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Six Sigma:: Production & Operations Management
Six Sigma:: Production & Operations Management
At Motorola during this period the design margin for quality had been 4σ,
which was considerably better at 0.621%.
Sometime in 1986 Smith realized that actual quality figures at Motorola did
not match the 4σ deviation for quality, and theorized that the real mean
value could be differing by as much as 1.5σ because of increasing
complexity in systems and the higher probability of one of these many
components to be substandard.
All these deviation values basically led to a goal of 6σ or 3.4 defects per
million opportunities.
At this point Mikel Harry developed the strategic vision for Six Sigma. His
basic ideals were:
– A change in company focus towards preventing defects, not inspecting for them.
– Anchoring quality by dollars (increased spending).
– Finally seeking a whole business transformation.
Developed as a core initiative of the Six Sigma program, the concept shows
the skills and dedication to the methodology of quality, and is designed to
instill pride in the six sigma workforce. The six sigma workforce is broken
down into different organizational groups.
Master Black Belt: Highest level of technical & organizational proficiency. These
individuals provide technical leadership to the program, as well as provide most of
the training. Because of this communications & teaching skills are as important as
technical competence.
Black Belt: A technically minded individual with a strong background in college level
mathematics & statistics. The Black Belt provides much of the quantitative analysis
involved in the daily six sigma project.
Green Belt: Six Sigma project leader, capable of facilitating six sigma teams &
projects from conception to completion. Training for green belts in much less than
Black, with emphasis on project management, and quality control. These individuals
are not employed full time on six sigma projects.
A mature six sigma program has around 1 Master Black Belt for every 1000
employees, a Black Belt completes from 5 to 7 projects a year.
Themes
# Employees QD Dyncorp
Note: QD – Quality Digest Magazine, The Dyncorp percentages do not add to 100 because all respondents were used in
tabulating results, QD numbers are only respondents who have a six sigma program in place. QD refers to the
number of employees as all persons in the employ of the company, Dyncorp does not specify how the number of
employee values were determined.
Along with the wide variety in the size of companies with six sigma programs,
there are also many companies who have been on board the six sigma
philosophy for a number of years.
10-15 1.1%
15+ 1.9%
Note: QD – Quality Digest. QD numbers total 100%, The Dyncorp percentages do not add to 100
because all respondents were used in tabulating results, QD numbers are only respondents who
have a six sigma program in place.
While six sigma is most commonly used in manufacturing processes, the
same methodology can be used to improve other business processes. It can
be used to:
– Identify ways to increase production capacities in equipment.
– Improve on time delivery.
– Reduce cycle time for hiring & training new employees.
– Reduce quality or delivery problems with suppliers.
– Improve logistics.
– Improve quality of customer service.
Also, within a business different functional groups also use six sigma, the
following chart shows results from the same Quality Digest survey
Manufacturing 15.64%
Engineering 10.50%
Test/Inspection 9.06%
Administration 9.03%
Purchasing 7.70%
Sales 6.23%
R&D 5.81%
- Process design: Designed to have the best and most consistent outcome
from the beginning.
- Analysis & reasoning: Using facts to find root cause, instead of educated
guesses & intuition.
- Focus on process improvement as a key to excellence in quality.
- Broader participation in problem solving.
- Goal setting: aiming at stretch goals, not “good enough” targets. This
ensures the company is always striving for improvement.
- Suppliers are no longer evaluated on cost, instead evaluated on relative
capability to consistently provide quality materials with short lead times.
DMAIC Roadmap
Each letter represents a phase in six sigma implementation, from the initial
project design to ensuring the benefits gained using this system stay
implemented.
The DMAIC roadmap is usually implemented for a process that is
underperforming, not a process in the design stage.
D: Define
The purpose of the define phase is to clearly identify the problem, the
requirements of the project, or it’s objectives. These should be critical
issues and aligned with the company business strategy, and the customer
requirements.
At this point fishbone diagrams, process mapping and cause and effect
analysis are useful tools.
A: Analyze
At this point in the process, statistical analysis, as well as the “five why’s”
are useful tools.
I: Improve
Once it is known which inputs affect the outputs most, how can they be
controlled?
How many trials do we need to ensure optimal settings have been
achieved?
Should the old process be improved, or should a new process be designed?
By how much has the defects per million opportunities decreased?
The most applicable tool at this phase is process mapping to show new &
improved processes.
C: Control
Senior management must be committed: without this six sigma projects are
doomed to failure. GE’s success with the program is due to the role Jack
Welch (former CEO) played in advocating the program and integrating it
into the core of business strategy at GE.
Training the right people: The methods of analysis often used for six sigma
projects are technical by nature, and training programs focused on
analytical problem solving skills as well as leadership are critical to initial
momentum. People selected for a six sigma initiative should be motivated
by compensation, rewards, recognition & promotion.
Selecting the right project: Initial six sigma projects should be focused on
key problem areas with impact to critical aspects of business success. Not
all business problems need a six sigma solution.