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Six Sigma

Six Sigma

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Published by: 2004007 on Nov 12, 2010
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Six sigma Introductio n

© All Rights Reserved TreQna 2005

expectatio ns

•Awareness with respect to origin and history of Six Sigma. •The utility and benefits •Introduction to Six Sigma as methodology •The Six Sigma organization

© All Rights Reserved TreQna 2005

contents
Six Sigma Intro BPMS DMAIC 15 min

© All Rights Reserved TreQna 2005

• For a process. the better. The higher the sigma capability. the sigma capability (z-value) is a metric that indicates how well that process is performing. © All Rights Reserved TreQna 2005 .Two Meanings of Sigma σ • The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction.

Motorola started experimenting with problem solving through statistical analysis • 1987 . an engineer with Motorola • Late 1970s .Origin of Six Sigma Motorola the company that invented Six Sigma • The term “Six Sigma” was coined by Bill Smith.Motorola officially launched it’s Six Sigma program © All Rights Reserved TreQna 2005 .

The Growth of Six Sigma GE the company that perfected Six Sigma • Jack Welch launched Six Sigma at GE in Jan.1996 • 1998/99 .Green Belt certification became the criteria for promotion to management roles © All Rights Reserved TreQna 2005 .Green Belt exam certification became the criteria for management promotions • 2002/03 .

The Growth of Six Sigma The GE model for process improvements Define Measure Analyze Improve Control Combination of change management & statistical analysis © All Rights Reserved TreQna 2005 .

The Growth of Six Sigma © All Rights Reserved TreQna 2005 .

Business Process Management System BPMS © All Rights Reserved TreQna 2005 .

The Need of BPMS • To understand the process. monitor and improve correct performance measures for the process © All Rights Reserved TreQna 2005 . it’s mission. flow and scope • To know the customers and their expectations • To identify.

its goal and its boundaries Identify Critical to Quality and Critical to process Visual representatio n of performance The DMAIC cycle © All Rights Reserved TreQna 2005 .The Methodology Map process steps. indicators and monitors Service excellence and process excellence Develop Dashboards Identify Improvement Opportunities VOC and VOP Build PMS Define purpose of the process. identify input/ output measures Define Process Mission Map Process MSA. DCP.

Six Sigma Improvement Methodology DMAIC © All Rights Reserved TreQna 2005 .

What is DMAIC ? • A logical and structured approach to problem solving and process improvement • An iterative process (continuous improvement) • A quality tool with focus on change management Effectiveness E = Quality Acceptance Improvement Q x A © All Rights Reserved TreQna 2005 .

The Approach Practical Problem Statistical Problem Statistical Solution Practical Solution © All Rights Reserved TreQna 2005 .

define statistical goal and identify potential statistical solution Confirm and test the statistical solution Convert the statistical solution to a practical solution .Methodology D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna 2005 Identify and state the practical problem Validate the practical problem by collecting data Convert the practical problem to a statistical one.

Define D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna 2005 VoC .Who wants the project and why ? The scope of project / improvement Key team members / resources for the project Critical milestones and stakeholder review Budget allocation .

Is tool used to measure the output variable flawed ? .Do all operators interpret the tool reading in the same way ? Prepare data collection plan How many data points do you need to collect ? How many days do you need to collect data for ? What is the sampling strategy ? Who will collect data and how will data get stored ? What could the potential drivers of variation be ? Collect data .Measure D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna 2005 Ensure measurement system reliability .

Analyze D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna 2005 Understand statistical problem Baseline current process capability Define statistical improvement goal Identify drivers of variation (significant factors) .

Analyze – Identify Drivers of Variation Root Cause Analysis (fish bone) • A brainstorming tool that helps define and display major causes. sub causes and root causes that influence a process • Visualize the potential relationship between causes which may be creating problems or defects Primary Cause Secondary Cause Backbon e Proble m Root Cause © All Rights Reserved TreQna 2005 .

Analyze – Identify Drivers of Variation Control – Impact Matrix • A visual tool that helps in separating the vital few from the trivial many Control Vital Few High Control – High Impact Cost Ineffective Low Control – High Impact Impact Cost Ineffective High Control – Low Impact Trivial Many Low Control – Low Impact © All Rights Reserved TreQna 2005 .

80% defects are caused by 20% factors) 35 30 25 20 15 10 5 0 L K A F B C G R D 100% 80% 60% 40% 20% 0% Frequency © All Rights Reserved TreQna 2005 Cumulative Frequency .Analyze – Identify Drivers of Variation Pareto Chart • Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally.

processes and organizations • Helps identify rework loops and non value add steps Customer © All Rights Reserved TreQna 2005 P .Analyze – Identify Drivers of Variation Process Map Analysis • Visually highlights hand off points / working relationships between people.

Analyze – Identify Drivers of Variation Hypothesis Testing • A statistical tool used to validate if two samples are different or whether a sample belongs to a given population Null Hypothesis (Ho) is the statement of the status quo Alternate Hypothesis (Ha) is the statement of difference Homogeneity of Variance One way ANOVA Moods Median Chi-Square Regression © All Rights Reserved TreQna 2005 .

Improve D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna 2005 Map improved process Pilot solution Identify operating tolerance on significant factors .

Mistake Proofing .Is tool used to measure the input / process variables flawed ? .Control Plan .Do all operators interpret the tool reading in the same way ? Improved process capability Sustenance Plan .Control D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna 2005 Ensure measurement system reliability for significant factors .Statistical Process Control .

Control – Sustenance Plan Control Plan • Have the new operating procedures and standards been documented ? • What Statistical Process Control (SPC) tools will be used to monitor the process performance ? • Who will review the performance of the output variable and significant factors on closure of the project and how frequently ? • What is the corrective action or reaction plan if any of the factors were to be out of control ? © All Rights Reserved TreQna 2005 .

Six Sigma Organization © All Rights Reserved TreQna 2005 .

Process variation 10 5 0 Frequency Cumulative Frequency Pareto Chart © All Rights Reserved TreQna 2005 .Six Sigma .Three Dimensions Define Measur e Analyze Improve Control Driven by custom er needs LSL US L Customer Process Map Analysis Led by Senior Mgmt Methodology Organization Tools Upper/Lower specification limits • • •••• ••••••••••• • •••••• • ••••• • Regression 35 30 25 20 15 100% 80% 60% 40% 20% 0% L K A F B C G R D Enabled by quality team.

Full time resource .Deployed to complex or “high risk” projects Green Belt Green Belt Green Belt .Part time or full time resource .Backbone of Six Sigma Org Black Belt .Expert on Six Sigma .The Quality Team Master Black Belt .Thought Leadership .Deployed to less complex projects in areas of functional expertise © All Rights Reserved TreQna 2005 .Mentor Green and Black Belts Black Belt .

Thank You © All Rights Reserved TreQna 2005 .

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