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Introduction to
Six Sigma
Presented by: Doing it for 1st time delighting and Pleasing customer 52.Veeresh, 16. Kailash & 36. Priyank
( xi x ) 2 n 1
A highly disciplined process that helps us focus on developing and delivering near-perfect products and services.
Business Definition Business improvement approach focusing on improvement and attainment of quality level of producing not more than 3.4 ppm defects. Technical Definition A statistical term signifying 3.4 defects per million opportunities.
Sigma
Percent Defective
CAPABILITY
6
5
0.00034%
0.023%
3.4
233
World class
World class
0.62%
6210
Industry Average
Industry Average Non Competitive Non Competitive
3 2
6.7% 31%
66810 308538
69%
691462
1930
1940
1950
1960
1975
1985 1990
1995 2000
PROCESS
Y
? LSL USL
N1 C N2 FEEDBACK
DATA
In 1986, Bill Smith, a senior engineer and scientist at Motorola, introduced the concept of Six Sigma to standardize the way defects are counted. Six Sigma provided Motorola the key to addressing quality concerns throughout the organization, from manufacturing to support functions. The application of Six Sigma also contributed to Motorola winning the Malcolm Baldrige National Quality award in 1988. Since then, the impact of the Six Sigma process on improving business performance has been dramatic and well documented by other leading global organizations, such as General Electric, Allied Signal, and Citibank. Today, Motorola continues to implement Six Sigma throughout its own enterprise, and extends the benefit of its Six Sigma expertise to other organizations worldwide through Motorola University.
TQM Based on worker empowerment and teams. Department or workplace focus. Simple improvement tools. Little financial accountability.
SIX SIGMA Owned by business Leaders and Champions. Rigorous and advanced statistical tools. Requires verifiable return on investment.
Improved quality. Save time, material, wasteful effort. Cuts costs. Higher customer satisfaction. EMPLOYED IN o Design. o Production. o Service. o Inventory management. o Delivery-Supply chain management.
6 v/s 3
DMAIC
PPM %
% PPM USL
3
LSL
High Cpk
LOW Cpk
USL
Capable process
MASTER BLACK BELTS Trains Black belt. BLACK BELTS Lead 6 Projects full time. GREEN BELTS Assist black belts, they
understand lot of statistics, utilize statistical I/Q, quality technique.
BELTS
TASK
MENTORING
GREEN BELT
Utilize statistical IQ Quality techniques Lead use of technique communicate new ones Consulting/ Mentoring/ Training
BLACK BELT
5%-10%
4/Year
80%-100%
10/Year
Six Sigma has TWO key methodologies: DMAIC is used to improve an existing business process or product. DMADV is used to create new product designs or process designs in such a way that it results in a more predictable, mature and defect free performance.
1. Define issues, goals, deliverable to customers. 2. Measure current process, performance, Cpk, DPMO. 3. Analyze root cause analysis by C&D, FMEA etc 4. Improve Remove defects-- DOE 5. Control Control Performance factors, get the optimal proces ---SPC control charts, performance management
TOOL
Fishbone (Ishikawa)
Measurement System Evaluation Pareto Chart Process Capability Process Costing tools X X
X
X X X X X
Process Maps
Critical business issue Requirement Analysis Run Chart Scatter Diagram X X
X X
Sigma Calculator
SIPOC Chart Story Board SWOT Analysis Team Charter Thought Process MAP Multivoting X X X
X
X
X
X
Basic methodology consists of the following five phases DMADV (Define, Measure, Analyze, Design, and Verify):
Define - formally define the goals of the design activity that are consistent with customer demands and enterprise strategy. Measure - identify CTQs (Critical to Quality), product capabilities, production process capability, risk assessment, etc. Analyze - develop design alternatives, create high-level design and evaluate design capability to select the best design. Design - develop detail design, optimize design, and plan for design verification. This phase may require simulations. Verify - verify design, setup pilot runs, implement production process and handover to process owners. This phase may also require simulations.
The groundwork for the implementation of six sigma at GE had begun in 1988 in the form of an initiative known as the Work Out program. Jack Welch, Chief executive officer of GE has set a company-wide goal to have all processes reach six sigma quality by the year 2000. Welch and GE realised that attaining Six Sigma quality will require retraining their entire workforce to think and act like Engineers- an enormous feat with remarkable benefits.
Before Six Sigma GE operations were carried out between 3-4 Sigma. The company realised that employees were an important source of intellectual power for new and creative ideas. The program had set 4 Major GOALS :
Build trust Empower employees Eliminate unnecessary work Create a new Paradigm for GE.
Working capital turns have risen sharply to 9.2%, up from 1997s record.
Team
ABC-1, DMAIC ABC-2 ABC-3 Project Mile Stone
FG at Supplier end
Customer Requirements Delivery Rating >95% 8H H H M M No Line stopage 10 H M H M M L 162 102 162 54 54 10
RM stocking at GE
PO on Time
Fore Caste
Lead Time
264 280
Measure :
CTQ : 95 % on time Delivery
Late Delivery
Late GRN
No firm Schedule
PO not on time
Analyze:
Data is not normal, P = 0.000 Z score 0.22 CPK- 0.40 PPK 0.31 PPM 412397
A disciplined application of statistical problem solving tools. Identifies and helps quantify waste. Indicates steps for improvement. Savings are possible because most processes have high variation in their output, often unacceptable to customers Most companies operate at 4 sigma level moving towards 5 33 sigma.
If a company is really interested in IMPROVING then SIX SIGMA is the best way of doing unlike any other PHILOSOPHY. It cant be done in a day, its a gradual process moving towards perfection. Remove the barrier from your mind that it is only for Manufacturing sector, it has wide scope in each and every field. Remember ultimate aim of SIX SIGMA is Bottom Line i.e. SHOW ME THE MONEY ? QUALITY PRODUCTIVITY COST PROFITABILITY CUSTOMER SATISFACTION
IF PERFECTION IS TAKEN FROM ANY THING PERFECT, WHAT REMAINS IS STILL PERFECT.