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• Six Sigma : An Overview
• What is Six Sigma? • Why Six Sigma? • Six Sigma Phases : Define, Measure, Analyze, Improve and Control • Tools and Key Roles for Six Sigma
Why Six Sigma?
What is Sigma ?
A term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of a process
What is Six Sigma? A statistical concept that measures a process in terms of defects – at the six sigma level. there 3.4 defects per million opportunities A philosophy and a goal : as perfect as practically possible A methodology and a symbol of quality www.exploreHR.org 6 Six Sigma .
Sigma Level Sigma Level (Process Capability) Defects per Million Opportunities 2 3 4 5 6 308.537 66.org 7 .exploreHR.807 6.4 www.210 233 3.
exploreHR.Sigma Level Six Sigma = 99.9997% www.org 8 .
exploreHR.Sigma Level Why not Four Sigma or 99.000 surgical operations that go wrong in some way • Every month we would be without electricity for almost seven hours 9 www.379% ? • Every hour the postal service would lose 20.org .000 pieces of mail • Every day our drinking water would be unsafe for almost 15 minutes • Every week there would be 5.
Why Six Sigma? Money Customer Satisfaction Quality Competitive Advantage Growth Employee Pride www.org 10 .exploreHR.
Why Six Sigma? • At GE.exploreHR.5 billion through Six Sigma.org 11 . www. Six Sigma added more than $ 2 billion to the bottom line in 1999 alone • Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort • AlliedSignal reports saving $ 1.
Why Six Sigma? Six Sigma is about practices that help you eliminate defects and always deliver products and services that meet customer specifications www.org 12 .exploreHR.
exploreHR.Cost of Poor Quality What is cost of scrap? What is cost of rework? What is cost of excessive cycle times and delays? www.org 13 .
exploreHR.org 14 .Cost of Poor Quality What is cost of business lost because customers are dissatisfied with your products or services? What is cost of opportunities lost because you didn’t have time or the resources to take advantage of them? www.
Identifying these elements is figuring out how to make improvements that can dramatically reduce costs and enhance quality.Critical-to-Quality (CTQ) Elements of a process that significantly affect the output of that process.org 15 . www.exploreHR.
Six Sigma Phases www.exploreHR.org 16 .
org Control 17 .exploreHR.Six Sigma Phases Define Measure Analyze Improve DMAIC www.
exploreHR.Six Sigma Phases Define Define the project goals and customer (internal and external) deliverables Measure Measure the process to determine current performance Analyze www.org Analyze and determine the root cause(s) of the defects 18 .
org 19 .exploreHR.Six Sigma Phases Improve the process by eliminating defects Improve Control Control future process performance www.
Six Sigma Phases • Define Customers and Requirements (CTQs) Define • Develop Problem Statement.exploreHR.org 20 . Process Owner and Team • Define Resources • Evaluate Key Organizational Support • Develop Project Plan and Milestones • Develop High Level Process Map www. Goals and Benefits • Identify Champion.
org 21 .exploreHR. Opportunity.Six Sigma Phases • Define Defect. Unit and Metrics Measure • Detailed Process Map of Appropriate Areas • Develop Data Collection Plan • Validate the Measurement System • Collect the Data • Begin Developing Y=f(x) Relationship • Determine Process Capability and Sigma Baseline www.
Six Sigma Phases • Define Performance Objectives Analyze • Identify Value/Non-Value Added Process Steps • Identify Sources of Variation • Determine Root Cause(s) • Determine Vital Few x's.exploreHR.org 22 . Y=f(x) Relationship www.
Six Sigma Phases • Perform Design of Experiments Improve • Develop Potential Solutions • Define Operating Tolerances of Potential System • Assess Failure Modes of Potential Solutions • Validate Potential Improvement by Pilot Studies • Correct/Re-Evaluate Potential Solution www.org 23 .exploreHR.
Profit Growth • Close Project. Celebrate www.org 24 . Handoff to Process Owner • Verify Benefits.exploreHR. Cost Savings/Avoidance. Finalize Documentation • Communicate to Business.Six Sigma Phases Control • Define and Validate Monitoring and Control System • Develop Standards and Procedures • Implement Statistical Process Control • Determine Process Capability • Develop Transfer Plan.
org 25 . www. supported. and committed to work on improvement project. business process mapped. • Team charter developed.Define Measure Analyze Improve Control Deliverables : • Fully trained team is formed. customers identified and high impact characteristics (CTQs) defined.exploreHR.
Improvement team members fully trained on Six Sigma and DMAIC. 26 www. milestones. Team formed and team leaders assigned. roles and responsibilities.org . Team Charter : • Completed project management charter. problem and goal statements.Define Measure Analyze Improve Control Checkpoints for Readiness Team Readiness : • • • Team is sponsored by a champion or business leader. including business case. communication plan.exploreHR. project scope.
Process. Outputs. and Customers. describing the Suppliers.Define Measure Analyze Improve Control Checkpoints for Readiness Customers • Customer(s) identified and segmented according to their different needs and requirements. 27 www. Completed SIPOC representation. verified. Inputs. Business Process Mapping • • Completed.org . • Data collected and displayed to better understand customer(s) critical needs and requirements.exploreHR. and validated high-level 'as is' (not 'should be' or 'could be') business process map.
sigma level calculated.org 28 .exploreHR. process variation displayed and communicated. performance baselined. data collection planned and executed.Define Measure Analyze Improve Control Deliverables : • Key measures identified. www.
Define Measure Analyze Improve Control Checkpoints for Readiness Key Measures Identified • Key measures identified and agreed upon.org 29 . Data Collection Planned and Executed • Solid data collection plan established that includes measurement systems analysis. • Data collected on key measures that were identified.exploreHR. • High impact defects defined and identified in the business process. www.
exploreHR. • Long term and short term variability accounted for.org 30 . plots.Define Measure Analyze Improve Control Checkpoints for Readiness Process Variation Displayed/Communicated • Process variation components displayed/communicated using suitable charts. sigma level). graphs. yield. Performance Baseline/Sigma Calculation • Measure baseline process performance (capability. www.
exploreHR.Define Measure Analyze Improve Control Deliverables : • Data and process analysis.org 31 . quantifying the gap/opportunity. www. root cause analysis.
exploreHR. • Segment and stratify possible causes (sources of variation). www.org 32 . Root Cause Analysis • Generate list of possible causes (sources of variation). • Prioritize list of 'vital few' causes (key sources of variation).Define Measure Analyze Improve Control Checkpoints for Readiness Data and Process Analysis • Identify gaps between current performance and the goal performance. • Verify and quantify the root causes of variation.
• Display and communicate the gap/opportunity in financial terms.Define Measure Analyze Improve Control Checkpoints for Readiness Quantifying the Gap/Opportunity • Determine the performance gap.org 33 .exploreHR. www.
select the best solutions.exploreHR.org 34 . design implementation plan.Define Measure Analyze Improve Control Deliverables : • Generate (and test) possible solutions. www.
Define Measure Analyze Improve Control Checkpoints for Readiness Generating (and Testing) Possible Solutions • Possible solutions generated and tested.org 35 . www.exploreHR.
• Cost/benefit analysis of optimal solution(s).Define Measure Analyze Improve Control Checkpoints for Readiness Selecting The Best Solution(s) • Optimal solution selected based on testing and analysis. • Pilot data collected and analyzed. • Project impact on utilizing the best solution(s). www. • Small-scale pilot for proposed improvement(s). • Improved process ('should be') maps modified based on pilot data and analysis.org 36 .exploreHR. • New and improved process ('should be') maps developed.
cost/budget.exploreHR. including schedule/work breakdown structure. resources.Define Measure Analyze Improve Control Checkpoints for Readiness Designing Implementation Plan • Solution implementation plan established. www. • Contingency plan established. and control plan.org 37 . risk management plan.
transfer of ownership (project closure). response plan established and deployed. documented procedures.org 38 . www.exploreHR.Define Measure Analyze Improve Control Deliverables : • Documented and implemented monitoring plan. standardized process.
org 39 .exploreHR. www.Define Measure Analyze Improve Control Checkpoints for Readiness Monitoring Plan • Control plan in place for sustaining improvements (short and longterm). Process Standardization • New process steps. Documented Procedures • Operating procedures are consistent. standards. and documentation are ingrained into normal operations. • Knowledge gained on process is shared and institutionalized.
exploreHR. Transfer of Ownership (Project Closure) • Transfer ownership and knowledge to process owner and process team tasked with the responsibilities. understood.Define Measure Analyze Improve Control Checkpoints for Readiness Response Plan • Response plans established.org 40 . www. and deployed.
exploreHR.Tools and Roles for Six Sigma www.org 41 .
Process Mapping www. and controls or inspections.org 42 . decision points. delays. • A process map is illustrated description of how a process work. loops. handoffs. rework.exploreHR.Tools for Six Sigma • Creating flowcharts of the step in a process – operations. movements.
org 43 .exploreHR. organized method for determining the relationship between factors (Xs) affecting a process and the output of that process (Y).Tools for Six Sigma • DOE is a structured. Design of Experiments or DOE www.
org XY Matrix 44 .Tools for Six Sigma • A group of rows and columns. • The purpose of using XY matrix is to study and understand the relationship between what you are putting into a process and what your customer is getting out of it. • The XY matrix allows the team to identify gaps. with one set of increments marked along the X (horizontal) axis and another set of increments marked along the Y (vertical) axis. www. areas for improvement.exploreHR.
Tools for Six Sigma • The goal of this tool is to ensure that your measurement system is statically confident – that it’s both accurate and precise each and every time it is used. your MSA determines whether or not you can take a certain measurement and repeat or reproduce it among different people who take the same measurement. Measurement System Analysis www.exploreHR. • Undertaken during Measure phase.org 45 .
Tools for Six Sigma • Process capability tool is the measure of a process being able to meet specification requirements and fulfill customer CTQ needs on a long term basis.exploreHR. Process Capability Tool www.org 46 .
Hypothesis Testing www. • It’s a compass that points you directly to the vital few factors that are most affecting your process.exploreHR.Tools for Six Sigma • Investigating a theory about the suspected cause (s) of a particular effect in a process to determine if it is correct.org 47 .
org 48 .exploreHR. creating a defect or non-conformance. and the impact on the customer if that failure mode is not prevented or corrected.Tools for Six Sigma • The manner in which a part or process can fail to meet a specification. Failure Mode Effect Analysis www.
and the project team have made. your black belt.exploreHR. • It ensures that all your analysis and efforts stay in effect and that you have information at your disposal to prevent backsliding or a return to less than optimal performance standard.Tools for Six Sigma • A detailed assessment and guide for maintaining all the positive changes you.org 49 . Control Plan www.
Champions Are responsible for the Six Sigma implementation across the organization in an integrated manner.org 50 . They are responsible for setting up a vision for Six Sigma implementation. www.Key Roles for Six Sigma Executive Leadership Includes CEO and other key top management team members. Champions also act as mentor to Black Belts.exploreHR.
Key Roles for Six Sigma Master Black Belts Identified by champions. Black Belts Operate under Master Black Belts to apply Six Sigma methodology to specific projects.exploreHR. They devote 100% of their time to Six Sigma.org 51 . act as in-house expert coach for the organization on Six Sigma. www. They primarily focus on Six Sigma project execution.
org 52 . www. They operate under the guidance of Black Belts and support them in achieving the overall results.Key Roles for Six Sigma Green Belts Are the employees who take up Six Sigma implementation along with their other job responsibilities.exploreHR.
org 53 .Six Sigma Do’s • Do communicate the commitment companywide • Do demonstrate the commitment of company leaders • Do empower your key human resources • Do provide on-site mentoring for black belts www.exploreHR.
exploreHR.Six Sigma Do’s • Do be patient at the inception of you six Sigma initiative • Do claim and advertise early “wins” • Do benchmark • Do establish project baseline and goals www.org 54 .
Six Sigma for Managers. Greg Brue. McGraw Hill George Eckes.exploreHR.Recommended Further Readings: 1.org 55 . 2. John Wiley and Sons www. Six Sigma for Everyone.
End of Material www.exploreHR.org 56 .
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