This action might not be possible to undo. Are you sure you want to continue?
Concept of Competitive Quality
Historically, Quality has been defined as “ Meeting the Specifications” “ Fitness for Use”
Today the most acceptable definition of Quality is
“ Meeting the Customer’s Requirements”
Concept of Competitive Quality
Will just meeting the requirements ensure future Market share ?
Concept of Competitive Quality The definition of Competitive Quality is : “ Product. Process or Service Uniformity around a Target Value” 4 The most noticeable difference in this operational definition of Quality is that it requires CONTINUOUS IMPROVEMENT .
Uniformity Around A Target Value
WHY CHANGE ?
The reason is simple, to remain or become competitive and thereby increase Profitability and Market Share
The Impact of Added Inspection
If the likelihood of detecting the defect is 70% and we have 10 consecutive inspectors with this level of capability, we would expect about 6 escaping defects out of every 1,000,000 defects produced.
You can save your self by producing quality not by Inspection
Sigma - The Standard Deviation
1 Sigma - 68% 2 Sigma - 95% 3 Sigma - 99.73 %
S (X – X)2 n
Upper Specification Limit (USL) Target Specification (T) Lower Specification Limit (LSL) Mean of the distribution (m) Standard Deviation of the distribution (s)
6 % Target Customer Specification After 1 2 3 4 5 6 No Defects! 6 ! 9 Reducing Variability Is The Key To Six Sigma .What is Six Sigma Before A 3 process because 3 standard deviations fit between target and spec Target Customer Specification 3 1 2 3 0.27% Defects up-to 6.
Philosophy of Six Sigma Six Sigma focuses on : Continuous Improvement of Processes Defect Prevention through the use of Statistical tools as opposed to Defect Detection through inspection. 10 .
The Many Facets of Six Sigma • Focus and commitment to quality must be driven by top leadership • Leadership must be fully engaged and accountable for success • Six Sigma provides classical problem solving tools enhanced with a fundamental knowledge of statistics and variation Leadership Process • Focus is on statistical process capability and process variation analysis • Products must be designed to be manufactured within process capability • Process capability must be quantified 6 Tools Metrics • Goal is defect free products and processes • Focus is on true capability (rolled throughput yield) rather than end of line yield • All decisions must be data driven 11 .
99966% Good (6 Sigma) Seven articles lost per hour One unsafe minute every seven months 1.000 lost articles of mail per hour Unsafe drinking water for almost 15 minutes each day 5.7 incorrect operations per week One short or long landing every five years 68 wrong prescriptions per year One hour without electricity every 34 years 12 .000 wrong drug prescriptions each year No electricity for almost seven hours each month 99.How Good is Six Sigma 99% Good (3.000 incorrect surgical operations per week Two short or long landings at most major airports each day 200.8 Sigma) 20.
satisfied customers are repeat customers Bottom Line Growth .What does Six Sigma means to [Company Name]…… Top Line Growth .it costs less to do it right the first time 13 .
$500M in „98 ! (not including overhead.000 Actual savings (through 2Q)=$5.500.Reducing reworked parts. • Targets savings over $10 B during next few years by reducing its current COPQ ($7B /yr. inventory.1K per employee and savings due to US operations improvements were over $2.Rectifying transaction mistakes.000 • 130 projects planned or in progress Annualized savings = $35M „99 impact = $12.2 Billion.Industry Overview The Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC) model consistently yields rapid. measurable. • Saved $175M at bottom line in „95. benefits Avery Dennison Results: • Implemented 6s in March. • Fastest rate for implementing 6 yet! GE Results: • Implemented 6 efforts in late 1995.800.) to less than $1B annually by: . indirect charges. .Reducing scrap parts. • By 1992 it averaged a 5. 14 .21 level. or avoidance. • Sales productivity increased from $68. 600 projects reduced defects by 68%. Motorola Results: • Implemented 6 program in 1987 when it was performing at a 4 level.3M AlliedSignal Results: • Implemented 6 in 1994 for Operations. • Initial 4 months. . 1998.9K to $110. • 52 completed projects Forecast „99 savings = $18. • Over $2B in savings realized since 1992.
537 1 691.462 6 15 A $4. Cost of Failure is Estimated to be at Least 15% of Revenue Defects per Million 3.4 Sigma 233 5 6210 4 3 66.807 2 308.5 Million Cost Reduction Opportunity! .Cost Opportunity Cost of Failure (% Revenue) 40% 35% 30% 25% 20% 15% 10% 5% If [Company Name] is a 3 Company.
Six Sigma Saving in GE Six Sigma Cost and Benefits 2500 2000 1500 2000 Cost Benefits Net 1500 1050 1450 $ Million 1000 500 0 1996 -500 200 380 170 -30 700 320 450 550 1997 1998 1999 Mostly variable cost productivity and asset utilization 16 Up front investment and staying power Significant impact on the bottom line .
Turnover 17 . .How much Cost Reduction is possible Traditional Quality Costs (Easily Identified) Inspection Warranty Rejects (tangible) Scrap Rework 1. Six Sigma Reveals hidden facts and capabilities . Productivity. .5 % COQ Hidden Quality Costs (Difficult to measure) Lost sales Customer Sat Overtime (intangible) Long cycle times Field Modifications More Setups Expediting costs Customer Productivity Loss Engineering change orders 15 % COQ Late delivery T&L Excess inventory Lengthy Installs Lost Opportunity Lost Customer Loyalty Employee Morale.
5s 2 PPM 308.4 Defects Per Million Opportunities 3 4 5 6 18 Process Capability .210 233 3.807 6.Six Sigma as a Goal Distribution Shifted ± 1.537 66.
Must Address Designs Bulk of Fruit Process Characterization and Optimization ---------------------------------- 4 s Wall .Harvesting the Fruit of Six Sigma Sweet Fruit Design for Manufacturability 5 s Wall .Demand improvement Ground Fruit Logic and Intuition The walls crumble faster when addressing process issues 19 .Must Improve Internally Low Hanging Fruit Seven Basic Tools ---------------------------------- 3 s Wall .
50 LT = 2. • After normalization: ST = 5.Labour rate .Interaction Statistical Solution .24% .19% Practical Solution 20 • Install standard measurement system for each technology • Reward & recognition policy to retain experienced labours in order to increase productivity .Attacking the Problem Practical Problem Rejects for bad estimation of cost =20% average Statistical Problem • Process characterization data set is non-normal.36 • DOE Results: .52% .Technology .
.The Focus of Six Sigma Y Y Dependent Output Effect Symptom Monitor f(X) X1 . . Xn Independent Input-Process Cause Problem Control 21 Would you control shooter or target to get the Gold Medal at Olympics .
Commitments. Credit Rating Determined by OUTPUT (Y) IS DETERMINED BY THE VALUES OF THE IN-PROCESS PARAMETERS (X‟s) 22 .Controlling the Output Y OUTPUT SIGNAL = F (x) IN-PROCESS PARAMETERS RELATIONSHIP or EQUATION THAT EXPLAINS Y IN TERMS OF X Distance traveled Money to Spend Determined by Car speed. traveling time Income.
Car Speed traveling time Amount of wear on brakes Selection of CDs available Amount of gas in the tank Time since last service Traveling time Number of passengers Weather Car inside temperature Understanding the 23 F (x)S gives insight into the right .Controlling the Output Y OUTPUT SIGNAL = F (x) IN-PROCESS PARAMETERS RELATIONSHIP or EQUATION THAT EXPLAINS Y IN TERMS OF X Distance traveled Determined by Car speed.
= Y F UNDERSTANDING OF (x) SELECT IMPORTANT F (x)S VERIFY UNDERSTANDING OF F QUANTIFY WITH CORRELATION How we’ve been taught to search for F 24 .Controlling the Output Y OUTPUT SIGNAL.
Controlling the Output Y OUTPUT SIGNAL. Without an understanding of 25 F ...it‟s your opinion vs mine ! ..... = POOR OR NO F UNDERSTANDING OF (x) BRAINSTORM F (x)S Y NO CORRELATION Thousands of (x)s to choose from.
Model Y Capturing the measurement on a Customer unit basis = Understanding our output as the Customer sees it F (x) F Verify Correlation to find Learning from variance in performance on Customer Y Unlocking the process keys that control Customer impact 26 .
Cost of Quality SPAN Customer Satisfaction 27 ..What are these opportunities….
40% of Sales 15 .15% of Sales <1% of Sales .3b) World Class 5 6 28 5 .4($0.5b) 3.000 66.Cost of Quality Sigma Level 2 3 4 Defects/Million Opportunities 308.25% of Sales 6210 ($7b) Industry Average 233 ($4.800 ($12b) Cost of Quality Not Competitive 25 .
SPAN Order-to-Delivery Time vs Customer Want Date 40 Day Span 5% of orders are >15 days early to request 5% of orders are >25 days late to request -15 days Early 0 Customer Want Date On Time +25 days Late 29 .
Difference between Mean & variance Average River Depth .4ft Focus on Average can turn your business red 30 .
8 What customers feel • Using mean-based thinking.. not the mean .2 15. But our customer only feels the variance and cancels the next order! • 31 Customers feel variance.0 11.Outside In Thinking Delivery cycle time (days) Insight Through Variance What WE see Baseline 12 24 13 7 16 8 20 25 14 10 11 30 16 Mean 15. we improve average performance by 29%..0 Improved? 27 7 15 4 18 6 23 6 2 24 2 6 5 11.8 Std Dev 7. and we break out the champagne .2 9.
The Eye of the Beholder Customer’s View How did [Company Name] influence my A C Performance? Missing data during download Customer Process A B C [Company Name] Process How did I do against my A B Obligations? Missing data during logical execution [Company Name]’s View 32 .
..Where in [Company Name]… . Can Be Applied To Every Business Function Business Development HR Operations Training CRT 6 Sigma Methods Finance Admin / Transport Projects Quality IT 33 .
Why Now? Customers & Competitors are adopting elements of this business improvement process: – Customers: • HP • Intuit – Competitors: • Wipro Spectramind • EXL • Hughes Driven by Customer Excellence at Lowest Cost 34 .
Tea 35 .Table of Contents Six Sigma Overview What is Six Sigma Overview of Scope Linkage to Vision Pre-Tea Roles and Responsibilities as Leaders/ Sponsor Criteria for Project Selection Criteria for BB/GB Selection Introduction to Process Pre-Tea Pre-Tea Post-Tea Post.
.Implementation Strategy Train….. 36 . Apply…. Review…. Every Participant arrives to training with a well defined project with measurable savings opportunities! Integrate training with metrics performance to maximize the bottom line impact.
Support. and Marketing Management Leadership Black Belt Process Owner Control Change Agents and Process Leaders Green Belt Organizational “Buy-in” Program is structured to build a self-sustaining critical mass of process improvement competencies.Six Sigma Program Structure Define Measure Analyze Improve Program Direction. 37 .
6. Redirect Project / Team activities Serve as the Team’s Champion from Top-To-Bottom of Entire Business Ensure that Project Solutions are well implemented. 8. 9.Champion / Functional Leader Role 1. 3. Gains are sustained and on-going responsibility transfers to Process Owner 38 . Allocate resources when authorized Keep Black Belt / Green Belt focused on desired results When immovable objects block the road. 7. 4. Offer rewards as appropriate Help the Black Belt / Green Belt overcome roadblocks. including seeking collaboration Help find resources for the team as Needed. 5. Lead the Six Sigma efforts overall in their BU Provide Strategic Direction for Six Sigma Project teams Track the Project’s Progress. 2.
And Ensures That Decisions Are Made By The Team In A Timely Manner To Meet Its’ Goals • Team Members – Team Members Are The Individuals Who Comprise The Six Sigma Project Team. “Expert” Resources To Black Belts And Teams On The Six Sigma Tools And Techniques Coach And Assist Black Belts And Team Members.Six Sigma Roles • Champion/Sponsor/Functional Leader – The Champion Or Sponsor Is The Person(s) Who Is Accountable For And Sanctions A Six Sigma Project. Provides Leadership In Planning The Project / Team’s Work. • Black Belt (Team Leader) – Full-time position where the Black Belt Is Accountable. And Is Often The Decision-Maker For Approval Of Final Recommendations • Master Black Belt – Full-Time Positions Dedicated To Supporting Six Sigma Efforts. And Ensures That Decisions Are Made By The Team In A Timely Manner To Meet Its’ Goals • Green Belt (Team Leader) – Part-time position where the Green Belt Is Accountable. Usually To The Champion. For The Project / Team Results. They Often Will Make Their Own Decisions 39 . Applies Six Sigma Tools And Teaches Team Members How To Apply Them. Often Leads Team Meetings. The Black Belt Is Responsible For The Project / Team’s Progress. Usually To The Champion. The Green Belt Is Responsible For The Project / Team’s Progress. Provides Leadership In Planning The Project / Team’s Work. Helps Remove Organizational Barriers To Project Success. The Champion Or Sponsor Is Involved In Project Team Chartering. And Employees As Needed. Team Members Are Individually And Collectively Accountable For Specific Tasks That Will Result In The Team’s Final Recommendation. Applies Six Sigma Tools And Teaches Team Members How To Apply Them. Train The Black Belts. For The Project / Team Results. When Team Members Are Responsible For A Particular Aspect Of A Project. Reviews Progress. Champions. Often Leads Team Meetings.
BQC – Roles & Responsibility
Six Sigma Steering Committee - BQC
– Assures [Company Name]’s Six Sigma implementation plan: • Has appropriate resources allocated • Has appropriate scope and is involving all required elements of the organization • Is consistent with [Company Name]’s culture of Exceeding customer expectation – Develop a communication plan to energize the organization around the Six Sigma implementation. – Remove roadblocks to facilitate implementation. – Review the status of training / project implementation on a regular basis. – Establish [Company Name]’s business metrics and goals, assess progress towards goals, analyze strengths and weaknesses of implementation, and provide strategic direction as necessary. – Verify the financial (as calculated by Finance) impact of projects implemented. – Provide a forum to share best practices within the organization.
Table of Contents
Six Sigma Overview
What is Six Sigma Overview of Scope Linkage to Vision
Roles and Responsibilities as Leaders/ Sponsor Criteria for Project Selection Criteria for BB/GB Selection Introduction to Process
Pre-Tea Pre-Tea Post-Tea Post- Tea
Start With The Customer
1. 2. 3. 4. Measure the same as the customer does Determine your capability as the customer sees it Understand the variance in the output signal Find the in-process keys to impact the customer
Customer Focus What I Want to be What I Am (?) What I Am(?) What I Am(?) What the Customer Wants Exceeding Customer Expectations Competition ? Unhappy Customers Status Quo Delighted Customers Performance Continuum 43 How Important Is This GAP? .
What specific goals would project be trying to achieve? What would constitute stretch results? 44 . Is the scope reasonable? Can the problem be effectively broken apart into projects with reasonable scope? Expectations: 7.Project Selection Objective: 1. Is there a clear owner in the organization for the problem and for the benefits of improving? 8. What exactly is the problem being addressed in measurable terms? Need: 2. How would it fit with business initiatives and targets? Scope: 6. What are the consequences of not doing this project? 5. Is the project tied to a high importance customer CTQ? 4. Why is the project worth doing? 3.
Takes too long to submit the quotation to customer .Improve time of submission of quotation from the time enquiry comes from customer .Reduce the paperwork by 20% 45 .There is too much documentation in our work MEASURABLE In measurable terms that means: .The productivity is very poor in our company .Project Objectives What exactly is the problem being addressed in measurable terms? PROBLEM The problem this project is going to solve is: .Improve productivity by 15 % .
Project CTQs (Critical to Quality) Who are your customers? What do you provide your customers? What is critical to quality for your customers? What are your internal processes for providing your product or service to customers? What CTQ is this project addressing? 46 .
Project Need Why is this project worth doing? Customer [Company Name] What activities have higher or equal priority? Why is it important to do now? Customer [Company Name] How does it fit with the business initiatives and targets? What are the consequences of not doing this project? Customer 47 [Company Name] .
Project Need Write down threat and opportunity for short term and long term for the problem you are addressing in your project Threat Short Term Opportunity 1 2 Long Term 3 4 48 .
Expectations What specific goals must be met? When must they be met? For each goal. what milestones are critical and must be met? What would constitute stretch results? 49 .
Project Scoping 50 .
you have arrived at the project level. 51 .Project Scoping Why? High level problem Level A Initial Contributor Level B How far down should I scope my project? Why? Why? Secondary Contributor Level C Why? Project Level Level D ??? Project Level When you can no longer answer the “Why?” with confidence.
52 . to 20 min.Project Scoping Why? AHT too high Why? AHT for Pavilion P.L. is too high Why? AHT for Team 11 is too high AHT for New Agents is too high Level A Level B Why? Level C ??? Project Level Level D Our project then becomes in measurable terms: Improving the AHT for New Batches from 30 min.
Project Scoping What must this project accomplish? What (if anything) is out of bounds for the team? What resources are available to the team? What (if any) constraints must the team work under? 53 .
Criteria for BB / GB Selection Business Acumen Project and Process Management Data Affinity Result Orientation Relationship Building and Influence Coaching and Mentoring Team Leadership Change Leadership 54 .
Curriculum for Green Belt Receive 5 days training Understand the statistical tools and practice them Work on the project Monthly presentation to the Project Sponsor / MBB Close the project Clear Green Belt Certification Test 55 .
Tea 56 .Table of Contents Six Sigma Overview What is Six Sigma Overview of Scope Linkage to Vision Pre-Tea Roles and Responsibilities as Leaders/ Sponsor Criteria for Project Selection Criteria for BB/GB Selection Introduction to Process Pre-Tea Pre-Tea Post-Tea Post.
DFSS (DMADOV) vs DMAIC DEFINE IDENTIFY NO PROCESS ? YES MEASURE ANALYSE DESIGN NO CAPABLE ? YES OPTIMISE IMPROVE VALIDATE CONTROL 57 .
DMAIC Process Define the project (Y) & make the team & plan Measure Y & X’s What’s wrong with X’s How much and what I can improve Control Sustain the improvement Define Measure Analyze Improve PLAN 58 DO CHECK & ACT .
Six Sigma Tools Used………. • Project Scoping • SIPOC • Thought Process Mapping • Quality Metrices • Process Mapping • C&E matrix • FMEA • MSA • Concepts of DOE • DOE Strategies & Analysis • DOE • Control Strategies 59 .
Measurement Purpose Document Process Map Begin To Link CTQs to Input Variables Establish Measurement Capabilities Establish Baseline Process Capabilities 60 .
The Funnel Effect Process Map C&E Matrix and FMEA Multi-Vari Studies 8 .10 Experimentation Control Plans / SPC Screened List Found Critical X‟s Controlling Critical X‟s +30 Inputs 10-15 All X‟s 1st “Hit List” 4-8 3-6 Optimized Process 61 .
They Are Correlated To The Pertinent Output Measures. Output Measures Output Measures Are Measures Used To Determine How Well Customer Needs And Requirements Are Met. The Key Quality And Delivery Requirements Placed On Your Suppliers. 62 . Output & Process Measures Input Measures Process Measures Measures That Are Internal To Your Process. They Include Quality And Delivery Measures Important To Your Internal Customers As Well As Waste And Cycle Time Measures.Input.
Steps to Business Process Mapping Develop A Picture Of The Working Process As A Team Suppliers Inputs Start Process Outputs Customers Requirement 64 .
Define the Boundaries of Business Process START Boundary Boundary Input What Must My Suppliers Provide My Process To Meet My Needs? Process Output How Can I Assure That My Process Output Meets The Needs Of My Customer? 65 .
. What It Should Be.... What It Could Be.. 66 . What It Really Is..Process Map [Company Name] What You Think It Is...
67 .Industry Overview Traditional View Final Test “The Hidden Factory” RTY is the probability that a product will pass through the entire process without rework and without any defects. It is the true yield for a product at the completion of all the individual processes. Six sigma View Value Stream optimization is enabled by elimination of the hidden factory.
A true estimate of process yield .Rolled Throughput Yield Develop A Better Understanding of Your Operations To Know Where To Begin If this is your process. where do you put your key resources ? A B 0.90 $ 5 / Unit 400 un/dy D 0.80 $2 / Unit 700 un/dy 0.90 $10 / Unit 500 un/dy C 0.90 $2 /Unit 200 un/dy –Rolled Throughput Yield (RTY) -.583 $19 200 un RTY COPQ Capacity 68 0.
90 $ 5 / Unit 400 un/dy D 0.80 $2 / Unit 700 un/dy B 0.Project Prioritization A 0.90 $10 / Unit 500 un/dy C 0.583 $19 200 un RTY COPQ Capacity 0.90 $2 /Unit 200 un/dy Project # A 69 Project # B Project # C .
70 . We collect data. 2. 6. but just look at the numbers. 5. not data. 3. We use sample data with inferential statistics. We group the data so as to form charts and graphs. We only use experience. We use census data with descriptive statistics.Role of Statistics Can you always measure …100% or less What is Population ……what is sample? Roll of statistics in measurement (descriptive / Inference) 1. 4. We use sample data with descriptive statistics.
Basic Statistics Types of data Measures of the Center of the data Mean Median Mode Measures of the Spread of Data Range Variance Standard Deviation Normal Distribution and Normal Probabilities 71 .
the center number after a set of numbers has been sorted from low to high.Most Common Observation Why would we use the mean instead of the median in process Improvement? 72 .Measures of Central Tendency Mean: Arithmetic average of a set of values Reflects the influence of all values Strongly Influenced by extreme values x xi n i 1 n Median: Reflects the 50% rank . Does not include all values in calculation Is “robust” to extreme scores The mean and median will be affected by the nature of the distribution of numbers Mode .
Comparison of Distributions. 100 Frequency 50 0 20 30 40 50 60 70 80 90 100 110 C1 Symmetric Distribution 73 . 300 300 Comparison of Distributions.Different Distributions Sketch in the Means and Medians on each Distribution. Frequency Frequency 200 200 100 Tail 0 10 20 30 40 50 60 70 80 100 Tail 60 70 80 90 100 110 120 130 0 0 C2 C3 Negative Skew Positive Skew Comparison of Distributions.
Population Parameters vs Sample Statistics Examples of POPULATION: Entire India Average Literacy rate Examples of SAMPLE: 500 people randomly selected = Population Standard Deviation m = Population Mean X ^ = Sample Mean = Sample Standard Deviation 74 .
Computational Equations Population Mean m = X i 1 N i N Population Standard Deviation =S= (Xi m ) 2 i=1 N N Sample Mean ^ m =x= N x i =1 n i n i -- Sample Standard Deviation 75 ^ = s= (X i =1 X )2 n -1 .
76 . (Highest .Measures of Variability Range: the distance between the extreme values of a data set. Standard Deviation ( ): the Square Root of the Variance. The range is more sensitive to outliers than the variance.Lowest) Variance ( ): the Average Squared Deviation of each data point from the Mean.
Calculating Standard Deviation X 1 2 3 4 5 6 7 8 9 10 S Mean square 2 1 3 5 4 X .581139 .X (X .X) 2 Variance (X i X ) 2 i=1 N N -1 (X i=1 N i X )2 Sum N -1 Standard Deviation 77 1.
Types of Data Attribute / Discrete Data (Qualitative) Categories Yes. Operator 3 Pass / Fail Variable / Continuous Data (Quantitative) Decimal subdivisions are meaningful Time. Operator 2. No go Operator 1. No Go. Conveyor Speed 78 . Pressure.
Associated with Common Causes.Variation “While every process displays Variation.27 X =7 0. Process B shows uncontrolled variation X.91 70 65 0 5 10 15 20 25 LCL=64. Controlled Variation is characterized by a stable and consistent pattern of variation over time.20 80 X .B a r C h a r t fo r P r o c e s s B UCL =7 7. Uncontrolled Variation is characterized by variation that changes over time. Process A shows controlled variation.62 50 0 5 10 15 20 25 Sa mp le Nu mbe r S a mp le Nu mb e r 79 Special Causes .B a r C h art fo r P r o c e s s A UCL=77. while other processes display uncontrolled variation (Walter Shewhart). Associated with Special Causes.98 L CL =6 4 . some processes display controlled variation.7 0 60 Sample Mean 75 Sample Mean 70 X =70.
Stratification Customer Type Geography Etc. Median (Min. 80 . Max) SPAN The most powerful potential process labels are those that are known at the beginning of the process. 38) 49 Sample Size . Company Process ALL DATA n = 2000 0 (-11.
8) 16 South n = 297 -2 (-10. 6) 13 Credit C n=7 5 (-8. 15) 23 West n = 238 -1 (-8. 0) 10 Credit B n = 41 0 (-7. 70) 82 North n = 261 -2 (-8.Stratification ALL DATA n = 2000 0 (-11. 21) 30 Non-Dashboard n = 1101 1 (-12. 9) 17 Industrial n = 68 -2 (-7. the median difference appears. Credit A n = 71 -3 (-10. 31) 39 81 . 24) 34 East n = 103 -1 (-8. 38) 49 Dashboard n = 899 -2 (-9. 40) 47 Even with small sets of Data. 23) 32 Commercial n = 119 -2 (-10. 5) 15 Government n = 74 -2 (-8.
the real process label was Credit Rating. make sure you double check it to see if there is another label that is influencing the way the data appears. if you continue with Dashboard as an isolated process. you will see the median move for various segmentations (especially Credit Rating). or by continuing to segment to see if the central tendency indicator still moves even though we thought it was an isolated process. but it appeared in the Dashboard/Non-Dashboard data. In this case. • When you find a critical x for one of the processes. you will have more than one central tendency in the data set and you will never figure out what drives variance. If you don‟t Stratify (isolate) the processes. also drive it in another. Often the factors that drive variance in one of the processes. • If you think you have found the right label to stratify the processes. check to see if it is also the critical x for the other processes. We call this Stratification. In this case. 82 . You can double check by cross-cutting the data (look at Credit Rating and Dashboard at the same time in a tabular format). you have the first clues to find the critical x‟s that drive variance.Stratification Key Learning Points: • The first thing you must do is Separate the Processes. • Once you have Stratified (isolated the processes) and you have a segment that reflects several different levels of Variance.
FMEA Model Prevention What made failure mode to take place. Ask 5 Why’s…. Detection Detection What manner my process was not able to obey me Cause Material or process input Failure Mode (Defect) Process Step Effect External customer or downstream process step. Controls Because of your process what all I will not be able to do 83 .
CAUTION: Objects in mirror are closer than they appear 84 . inaccuracy or imprecision it is transmitting to our data.Measurement System Analysis A measurement system will not willingly disclose the type of distortion. We must actively force it to reveal its hidden effects.
Measurement System Analysis Parts (Example) Inputs Process Outputs Inputs Measurement Process Outputs • Observations • Measurements • Data Product Variability (Actual variability) Measurement Variability Total Variability (Observed variability) Measurement System Variability Investigated through “R&R Study” 2 Actual(Part) + 2 Meas. .System = 2 Observed (Total) 85 The Measurement System will transmit variation to our data.
a process tends to shift by approximately 1.5.Establishing the Process Capability LSL USL Short-Term Capability Long-Term Capability 86 Over time. .
Visualizing the Causes Within Group • Called short term (st) • Our potential .the best we can be Time 1 Time 2 Time 3 Time 4 • The reported by all 6 sigma companies • The trivial many st + shift = total Between Groups • Called shift (truly a measurement in sigma's of how far the mean has shifted) • Indicates our process control • The vital few 87 .
Analyse Purpose To reduce the number of Process Input Variables to a manageable number To determine high risk inputs from Failure Modes and Effects analysis To determine the presence of and eliminate Noise Variables through Multi-vari Studies To plan the first improvement activities 88 .
Sources of Variation A common method of analysis at this stage is the variables tree........ Customer Service Example Not resolved the call Skill to Skill Agent to Agent Call to Call Customer to Customer Type of call 89 . Try thinking about your process in this manner.
0 D at e Cu s t o m er Sal es m an Box Plot 15 1000 Pareto Chart Pareto Chart for : Defects 100 80 900 800 700 600 500 400 300 200 100 20 40 60 r a H sV r 10 5 0 W ater U t il Count 0 0 .Means for HrsVar 13. 0 10.3 1 00. 5 3.0 90 Percent .. 0 5. ev tD i gh We rB Ai bl e ub l or Co f or De n t io ma C u s to m e r Min in g Pa p e r Defect Count Percent Cum % 431 44. 5 HrsVar 8.2 293 30.Tools Used…….2 44.2 1 32 1 3.0 74.7 1 20 1 2. Time Series Plot 15 Scatter Plot 15 HrsVar 10 HrsVar 5 10 10 5 5 0 Index 0 May Jun Jul Date ANOVA (Analysis of Variance) Main Effects Plot .5 87.
5 1 1.5 2 X=Study Time(Hours/Night) 1 6 14 22 30 X=Age of Car 91 . Some examples: Y=Gas Mileage 30 (mpg) 20 10 Y=Son’s Height 80 60 40 0 .5 2 X=Car Weight (tons) Y=Grades (of 100%) Y=Selling Price 80 60 40 60 70 80 X=Dad’s Height (inches) (Thousands) 35 25 5 0 .Regression…..5 1 1.
.Regression…... How do you find a line that “fits” the data? What we are looking for is a line which will minimize the distances from the plotted points to the line. Deviations (distances) “How much the line missed by” * * * * Regression Line Response Variable (Y) * * * * * * Input Variable (X) Scatter Plot Points (actual data values) 92 ..
The R2 Statistic is defined as the sum of squares of errors divided by sum of the square of difference from average: Y Measured Error Measured Predicted Y=a+bX r 1 2 ^ (yi yi ) n 2 (y y ) i 1 i i 1 n 2 X 93 ..Regression….
Develop change management plan. Conduct cost / benefit analysis. 94 . Create implementation plan.Improve What will you do for Improve – – – – Identify solutions.
Improve What will you do for Control – – Define and implement ongoing measurement / monitoring plan. 95 . Document procedures.
The quality plan is the structure through which we add this “energy” to business processes. losing the gains achieved by design and improvement activities. Unless we add “energy” (in the form of documentation and ongoing process controls).Control In the physical world. processes will tend to degrade overtime. the law of entropy explains the gradual loss of order in a system. Target g 96 . The same law applies to business processes.
Control Three Main Control Mechanism……. Avoid Potential Problems Control Potential Problems Risk Management SPC Mistake Proofing 97 ..
Project Sign-off Answer the following questions before the project is signed off: • • • • What can go wrong and derail improvements ? What controls are in place ? Can you show me your closure plan ? What happen when the people change ? • • • Are there any follow up on projects ? Is all documentation completed ? Is the savings verified by finance ? • Is the audit plan in place ? 98 .
Project Sign-off Finalize Financial Results •Calculate tangible benefits •Determine implementation costs •Calculate net financial gain •Calculate the intangible benefits e. customer retention Tangible Benefits .g.Implementation Costs = Net Financial gains (Over one financial year) Bank 99 . cost avoidance.
Documentation Complete Documentation Package ……. Champion.Compile and organize a record of the key aspects of your six sigma project Typical Elements of the Documentation Package •A description of the project •Problem statement & business case •A list of CTQs + Xs •Hypothesis tests •Process capability analysis •Control parameters •Audit Plan/ owner •Financial results •Operational metrics •Lessons learned and best practices Project to be signed off by GB/BB. MBB.. Process Owner. Financial controller. 100 .
.. 101 .Reward & Recognition ?.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.