Kaizen and Six Sigma

Kaizen
Kaizen is... ... a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership

Kaizen was created in Japan following World War II. The word Kaizen means "continuous improvement". It comes from the Chinese characters ("kai") which means "change" or "to correct" and ("zen") which means "good". .

Kaizen (Continuous Improvement)    Focus on gradual and continuous improvement A whole business philosophy Importance of EVERYONE buying into the concept and the vision .

It is a new way of doing business that would eliminate the existing defects efficiently and would prevent defects from occurring. .Six Sigma Methodology Six Sigma relies heavily on advanced statistical methods that complement and reduce the process and product variations.

training and planning .     Coined by Motorola Engineer Bill Smith Now a major influence on production methods and quality assurance Data and statistical driven approach to eliminate defects in production Aims to improve processes and reduce variations in quality Necessitates organisational change.

Merrill Lynch and General Electric."Zero Defect"    "Defect" ± any product or service that does not conform to the set standards or satisfaction of the customer. Early adopters include Bank of America. Caterpillar. Six Sigma is a concept that tries to achieve a near zero defect with 3. Now. Raytheon. What Is Six Sigma? 7 . Honeywell International (previously known as Allied Signal).4 defects in a million events.

This leads to defect reduction and improvement in profits. What Is Six Sigma? 8 . product quality and finally customer satisfaction. updating and re-tuning the existing process. It allows for only 3.4 defects per million opportunities for each product or service transaction. Six Sigma improves the process performance. decreases variation and maintains consistent quality of the process output. Six Sigma Strives for perfection.What is Six Sigma?     A methodology to improve a business process by constantly reviewing. employee morale. Six Sigma relies heavily on statistical techniques to reduce defects and measure quality.

Motorola has reported >US$17b savings as of 2006. Honeywell International (previously known as Allied Signal). Caterpillar.4 Defects Per Million Opportunities (DPMO). etc. by Bill Smith at Motorola in 1986. What Is Six Sigma? 9 . Pioneered in the U.Evolution of Six Sigma     Japan has been credited with the evolvement of Quality Systems like TQM. Raytheon.S. a methodology to reduce defect levels <3. The reason for this was knowledge of the statistical tools in the manufacturing functions and the ease with which we can quantify the benefits. Kaizen. Early adopters include Bank of America. Kanban. originally used as a metric for measuring defects for improving quality. Six Sigma was originally centered around manufacturing improvements. Merrill Lynch and General Electric.

The higher the sigma level the better the quality level. represents one standard deviation from the normal or average.Six Sigma levels and Process   The Greek letter for Sigma. W . Levels of Sigma Performance What Is Six Sigma? 10 .

Inc. What Is Six Sigma? 11 . Six Sigma is all three at the same time. is a registered service mark and trademark of Motorola. Three levels of Six Sigma:    As a Metric As a Methodology As a Management system  Essentially.

4 defects per one million opportunities (DPMO). Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.   Equates to 3. What Is Six Sigma? 12 .1. As a Metric  The term ³Sigma´ is often used as a scale for levels of "goodness" or quality.

As a Methodology  A business improvement methodology that focuses an organization on:     Understanding and managing customer requirements Aligning key business processes to achieve those requirements Utilizing rigorous data analysis to minimize variation in those processes Driving rapid and sustainable improvement to business processes What Is Six Sigma? 13 .2.

i.e.. 3.4 defects per million. What Is Six Sigma? 14 .The DMAIC model  Motorola developed a five phase approach to the Six Sigma Process called DMAIC which is a continuous process as the diagram shows until the highest level in the Six Sigma is achieved.

 At the heart of the methodology is the DMAIC model for process improvement      Define opportunity Measure performance Analyze opportunity Improve performance Control performance What Is Six Sigma? 15 .

What Is Six Sigma? 16 .

and improved business results.3. sustainable. and it leverages leaders who will manage the efforts for rapid. What Is Six Sigma? 17 . As a Management system  A top-down solution to help organizations:     Align their business strategy to critical improvement efforts Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are sustained  Framework to prioritize resources for projects that will improve the metrics.

4. 3. Master Black Belts: These are the people who conduct Six Sigma Training and also have on the job training and experience What Is Six Sigma? 18 .Levels of Six Sigma Implementation 1. Their cooperation and involvement is necessary for projects success. Six Sigma Champion: Champions undergo five days of training and are taught how to manage projects and act as advisors to various project teams. Green Belts: They undergo two weeks of training that includes project-oriented tasks. 2. They act as team members to the Six Sigma project team. They are the project leaders and go through in-depth training on Six Sigma approach and tools and work full time on the project. Black belts: They receive four weeks of trainings and are directly involved in the implementation of Six Sigma Projects.

Some Six Sigma Tools .

Six Sigma teams can more effectively focus on the activities that mean the most to the customer. communicate.Quality Function Deployment    QFD helps Six Sigma Black Belts drive customer-focused development across the design process. and align with the mission of the organization. beat the competition. What Is Six Sigma? 20 . and prioritize customer requirements. Did you know? With QFD. QFD is a system and set of procedures to identify.

prioritize. What Is Six Sigma? 21 . The C&E Matrix is a tool that helps Six Sigma teams select.Cause and Effect Matrix     The C&E Matrix helps Six Sigma project leaders facilitate team decision-making. The C&E Matrix is particularly great for obtaining team consensus on the potential relationships between factors that affect a process and the output of that process. and analyze the data they collect over the course of a project to identify problems in that process. Six Sigma teams typically use the C&E Matrix in the Measure phase of the DMAIC methodology.

Did you know? An effective FMEA identifies corrective actions required to prevent failures from reaching the customer and will improve performance. quality. and reliability. or services. processes. Six Sigma teams use FMEA to identify ways their new introductions might fail.Failure Modes Effects Analysis    FMEA helps Six Sigma teams to identify and address weaknesses in a product or process. Before implementing new products. before they occur. and then to develop preventative measures targeted at the failure scenarios. What Is Six Sigma? 22 .

t-test    The t-test helps Six Sigma teams validate test results using small sample sizes. before and after they receive a drug. Six Sigma teams might use it to determine if a plan for a comparative analysis of patient blood pressures. The t-test is used to determine the statistical difference between two groups. While an executive at the brewery in Dublin.S. is likely to provide reliable results. not just a difference due to random chance. Gossett's creation of the t-test. What Is Six Sigma? 23 . Gossett created the ttest to help select the best barley for Guinness beer. Did you know? Guinness Brewery is the work environment that led to W.

The three basic components of any control chart are a centerline. upper and lower statistically determined control limits. Control Charts are a simple but highly effective tool for monitoring and improving process performance over time because they help Six Sigma teams to observe and analyze variation.Control Charts    Six Sigma teams use Control Charts to assess process stability. What Is Six Sigma? 24 . and performance data plotted over time.

analysis and interpretation strategy used by Six Sigma professionals. design.Design of Experiments    DOE helps Six Sigma Black Belts make the most of valuable resources. What Is Six Sigma? 25 . DOE is a statistical technique that encompasses the planning. Did you know? Six Sigma teams use DOE to determine the relationship between factors (Xs) affecting a process and the output of that process (Y). data collection.

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