6sigma introdution
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Transcript of 6sigma introdution
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An Overview
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What is Six Sigma
Benefits of Six SigmaBasic Concept in Six Sigma
Key Elements for Breakthrough
Overview
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What Is Six Sigma?
A stretch quality goal (3.4 ppm)?
A problem solving method? A set of statistical tools?
A quality philosophy?
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What Is Six Sigma?
A Management System
That Focuses On DrivingImprovements To Gain
Competitive Edge
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History of Quality Innovations
TQC (Total Quality Control)
TQM (Total Quality Management)
SQC (Statistical Quality Control)
Six Sigma
1940
1960
1980
ISO9000, BPR2000
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Benefits of Six Sigma
Motorola
Turn around from weak market position in early 80s
Achieve a five-fold increase in sales
AlliedSignal
Turn around from weak financial position in late 80s
Market value climbed from US$4B (91) to US$29B (98)
General Electric
Achieve 40% increase in operating margin since mid 90s
Develop a better leadership for todays more competitive world
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Basic Concept
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Basic Concept
All work occurs in a system of interconnected processes
Variation exists in all processes
Understanding and reducing variation are the keys toimproving customer satisfaction and reducing costs
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Sigma Level of Process
The Number Of Sigmas That Can Be Fitted Into TheSpace Between The Process Center And The Nearest
Specification Limit
Definition:
Upper
Spec LimitLowerSpec Limit
Defectives
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Sigma Rating Defect per Million Percent Good
2 308,538 69.2%
3 66,807 93.3%
4 6,210 99.4%
5 233 99.98%
6 3.4 99.9997%
Sigma Level of Process
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Variation and Cost
Station 1 Station 3Station 2
Rework
Re-check
Rework
Re-check
Rework
Re-check
Re-Scheduling
Lost of Customer Loyalty
Ad-hoc
MeetingAdditional Inventory
Extra-Handling
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Process Variation and COPQ
Correlation Between A Companys COPQ And
Variability Of Its Key Processes
COPQ(%of
Sales)
5(233dpm)
Sigma Rating (Variability)
40
30
20
10
6(3.4dpm)
4(6210dpm)
3(66807dpm)
2(308538dpm)
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Profit Formula
Profit = Price - Cost
In a seller market, profit can bemaintained by increasing price
In a buyer market, the way to maintainprofit is to reduce cost
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Responding to Price Pressure
A: Cut Base Cost
B: Reduce Profit
C: Reduce COPQ
Price
Competition Drive
a Lowered Price
Base
Cost
COPQ
Profit
A
B
C
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Reducing COPQ
Low Hanging Fruit
Bulks Of Fruit
High Hanging Fruit
QCC & 7 Basic Tools
Six Sigma
Approach
Ground FruitCommon Sense &
Intuition
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Stages of Process Improvement
Performance Measure Not
Defined, Process Flow NotDefined
Performance Measure Defined,
Process Flow Not Defined
Upper
Limit
Upper
Limit
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Performance Measure Defined,
Current Process Flow Defined
Current Process Flow Is Defined,
Key Input Factors Defined.
Upper
Limit
Upper
Limit
Stages of Process Improvement
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Further Improvement By
Streamlining
Target
(Max)
Stages of Process Improvement
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Key Elements
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Key Elements for Breakthrough
Mindset
Methodology
Techniques and Tools
Infrastructure
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Mindset
Process Management Essential for ensuring customer satisfaction and cost
reduction
Measure
We Dont Know Much About What We Dont Measure
What Gets Measured Gets Done Quantitative Data Analysis
Versus guesswork.
Stretch Goals (aiming for excellence)
Dont Worry About Failure; Worry About Low Aim
Promote out-of-the-box thinking and innovation
Critical Thinking
Asking critical questions
Identify root causes / surface underlying issues
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Process Focus Versus Functional Focus
Production DistributionCustomer
s
MarketResearch
Design &Development
Suppliers
MarketResearch
Design &Develop Production Distribution
HEAD
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Methodology
Phase
CONTROL
DEFINE
MEASURE
ANALYSE
IMPROVE
Main Activities
Select CTQs
Set Up Projects
Verify Measurement System
Grasp Current Capability
Identify Variables
Optimize Variables
Check Effectiveness
Verify Goals Attained
Establish Control System
Disseminate Across
Organization
Black Belt
&
Green Belt
Champion
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DMAIC
Phase Step Task
DEFINE
1 Define Key Areas of Focus
2 Identify Projects
MEASURE
3 Define Process Performance Measure
(Y)
4 Verify Measurement System
5 Establish Current Performance Status
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Phase Step Task
ANALYSE
6 Brainstorm All Possible Factors
7 Shortlist Key Factors
8 Verify Key Factors
IMPROVE
9 Determine and Implement
Improvement Solution
10 Confirm Improvement Solutions
CONTROL
11 Institutionalize Improvements
12 Close the Project
DMAIC
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Project Management
Champion
Black Belts
Green Belts
Executive Team
Role &
Responsibility
Business
Plan
Objective A
Objective B
Sub-CTQ 2
Sub-CTQ 1CTQ 1
Project 1
Project 2
Project 3
Project 4
CTQ 2
Sub-CTQ 4
Sub-CTQ 3
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Technique and Tools
Why use team?
Addressing the diplomatic corps, US Secretary of
State Colin Powell said that his military
background told him that people in the field had
the best understanding of any given situation
A] Team Problem Solving Team Dynamics
Ideas Generation Technique
Ideas Selection Technique
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Technique and Tools
B] Quantitative Data Analysis
7 Basic QC Tools
Failure Mode and Effect Analysis
Process Capability Analysis Process Stability Analysis
Measurement System Analysis
Hypothesis Testing
Regression Analysis Design of Experiment
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Production DistributionCustomers
Market
Research
Design &
Development
Suppliers
MarketResearch
Design &Develop
Production Distribution
+
Now, to succeed in business we need both functional
capabilities and process management approach
How to succeed in Business?
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Implementation
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Roles & Responsibilities
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Leadership Team
- Understand what Six Sigma is and evaluatehow it serves business objectives
- Give directive for Six Sigma implementation
- Provide resources
- Lead the change, be seen as an advocate andsupporter
- Follow up:> effectiveness of approach> the extend of deployment> the results achieved
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Change Principle for Leadership
VISION
PASSION
ACTION
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Change Principle for New Work Habit
Know Why Do It- appreciate the purpose
- understand what is in it for me
Know What To Do- role and responsibility
- expectation
Know How To Do It- methodology / steps
- tools
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GE Leadership Model
E4
Energy
Energizer
Edge
Execution
Enormous personal energy- Strong bias for action
Ability to motivate and energizeothers Infectious enthusiasm to
maximize organization potential
Competitive spirit..Instinctive drive
for speed/impact..Strong convictionsand courageous advocacy
Deliver results
Six Sigma Committee
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Six Sigma Committee
(or Six Sigma promotion office)
Secretariat to the leadership team
Key responsibilities :
- promotion- planning
- coordinating
- controlling
- monitoring
- evaluating
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Black Belt & Green Belt
Black BeltExpert in Six Sigma methodology and tools
Coach and mentor green belts
Trainer on certain Six Sigma tools
Handle more challenging projects
Green Belt Practitioner of Six Sigma method and tools
Six Sigma project leader
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Master Black Belt
Knowledge of Six Sigma concepts, methodand tools
Understand how Six Sigma support business
Experience in implementing Six Sigma
Six Sigma trainer
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Implementation Plan
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1. Executive Briefing
5. Train Champion
7. Selects Projects
2. Decide Six Sigma Strategy
6. Identify CTQs
8. Train BB & GB
3. Form Six Sigma Committee
4. Decide Implementation Plan
Overall Plan
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Training Programme
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Two Basic Objectives
Build appreciation for the need and createsupports for Six Sigma.
Impart the necessary knowledge and skillsfor the respective roles.
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Champion Training
Concepts in Quality
Concepts of Six Sigma
Six Sigma Methodology and Tools
Role of Champion
Six Sigma Implementation
Projects Selection and Management
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Black Belt Training
Concepts in Quality
Concepts of Six Sigma
Define-Measure-Analyze-Improve-Control
Statistics Foundation
Measurement System Analysis
Process Data Analysis
Process Mapping and Analysis Effective Team and Tools
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Green Belt Training
Concepts in QualityConcepts of Six Sigma
Define-Measure-Analyze-Improve-Control
Statistics Foundation
Measurement System AnalysisProcess Data Analysis
Process Mapping and Analysis
Effective Team and Tools
Note: There is less breadth and depth in the Green Belt
training as compared with the Black Belt training
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Awareness Briefing
Concepts in Quality
Concepts of Six Sigma
Six Sigma Methodology and Tools
Six Sigma Implementation
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Infrastructure
Communication Package
Applications Software
Meeting Facility
Project Tracking Procedure
Incentive system
Project Saving Guideline
Black Belt and Green BeltCertification Procedure
S
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Summary
Six Sigma is about gaining competitive advantage(quality, speed, cost) through improving theprocesses.
Six Sigma provides a detailed roadmap on how toachieve sustainable improvements.
Through Six Sigma, management
- makes known the intention to achieve excellence- creates the appropriate climate and mindset
- provides the enabling skills and knowledge
- establishes the system and the processes
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Six Sigma in NCI
Bajatex
Tiga Raksa
Great Giant Pineapple
Jago Furniture
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i i i i
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Our Six Sigma Training
Introduction to Six sigma
Green Belt Training
Black Belt Training
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Thank You