Six sigma awareness
description
Transcript of Six sigma awareness
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Six Sigma Awareness Programme
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Contents
• What is Quality
• Why Six Sigma
• What is Six Sigma
• Variation, and Six Sigma basics
• The DMAIC cycle
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Completely satisfying agreed customer requirements at the lowest internal cost.
What is quality ?
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Customer Focus
Meeting customer requirements
Achieve complete customer satisfaction
Measure level of achievement
Customer is the ultimate judge
Customer Centric Quality
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View quality externally
•Customer Perspective
Meet all customer commitments
Continuous improvement•Systematic•Scientific•Fact based
Attitude & Discipline
Quality Culture
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ISO 9000
Total Quality Management
Robust Designs
CMM
Six Sigma
Popular Quality Initiatives
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What does our customer want from us?
On Time Delivery
Quality
Reliability
Competitive Product
Six sigma - the most effective tool to drive customer benefits
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Why Pursue Six Sigma?• Proven
• Motorola (1987)• Texas Instruments (1988)• Asea Brown Boveri (1993)• Allied Signal (1993)• GE
• Comprehensive• Philosophy• Tools• Business Metrics
• Flexible• Finance / Information Management• Manufacturing / Design• Sales / Service
• Consistent
Six Sigma Is A Journey ……. Not A Destination
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• Sigma is a statistical unit of measure that reflects on the process capability.
• The “sigma value” is a metric which indicates how well a process is performing -- it measures the capability of a process to perform defect-free work.
• The higher the sigma capability, the better.
• Six Sigma means having as less as 3.4 defects when provided with an opportunity to create one million defects.
• Six Sigma is a rigorous, focused and highly effective implementation of proven quality principles and techniques
What is 6 ?
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Six Sigma: Changing Focus from Output to Process
Y = f (X)
Y Effect
Dependent Symptom
Output Monitor
X1…XN Cause
Independent Problem
Input-Process Control
Identifying and fixing root causes will help us obtain the desired output
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YDependentOutputEffectSymptomMonitor
X1 . . . XN
Independent Input-Process Cause Problem Control
f(X)Y= To get results, should we focus our efforts on the Y or X ?
The Focus of Six SigmaThe Focus of Six Sigma
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From
Pockets of controls
Spotty use of QI tools
Ship & Fix Attitude
Ignore cost of poor Qual.
Function focused values mind set & practices
Guess work in decisions
Change the scene
To
Customer recognized quality at all levels
Disciplined and consistent use of proven tools
Do it right first time
Calculate and communicate to all employees.
Process focused values mind set & practices
Measure and analyze objective data to help decision making.
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Eighty-Five percent of the reasons for failure to meet customer expectations are related to
deficiencies in systems and processes … Rather than the Employee.
The role of Management is to change the process rather than badgering individuals to do better.
So says Deming
To
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TargetX XXX X XX XX
XXX
XX
XXXX
XX
XX
XX
X
XXX
XX
XX XXX
XXXX X
X
X
X
Every Human Activity Has Variability...
Six Sigma ConceptSix Sigma Concept
CustomerSpecification
defectsdefects
Understanding Variability & Customer Specification
Is The Essence of Six Sigma
Understanding Variability & Customer Specification
Is The Essence of Six Sigma
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6 Key TermsConcept
Critical to Quality characteristics (CTQs)
Unit
Defect
Defect Opportunities
Definition
Customer Performance req. of a product or service.
The Item Produced Or Processed
Any event that does not meet the specification of CTQ
Any event that can be measured that provides a chance of not meeting a customer requirement.
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DPMO - Defects Per Million Opportunities
Order of MagnitudeSigma
3 Spelling
1.5 misspelled words per page in a book
Money$2.7 million debt per $1 billion assets
Time3 1/2 months per century
DPMO66,807
4 1 misspelled word per 30 pages in a book
$63000 debt per $1 billion assets
2 1/2 days per century 6,210
5 1 misspelled word in the set of encyclopedias
$570 debt per $1 billion assets
30 minutes per century 233
6 1 misspelled word in all the books of a small library
$2 debt per $1 billion assets
6 seconds per century 3.4
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6 MetricBenchMark
Vis
ion
Philo
soph
y
Tool
Method
Goal
Value
Symbol
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Leaders
Team coaches
Team leaders
Team Members
All Associates
Champions
Master Black Belt
Black Belt
Improvement Team
Awareness
Skills are differentiated for each audienceSkills are differentiated for each audience
Skill Levels
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Des
ign
Des
ign
for s
ix si
gma Im
provement
DM
AIC
Management
Process management
Two Ways About it
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DefineDefine
MeasureMeasure
AnalyzeAnalyzeImproveImprove
ControlControl
The DMAIC Cycle
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Define Measure Analyze Improve Control
Define The Customers, Their CTQs, The Team Charter
And The Core Business Process
•Team charter documented reviewed and reviewed with Sponsor
•Customer CTQs derived and documented
•Validate high level process map completed
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Define Measure Analyze Improve Control
Measure the core business process performance
•Identified key measures
•Developed data collection plan
•Executed plan and documented results
•Process variation displayed with various charts
•Calculated baseline sigma performance
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Define Measure Analyze Improve Control
Analyze the data to determine the root causes / opportunities
•Complete detailed process maps for sub-processes
•Identify process streamlining opportunities
•Identify, verify and quantify root causes
•Establish improvement targets
•Quantify opportunity
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Define Measure Analyze Improve Control
Generate, select, design and implement improvements
•solution design developed and documented
•Solution validated and cost benefit proposal presented to management
•Solution tested on a pilot program
•Implementation plan developed and executed.
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Define Measure Analyze Improve Control
Institutionalize the improvement and implement ongoing monitoring
•Developed, documented and implemented ongoing/monitoring plan
•Standardized process
•Procedures documented
•Response plan developed and displayed.
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Team Chartering Customer Focus Process mapping
The business case Types of customers Process definition
Problem goal statements Understanding customerneeds
Benefits of process mapping
Project scope Methods of collectingcustomer inputs
The SIPOC model
Mile stones Voice of the customeranalysis
Levels of process
Roles Translate customer needs tospecific requirements
Process boundaries
Prioritizing needs Mapping guidelines
Define Measure Analyze Improve Control
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DefineDefine
MeasureMeasure
AnalyzeAnalyzeImproveImprove
ControlControl
The Define Phase
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What is A Charter?
A Charter is A DocumentThat Provides Purpose
And Goals For An Improvement Team
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Five Major Elements Of A Charter
1. Business Case• Explanation Of Why To Do This Project
2. Problem And Goal Statements• Description Of The Problem/Opportunity And Objective
in Clear, Concise And Measurable Terms
3. Project Scope• Process Dimensions, Available Resources
4. Milestones• Key Steps and Dates To Achieve Goal
5. Roles• People, Expectations, Responsibilities
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Problem And Goal Statements
The Purpose Of The Problem Statement Is To Describe What Is Wrong
The Goal Statement Then DefinesThe Team’s Improvement Objective
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•What is wrong or not meetingour customer needs?
•When and where doproblems occur?
•How big is the problem?
•What is the impact?
Problem Statement
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•Definition of the improvement the team istrying to accomplish.
•Start with a verb (Reduce, Eliminate,Control, Increase)
•Tends to start broadly - eventually shouldinclude measurable target and completion date.
•Must not assign blame, Presume cause, orprescribe solution.
Goal Statement
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SMART Problem and Goal Statements
Specific
Measurable
Attainable
Relevant
Time Bound
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Poor Example
Our customers are angry with us and late in paying their bill
Better Example
In the last 6 months 20% of our repeat customers are late (over 60 days) in paying our invoices. The current rate of late payments is up from 10% and represents 30% of our outstanding. This negatively affects our cash flow.
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Project Scope
What Process Will the Team Focus On?
What Are The Boundaries Of the Process We Are To Improve? Start Point? Stop Point?
What Resources Are Available To The Team?
What (If Anything) Is Out Of Bounds For The Team?
What (If Any) Constraints Must The Team Work Under?
What Is The Time Commitment Expected Of TeamMembers?
What Will Happen To Our “Regular Jobs” While We are DoingThe Project?
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Roles
How Do You Want The Champion To Work With The Team?
Is The Team’s Role To Implement Or Recommend?
When Must The Team Go To The Champion For Approval?What Authority Does The Team Have To Act Independently?
What And How Do You Want To Inform The Champion About The Team’s Progress?
What Is The Role Of The Team Leader(Black Belt) And The Team Coach (Master Black Belt)?
Are The Right Members On The Team? Functionally? Hierarchically?
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Milestones
A Preliminary, High level Project Plan With Dates Tied To Phases Of DMAIC Process
Should Be Aggressive (Don’t Miss “Window Of Opportunity”)
Should Be Realistic (Don’t Force Yourselves Into “Band-Aid” Solution)
Los Angeles50 Miles
Long Beach30 Miles
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DefineDefine
MeasureMeasure
AnalyzeAnalyzeImproveImprove
ControlControl
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Obtaining Information On Customer Needs
Focus Groups
Interviews
Customer Observation
Market Research
Be A Customer
Customer Complaints
Surveys (e.g., Walker Surveys)
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Voice Of The Customer
Sample Comments/Data
“I’m Tired Of Having To Write A Check For This Loan Every Two Weeks”
“The Survey Shows 47% Of Customers Rate Our Response Time As ‘Fair’ Or ‘Poor’
“Why Don’t You Guys Get Your Act Together?!”
“The Phone Must Have Rung Six Times Before I Got An Answer”
“I’m Not That Satisfied With Your Service”
How Do We Take Action On VOC Input?
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Understanding Customer Needs
Gather input on customer needs (Listen to the voice of the Customer)
Analyze and translate VOC input into meaningful terms
Define requirements for the processes, products or service
Process for understanding needs
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Translating VOC to requirement
Voice of thecustomer
Key Issues Requirement
I am always on hold ortransferred to wrongperson
Want to talk to rightperson quickly
Add additional menu itemsto voice systemCustomer gets the rightperson the first time.
I am getting my bills atdifferent times of themonth
Consistent monthly bills Customer wants timely billCustomer bill received sameday of the month.
Take too long to processthe application
Speed up loan Customer wants quick loanCustomer receives loanapproval on customerrequest date.
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Definition Of A Process
A Process Is A Collection OfActivities That Takes One Or
More Kinds Of Input AndCreates Output That Is OfValue To The Customer
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Process Mapping
Objectives
Learn The Definition Of Process Mapping
Understand Business Processing Mapping And ItsApplication To Completely Satisfying Customer Requirements
Learn The Key Process Elements
Learn The Importance Of Process Boundaries And ProcessOwners
Understand The Benefits Of Process Mapping
Understand The Steps Of Process Mapping
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Business Process Mapping
Requirements Requirements
S I P O C
Suppliers Inputs Process Outputs Customers
Measures Measures
ProcessMap
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Measurement
Objectives
To Understand That The Focus Of The Measure Step Is To Establish The Current Process Defect Level
To Understand The Definition And Rationale For Measures
To Understand The Difference Between Input, Process, And Output Measures And How Different Measures Relate To Each Other
To Understand Effectiveness vs. Efficiency Measures
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Input, Process And Output Measures
Input Measures
Process Measures
Output Measures
The Key QualityAnd Delivery
RequirementsPlaced On
Your Suppliers
Measures That AreIntended To Your
Process. They IncludeQuality and Delivery
Measures Important ToYour Internal
Customers As WellAS Waste And CycleTime Measures. They
Are Correlated ToThe Pertinent
Output Measures
Output MeasuresAre Measures UsedTo Determine How
Well Customer Needs And
RequirementsAre Met
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Quality Measurement
There Are Two Types Of Measures
Effectiveness Measures:The Degree To Which Customer Needs And Requirements Are Met And Exceeded
Some Examples: Percent Defective Billing Accuracy Response Time
Efficiency Measures:The Amount Of Resources Allocated In MeetingAnd Exceeding Customer Requirements
Some Examples: Cost Per Transaction Time Per Activity
Turnaround Time Amount Of Rework
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Principles Of Good Measures
List Of Criteria To Use In Evaluating Measurement
The Measure Must Be Important
The Measure Must Be Easy To Understand
The Measure Is Sensitive To The Right Things And Insensitive To Other Things
The Measure Promotes Appropriate Analysis And Action
Data Needed Must Be “Easy “To Collect
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“Data Defined”
Raw Facts - Qualitative Or Quantitative -Obtained By Observing A Population,
Product, Process Or Service
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5-Step Data Collection Process
Clarify DataCollection
Goals
DevelopOperational
Definitions AndProcedures
Plan For DataConsistencyAnd Stability
Begin DataCollection
ContinueImproving
MeasurementConsistency
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Sampling
Objectives
To Know What Sampling Is And When To Use It
To Recognize When And Where Different Types Of Bias May BeIntroduced Into Common Sampling Situations and Understand The
Importance
To Recognize That There Are Two Different Uses For Sampling,Population And Process, And That The Primary Purpose And Considerations For Sampling Are Different For Each Use
To Have An Awareness Of The Different Types Of Approaches To Random Sampling
To Giant Experience In Asking The Appropriate Questions To Ensure Sampling Is Implemented Effectively And Efficiently
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DefineDefine
MeasureMeasure
AnalyzeAnalyzeImproveImprove
ControlControl
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Variation
Objectives
Understand That Variation In The Data Represents The Voice Of The Process
Know The Two Types Of Variation - Common Cause And Special Cause And The Implication Of The Different Causes
Use Appropriate Tools To Study Variation In Discrete And Continuous Situations
Know How To Use And Interpret Run Charts And Control Charts And Take Appropriate Action Based On The Charts
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5 Ms & 1 P
PROCESS
Machines
Materials
Methods
Measurement
Mother Nature
People
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Types Of Data
Anything That Results From Being Measured On A Continuum Or Scale
Example: Continuous measure (Time To process)
Anything That Can Be CategorizedOr Designated As Either/Or
Examples: Male/Female Accept/Reject Off/On Yes/No Defect/No Defect
Democrat/Republican Day Of Week (M/T/W/Th/F)
VariableOr
Continuous
AttributeOr
Discrete
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Two Types of Variation
Type Definition
Common Cause No UndueInfluence ByOne Of The5 Ms and 1P
ExpectedNormalRandom
Special Cause UndueInfluenceOf The5Ms and 1P
UnexpectedNot NormalNot Random
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-3s -2s -1s X 1s 2s 3s
Normal Curve and Sigma
0.13%
2.14%13.60%
34.13% 34.13%
13.60%2.14%
0.13%
68.26%95.46%99.73%
1 Sigma2 Sigma
3 Sigma
6 Sigma implies+ 6 not + 3
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Improvement Focussed Scale
Percent DPMO
93%
98%
99%
99.87%
99.9997%
66,807
22,750
6,210
1,350
3.4
3.0
3.5
4.0
4.5
6.0
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Calculating Process Sigma
Number Of Units Processed N = 500
Number Of Defects Made D = 57
Number Of Defect Opportunities Per Unit O = 3
Solve For Defects Per Million Opportunities D * 1000000 N * O
57 * 1000000 500 * 3
38,000
Looked up in Sigma Conversion Table 3.3
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Tools of Analysis - Histograms
# OfOccurances
# Of Days
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Tools of Analysis - Pareto Chart
# OfOccurances
# Of Days
•
•
•• •
•
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Tools of Analysis - Run Charts
Voltage
Hour of Day
•
••
• •
•
•
•
•
•
•
••
•
•
•
•
•
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Tools of Analysis - Run Charts
Voltage
Hour of Day
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Root Cause Analysis
What Is It?
• Root Cause Analysis Allows The Team To Focus On The ‘Vital Few’
Objectives Of Root Cause Analysis
• Determine, With Reasonable Confidence, What Is Creating The Problem(s) In a Process
• Allows Development Of Focussed Permanent Solutions
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Cause & Effect Diagrams
EffectY
Measurement Methods Machinery
Mother Nature People Materials
Potential Causes (Xs)
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Value-Added Analysis
What Constitutes Value-Added Work?
1. The Thing Passing Through TheProcess Is Physically Changed
2 The Customer Is Willing To Pay For It.
3. It Is Done Right The First Time
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DefineDefine
MeasureMeasure
AnalyzeAnalyzeImproveImprove
ControlControl
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Road Map: Improve
GenerateSolutions
SelectSolutions
PlanImplementation
Generate Ideas
Assumption Busting
Synthesize Solutions
Narrow List of Solutions
Solution Criteria
Validated Solution
Piloting
Project Planning
Change Management
Potential Problem Analysis
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Improvement Targets
Good Targets Include A Desired PerformanceLevel And Point In Time Frame For Its Achievement
All Targets Are Moving, What Is Good Enough Next Year Probably Will Not Be Good Enough The Following Year
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DMAIC OR DFSS
Define
Improve
Verify
Design
Analyze
Measure
Control
Measure
Analyze
Does AProcessExist?
Is Incr.ImprovementEnough?
Yes No
Yes
No
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Scamper
S = Substitute
C = Combine
A = Adapt
M = Modify
P = Put To Other Use
E = Eliminate
R = Rearrange
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DefineDefine
MeasureMeasure
AnalyzeAnalyzeImproveImprove
ControlControl
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Control
Institutionalize The Improvement And Implement
Ongoing Monitoring
Developed, Documented And Implemented An Ongoing Process Monitoring Plan
Standardize The Process
Procedures Documented
Response Plan Developed And Deployed
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T h e W a y W e W o r kT h e W a y W e W o r k
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Thanks for your time