Introduction and Six Sigma Overview

Welcome to Six Sigma Green Belt Training
00 Introduction and Overview.ppt
SARAL SIX SIGMA & BUSINESS SOLUTIONS !T. LT" GREEN BELT TRAINING
Lets Get to Know Each Other ....

First, let us introduce the Instructors and and our backgrounds ... Next, please introduce yourself:

Name Business unit segment !ob title function "ocation #ears of ser$ice %ith &upont 're$ious (uality and or statistics experience )xpectations from *reen Belt +raining
Green Belt Training Course Objectives

By the end of this training you will be able to:
-nderstand %hy the business is implementing .ix .igma "earn the .ix .igma /ethodology )xecute steps re(uired to complete your first .ix .igma pro0ect
g
.elect the appropriate .ix .igma techni(ues and tools for future pro0ects
Course Schedule
Week 1 Day 1 Day $ Day ' Day Day 2 Week $ Day 3 Day 5 Day 7 Day 8 )naly.e (*riti"al 1s, 4,, ro!e"t #eviews &m+rove (DO6,, ro!e"t #eviews &m+rove ( ilots,, ro!e"t #eviews *ontrol (S *, Do"ument, 9ranslate,, ro!e"t #eviews Six Sigma Overview, Define & ro!e"ts #eviews Define and %easure, %initab &ntro %easure (Data, %S), *a+ability, %easure and )naly.e (/oal 0, 1s, )naly.e (*riti"al 1s,, ro!e"t #eviews
Day 1: ;inal worksho+, Summary, ro!e"t *om+letion<*ertify
Greenbelt Certification e!uire"ent for CC#
#e=uirement
Full attendance in all 10 days of training Successful project completion(2 Nos. &emonstration of s'ills Financial Sa(ings of )*0+!yr
#es+onsibility
Green Belt Green Belt!"eam Green Belt Green Belt
6ndorsement
MBB Instructors #rocess $%ner MBB Instructors #rocess $%ner , MBB mentor
2
Ground ules
g g g g g g g g g
+ake responsibility for your o%n learning )$ery (uestion is a good (uestion 4onor time limits 'articipate by sharing your opinions and experiences "isten and consider the opinions and feedback of others If you ha$e to lea$e, make arrangements 5omputer eti(uette 4elp others 4a$e fun666
Beginning with the End in #ind
8fter this session, you %ill be able to9

g
&escribe %hat .ix .igma is in terms of

g g g
Its philosophy Its goal Its methodology
&escribe in general terms ho% the .ix .igma methodology %orks )xplain the business stake and rational for applying .ix .igma &escribe your role as a *reen Belt
The Big $icture
;48+ is .ix .igma< ;48+ is the basic idea behind .ix .igma< ;4# do .ix .igma< 4=; does .ix .igma %ork< ;hat>s my role as a *reen Belt<
Si- Sigma is .-cellence
Six sigma quality means the virtual elimination of defects from every process, product and transaction in our company. It is a key part of how we will do business well into the next century. ... owever, the real impact of Six Sigma is that it is a business management process and not !ust a quality metric>?
*had @olliday /0airman , /.$ &u#ont /ompany %ebruar& '() *+++
.-cellence
Si, Sig"a is - ...
Aision 9 BBB from Cero &efects 'hilosophy 9 .tatisticallyDbased &ecisionD/aking Business 'rocess 9 4o% %e %ork *oal 9 3 .igma 5apable /etric 9 .igma "e$el of 'rocess /ethodology 9 &/8I5
1@
.alues of Si, Sig"a
/ore 1alues $f Si- Sigma

g g
g g g
5ustomer focus &elight the customer by eliminating defects Aariability is the enemy 8ct on fact and data Eeal financial results that impact the bottom line
"assion # $xecution % &ast and 'asting (esults
11
/efect Levels
Sigma level
Defe"ts +er %illion o++ortunities
2 3 4 5 6
308,537 66,807 6,210 233 3.4
N#$on Green Be$tSIX Trainin% SARAL SIGMA & !T. LT" 3 to 6 20,000 Times Improvement... ABUSINESS True SOLUTIONS Quantum eap 00 Introduction and Overview.ppt GREEN BELT TRAINING
12
Si, Sig"a Bench"ar0ing esults

8 S Ta, -dvice 31hone in7
1,:::,::: 1::,::: 1:,::: 1,::: 1:: 1: 1

2 2 3 * 4 5
/octor $rescri1tion 2riting estaurant Bills -irline Baggage 9andling
Du ont )verage Du ont Safety
BestAinA*lass
Sigma S"ale
/o"estic -irline %atalit& ate 34.56 $$#7

1,
Si, Sig"a :: $ractical #eaning

99% Good (3.8 Sigma)
$:,::: lost arti"les of mail +er hour Bnsafe drinking water for almost 12 minutes ea"h day 2,::: in"orre"t surgi"al o+erations +er week 9wo short or long landings at most ma!or air+orts ea"h day $::,::: wrong drug +res"ri+tions ea"h year Co ele"tri"ity for almost seven hours ea"h month
99.99966% Good (6 Sigma)

Seven arti"les lost +er hour
One unsafe minute every seven months 1>5 in"orre"t o+erations +er week One short or long landing every five years 37 wrong +res"ri+tions +er year One hour without ele"tri"ity every '- years
11
Si- Sigma &eployment in 6S7

1985 - Motorola starts Six Sigma 1992 - Six Sigma founder Mi el !arr" #oins $%% and ta es Six Sigma in a ne& dire'tion. 1998 - (u)ont*s 'ustomers + 'om)etitors are de)lo"ing Six Sigma
$ir 7rodu'ts !one"&ell 5o/nson 2ontrols Ma"tag 7raxair 3ord 5o/nson + 5o/nson
(u)ont (o& 2/emi'al
ABB Motorola TI IBM DE !oda"
1: $lliedSignal
,o ia Son" ,a-istar ./irl)ool %om0ardier 1en2or) Sie0e 3ox0oro 4o' /eed Martin 5o/n (eere
Siemens 2om)a6 Seagate 7$22$8 9os/i0a
188$
1882
$:::
12
The Big $icture
13
$rocess .ariation
=ffD5enter
8 8 888 888 8 8 88 88
5entered =nD+arget 5enter 'rocess
+oo /uch .pread

8 8 8 8
Eeduce .pread
8 8 8 8 8 8 8 8
8 8 888 888 8 8 88 88
)he ob!ective is to identify and reduce process variation and defects to make money*
17
$rocess .ariation : -nother .iew

=ffD5enter +arget +oo /uch .pread +arget
9S9
6S9
5enter 'rocess
5entered =nD+arget
"arget
9S9
6S9
Eeduce .pread
&efects
9S9 6S9
1:
The Si, Sig"a Strateg&
LSL
;SL
5haracteriFe =ptimiFe Breakthrough
LSL
;SL
LSL
;SL
LSL ;SL
*ustomer ;o"used A Both &nternally & 6xternally

1?
The %ocus of Si, Sig"a

81 82 82 83 8*
&n+uts
ro"ess to be &m+roved
*ontrols 13, 15, 17, D
Out+ut 0
*riti"al to the *ustomer
.ix .igma %orks from right to left6
Final solution K optimal arrangement and control of the J>s =ld school solution K Inspect # and thro% out the bad6
Find out %hat>s critical to the customer G5+HI &efine %hat process outputGsI most closely relate to the 5+H &etermine %hat process controls and inputs most affect the output Identify ne% modes of operation in the J>s to dramatically impro$e # and delight the customer
2@
The Big $icture
21
/efects and the 9idden %actor&

9y+i"al +ro"ess that meets a "ustomer need
OF
&n+uts
O+eration
#ework
@idden ;a"tory
&ns+e"t
CO9 OF
;irst 9ime 0ield
:0; /ustomer <uality

8:E 0ield )fter &ns+e"tion or 9est
S"ra+
6a"h defe"t must be dete"ted, re+aired and +la"ed ba"k in the +ro"ess> 9his results in WastedD 9ime %oney #esour"es ;loor S+a"e
;ails to a""ount for the hidden fa"tory>
Six Sigma $liminates the idden &actory through +efect (eduction and ultimately +esign for , Sigma
22
9idden %actor&
9raditional Huality *osts .$asily identified/
(ework (e!ects -arranty
9idden Costs
Inspection Scrap
@idden Huality *osts

.+ifficult to measure/ 'ost Sales 'ong 0ycle )imes $xpediting 0osts "roductivity 'oss $ngineering 0hange 1rders $mployee 2orale, "roductivity, )urnover
'ow 0ustomer Satisfaction 1vertime
Lost Opport unit y
'ate +elivery $xcess Inventory 'engthy Installations 'ost 0ustomer 'oyalty 'ate "roduct Introduction
SiSigma attac's t0e entire =Ice>erg? resulting in@ Six Sigma atta"ks the entire G&"eberg? resulting in: Aig0er BualityC lo%er costC timeliness D Increased customer satisfaction @igher =uality, lower "ost, timeliness A &n"reasing customer satisfaction
2,
2hat is Cost of $oor <ualit&=

+ypes of costs
&irect costs associated %ith finding and fixing defects +he hidden cost of failing to meet customer expectations the first time +he hidden opportunity for increased efficiency +he hidden potential for higher profits +he hidden loss in market share +he hidden increase in production cycle time +he hidden labor associated %ith ordering replacement material +he hidden costs associated %ith disposing of defects +ypically, as big as 22 L of sales 8lmost al%ays exceeds the profit margin
4o% Big is 5='H<
21
The Big $icture
22
Si, Sig"a Begins with Leadershi1

Necessary foundation for success: "eadership that is9 Fundamental "eadership principles in .ix .igma
5hallenge the process Inspire a shared $ision )nable others to act /odel the %ay )ncourage the heart &pa''ionate a(out e)ce$$ence &wi$$in% to c*an%e.
.ix .igma is a catalyst for leaders
23
>our 2or0 Begins 2ith $roject Selection? Criteria for Success

g g g
4istorical and 5urrent &ata 8ccessible. *ood Fit ;ith 3 .igma +echni(ues. .trong .upport .ponsorship in 'lace
5learly linked to real business need 'art of your ongoing %ork
g g g
Not 5apital Intensi$e. 8chie$able in 1 D 2 /onths. Huantified sa$ings or re$enue enhancement

%ith clear o%nership for deli$ery
4igh 'robability of .uccess.

27
8dentif& Custo"er @eeds) and Aflow downB to Cs 2e Can Control

/ustomer Needs
*9H I G*riti"al to Huality? *9H

+ey measura>le c0aracteristics %0ose performance standards must >e met in order to satisfy t0e customer #rocess output t0at directly relates to t0e /"<. Specifications for t0is output determine =defects? #rocess inputsC controlsC and factors t0at potentially impact t0e #roject E. "0ose 8Fs t0at can >e used to ac0ie(e Si- Sigma performance
ro!e"t 0Js
*andidate 1Js
GKital ;ew? 1Js
2:
/#-8C Enables the %lowdown

/ustomer Needs
&efine
*9H
/ontrol
ro!e"t 0Js
Measure 7nal&De &"1rove

*andidate 1Js
GKital ;ew? 1Js
2?
/#-8C #ethodolog&
&efine Measure 7nal&De &"1rove /ontrol
&escribe the problem %e are %orking on and its $alue to the businessM =rganiFe the team &efine the defect, gather baseline information about the product process, and establish impro$ement goals. &etermine %hich process inputs most influence the key process outputs Identify routes to impro$ing performance and confirm that those changes %ill achie$e the pro0ect goals. Implement the solution and establish ongoing mechanisms to Nlock inO the impro$ements and to share them else%here
,@
/#-8C $rocess 8"1rove"ent #ethodolog&
A$t*ou%* t*e "MAI+ proce'' i' o,ten portra#ed in a $inear ,a'*ion- t*e p*a'e' and 'tep' do not actua$$# occur in 'uc* $oc./'tep 'e0uence. More ,re0uent$#- a' tea1' (e%in to 1ea'ure t*e# reco%ni2e t*e need to co$$ect additiona$ dataetc. Tea1' continua$$# dou($e/(ac. in t*e "MAI+ proce'' to en'ure t*orou%*ne'' o, t*e previou' 'tep.
,1
The Cs are the Ke& *riti"al 9o

&n+ut 11 1$ 1' &n+ut 112 *hange & *ontrol
%easures
ro"ess to be &m+roved
*ontrols (13, 15, 17D,
Out+ut (0,
Huality *ost Delivery
Defe"t ;reeL
,2
The Cs are the Ke&E
0 I f(11, 1$, 1', D By understanding %hich J>s affect # and ho% 1k, &etermine %hich J>s are important
)stablish ho% those J>s affect the #>s +hen %e can control and optimiFe those J>s and9 Eeduce the $ariability in # 'redict # %ithout ha$ing to rely on inspection and testing Gnon $alueDadding acti$itiesI &ecrease the number of defects )liminate or reduce the hidden factory If %e don>t kno% much about our J>s, then9 ;e ha$e to rely on inspection and testing Gnon $alue added operationsI
,,
2hat Success Loo0s Li0e

Baseline
ro!e"t 0
S + e "
Defe"ts
&m+rovement
rodu"tion Order
,1
Overall -11roach
&efine
Measure
7nal&De
Statistical #ro>lem
3 4 ,5X6-X7-X8-&-X.9
Business #ro>lem
Business Solution
Statistical Solution
/ontrol
&"1rove
,2
obust $roble" Solving #our primary 0ob is to9

+ranslate a business challenge to a defect elimination or $ariability reduction problem Formulate this defect $ariability issue as a statistical problem .ol$e the statistical problem using tools and techni(ues taught in this course Gor suggested by your /BBI 5on$ert the statistical learning into business benefits and actions. )nsure gains are sustained long after pro0ect completion.
,3
Business $roble"
Business 'roblem
)xample
Impro$e yield Aiscosity out of specification
,7
Statistical $roble" Business 'roblem .tatistical 'roblem
3 4 vi'co'it#4 ,5X6-X7-X8-&-X.9
:ow can we i1prove 3 'uc* t*at ; de,ect' due to out/o,/'peci,ication vi'co'it# i' $e'' t*an 6;
,:
Statistical Solution Business 'roblem

What are the 1MsN
.tatistical 'roblem
3 4 vi'co'it#4 ,5X6-X7-X8-&-X.9
What is f N
.tatistical .olution
-hat is the optimal setting and specification limits for each key x3
,?
Business Solution
Business #ro>lem
Statistical #ro>lem
*hange settings and s+e"ifi"ation limits for key variables and im+lement a "ontrol method
Business Solution
Statistical Solution
1@
E,a"1les of Business $roble"s to Target

"o% yields )nergy or ra% material consumption 'oor e(uipment life -ptime detractors 4igh maintenance costs )xcessi$e cycle times 4igh consumables usage costs Ee%ork )xcessi$e testing and inspection 5apacity limitations 7ro'ess defe'ts or -ariation :x'ess '"'le time in su))l" '/ain o)erations (eli-er" )ro0lems 2ustomer 'om)laints :x'essi-e 2ontra'tor 'ost !ig/ 3:4 'ost of 'a)ital (efe'ts in su))lied materials and ser-i'es ;nformation a''ura'", s)eed
11
E,a"1les of $erfor"ance 8"1rove"ent $rojects

5ycle +ime Eeduction 'ro0ects
Eeduce the time re(uired to complete manufacturing processes or transactional acti$ities. )xample: Eeturn empty railcars to supplier faster to reduce railcar storage GdemurrageI charges. Eeduce or eliminate defects in (uality. )xample: )liminate defects in pigment color. Eeduce or optimiFe the consumption of costly ra% material, contract ser$ice or energy. )xample: Eeduce amount of "ime re(uired for neutraliFation.
&efect Eeduction 'ro0ects
5onsumption Eeduction 'ro0ects
12
The Big $icture
1,
Green Belt oles F ./at is a 1reen %elt <
es1onsibilities
%eing a 1reen %elt is not a role, 0ut a 'om)eten'" $ 1reen %elt &ill 0e ex)e'ted to a'6uire a 'ertain set of s ills and 'om)eten'ies and t/en de)lo" t/em
11
Green Belt Selection Criteria

'rocess 'roduct kno%ledge Pno%s the organiFation .elfDstarter, moti$ated =pen minded )ager to learn ne% ideas &esire to dri$e change through .ix .igma +eam player ;illingness to change 'eople considered for future promotions
12
Green Belt oles F
es1onsibilities
5ritical 5ore .kills for *reen Belts

g
8%areness and understanding of .ix .igma Aalues -nderstanding of and ability to apply basic 3s tools and processes 8doption of fact based, data dri$en decision making
13
Green Belt oles F

Ao% to deploy t0ese s'ills G
es1onsibilities
+here are many %ays, but here are , possibilities

g
8s part of their normal 0ob, apply the 3s tools to impro$e (uality, output, reduce $ariability, costs, etc.
'lay a significant acti$e role in BB pro0ects, applying the tools learned and le$eraging the impact 8s a leader, change o%n beha$iours to incorporate 3s $alues, and set expectations for others to do the same
17
oles of the 0hampion

"eve$op !i'ion for =rganiFation Strate%ica$$# App$# .ix .igma
5reate and maintain passion Identification and prioritiFation of .trategic pro0ects G5ategoriesI 5ommunicate and /arket the process and results program Eecruit, inspire and NfreeDupO Black Belts .hare best practices Eemo$e barriers 'ro$ide the drum beat for results
Ee$ie% pro0ects Peep score through metrics
Ena($e Re'ource' +*a1pion' a$'o&.
1:
oles of the 2aster 4lack 4elt

E)pert in the tools and concepts +erti,# the *B>s Q Black Belts in future >aci$itate '*arin% o, (e't &e$elop and de$iver trainin% to practice' across the $arious le$els of the corporation organiFation !ust in time training technical resource 4elp identi,# pro<ect' +ake on $eader'*ip of ma0or +oac* and 'upport BB=GB pro0ects 'articipate in pro<ect review' "eve$op new too$' or modify to offer technical expertise old tools for application and teaching a''ion around Si) Si%1a
1?
oles for the 4lack 4elt

"e$iver pro0ectsM GB1// yr targetI E)pert in the tools of 3Dsigma &etermine most effecti$e tools to apply Identify pro0ect resources Gpro0ect managementI "ocu1ent learning See. input from kno%ledgeable Identify barriers operators First "ine .uper$isors +eam Lead tea1' to execute "eaders 5oaches pro0ects Report progress to appropriate Mana%e pro0ect risk "e$iver 'u'taina($e contro$ leadership le$els p$an' In,$uence %ithout direct authority
2@
The Si, Sig"a #ethodolog&? Su""ar&

&isciplined, &ataDbased approach Focuses on the customer and critical metrics ;orks upstream to control process J>s instead of relying on inspection and testing 8ttacks $ariation, defects and the Nhidden factoryO &irectly affects (uality, cost, cycle time and financial results )nsures a predictable operation
21
Table -ctivit& : /#-8C eview

$>jecti(e "o re(ie% t0e deli(era>les and steps in t0e &M7I/ met0odology "0ree mista'es t0at firstHtime Si- Sigma project teams mig0t ma'e are listed >elo%. In eac0 case@ H I0y do you t0in' t0ese are mista'esG H I0at are t0e implications for eac0 one on t0e project resultsG 7. In its rus0 to start t0e projectC t0e team does not e-ecute t0e &.FIN. p0ase t0oroug0ly. B. .arly in t0e projectC t0e team comes up %it0 an idea to impro(e t0e process. "0e team s'ips from M.7S6J. to IM#J$1. %it0out conducting any analysis (7N79EK. . /. "0e team rus0es to finis0 t0e project and does not e-ecute an effecti(e /$N"J$9 p0ase.
Instructions
10 minutes
&ocument t0e 'ey points on a flipc0art.

22
Ti"e for a 2ra1:u1 5an you9

g
&escribe %hat .ix .igma is in terms of

g g g
Its philosophy< Its goal GsixDsigma performanceI< Its methodology G&/8I5I<
&escribe ho% &/8I5 %orks to translate customer needs into highDperforming processes< )xplain the business stake in reducing the 5ost of 'oor Huality through .ix .igma &escribe your role as a *reen Belt<
2,

Introduction and Six Sigma Overview

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Welcome to Six Sigma Green Belt Training

00 Introduction and Overview.ppt

Lets Get to Know Each Other ....

00 Introduction and Overview.ppt

Green Belt Training Course Objectives

00 Introduction and Overview.ppt

Day 1: ;inal worksho+, Summary, ro!e"t *om+letion<*ertify

00 Introduction and Overview.ppt

Greenbelt Certification e!uire"ent for CC#

00 Introduction and Overview.ppt

00 Introduction and Overview.ppt

Beginning with the End in #ind

8fter this session, you %ill be able to9

&escribe %hat .ix .igma is in terms of

Its philosophy Its goal Its methodology

00 Introduction and Overview.ppt

The Big $icture

00 Introduction and Overview.ppt

Si- Sigma is .-cellence

*had @olliday /0airman , /.$ &u#ont /ompany %ebruar& '() *+++

Si, Sig"a is - ...

.alues of Si, Sig"a

/ore 1alues $f Si- Sigma

00 Introduction and Overview.ppt

308,537 66,807 6,210 233 3.4

Si, Sig"a Bench"ar0ing esults

1,:::,::: 1::,::: 1:,::: 1,::: 1:: 1: 1

/octor $rescri1tion 2riting estaurant Bills -irline Baggage 9andling

Du ont )verage Du ont Safety

/o"estic -irline %atalit& ate 34.56 $$#7

Si, Sig"a :: $ractical #eaning

99.99966% Good (6 Sigma)

Si- Sigma &eployment in 6S7

(u)ont (o& 2/emi'al

ABB Motorola TI IBM DE !oda"

Siemens 2om)a6 Seagate 7$22$8 9os/i0a

The Big $icture

00 Introduction and Overview.ppt

+oo /uch .pread

$rocess .ariation : -nother .iew

00 Introduction and Overview.ppt

The Si, Sig"a Strateg&

5haracteriFe =ptimiFe Breakthrough

*ustomer ;o"used A Both &nternally & 6xternally

The %ocus of Si, Sig"a

*riti"al to the *ustomer

.ix .igma %orks from right to left6

The Big $icture

00 Introduction and Overview.ppt

/efects and the 9idden %actor&

;irst 9ime 0ield

:0; /ustomer <uality

;ails to a""ount for the hidden fa"tory>

00 Introduction and Overview.ppt

@idden Huality *osts

'ow 0ustomer Satisfaction 1vertime

Lost Opport unit y

2hat is Cost of $oor <ualit&=

4o% Big is 5='H<

The Big $icture

00 Introduction and Overview.ppt

Si, Sig"a Begins with Leadershi1

.ix .igma is a catalyst for leaders

00 Introduction and Overview.ppt

Day 1: ;inal worksho+, Summary, ro!e"t om+letion<ertify

had @olliday /0airman , /.$ &u#ont /ompany %ebruar& '() +++

riti"al to the ustomer

9H I Griti"al to Huality? *9H