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01 Six Sigma Methodology - Wisnu & Sadono

01 Six Sigma Methodology - Wisnu & Sadono

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ISSN: 1829-9466
2007 Journal of the Indonesian Oil and Gas Community. Published by “Komunitas Migas Indonesia”
Six Sigma Methodology: An Introduction
Wisnu Sri Bandono
and Sadono
Siemens Power Generation, Cilegon. E-mail:wisnusb@gmail.com
Chevron IndoAsia SBU. E-mail:sadono@gmail.com
Six Sigma is generally known as a method toimprove quality of processes and business culture. It  provides tools and roadmap to achieve business benefit.Present article gives a basic understanding and implementation sectors in oil & gas industries.
Six Sigma, quality of process, business
1. Definition
Six Sigma has been known as a process of continuousimprovement method since 1980s. This method came inafter a series of process improvement methods orsystems such as Statistical Process Control, TotalQuality Management, Malcolm Baldrige, Qualitycircles, Kaizen, Juran etc. The latest development of SixSigma is the combination of Six Sigma with LeanConcept, or known as
 Lean Six Sigma
 Lean Sigma
.This latest development methodology improvesbusiness process.Six Sigma is a data driven methodology, which aims toimprove business and management processes byfocusing on eliminating defects, faults, waste, rework,and improving business culture, as final impact forincreasing business profitability.Sigma is a Greek letter used to designate standarddeviation. It is a measurement used to define how goodor bad a process performance is.Reduce processvariation methodology has also been spread out to otherindustries; from healthcare, aerospace, finance,transactional service to oil and gas.
2. How It Works
From supplier – customer standpoint, there are twomain techniques for every process output:1.
Centering the Process2.
Reducing Variation
3. Applications in Oil and Gas
Typical project scope in oil and gas upstream sectors:
Oil/water/gas processing
Enhanced oil recovery: secondary and tertiary
Well testing
Drilling and completion
Well service
Supply chain management
Information technology
As is condition
Potential Improvement
 High rejection rate Reduction of certain levelof reject rate/rework High down time Improve reliabilityLong delivery time Speed up delivery timeHighly inventory level Reduce capital investment
4. Comparison between TraditionalQuality Approach and Six Sigma
Comparison between traditional quality approach andSix Sigma can be listed below:
Traditional Approach
Six Sigma
Usually driven byisolated incidentStart with specific businessproblemNon-systematic methodSystematic method, datadrivenQualitycompartmentalized,segmentedCommon understanding of quality in all areas of thebusinessDo not include financial Links to business financeQuick fixedProject based, measurableand sustainable result
5. Six Sigma Methodology
Six Sigma is method for reducing process variation asthe main enemy in any process. There are five subphases, and they are known as structured, discipline,
Bandono & Sadono - 1
ISSN: 1829-9466
2007 Journal of the Indonesian Oil and Gas Community. Published by “Komunitas Migas Indonesia”
rigorous approaches to process improvementmethodology. The sub phases are abbreviated as
phases or Define, Measure, Analysis, Improve,Control (Figure 1).
Figure 1. DMAIC: Define, Measure, Analyze, Improveand Control
. The first phase (Define) concerns with project’spurpose and scope. In this phase, all backgroundinformation of process and customer are collected.The tools are:-
Project Charter-
SIPOC (Supplier Input Process Output Customer)-
VOC (Voice of Customer)-
Affinity Diagram-
Kano Model-
CTQ (Critical to Quality) tree-
Quality Fitness Review
“Measure” focuses on improvement effort bygathering information in the current situation. Theoutputs of measure are:-
Baseline data on current process performance-
Data that pinpoints problem location or occurrence-
A more focused problem statementThe tools are:-
Data Collection Plan-
Data Collection Form-
Control Chart-
Frequency Chart-
Gauge R&R-
Pareto Chart-
Prioritization Matrix-
FMEA (Failure Mode Effect Analysis)-
Process Capabilities-
Process Sigma-
Cause & Effect
“Analyze” produces baseline performance of aprocess by having stratified data in the baselineperformance. It is possible to pinpoint the location of source of problem.The tools are:-
Affinity Diagram-
Cause and Effect Diagram with CNX-
Control Chart-
Design of Experiment-
Hypothesis test-
Reliability modeling-
Economic analysis
. In this phase, project team should alreadyknow how to develop, implement and evaluate solutiontarget at verified cause. The goal is to demonstratesolutions on how to solve problem that leads toimprovement.The tools are:-
Creativity technique-consensus-
FMEA’s action plan-
Planning Tools-
Hypothesis testing-
Design of experiments
. “Control” is to ensure a problem stay fixed,and new method can be further improved over time.The tools are:-
Control charts (individual charts, X-bar, R chartscovered on Measure Phase)-
Data collection (covered, Measure Phase)-
Flow Diagram (covered , Analyze Phase)-
Charts to compare before and after such frequencyplots, pareto charts)-
Quality control Process Chart-
Reliability plans
6. Critical Success Factors inSix Sigma
There are three main factor for successful Six Sigmadeployment: committed leadership, full timedeployment facilitator and deployment infrastructure.Those factors will be described briefly in the followingsections.
6.1 Committed leadership
Leadership plays important role for successful SixSigma deployment, as it recognizes as top-downprogram. Organization leadership should have its owncontinuous process improvement mindset. Leadershipshould give commitment and personal involvement bydeveloping accountability process, implementingscorecard and reviewing process regularly.
6.2 Full time deployment facilitator
This person has main responsibility in facilitating SixSigma project, whose business objective is to completecertain projects with financial benefit target per annum.Position of facilitator has two types: internal and outsideresources.
Bandono & Sadono - 2

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