Professional Documents
Culture Documents
Six Sigma
Six Sigma
Basics
Scientific:
• Structured approach. “Show me
• Assuming quantitative data. the data”
”Show me
the money” Practical:
• Emphasis on financial result.
• Start with the voice of the customer.
Where can Six Sigma be applied?
Service
Design
Management
Purchase
IT
Quality
Depart.
HRM M&S
The Six Sigma Initiative
integrates these efforts
Knowledge
Management
‘Six Sigma’ companies
Companies who have successfully
adopted ‘Six Sigma’ strategies include:
GE “Service company” - examples
Quality Improvement
Facilitators
Soft Skills
Reality
Six Sigma through the correct application
of statistical tools can reap a company
enormous rewards that will have a positive
effect for years
or
Six Sigma can be a dismal failure if not
used correctly
ISRU, CAMT and Sauer Danfoss will
ensure the former occurs
Six Sigma
The precise definition of Six Sigma is not
important; the content of the program is
A disciplined quantitative approach for
improvement of defined metrics
Can be applied to all business
processes, manufacturing, finance and
services
Focus of Six Sigma*
Accelerating fast breakthrough
performance
Significant financial results in 4-8
months
Ensuring Six Sigma is an extension of
the Corporate culture, not the program
of the month
Results first, then culture change!
*Adapted from Zinkgraf (1999), Sigma Breakthrough
Technologies Inc., Austin, TX.
Six Sigma: Reasons for Success
Data
Facts
INDUCTION INDUCTION
Theory
Hypothesis DEDUCTION DEDUCTION
Conjecture
Idea
Model Plan
Act Do
Check
Improvement cycle
PDCA cycle
Plan
Act Do
Check
23
Alternative interpretation
Prioritise (D)
Target = m
Statistical background
‘Control’ limits
+/ - 3s
Target = m
Statistical background
Required Tolerance
LSL USL
+/ - 3s
Target = m
Statistical background
Tolerance
LSL USL
+/ - 3s
Target = m
+/ - 6s
Six-Sigma
Statistical background
Tolerance
LSL USL
+/ - 3s
1350 1350
ppm ppm
Target = m
+/ - 6s
Statistical background
Tolerance
LSL USL
+/ - 3s
1350 1350
ppm ppm
0.001 0.001
ppm ppm
Target = m
+/ - 6s
Statistical background
Tolerance
LSL US L
1.5s
3.4 66803
0 ppm ppm ppm 3.4
ppm
+/ - 6s
Performance Standards
s PPM Yield
2 308537 69.1%
3 66807 93.3% Current standard
4 6210 99.38%
5 233 99.977%
6 3.4 99.9997% World Class
Number of processes 3σ 4σ 5σ 6σ
1 93.32 99.379 99.9767 99.99966
10 50.09 93.96 99.77 99.9966
100 0.1 53.64 97.70 99.966
500 0 4.44 89.02 99.83
1000 0 0.2 79.24 99.66
2000 0 0 62.75 99.32
2955 0 0 50.27 99.0
Financial Aspects
Control
Improvement
Deduction Induction
Hypothesis
No Checking with Empirical Evidence, No
Learning Process
An Alternative:
Result-Driven Improvement Programs
Result-Driven Programs: Focus on
achieving specific, measurable, operational
improvements within a few months
Examples of specific measurable goals:
Increase yield
Reduce delivery time
Increase inventory turns
Improved customer satisfaction
Reduce product development time
Result Oriented Programs
Project based
Experimental
Guided by empirical evidence
Measurable results
Easier to assess cause and effect
Cascading strategy
Why Transformation
Efforts Fail!
John Kotter, Professor, Harvard Business
School
Leading scholar on Change Management
Lists 8 common errors in managing
change, two of which are:
• Not establishing a sense of urgency
• Not systematically planning for and
creating short term wins
Six Sigma Demystified*
Six Sigma is TQM in disguise, but this
time the focus is:
Green Belts
Provide assistance to Black Belts in Six Sigma
projects
Undergo only two weeks of statistical and
problem solving training
Six Sigma instructors (ISRU)
Aim: Successfully integrate the Six Sigma
methodology into a company’s existing culture
and working practices
Key traits
Knowledge of statistical techniques
Ability to manage projects and reach closure
High level of analytical skills
Ability to train, facilitate and lead teams to
success, ‘soft skills’
Six Sigma training
package
Aim of training package
DMAIC
Example of a Classic Training strategy
Define
Throughput time project
Measure
4 months (full time)
Analyze
Training (1 week)
Improve
Work on project
(3 weeks)
Control Review
ISRU program content
Jan 2003 Feb 2003 Mar 2003 Apr 2003 May 2003 Jun 2003 Jul 2003
No. Black Belt work package tasks Start End Duration
1/5 1/12 1/19 1/26 2/2 2/9 2/16 2/23 3/2 3/9 3/16 3/23 3/30 4/6 4/13 4/20 4/27 5/4 5/11 5/18 5/25 6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Measure
Analyze
Improve
Control
Deployment (Define) phase
Topics covered include
Team Roles
Presentation skills
Project management skills
Group techniques
Quality
Pitfalls to Quality Improvement projects
Project strategies
Minitab introduction
Measurement phase
Topics covered include:
Quality Tools
Risk Assessment
Measurements
Capability & Performance
Measurement Systems Analysis
Quality Function Deployment
FMEA
Example - QFD
A method for meeting customer
requirements
Uses tools and techniques to set product
strategies
Displays requirements in matrix diagrams,
including ‘House of Quality’
Produces design initiatives to satisfy
customer and beat competitors
House Of Quality 5. Tradeoff
matrix
Importance 3. Product
characteristics
Start-up costs
Engineering changes
Analysis phase
Topics include:
Hypothesis testing
Comparing samples
Confidence Intervals
Multi-Vari analysis
ANOVA (Analysis of Variance)
Regression
Improvement phase
Topics include:
Control charts
SPC case studies
EWMA
Poka-Yoke
5S
Reliability testing
Business impact assessment
Example - SPC (Statistical Process Control)
Disturbed process
Temporary
Natural process upsets
Natural boundary
Natural boundary
Results of SPC
Black Belt
Review Training
ISRU, ISRU
Champion Application
ISRU,
Champion
Conducting projects
Define
Select:
- the project
- the process
- the Black Belt
- the potential savings
- time schedule
- team
Project selection
Consultancy
Training
Major Research Projects
Transco
Prescription Pricing Agency
Silverlink
or Flexible training
or Open Learning
your time
your place
your study pattern
your pace
Distance Learning
http://www.ncl.ac.uk/blackboard
Clear descriptions
Step by step guidelines
Case studies
Web links, references
Self assessment exercises in ‘Microsoft
Excel’ and ‘Minitab’
Help line and discussion forum
Essentially a further learning resource for Six
Sigma tools and methodology
Case study
Case study: project selection
Savings:
Coffee -Savings on rework and scrap
beans -Water costs less than coffee
Roast Potential savings:
500 000 Euros
Cool
Grind
Moisture
Pack content
Sealed
coffee
Case study: Measure
1. CTQ
Moisture contents of
roasted coffee
2. Standards
- Unit: one batch
- Defect: Moisture% > 12.6%
Case study: Measure
3. Measurement reliability
Measurement system
too unreliable!
So fix it!!
Case study: Analyse
Analyse
4. Establish product capability
5. Define performance
objectives
6. Identify influence factors
Improvement opportunities
USL
USL
Diagnosis of problem
CTQ
CTQ
CTQ
CTQ
Discovery of causes
6. Identify factors
Man Machine Material
-Brainstorming
-Exploratory data analysis
Roasting
machines
Batch
size
Moisture%
Amount of Reliability Weather
added water of Quadra Beam conditions
Control chart
Regelkaart voor for moisture%
Vocht%
5.2
1
1
1
Individual Value
3.0SL=4.410
4.2
X=3.900
-3.0SL=3.390
3.2
0 10 20 30 40 50
Observation Number
A case study
Potential influence factors
Improve
7. Screen potential causes
8. Discover variable
relationships
9. Establish operating
tolerances
Case study: Improve
X
X
X: Settings with which
X an experiment is run.
X
X
X Actually:
X
• we’re just trying
• unsystematical
• no design/plan
Possible settings for X1
Experimentation
A systematical experiment: Organized / discipline
One factor at a time
Other factors kept constant
Possible settings for X2
X Procedure:
X: First vary X1; X2 is kept constant
X
X O: Optimal value for X1.
X X X X X X XO X X X
X X: Vary X2; X1 is kept constant.
X : Optimal value (???)
X
X1 1
2
low high
X2 2
2
3
2
X2
low
X1
high
X3
low
X1 high
Advantages of multi-factor
over one-factor
A case study: Experiment
Experiment:
14
Y: moisture% 13
Moisture
X2: Batch size (kg) 11
10 110
105
600 100 Water
610 95
620
630
Batch size 640
A case study
4.35
4.25
4.15
4.05
3.95
1
53
105
157
209
261
313
365
417
469
521
573
625
677
729
781
833
885
937
989
Moisture% Vocht%
without adjustments
A case study: feedback adjustments
4.35
4.25
4.15
4.05
3.95
1
53
105
157
209
261
313
365
417
469
521
573
625
677
729
781
833
885
937
989
Controlled Vocht%
Moisture% with adjustments
Case study: Control
Control
10. Validate measurement
system (X’s)
11. Determine process
capability
12. Implement process
controls
Results
Before
slong-term = 0.532
ProcessCapability
Process CapabilityAnalysis
Analysisfor
forMoisture
Moisture
ObjectiveProcess Data
Process Data
USL
USL
USL 12.6000
Project closure
- Documentation of the results and
data.
- Results are reported to involved
persons.
- The follow-up is determined
Six Sigma approach to this project
- Step-by-step approach.
- Constant testing and double checking.
- No problem fixing, but: explanation control.
- Interaction of technical knowledge and
experimentation methodology.
- Good research enables intelligent decision
making.
- Knowing the financial impact made it easy to find
priority for this project.
Re-cap I!
Structured approach – roadmap
Systematic project-based improvement
Plan for “quick wins”
Find good initial projects - fast wins
Publicise success
Often and continually - blow that trumpet
Use modern tools and methods
Empirical evidence based improvement
Re-cap II!