
IN SAVLI AND PUNE PLANTS•Total 50 Nos PRODUCT
in each location
HOW WILL YOU DETERMINEWHICH PLANT IS MORE CONSISTENT
WITH LESS RANGE IN DEFECTS
FIRST CALCULATE INTERVAL FROM DATA
-DETERMINE TOTAL NUMBER OF PRODUCTS AND THEN SQUARE ROOT IE 50= 7 ROUNDING OFF-96 WHICH IS HIGHEST READING IS DIVIDED BY 7= 14-SO NOW WE HAVE INTERVEAL OF 14 EACH. -DETERMINE READINS AS PER INETRVAL OF BOTH PUNE AND SAVLI PLANTS
• 14 to 28> 2 of 23• 28 to 42> 5 of 38• 42 to 56> 5 of 47 and 6 of 55 =
11• 56 to 72> 7 of 62 and 9 of 68
=16 • 72 to 84> 7 of 77 and 6 of
82=13• 84 to 98> 3 of 91 and 1 of 96
= 4
• 14 to 28> 0• 28 to 42> 0• 42 to 56> 2 of 50, 4 of 51, 5
of 53, 6 of 56• = 17
• 56 to 72> 7 of 58, 9 of 61, 7 of 66 =23
• 72 to 84> 6 of 73, 3 of 81 =9• 84 to 98> 1 of 90
PLOT NUMBER OF READINGS AS PER Y SCALE IN EACH INTERVAL OF 14ON X SCALE
WIDER THE BASE MORE THE VARIATION
AIM IS TO BRING BASE CLOSER TO MEAN
0
5
10
15
20
25
28 56 84
savliPune3-D Column 33-D Column 43-D Column 53-D Column 63-D Column 73-D Column 83-D Column 93-D Column 103-D Column 11
WIDER BASENARROW BASE
MEAN
MEASURE OF CENTRAL TENDENCEY• AVERAGE MEAN: 64.18 & 61 • MEDIAN: MIDPOINT OF DISTRIBUTION OF
DATA : 68 & 61• MODE: RANGE WITH MAX OBSERVATION :
68 &61• RANGE: X max – X min = spread of
distribution . 73 & 40. Range is measure of Variation
• Another measure of Variation is Standard Deviation also known as Sigma or s + Square root of ( X –Xmean) ( X – X mean) / N
• Where X is X1 X2 X3…..• N is population size
• THIS DATA IS ALSO USED TO CALCLULATE Cp
•
• CONCLUSION
• A strong Central tendency ( Mean , Median, Mode are close to each other ) indicates less variation in process
• If bars are more spread it means range is higher or higher variation
Step 2: Measure Step 2: Measure –– Histogram ToolHistogram ToolCustomer Service Document Requests Between Week 31 and Week 38 that Were Delivered
Late
0
20
40
60
80
100
120
-1.55 0.55 2.65 4.75 6.85 8.95 11.05 13.15 15.25 17.35 19.45 21.55 23.65 25.75 27.85 29.95
# of hours to deliver request
# of
Req
uest
s
96
10
1 1 1 1
14
8 7 4
1
14
2
_x n = 162 (2 outilers of 79 and 64 hours not shown)
mean = 7.139std dev = 8.538
USL=0.5 hours
MS Excel and QC Tools software used to construct graph Fits data into a frequency distribution Can show upper and lower specification limits and denote data that falls outside those limits (the area on which the story should focus) Used for data breakdowns by hours, minutes, dollars, etc.
ANOTHER EXAMPLE OF HISTOGRAM
OK BEFORE WE GO TO NEXT PARTLETS US AGAIN REWIND WHAT WE HAVE LEARNED
Part four
• Value Stream Process• Failure Mode and Effect Analysis
• AIM IS TO ADD VALUE TO THE PROCESS IF IT IS LENGTHY AND
TIRESOME
REMEMBER THE PROCESS MAP
WHAT WE HAD MADE IN SIPOC AND FLOW CHART
NOW OUR NEXT AIM IS TO IMPROVE THE PROCESS CHART BY MAKING OUR SYSTEM A LEAN SIX SIGMA EFFICIENT AND QUICK
BUT BY REMOVING ALL NON VALUE ADDED STEPS AND PROCESS
IN A BUREAUCRATIC DECISION MAKING THAT DO NOT ADD VALUE BUT ONLY DELAY THE GOAL ACHIEVING
FUNCTIONS FILL IN PROCESS STEPS AND DEPART MENT PERSONSIN SEQUENCE OF ACTIVITIES
SUBMITTER Fills
NOW IDENTIFY IN YOUR SYSTEM PROCESS WHAT ARE THE CUSTOMER VALUE-ADDED ACTIVITIES
• Customer-value added has all the following characteristics:
• The customer recognizes the value.
• It changes the product or service toward something the customer
• expects.
• It is done right the first time.
• An operational-value added activity has all the following characteristics:
• It is required to sustain the workplace ability to perform customer value-added activities.
• It is required by contract or other laws and regulations.
• It is required for health, safety, environmental, or personnel development reasons.
• It is done right the first time.
• A non-value added activity is one that does not fit into the other two categories.
• Examples of non-value addedactivities are: proofreading, inspection and checking, logging information, checking calculations, reviewing and approving, moving and set-up, monitoring work, and rework.
• The team would focus on the non-value added activities to see if they could be eliminated or minimized.
• An important clarification is that a non-value added activity doesn't automatically make it an unnecessary activity
Example Value-Added Analysis
IDENTFYING VALUE ADDITION ( TIME SPENT IN HOURS)
5Ship to customer
8Arrange Invoice
15Await Delivery clearance
20Implement Plan
5Customer Sign
5Refer plan for approval by senior
20Keep plan aside to attend another activity
10Prepare Execution plan
7Error corrected
5Checking by customer
15Understanding customer requirement
NEITHER BENIFTS CUSTOMER OR BUSINESSNVA
NOT REQUIRED BY CUSTOMERBVA
REQUIRED BY CUSTOMERRVA
ACTIVITY
IMPROVING THE PROCESS MAPRVA: Real value adding activity to be optimized
BVA: Business value adding activity to be minimizedNVA:Non value Adding Activity to be eliminated
• Map will be Current Base line Map
• Reflect NVA/ removed/ appraisal/prevention for like failure modes
• Compare Maps and Identify actions to move to Should be Level
• Take action to improve processes to Should be
Level
Step 1Draw As is Map
Step 2Draw Should be Map
Compare Map
Improve ProcessVerify, Implement
ValidateMake control Plan
ANOTHERPROCESS IMPROVEMENT TOOL
PFMEA• Capture defect in your shop that
customer does not catch in his operations
• Surfacing the problem early in production cycle will enable us to solve them wih minimum expenses and time
• Why perform a FMEA> To prevent design /process related problems during product launch /subsequent operations
• How> By attempting to surface problem early before they have a chance to occur
• Benfit> save time and resources
• Information to have before FMEA
• Customer requirements specifications• Engineering drawings• Warranty information and field failure • Previous FMEA• Process Flow Diagram• Process Capability data• Prototype TEST data• Defect failure information
• How customer will use end product• How customer may abuse the end
product
FMEA WORK SHEETRevised RPN
Abuse by customerR
PN
Detection
Design verification
Occurence
Potential causes of failure mechnaism
significant
Critical
Severity
Potential effect in failure mode
What can go wrongPFM
Process
step
Flow chart the processDescribe process and functionList each potential failure mode
Describe effect of each type of failureRank severity of failure
Classify any special characteristicsList potential causes for each failure mode
Estimate likelihood of occurrenceList prevention/detection control
Rank detectionIdentify RPN
IMPROVERevised RPN
Detectionoccurence
Severity
Action Actually Taken
Responsibility for completing action
RecommendedAction to improve RPN
List recommended actions to lower RPNList individual /depts for completing actions
List actual actions takenRe compute RPN after corrective actions
CONTROL PLANAction plan if out of control condition occurs
Checked ByEquipment used
Control Imposed
RequirementsProcessstep
Repeat steps for all processes /sub processes/ parts
Develop a control plan and a contingency plan
PART SIX
HOW WE CAN TAKE A PROJECTTO MAKE OUR ORGANIZATION A LEAN SIX
SIGMA
Six Sigma Method
Define Measure Analyze Improve Control
Who are the customers and what are their priorities?
How is the process performing and how is it measured?
What are the most important causes of the defects?
How do we remove the causes of the defects?
How can we maintain the improvements?
DMAIC: To improve any existing product or process
102
Six Sigma Tool Box
SIPOC
Best PracticesScatter PlotsSamplingReview Existing Data
PilotingCause & Effect Diagram
Data CollectionRun Charts, Time Series Chars, Time Value Charts, Pareto Charts
Set Up a Plan & Guidelines for Team
TrainDesign Changes
ANOVAStatistical Analysis
Project Charter as a Team
Multiple Regression
Defect ControlRoot Cause Analysis
Defect MetricsFlow charts
Performance Metrics
Tolerance Control
FMEACause & EffectProcess Flow Mapping
SPC ChartsModelingFishbone Diagrams
Value Stream Map
Benchmarking
ControlImproveAnalyzeMeasureDefine
DEFINE PHASE• Define Phase: The goal of define phase is to define the
project scope by understanding background information about the process and its customers
• Tools used in define phase as voice of customer, project charter are used decide the scope of project and define boundaries of improvement effort.
• It also identifies key stakeholders, time lines, improvement priorities, and improvement targets at the beginning of project.
TOOLS AND METHOD IN DEFINE STAGE
INTERIM CONTAINMENT ACTIONACTION PLAN FOR PROCESS STANDARDIZATION
SIPOC/SIRPOCDEVELOP HIGH LEVEL PROCESS MAP
PROBLEM STATEMENTGOAL STATEMENTBUSINESS NEED ADDRESSED SCOPECONSTRAINTSRESOURCESASSUMPTIONS GUDILINESTEAM COMPOSITIONPRELIN PROJECT MILESTONES
DEVELOP PROJECT CHARTER
VOCCTQ DEFINATION
DEFINE CUSTOMER REQUIREMNTS
STEPS/TOOLSDEFINE PHASE
VOC/ QFD/ KANO MODEL/ BENCHMARKING/ CTQ/ PROJECTCHARTER/ SIRPORC/DEFINE RESPONSIBILTY AUTH
FINAL DEFINE STAGE RESULTS
• What are Customer driven CTQ and Process driven CTQ
• Sources of Existing Customer data
• Assessing Customer requirements and expectations
• Recall Vital few customer CTQ
• Analyze VOC and its impact on CTQ
• Translate Customer needs into CTQ
Measure OverviewWhat is the Measure phase?
The Measure phase defines the defects, establishes improvement goals, determines that the system of measuring defects is repeatable and reproducible and gathers data about the process.
Why is the Measure phase important?
The Measure phase ensures that you specifically define the defects you are going to measure and that your measurement system is accurate before you begin to actually measure the process.
107
Measure• The primary purpose of
the measurement phase is to answer the questions,
• "How are we doing?" and "How far do we have to go?“
• The team needs to establish a baseline of the current performance level.
• Deliverables from the Measure phase include:
• Collected data
• Selection of what measures to use
• Baseline of the "current state“
• Data collection plan
• Develop operational definitions for each CTQ characteristic
• Figure out how to measure internal processes affecting each CTQ, KPOV (Key process output variables), KPIV (Input Vars)– Y = F(x)
• Figure out what data we need to collect– Easy to collect correctly– Interrupt process as little as possible– Collectors understand why collecting– “gage study” to determine the validity (repeatability and
reproducibility) of the measurement procedure for each CTQ• Baseline data
– Collect baseline capabilities for each CTQ– Determine the process capability for each CTQ
TOOLS IN MEASURE STAGE
Check sheet and Data sheetCollect data and tabulate data
Cp Cpk DPMO /Sigma Level calculations
Calculate Process capability and Sigma base line
MSA/Gage R&RValidate measurements system
Questionnaires, sampling plansDevelop Data Collection Plan
Using Pareto, Correlation Analysis CT MatrixIdentify CTPs
Based on CTQ and process knowledge , Benchmarking
Define Defect,Opportunity, Unit, metric
WHAT CAN BE MEASURED• Input Indicators - Measures that
evaluate the degree to which the inputs to a process (provided by suppliers) are consistent with what the process needs to efficiently and effectively convert inputs into customer satisfying outputs.
• Examples of input indicators– . # of customer inquires– . Type of customer inquires– . # of orders– . # of positions open– . Accuracy of the analysis– . Timeliness
• Output Indicators - Focus on the end result. Measures that evaluate dimensions of the output - may focus on the performance of the business as well as that associated with the delivery of products and services to customers.
• . Retention rates• . Total # done, sold, made, etc.• . On-time• . Complete
WHAT ALL CAN BE MEASUREDAS GOOD AND DEFECTS
• Process Indicators - Focus turning opportunities into desired results. Measures that evaluate the efficiency, effectiveness and quality of the transformation processes (i.e., the steps and activities used to convert inputs into customer satisfying outputs.)
• Examples of process metrics include:– . Availability– . Time to do something, timeliness– . # of non-standard request– . Yield (first time through)– . # of exceptions (e.g., non standard approvals)– . Quality level (could also be an output metric)
TIME METRICS• Lean process improvement teams often look at time metrics.
• Takt time - the unit-to-unit pace of production required to meet customer demand. This is the ideal pace for doing work. At this rate production and demand are in balance.
• Cycle time - the actual elapsed process time from the completion of one output unit to completion of the next unit. Cycle time for a process is the length of time for the longest step within the process.So if a four step process has three steps of two minutes each, and one step of five minutes. The cycle time is five minutes.
• Lead Time - the length of time from the beginning point of a process to the completion of a finished output (calculation varies depending on scope; it includes: queue, wait and move times).
• Time metrics can also include frequency, degree of impact, response time,
RESULTS OF MEASURE STAGE• Do the metrics link to the team's improvement goals?
• Do the metrics have a balance of viewpoints (customer, supplier,process, productivity, quality, etc.)?
• Was a plan developed for collecting the information?
• Was a baseline established?
• Does the data collected look like it will provide the necessary information for analysis and decision making purposes?
• Are all significant process steps captured?
• Was the data validated for reasonableness by anyone outside of the team?
• Which metrics may be useful in sustaining improvement after implementation of the changes?
50%% of revisions through database requests andproductionorders
100%Accuracy
BaseMetricGoalCategory
Measure – Failures and RisksWhere does our process fail and why?
Subjective opinion mapped into an “objective” risk profile number
Failure Modes and Effects Analysis (FMEA)
Process or Product Name: Prepared by: Page ____ of ____
Responsible: FMEA Date (Orig) ______________ (Rev) _____________
Process Step/Part Number Potential Failure Mode Potential Failure Effects
SEV Potential Causes
OCC Current Controls
DET
RPN
Actions Recommended Resp. Actions Taken
SEV
OCC
DET
RPN
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Process/Product
X1X2
X4X3
etc
Six SigmaSix Sigma
Analyze – Potential Root CausesWhat affects our process?
y = f (xy = f (x11, x, x22, x, x33 . . . x. . . xnn))
Ishikawa Diagram (Fishbone)
Analyze – Validated Root CausesWhat are the key root causes?
OthersAmount
Late
41779 4.017.079.0
100.0 96.0 79.0
100
50
0
100
80
60
40
20
0
DefectCount
PercentCum %
Perc
ent
Cou
nt
Pareto Chart for Txfr Defects
Six SigmaSix Sigma
y = f (xy = f (x11, x, x22, x, x33 . . . x. . . xnn))Critical Xs
OtherClerical
Currency
2 31211.817.670.6
100.0 88.2 70.6
15
10
5
0
100
80
60
40
20
0
DefectCount
PercentCum %
Perc
ent
Cou
nt
Pareto Chart for Amt Defects
Process Simulation
Data Stratification
Regression Analysis
Experimental Design
Improve – Potential SolutionsHow can we address the root causes we identified?
• Address the causes, not the symptoms.
y = f (xy = f (x11, x, x22, x, x33 . . . x. . . xnn))Critical Xs
Decision
Evaluate
Clarify
Generate
Divergent | ConvergentDivergent | Convergent
Improve – Solution SelectionHow do we choose the best solution?
Time
Quality
Cost
ScoreOtherCBATimeSigmaSolution
Six SigmaSix Sigma
Solution Solution Implementation Implementation
PlanPlan
Solution Selection Matrix
XNice Idea
Nice Try☺
SolutionRight Wrong
Impl
emen
tatio
nBa
d
G
ood
Control – Sustainable BenefitsHow do we ”hold the gains” of our new
process?• Some variation is normal and OK• How High and Low can an “X” go yet not materially impact the “Y”• Pre-plan approach for control exceptions
0 10 20 30
15
25
35
Observation Number
Indi
vidu
al V
alue
Mean=24.35
UCL=33.48
LCL=15.21
Process Owner: Date:Process Description: CCR:
Measuring and Monitoring
Key Measurements
Specs &/or
Targets
Measures (Tools)
Where & Frequency
Responsibility (Who)
Contingency (Quick Fix) Remarks
P1 - activity duration, min.
P2 - # of incomplete loan applications
Process Control System (Business Process Framework)Direct Process Customer:
Flowchart
Customer Sales Branch ManagerProcessing Loan ServiceManager
1.1
App
licat
ion
& R
evie
w1.
2P
roce
ssin
g1.
3C
redi
t rev
iew
1.4
Rev
iew
1.5
Dis
clos
ure
Apply forloan
Reviewappliation forcompleteness
ApplicationComplete?
Completemeeting
informationNo
Where can you go from here?
• These tools allow you to build what you want:– Better trained work force– Focused attention to objectives/goals
• It is about:– Measuring– Recognizing– Accountability – Achievement
KAIZEN• Japanese term meaning Change for
the better.
• Applied to business organization
• Small continual improvement involving everyone and without spending money.
• From Customer needs of QCD
• Founded on a people oriented culture and supported by leadership
• Three principles• Process and results: Old
approach was on CTQ. Here we are also focusing on CTP.
• Systematic Thinking: Looking at all activties as processes and putting together in right sequence for right first time and right every time
• Non Blaming approach: Focus is work jointly so athtsame mistake or delay does not occur again
What does the future hold?
124
Training and certification programs available
What the Organization should do
• Strong Emphasis on Training
• Key Goal announced to all employees
• 40 hrs per year per employee training mandate
• Executive bonuses tied to Quality improvements demonstrated
• Training• Six Sigma Basic• Process Mapping• SPC• Risk Analysis FEMA• DMAIC• Design for Six Sigma• Design of Experiments• Bench Marking• MPI KPI
SHOULD ORGANIZATION TRAIN ITS EMPLOYEES IN SIX SIGMA
ANY QUESTIONS?
• WILL SHARE THE PPT WITH ALL AND ANYBODY CAN COME BACK TO ME FOR ANY CLARIFICATIONS
WORK ON WHAT WE HAVE DISCUSSED NOW AND ONCE WE STABILIZE
WILL TAKE YOU ALL TO NEXT LEVEL OF SIX SIGMA
THANKS
• ALL THE BEST TO IMPLEMENT AND START LIVING THE
SIX SIGMA WAY
WE HAVE A LEAN NEW FACILITY NOWSO START WORKING ALSO IN LEAN
WAYS