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Process Improvement TM Methodology
Provide An Overview of Six Sigma Layout the Process Improvement MethodologyTM
Code of Conduct
Please listen as an ally… If you have a question at any time, ask! Use name tents Please be prompt in returning from breaks Turn off the mobile/pager system while in training
You will have a better understanding of Six Sigma
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• Who created problems in the first place could not be used to solve it 5 . • Solutions are engineered well with statistical guidance to Engineering. requirements. form. fit. use.!!!!!Quality!!!!! Conformance to dimensions. Problem solving • Condition of output • Changing gaps between good & bad. Customer Satisfaction.
Pursuit of Quality Inspect for Quality Statistical Process Control (Deming) Process Modeling (Taguchi) Design for Six Sigma 1930 1940 1950 1960 1970 1980 1990 2000 6 .
7 . Alignmenet of drivers & behaviour System Approach Remuneration linkage with six-sigma initiatives.!!!!!What’s new!!!!! Active Leadership Integration with strategy Quality net income Special Matrics Special roles Project Management Facts decide not judgement.
simple. systematic. lasting 8 .Six Sigma Sigma Breakthrough Technologies has a proven track record Methodology that is unique. proven.
Objectives * What Is 6 Sigma ? * Why Are We Doing 6 Sigma ? * How Are We Deploying 6 Sigma ? 9 .
Objectives * What Is 6 Sigma ? * Why Are We Doing 6 Sigma ? * How Are We Deploying 6 Sigma ? 10 .
What is Six Sigma? An approach to sustainable breakthrough improvement that: Fosters a common language and cross-functional cooperation within and between divisions Strengthens our productivity efforts Develops our process improvement core competency Uses statistical tools for significant variability reduction Helps Develop expert personnel and future leaders Increase capacity with minimal capital Meet productivity goals Improve customer service 11 .
Six Sigma Focus Improving performance by flawless execution Achieving rapid breakthrough improvement Applying advanced breakthrough tools that work Making a positive and deep cultural change Getting Real Financial Results Passion + Execution = Fast and Lasting Results 12 .
4 Wall Cost Capacity Productivity Organization Capabilities Materials Mangmnt & Inventory 13 .Overall Perspective Process Capabilities Safety Technology Capabilities Customer Requirements Materials Capabilities Robust Designs Predictable Flexible Factories Rolled Throughput Yield Customer Satisfaction COPQ.
Six Sigma Systems Materials Management Six Sigma Data Systems Reliability Centered Maint. New Product Development Six Sigma Leadership Systems Process Operation and Control Customer Satisfaction Assessment Measurement Control Problem Solving Human Resource Involvement 14 .
What is Six Sigma? Simple: Eliminate variation and defects Eliminate the opportunity for variation and defects Complex Vision Metric (Standard of measurement) Benchmark Philosophy Method Tool for: Customer focus Breakthrough improvement Continuous improvement People Involvement Aggressive Goals 15 .
807 6.537 66.210 233 3.4 16 .A Measurement Sigma PPM 2 3 4 5 6 308.
Another Look .32% 99.9767% 99.379% 99. . s 2 3 4 5 6 % Non-Defective 69.1% 93.99966% 17 . .
99966% Good Postal System 20.Practical Meaning 99% Good 99.000 Wrong Drug Prescriptions / Year 68 Wrong Drug Prescriptions 18 .000 Lost Articles Of Mail / Hr 7 Lost Articles / Hr Airline System Two Short/Long Landings / Day 1 Short / Long Per 5 Years Medical Profession 200.
000 100 10 1 Sigma Level 19 .000.000 100.000 Payroll Processing Baggage Handling Best in Class Airline Safety Rate 1 2 3 4 5 6 7 1.000 10.What Does 6 Sigma Mean In Your Daily Life? PPM Prescription Writing Tax Advice Restaurant Bills 1.
.000 JAMA reported that 21% of all antibiotic prescriptions written were to treat colds. 1997 Number of antibiotic prescriptions issued in 1996: 282. bronchitis. 20 . and respiratory infections.631..Business Metrics USA Today Medical Article September 22.
53.. bronchitis.631.000 defective prescriptions = 2. even though more than 90% of such infections are caused by viruses.4 s 21 . which are immune to antibiotics. and respiratory infections.000 JAMA reported that 21% of all antibiotic prescriptions written were to treat colds.. 1997 Number of antibiotics prescriptions issued in 1996: 282.000.Business Metrics USA Today Medical Article September 22.
000 Sources: IMS America. Plymouth Meeting.596.000 Sleeping Pills / Sedatives: 23.000 Anti-Obesity Drugs: 23.681. PA.Business Metrics Tranquilizers / Anti-Anxiety Medications: 76. 22 .370.
You don’t have to be 6 Sigma to make money. This only proves . we are “happy” to report Doctors are operating with very profitable returns. . . 23 .Business Metrics Instructor’s Note: Despite being less than 3 sigma.
the more defects you create.Reality of Escaping Defects Escaping Defects Escaping Defects Total Defects/Unit No matter how good your inspection and test processes are. the more defects escape to the customer 24 .
Premise for Six Sigma Methods Sources of variation can be Identified Quantified and prioritized Eliminated by control or prevention 25 .
3 Sigma Process L o w e r Sp e c Uppe r Spe c s s s s s s 26 .
6 Sigma Process Lower Spec Upper Spec s s s s s s s s s s s s 27 .
Dissecting Process Capability Inadequate Measurement Capability Inadequate Process Capability Supplier Variation Inadequate Design Margin LSL USL Defects Process Capability 28 .
Dissecting Process Capability 1000 100 80 60 40 20 0 0 500 Defect LSL USL Process Capability 29 Percent Count .
Business Impacts of Variability Prevention Costs Internal Failure Education and training Quality planning Product design qualification tests Supplier qualification Customer interface Controlling processes Scrap Supplier caused losses Rework Retest / Re-inspection Unplanned downtime Trouble shooting Engineering change notices Appraisal Costs Incoming inspection Maintenance and calibration of equipment Setup inspection and tests Field testing Process audits External Failures 30 Processing customer inquiries Maintaining customer field service Retro fit costs Incurring penalties/claims Product warranty Lost sales .
Count the selected elements 31 .Exercise Go through the list on the previous slide and indicate which costs are EASILY accessed through your current finance systems.
Sigma Level 6 3s Cost of Failure : 20-25% of Sales 5 4 3 2 5% 10% 15% 20% 25% 30% Cost of Failure (% of Sales) What’s Your Cost Reduction Opportunity? 32 .
Objectives * What Is 6 Sigma ? * Why Are We Doing 6 Sigma ? * How Are We Deploying 6 Sigma ? 33 .
Six Sigma INITIATIVE METHODS & TOOLS Improvement Breakthrough Focused Approach Right Projects Right People Project Reviews Sustain the Gains Results ($$) Process Thinking Process Variation Facts. Data DMAIC 8 Key Tools Statistical Tools Minitab Critical Few Variables 34 . Figures.
20 0.18 0.Process Excellence: The Right Metrics Defects per 1000 7 Scrap 0.15 65 55 0.17 0.19 COPQ 0 5 10 RTY 0.16 0.21 0.14 0 5 10 Month Month Rate Units per Day Baseline Goal Actual 400 350 0 5 10 Month How is this process doing? 35 .
Actual Metrics Example Scrap Downtime Defects/Unit 36 .
8 44.Using Pareto’s to Select Projects Pareto Chart for Cause 1800 1600 1400 80 60 40 20 0 100 1000 800 600 400 200 0 Defect Count Percent C m% u 1328 77.0 74 12.2 57.5 164 9.2 91.0 Percent Count Knife Assembly and Inner Gasket are the two major process scrap drivers 600 500 100 80 Percent Count 1200 .0 69.0 24.Inner Gasket 37 100 0 20 0 Defect Count Percent C m% u 148 24.7 80.Knife Assembly .0 128 20.0 198 11.1 100.8 75 12.0 Process Related Scrap is the Highest Major Part Failure due to Process 400 300 60 40 200 Two Potential Projects: .0 77.0 34 2.5 88.5 98.7 69 11.0 72 11.9 50 8.0 100.
Six Sigma Methods PURCH. MAINT.Six Sigma Everywhere SERVICE DESIGN ADMIN. 38 . QA MFG.
The Process Improvement MethodologyTM Process Definition Process Measurement Process Analysis Process Improvement Process Control 39 .
The Process Improvement MethodologyTM Phase 0: Define •Scope and Boundary •Define Defects •Team Charter and Sponsor •Estimated $ Impact Phase I: Process Measurement • Map process and Identify Inputs and Outputs • Cause and Effects Matrix • Establish Measurement System Capability • Establish Process Capability Baseline •Leadership approval Phase II: Process Analysis • Complete FMEA • Perform Multi-vari Analysis • Identity Potential Critical Inputs • Develop Plan for Next Phase Phase III: Process Improvement • Verify Critical Inputs • Optimize Critical Inputs Phase IV: Process Control • Implement Control Plan • Verify Long Term Capability • Continuously Improve Process 40 .