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A Question Panel was held at a recent seminar organised by Integrated Document Technology and the Six Sigma Group. Below are some of the Frequently Asked Questions about Six Sigma answered by Stephen Walsh and Stuart Smith of the Six Sigma Group. They reflect the concerns, curiosity, cynicism and craving for knowledge about this dynamic, developing approach to process improvement. 1. 2. 3. 4. 5. 6 What is the difference between Lean and Six Sigma? How do you sell the concept/cultural revolution to the organisation and overcome the Whats in it for me? from stakeholders? How do you overcome the image of applicable to high volume manufacturing environment that the Six Sigma title brings with some senior managers? Doesnt the act of measurement improve the process anyway? Is developing an initial application to help gather the actual statistics/data for input to a Six Sigma project a leap of faith? A process is only as good as the people using it. How can a business enforce the usage, when back doors are available (i.e. they buck the system)? How do you measure how good your process is? What techniques and methods will give/provide most effective results? (For example the mortgage application form.) What are your methods of training? [What are the] Steps to reduce variation e.g. review reasons for rework, complaint causes? What level of realistic savings can most organisations expect to achieve through the application of Six Sigma? Processes vary from the whole thing (the restaurant bill) to a high overview of thousands of sub-processes (the phone that doesnt crash). Do you have a particular approach to grouping/layering the processes into a manageable structure? What have proved to be typical barriers to success? At what level in the business should Six Sigma be aimed e.g. Board, management? Many people are uncomfortable with changes to their day-to-day work. How do you prepare departments for rapidly changing processes?
7.
8. 9. 10. 11.
5 4 2 3
LEAN WORKING
Process streamlining Process acceleration Waste elimination
CORRECTIVE ACTION
Kaizen blitz Error proofing Problem solving
PRIORITISATION MATRIX
Quick Hits Waste Elimination, Blitz Kaizen
Six Sigma Process Improvement Six Sigma and Design for Six Sigma
High
Benefit
Low
Effort
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More complex problems will not have a staring-you-in-the-face solution, however, and it will take data analysis just to understand whats going on. The matrix opposite is another way of thinking about it.
Unknown
Ex
ce lle
Problem
Known
nc eP
ro j ec
ts
Apply DMAICT Methodology to verify the root cause and then develop solution
Known
Unknown
Solution
When you start to try to understand the sources of variation in the output of a process (invariably because this is creating dissatisfaction in the customer of the process), you often discover that the existing data measured is limited to the outputs (in Six Sigma we call them Ys). To understand the sources of variation you have to establish the root causes of variation which are buried within the process and its inputs (which we call Xs).
X1 X2
The phases of Measure and Analyse incorporate tools to establish the relationship between the output Y and the input and process Xs.
Eighty-five percent of the reasons for failure to meet customer expectations are related to deficiencies in systems and process . . . rather than the employee. The role of management is to change the process rather than badger individuals to do better.
People will buck the process for a variety of reasons, not least of which is when the process is poor and they have found a more efficient and effective way of achieving the same output, in which case that should be recognised and the process altered to suit. Of course, if bucking the procedures leads to errors, then there is an issue. Why do people use the back door ? It may be instilled behaviour through the way in which they are measured (I know a bus driver who jumps red lights to keep to the scheduled timetable because he is measured on bus stop arrival times!); it may be complexity, it may be ignorance, it may be home time. The trick is to make the process the preferred way of doing it (like lightening, people will follow the path of least resistance), to measure the things you want as output (such as quality), to be sure that people understand what and why something is important and appreciate the process steps up and downstream of themselves and to make the process difficult to get wrong by using an approach we call Poka Yoke. Poka Yoke means mistake-proofing the process identify the steps that you must critically get right (a tool called Failure Modes and Effects Analysis can be helpful there) and (re)design the process so that it becomes very difficult if not impossible to get it wrong. There are simple, every day examples if you leave your car lights on, you get a warning buzzer; you cant fit a diesel fuel dispenser into an unleaded tank (or is it the other way around . . .); window envelopes eliminate the possibility of putting an addressed letter or invoice into an envelope that is differently labeled (could be embarrassing at best, you might never get paid or perhaps sued at worst); mandatory fields on computer-based forms that defy you to jump to the next page of an application. The author of the question is right: processes especially transactional processes fall down where people are involved. Part of solutions design, then, is to create processes that minimise the errors and the impact of those errors. (It will have occurred to you that part of the solution is to automate the process and eliminate the people factor . . . valid in some cases, e.g. doing cheque runs, but impossible to achieve completely and this is the realm of BPM.) If you involve the process members themselves in the redesign, you will build commitment for the new process procedure and they are less likely to use back doors. As Tom Peters puts it with every pair of hands you get a free brain.
VoC Translation
Issues
CTQs
X Measures
The process/product and input measures that will influence Y
Y Measures
The process output or product measures relating to that CTQ
The Measure phase deals with establishing a data collection plan to collect data relating to the Xs (and the Ys) and then proceeds to collect the data. In the example, the Y might be number of unspoilt applications in a given time period. The Xs would include many things and are typically captured on a fishbone diagram:
FISHBONE DIAGRAMS
What is it?
A simple tool that can be used to structure and group the causes that lead to an effect
How to do it
Use PEMME as prompts for identifying the potential Xs People
X X X X X X X X X X X
Equipment
Environment
X X X
Effect
Methods
Materials
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Typical Xs might include: the sales rep, the time of day, the mode of interview (over the phone, face-to-face), mode of capture (pen and paper, computer . . .) and each of these will break down still further. Some of these will eventually be identified as the root causes of the spoils the sources of variation.
Target
Target
In Six Sigma we convert this measure of fit into a Sigma Value, which effectively is representing a ratio of the area under the variation curve that fell outside of the customers limits to that which met and satisfied the customer. If, for example, out of one hundred mortgage application forms, 5% were found to have a sufficient number of errors to be declared spoilt and so were rejected on first pass, we could equate this to a Defects Per Million Opportunity (DPMO) count of 50,000, which can be equated statistically to a Sigma Value of 3.14. If we improved the error rate to just 2 in a 100, we would now have a Sigma Value of 3.55 (a Sigma Value of 6.0 would relate to only 3.4 errors in a million!) (Note: I have simplified this somewhat and the statistically minded amongst you will know that there are complexities involved, depending on what we count as errors, long term and short term data, continuous or discrete data and other factors).
Sigma (Z)
6 5 4 3 2
YNA %
99.9997 99.977 99.379 93.32 69.20
(Long term (Short term Per Million DPMO(Defects Cp Process Ppk Process Opportunities) Capability)
Capability)
When starting a Six Sigma project we need to know where we are!!! We use the above to BASELINE the process
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Green Belt
Individual from organisation that has been trained and who may spend 20% 30% of time on projects.
Black Belt
Individual with technical background and training who is full-time on projects.
Champion
Usually a director or senior manager, responsible for defining projects (general area of), monitoring of projects. Six Sigma trained and who may spend 20% of time on projects.
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The training for each of these roles is described in detail on our website (www.sixsigmagroup.co.uk) and is made up as follows: Yellow Belt 3-days training in the basic tools and techniques. Green Belt 10-days training in the project methodology, tools and techniques including Minitab to enable delegates to lead Green Belt projects on a part time basis. Black Belt 20-days training to full Black Belt level (advanced use of particularly the statistical tools and Minitab) to enable delegates to undertake more complex projects on a full time basis. Master Black Belt not so much training as a development process to enable coaching, training and advanced problem solving. Champion overview training in the methodology and tools together with detailed instruction on how to undertake a phase gate review, identify and select projects and help manage the program infrastructure. This also includes training on coaching and mentoring skills.
The longer training programmes are broken down into modules to align with project progress.
So in order to estimate benefits you will need to consider the following: The number and type of projects you can run The number of belts you can sustain on the programme The experience of the belts The transferability of benefits from project throughout the organisation
Finally, as with all improvement approaches where you are starting from will influence your potential i.e. What is your process baseline performance? How much low hanging fruit is there? What levels of performance are you targeting? There are many examples of Six Sigma benefits across a range of sectors and industries. Motorola and GE are the most famous Six Sigma companies and their accounts will demonstrate significant benefits over the last 10 years. A summary of some companies is shown below.
DOES IT WORK?
Motorola turnaround in semiconductor manufacturing and financial performance Allied Signal Cost savings exceeding $800m annually General Electric most admired company three years running, and consistently increasing growth and profit. $2bn savings annually Network Rail changing the culture to fact based decision making and delivering significant impact on delays. Benefits delivered in 2005 27m, target in 2006 60m Visteon $100,000 per project EEV Started 2000 savings 700,000 on 100m turnover Marconi Optical Components Started 2001 savings to date 250,000 on 30m turnover General Domestic Appliances Started 2000 savings 7.8m
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There are several approaches to undertaking this analysis but it usually starts with a process mapping or value stream mapping exercise with a cascading detail of inputs and outputs until you arrive at the right level to address using Six Sigma. The diagram below shows an example of how to drill down to the right process level using the Y cascade.
= f ( X 1 , X 2 , X 3, X 4 )
X = f ( 5 , 6 , 7, 8 )
Our Six Sigma project may focus here; in which case Taste is our Big Y and Age when squeezed is our Little y
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As is
Measure
Detailed
Analyse
Detailed
Could be
Improve Control
Lack of quantifiable goal Lack of long term stretch goal Classic definition of defects Focus on output measures only Not linked to what is rewarded and recognized
DPMO/sigma scale 3.4 DPMO stretch goal Quality loss function Focus on inputs and outputs Link with org. bonus scheme
Training without doing Save the world projects Doing studies for the shelf
Must have project for training 4-month project (average) Drive for implementation
Defects = blame Withholding data and information Poor awareness Proactive action discouraged empowerment
Defects = learning Encourage sharing and facilitate it Must constantly work on awareness Management supports piloting, testing
D V S R = = = =
D x V x S > R
Dissatisfaction felt with the present amongst those who need to change Vision of the future needs to be attractive to the people who need to change Confidence in taking the first Steps Resistance or personal cost of changing
You can use the change equation to anticipate and manage peoples natural resistance to change
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