Aaron Khieu Who is Using Six Sigma in the Twin Cities Seagate, Medtronic, Donalson, Honeywell,...
-
Upload
jordan-stephens -
Category
Documents
-
view
222 -
download
4
Transcript of Aaron Khieu Who is Using Six Sigma in the Twin Cities Seagate, Medtronic, Donalson, Honeywell,...
Aaron Khieu
Who is Using Six Sigma in the Twin CitiesWho is Using Six Sigma in the Twin Cities Seagate, Medtronic, Donalson, Honeywell, American Express,
Ceridian, 3M
Aaron Khieu
What is Six Sigma?What is Six Sigma?
Six Sigma - The Initiative
ProcessSystematic approach to reducing defects which affect what
is important to the customer
ToolsQualitative, statistical and instructional Devices for
“observing” process variables and their relationships as well as “managing” their character
Aaron Khieu
Sigma is a statistical unit of measure that 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.
2 308,5373 66,8074 6,2105 2336 3.4
PPMPPM
ProcessCapability
ProcessCapability
Defects per Million Opp.
Six Sigma - Aggressive GoalSix Sigma - Aggressive Goal
Aaron Khieu
99.99966% Good (6 Sigma)
20,000 lost articles of mail per hour
Unsafe drinking water for almost 15 minutes each day
5,000 incorrect surgical operations per week
Two short or long landings at most major airports each day
200,000 wrong drug prescriptions each year
No electricity for almost seven hours each month
Seven articles lost per hour
One unsafe minute every seven months
1.7 incorrect operations per week
One short or long landing every five years
68 wrong prescriptions per year
One hour without electricity every 34 years
99% Good (3.8 Sigma)
Six Sigma -- Practical MeaningSix Sigma -- Practical Meaning
Aaron Khieu
How Does Six Sigma Make the Difference?How Does Six Sigma Make the Difference?
Vision Philosophy
Aggressive goal Breakthrough improvement
Focus Customer focus Problem focus Process focus
Metric (standard of measurement) Method
Aaron Khieu
The Goals of Six SigmaThe Goals of Six Sigma
Defect Reduction
Yield Improvement
Improved Customer Satisfaction
Higher Net Income
Aaron Khieu
What’s the StrategyWhat’s the Strategy
Know what’s important to the Customer
Reduce defects
Center around target
Reduce Variation
Aaron Khieu
Six Sigma VisionSix Sigma Vision
The Vision of Six SigmaThe Vision of Six Sigma is to delight customers by delivering world-class quality products through the achievement of Six Sigma levels of performance in everything we do.
Aaron Khieu
Six Sigma PhilosophySix Sigma Philosophy
The Philosophy of Six SigmaThe Philosophy of Six Sigma is to apply a structured, systematic approach to achieve breakthrough improvement across all areas of our business.
Aaron Khieu
Where Does Industry Stand?Where Does Industry Stand?
7
Sigma Scale of Measure
1,000,000
100,000
10,000
1,000
100
10
1
PPM
••
Restaurant Bills
Doctor Prescription Writing
Payroll Processing
Order Write-up
Journal Vouchers
Wire Transfers
Airline Baggage Handling
Purchased Material
Lot Reject Rate
Domestic Airline Flight
Fatality Rate (0.43 PPM)
Best-in-Class
Average
Company
3 4 5 621
IRS - Tax Advice
(phone-in)
(140,000 PPM)
Aaron Khieu
3 Sigma
6 Sigma
5 Sigma
4 Sigma
93.32 %
99.379 %
99.9767 %
99.99966 %
Historical
Current
Intermediate
Long-Run
Sigma Long-Term Yield Standard
Six Sigma - Performance TargetSix Sigma - Performance Target
Aaron Khieu
To deal with a world of declining product prices
To compete successfully with the best companies in the world To establish standard language and approaches across functions and across businesses To develop our next generation of leaders
To accelerate our rate of quality and productivity improvement faster than our competitors
Six Sigma - Why?Six Sigma - Why?
Aaron Khieu
You Could Select One of Your Most Highly Leveraged Problems . . . ?
Identify One of Your Best People to Work on It . . . ?
Provide That Person With All of the Training, Tools, and Resources They Need to Fix It . . . ?
Guarantee Them Uninterrupted Time and Focus to Work on It . . . ?
And Get a Well Thought Out, Data Driven Solution . . . ?
Six Sigma Basics ...What If...?Six Sigma Basics ...What If...?
That Is
Six Sigma !That Is
Six Sigma !
The People Who Make it HappenThe People Who Make it Happen
BusinessBusinessChampionsChampions
Hands onHands onChampionsChampions
MasterMasterBlack BeltsBlack Belts Black BeltsBlack Belts
Finance RepsFinance RepsSix Sigma Directors &Six Sigma Directors &Six Sigma ExecutiveSix Sigma Executive
DFSSDFSSEmployeesEmployees
Green Belts &Green Belts &All EmployeesAll Employees
Aaron Khieu
Six Sigma - Approaches to ImprovementSix Sigma - Approaches to Improvement
1 2 3 4 5
The problem with continuous improvement as the only goal….
Organization sees improvement BUT loses the game.Six Sigma Enables Breakthrough Level Improvement!
Six Sigma
Continuous Improvement
Time in Years
-Current Tools-Kaizen-Lean Manufacturing-Reengineering-Typical TQM
Breakthrough Strategy
-Trained & Dedicated Individuals-Analytical Expertise->70% Improvement per Project
Aaron Khieu
f (X)f (X)Y=Y=
Focus on X rather than Y, as done historicallyFocus on X rather than Y, as done historically
The Focus of Six SigmaThe Focus of Six SigmaKPIV(s)
KPOV(s)
*
Defect
(Gap)
Critical To The Customer
Metrics
KPOV = Key Process Output Variable
KPIV = Key Process Input Variable
Aaron Khieu
Six Sigma as a Problem Solving SystemSix Sigma as a Problem Solving SystemSix Sigma employs the Breakthrough Strategy, which is a multi-step
problem solving and process improvement methodology.
1. Measure1. Measure
2. Analyze2. Analyze
3. Improve3. Improve
4. Control4. Control
0. Define0. Define
5. Realize5. Realize
Aaron Khieu
Six Sigma Road Map - Define & Measure Six Sigma Road Map - Define & Measure
Problem Statement
Cause and EffectFMEA Fishbone; other methods
MSA
Process Map
• CTQs• COPQ est.
Identify:• process inputs• process outputs
Link KPIV & KPOV• prioritize inputs to attack
Is Measurement good enough to detect process variation?(see improvement!)
Define theSituation
Generates/Determines
Create withTeam
with team . . .Root CausesStrong Links
Check Gauges &Data CollectionDevices & Procedures
De
fin
e/M
ea
su
re
Rolled Throughput YieldDetermine:opportunities forimprovement
Defect Rateper Step
Aaron Khieu
Process CapabilityStudy
Confidence Intervals
Indicators:Performance & EntitlementDPMO; Sigma ScoreCp Pp Cpk Ppk
Generates/Determines
Gather HistoricalData or Sample(Size & Subgroup)
DetermineCost of Quality
Review Internal &External Costs
Potential Benefits
Analytical ToolsMinitab Trends & Behaviors in KPIV/KPOV relationships
Mea
sure
An
alyz
e
Applies throughout
Six Sigma Road Map - Measure & Analyze Six Sigma Road Map - Measure & Analyze
Aaron Khieu
Hypothesis for Variables - Means
(t-tests)
Generates/Determines
Variables Data
Hypotheses forAttributes
(Contingency Tables, Non-parametric study)
Proportion DefectsProportion Defectives
Answers:Differences in % Def.Between pop.;Diff. in % Def. fromoverall mean
Variables Data
Answers:Difference in Means?One Pop. to Another;Before/After; to Spec
Answers:Difference in Spread?One Pop. to another;to baseline; multiplePops.
Collecting data on several variables at the same time
Hypotheses forVariables - Std. Dev.
(Chi Sq., F-Test, Homogeneity of Variance)
Multi-Vari StudiesPoints to variableswarranting furtheranalyses
An
alyz
e
Six Sigma Road Map - Analyze Six Sigma Road Map - Analyze
Aaron Khieu
ANOVA
Generates/Determines
Answers:Difference in Means?One Variable (Factor)Multiple Types
Variables Data
Correlation & Regression
This completes the Characterize phaseconfirming which Input Variables most directly affect
the Output Variables:Move on to Optimize - Settings or Procedures
For pairs ofcontinuousData Variables
Answers:If know X; Predict YStrength & Direction
An
alyz
e
Six Sigma Road Map - Analyze Six Sigma Road Map - Analyze
Aaron Khieu
Design ofExperiment
Fractional Factorial
Answers:How to Set “X” to getBest “Y”
Generates/DeterminesKnown Relationshipsbetween KPIVs & KPOVs
Full FactorialSimple 2K
Testing Variablesat 2 Levels(High/Low)
Answers:What’s the BestCombination of the “Xs’for producing the Best “Y”
Tests Multiple Variables, at Various Levels (High/Low)
Answers:What’s the Best Combination of ALL Variables (X) to give the Best Output (Y)
Full FactorialMultiple Variables
Answers:Same as Above - But . ..Less Information; More Risk - but, requires less experimentation
Tests Multiple Variables But Not All; Not All LevelsConserves Resources
Imp
rove
Six Sigma Road Map - Improve Six Sigma Road Map - Improve
Aaron Khieu
DOE- BlockingClarifies Results whenInteracting Variables“Confound” the Results
Generates/Determines
Isolates Parts of Data from other Parts
Imp
rove
Now . . . We have established the parameters and procedures for
operating the improved process . . . Keep it in Control !
EHS ReviewReviews Affects onthe Environment,Health & Safety
Improves Current EHSSituation and/or IdentifiesIssues to be Managed Up-Front
Six Sigma Road Map - Improve Six Sigma Road Map - Improve
Aaron Khieu
“Process” Control Plans
Instructions & Training
Indicates if Process is Operating as Expected (In-Control); If Not, What Corrections to Make
Generates/Determines
CTQs, Specs, Measurements,Actions
SPC
Outlines: Parameters of Operations, Responsibilities, Actions, Measurements, etc.
Gauges, Forms &Data CollectionMethods
Outlines:Checking, Maintenance,Care & Periodic Review of Data Collection Devices & Methods
Gauge/MeasurementStability & Control
Outlines:How Employees “Do” Procedures - Standard & Consistent, Opportunity for Understanding & Verification of Understanding
Real-time ProcessResults; Trends;Control Limits
Employees,Documented Proc. Learning Events
Co
ntr
ol
Six Sigma Road Map - Control Six Sigma Road Map - Control
Outlines:Indicators to Monitor; Actions toPrevent Failures, ResourcesNeeded On-Hand
PreventiveMaintenance
Plan
Spare Parts; SystemBack-Ups; ScheduledDowntime, etc.
Aaron Khieu
Change Control
Generates/DeterminesInputs AffectingProject; OthersAffected by Project
Outlines:Procedures for Making Changes; Predictions of Change Affects
Cost to Controlvs CTQ Attainment& Benefits Achieved
Checks:Project Controls Appropriate for Achieving CTQs and Benefits
Cost Review
Sustained Process Will Meet Customers
Expectations
All Agree and Commit to theControl Strategy as the Meansof sustaining the Defect Reductions
Co
ntr
ol
Re-Design
Functional Team Sign-Off&
Celebrate!
Yes
No
DF
SS
Six Sigma Road Map - Control & DFSS Six Sigma Road Map - Control & DFSS
DFSS = Design for Six Sigma
Aaron Khieu
Six Sigma - How Does It Work?Six Sigma - How Does It Work?
•Champions•Master BB’s•Black Belts•Brown Belts
•Strong Analytical Skills•Strong Problem Solving Skills•People & Leadership Skills
•Critical to Success•Chronic or Systemic•Fastest or Largest Return
•Lead Focused Effort•Apply Skills and Tools •Determine Causes and Solutions•Reduce Variability
Select the Right People
Provide Intense Training
Select KeyProblem Areas
Assign Projects toBlack Belts
ObtainResults
•Preventative & Proactive Vs Appraisal & Reaction•Fewer Trials•Faster•Accurate Solutions
Aaron Khieu
Six Sigma BasicsSix Sigma Basics Six Sigma Provides a Disciplined Method for Reducing Defects. Customers Define Their Critical to Satisfaction Measures (CTS’s). Champions Define Key Outputs of a Process Whose Defects Most
Significantly Impact the CTS’s & Assign Projects to Black/Green Belts. Black/Green Belts Identify the Process Inputs That Most Significantly
Influence the Outputs. They Then Eliminate the Root Causes of Variation in the Inputs and
Put in Controls to Prevent Reoccurrence of the Problem. Design For Six Sigma Engineers Identify and Exploit Areas of
Decreased Sensitivity to the Input Variables in Order to “Design In”
Quality.
Aaron Khieu
Six Sigma ReferenceSix Sigma Reference www.isixsigma.com The Six Sigma Way: How GE, Motorola, and Other Top
Companies are Honing Their Performance by Peter S. Pande et al, Robert P. Neuman, Roland R. Cavanagh.
The Six Sigma Handbook: A Complete Guide for Greenbelts, Blackbelts, & Managers at All Levels by Thomas Pyzdek