Six sigma Orientation

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expectatio ns

•What is Quality? •Know Six Sigma •Awareness with respect to origin and history of Six Sigma. •The utility and benefits •Introduction to Six Sigma as methodology •The Six Sigma organization

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What is Quality?

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Evolution of Quality

Reactive Quality Quality Checks (QC) - Taking the defectives out of what is produced

Proactive Quality “Create process that will produce less or no defects”

Historically

Contemporary

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Segments in Quality
Methodologies •Six Sigma •Lean Standards •ISO 9000, ISO 14000 etc. •COPC •Malcolm Baldrige
Sharing Benchmarked practices“Standardizing”

Capability Models •eSCM •CMM •CMMI

Scientific way to improve capability?

Best practices to build capability

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What is Six Sigma?
• It is a methodology for continuous improvement • It is a methodology for creating products/ processes that perform at high standards • It is a set of statistical and other quality tools arranged in unique way • It is a way of knowing where you are and where you could be! • It is a Quality Philosophy and a management technique

Six Sigma is not:
• A standard • A certification • Another metric like percentage

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Two Meanings of Sigma

σ
• The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure. • For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigma capability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction.

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Path to Six Sigma

6 Sigma
Sigma levels and Defects per million opportunities (DPMO)

3.4 Defects

5 Sigma

233 Defects

4 Sigma 3 Sigma 2 Sigma
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6,210 Defects

66,807 Defects

308,537 Defects

What it means to be @ Six Sigma
Is 99% (3.8σ) good enough?
20,000 lost mails per hour Unsafe drinking water almost 15 minutes each day 5,000 incorrect surgical operations per week 2 short or long landings at most major airports daily 200,000 wrong drug prescriptions each year

99.99966% Good – At 6σ
7 lost mails per hour One minute of unsafe drinking water every seven months 1.7 incorrect surgical operations per week One short or long landing at major airports every five years 68 wrong drug prescriptions each year

Example quoted from GE Book of Knowledge - copyright GE
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Origin of Six Sigma Motorola

the company that invented Six Sigma
• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola • Late 1970s - Motorola started experimenting with problem solving through statistical analysis • 1987 - Motorola officially launched it’s Six Sigma program

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The Growth of Six Sigma GE

the company that perfected Six Sigma
• Jack Welch launched Six Sigma at GE in Jan,1996 • 1998/99 - Green Belt exam certification became the criteria for management promotions • 2002/03 - Green Belt certification became the criteria for promotion to management roles

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The Growth of Six Sigma

The GE model for process improvements

Define

Measure Analyze Improve Control

Combination of change management & statistical analysis

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The Growth of Six Sigma

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Three Methodologies of Six Sigma

Business Process Management System

BPMS

Six Sigma Improvement Methodology

DMAIC

Creating new process which will perform @ Six Sigma

DMADOV

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Business Process Management System

BPMS

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The Need of BPMS
• To understand the process; it’s mission, flow and scope • To know the customers and their expectations • To identify, monitor and improve correct performance measures for the process

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The Methodology
Map process steps, identify input/ output measures
Define Process Mission Map Process

MSA, DCP, indicators and monitors

Service excellence and process excellence
Develop Dashboards Identify Improvement Opportunities

VOC and VOP

Build PMS

Define purpose of the process, its goal and its boundaries

Identify Critical to Quality and Critical to process

Visual representatio n of performance

The DMAIC cycle

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Six Sigma Improvement Methodology

DMAIC

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What is DMAIC ?
• A logical and structured approach to problem solving and process improvement • An iterative process (continuous improvement) • A quality tool with focus on change management

Effectiveness

E

=

Quality Acceptance Improvement

Q

x

A

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The Approach
Practical Problem

Statistical Problem

Statistical Solution

Practical Solution

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Methodology
D Define M Measure A Analyze I Improve C Control
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Identify and state the practical problem

Validate the practical problem by collecting data

Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solution

Convert the statistical solution to a practical solution

Define
D Define M Measure A Analyze I Improve C Control
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VoC - Who wants the project and why ?

The scope of project / improvement

Key team members / resources for the project

Critical milestones and stakeholder review

Budget allocation

D

Measure
D Define M Measure A Analyze I Improve C Control
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Ensure measurement system reliability
- Is tool used to measure the output variable flawed ? - Do all operators interpret the tool reading in the same way ?

Prepare data collection plan
How many data points do you need to collect ? How many days do you need to collect data for ? What is the sampling strategy ? Who will collect data and how will data get stored ? What could the potential drivers of variation be ?

Collect data

M

Analyze
D Define M Measure A Analyze I Improve C Control
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Understand statistical problem

Baseline current process capability

Define statistical improvement goal

Identify drivers of variation (significant factors)

A

Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone) • A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process • Visualize the potential relationship between causes which may be creating problems or defects Primary Cause Secondary Cause

Backbon e

Proble m
Root Cause

A

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Analyze – Identify Drivers of Variation
Control – Impact Matrix • A visual tool that helps in separating the vital few from the trivial many

Control
Vital Few

Impact

High Control – High Impact

Cost Ineffective
Low Control – High Impact

Cost Ineffective
High Control – Low Impact

Trivial Many

Low Control – Low Impact

A

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Analyze – Identify Drivers of Variation
Pareto Chart
• Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors)
35 30 25 20 15 10 5 0 L K A F B C G R D 100% 80% 60% 40% 20% 0%

Frequency
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Cumulative Frequency

A

Analyze – Identify Drivers of Variation
Process Map Analysis
• Visually highlights hand off points / working relationships between people, processes and organizations • Helps identify rework loops and non value add steps
Customer Process A Process B Vendor

A
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Analyze – Identify Drivers of Variation
Hypothesis Testing
• A statistical tool used to validate if two samples are different or whether a sample belongs to a given population Null Hypothesis (Ho) is the statement of the status quo Alternate Hypothesis (Ha) is the statement of difference Homogeneity of Variance One way ANOVA Moods Median

Chi-Square

Regression

A

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Improve
D Define M Measure A Analyze I Improve C Control
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Map improved process

Pilot solution

Identify operating tolerance on significant factors

I

Control
D Define M Measure A Analyze I Improve C Control
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Ensure measurement system reliability for significant factors
- Is tool used to measure the input / process variables flawed ? - Do all operators interpret the tool reading in the same way ?

Improved process capability

Sustenance Plan
- Statistical Process Control - Mistake Proofing - Control Plan

C

Control – Sustenance Plan
Control Plan
• Have the new operating procedures and standards been documented ? • What Statistical Process Control (SPC) tools will be used to monitor the process performance ? • Who will review the performance of the output variable and significant factors on closure of the project and how frequently ? • What is the corrective action or reaction plan if any of the factors were to be out of control ?

C

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Six Sigma Organization

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Six Sigma - Three Dimensions
Customer Process A Process B Vendor

Define

Measur e

Analyze

Improve

Control

Driven by custom er needs
LSL US L

Process Map Analysis

Led by Senior Mgmt

Methodology

Organization

Tools

Upper/Lower specification limits

• • •••• ••••••••••• • •••••• • ••••• • Regression
35 30 25 20 15 100% 80% 60% 40% 20% 0% L K A F B C G R D

Enabled by quality team.

Process variation

10 5 0

Frequency

Cumulative Frequency

Pareto Chart

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The Quality Team
Master Black Belt

- Thought Leadership - Expert on Six Sigma - Mentor Green and Black Belts

Black Belt

Black Belt -

Backbone of Six Sigma Org Mentor Green Belts Full time resource Deployed to complex or “high risk” projects

Green Belt

Green Belt Green Belt

- Part time or full time resource - Deployed to less complex projects in areas of functional expertise

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Six Sigma – Career Option!
Green Belt (GB)
• Basic - Six Sigma Awareness • Green Belt Projects • Participate in Black Belt Projects • Assist business functions with day to day activities • Mentor/Train Green Belts • Black Belt Projects • Change Agents • Work along with the business owners • Mentor/ Train Black Belts • Run Strategic projects • More Strategic than tactical role

Black Belt (BB)

Master Black Belt (MBB)

Highly paid! Work like a Consultant! Huge demand in the industry! Overall…A high flying Career!!

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Thank You

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