Six Sigma

Business Excellence Breakthrough
"Delivering Tomorrow's Performance Today"

Six Sigma Your first question is likely…. What is Six Sigma? Your second question is likely… Why Six Sigma? .

What is Six Sigma? a Sigma? .

it is much more! .Six Sigma Defined A quality discipline that focuses on product and service excellence to create a culture that demands perfection (on target. every time!) But.

800 99.210 99.15 93.999998 .32 66.500 30.500 69.020 99.The Range of Six Sigma σ 1 2 3 4 5 6 7 % Accurate Defects per Million Opportunities 691.977 233 3.85 308.9997 0.4 99.38 6.

Why Six Sigma? • To deal with a world of declining product prices • To compete successfully with the best companies in the world Need to accelerate our rate of improvement of quality and productivity faster than our competitors • To establish standard language and approaches across functions and across businesses • To develop the next generation of leaders .

Cost of Poor Quality (COPQ) Traditional Quality Costs Inspection Warranty Scrap Rework Rejects Administration / Disposition Concessions Tangible Additional Costs of Poor Quality More Setups Expediting Costs Lost Sales Late Delivery Lost Customer Loyalty Excess Inventory Long Cycle Times Engineering Change Orders Intangible Difficult or impossible to measure Lost Opportunity Hidden Factory Average COPQ Approximately 15% of Sales .

The “Hidden” Factory Rework Rework 64% 86% 64% σ) (3.9 89% 97% 99% 49% Suppliers (Raw Materials) 96% 95% 99% S 98% S A S Redo B Rework C S Redo D 95% Customers (Products!) Suppliers (Raw Materials) 90% 96% 94% E S 94% F S G Customers (Products!) 90% Rework H S Redo I 78% 99% 64% σ)70% (3.9 54% .

Define the opportunity DFSS No MAIC Do products. products & services • Breakthrough in Develop avoiding cost & capital • Long-term Implement (NPV) benefits • Changing the game! • Improve current Measure process. process and service standards exist to satisfy the requirements? Yes • Breakthrough Measure differentiated performance designs for Explore new process. products & services Analyze • Hard savings (EBIT) 12month impact No • Improving the game! Is Improvement Sufficient? Yes Improve Control Leverage .

How MAIC Six Sigma Works Measure Execute Analyze Execute Improve Execute Control Execute .

and $ Baseline .MEASURE: Measure Gathering Tools & Techniques Keyto the right data Deliverables Potential • Finalize Project accurately assess a • Finalized Project Charter Charter • Define Current • Prepared Project problem. Process Team Main activities Project Charter Current Process Potential KIVs & KOVs Me’mt System Variability Current Process Capability • Identify Possible Input/Output Variables • Determine Measurement System Variation • Assess Current Capability • Use Excellence tool • Possible Key Input / Output Variables • Data Collection Methodology • Critical to Cost • Current Sigma.

ANALYZE: Analyze Using statistical tools to Main activities Potential Tools & Techniques Key Deliverables correctly identify the root • Analyze Potential • Validated Root Root Causes Causes causes of a problem. • Establish Key Input Variables Root Statistica Cause l Analysis Analysis for Key Input Variables Propose d Key Variable Input Limits “Fix the obvious” Current and Validated x • Propose Key Input Variable Limits • Implement Obvious Input Variables Controls • Key Input Variables • Data Analysis • Validated Key Input Variables • Cost Savings Validated .

• Optimize key • Improvement variables Key Input Variables Optimize d Optimize Process Design Improve • Optimize process design • Set key input variable limits • Establish change strategy Key Variables (KIVs) KIVs) Input Limits Set Change Management Strategy Current DPO/$ Impacts Validated • Change Management Strategy • Improved Defects per opportunity and Cost Savings Validated • News Validated .IMPROVE: Correcting the problem (not Main activities the input Potential Tools & Techniques Key Deliverables symptom).

Lessons all….CONTROL: Control Putting a plan in place to Main activities Potential Tools & Techniques Key Deliverables • Implement make sure that problems control •Process Control plan System STAY fixed once and for • Monitor control system •Case Study. • Document lessons Controlling the Improved Process Control System Audit Final $ Lessons Learned Validated VS Goal and $ Leveraged x learned Learned SUSTAIN THE GAINS! .

and more than just dollars .At Dow Six Sigma is more than a quality Program .

® .