Six Sigma is a methodology for disciplined quality improvement. Goal is near elimination of defects from any process, product, or service. GE's implementation is often the de facto model for implementation.
Six Sigma is a methodology for disciplined quality improvement. Goal is near elimination of defects from any process, product, or service. GE's implementation is often the de facto model for implementation.
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Six Sigma is a methodology for disciplined quality improvement. Goal is near elimination of defects from any process, product, or service. GE's implementation is often the de facto model for implementation.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Quality Assurance Institute Presentation Agenda 1. What is Six Sigma Quality? 2. Why would a company adopt Six Sigma? 3. Is there a roadmap to Six Sigma? 4. What are the challenges? 5. What are the rewards? 1. What is Six Sigma Quality? Originated at Motorola With the inclusion of Six in the early 80’s Sigma into a sound Helped Motorola win the business system, the 1988 MBNQA major ingredients of a Total Quality Is a methodology for Management System are disciplined quality usually in place improvement Uses a modified Deming Juran principles apply Wheel (PDCA) Doesn’t use “Quality” in the name JURAN SAID…
“All quality improvement occurs on a
project-by-project basis and in no other way.” What is Six Sigma Quality? Six Sigma’s goal is the Juran once concluded near elimination of that in the US, close to defects from any 1/3 of the work done process, product, or consisted of redoing what had already been service. done. Depending on the The numerical goal is industry, this Cost of 3.467 defects per million Poor Quality (COPQ) opportunities. could be 20 to 40% of total effort! Six Sigma Process Capability SIGMA DPMO COPQ CAPABILITY 6 sigma 3.4 <10% of sales World Class 5 sigma 230 10 to 15% of sales 4 sigma 6200 15 to 20% of sales Industry average 3 sigma 67,000 20 to 30% of sales 2 sigma 310,000 30 to 40% of sales Noncompetitive 1 sigma 700,000 What is Six Sigma Quality? Strategy includes: Implementation is top- – Measure down. CEO drives, and – Analyze executive management provides the Champion for – Improve each project. – Control GE’s implementation is Improvement projects often the de facto model for must be integrated with implementation. the goals of the Uses concept of “belts” for organization. levels of competency in Six Six Sigma uses a “divide Sigma implementation: and conquer” approach – MBB = Master Black Belt as opposed to – BB = Black Belt Continuous Process – GB = Green Belt Improvement. An Example Six Sigma Project: Engineering Changes Define: Large number of changes from client after approving engineering design. Schedule slipping. Measure: Number of changes, time involved in changes, compliance to critical path schedule. Analyze: No clear authority on client team to establish scope, any of client team could make changes, verbal communication of changes, conflicting changes by client team members. Language issues between client and engineers. Improve: Regular engineering/client meetings where topics include: scope for each section and desired objective, known limitations defined, unclear requirements were questioned and options discussed. Written plan signed by client representative and engineering lead. Change requests in writing and signed by client representative. Changes decrease by factor of 4.7 and schedule met. Control: Change requests all in writing. Shared approach with other disciplines on project. From: www.adamssixsigma.com/Sample_Projects/six_sigma_projects.htm What is Six Sigma Quality?
All Six Sigma projects are evaluated
rigorously for financial impact. Most important is the financial cumulative impact of all projects upon the company’s bottom line. Some Results… Motorola – 10 years; $11 Billion Savings Allied Signal - $1.5 Billion estimated savings General Electric – started efforts in 1995 – 1998: $1.2 Billion less $450 Million in costs… net benefits = $750 Million – 1999 Annual Report: more than $2 Billion net benefits – 2001: 6,000 projects completed; $3 Billion in savings Six Sigma according to GE “A highly disciplined process that helps us focus on developing and delivering near-perfect products and services. The word Six Sigma is a statistical term that measures how far a given process deviates from perfection. The central idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible. Six Sigma has changed the DNA at GE – it is the way we work – in everything we do and in every product we design.” 2. Why would a company adopt Six Sigma? Concept has been Continues to evolve at around for 16 years; all organizational isn’t just a fad. levels; from CEO and Six Sigma is the CFO to the Black Belts latest name for a and Green Belts. comprehensive set of Has shown the most philosophies, tools, endurance and return methods, and on investment of any fundamental such “program” till concepts. now. 1. The Roadmap to Six Sigma
North
East West
South
Usually has many twists and turns!
A Road Map for Six Sigma Appoint a Champion Select a Cross-functional team Develop quantifiable goals Develop an implementation plan Establish a training program Address data collection requirements and issues Develop a change control and maintenance program Coordinate your road map
Article by John M. Gross, ASQ, Quality Progress Magazine, November 2001
4. What are the Challenges of Six Sigma? The perception of “Sick Training – especially Sigma” management level Culture change Takes careful preparation and a Understanding the DFSS commitment to the (Design For Six Sigma) foundational change It is not a quick fix nor a efforts required. recipe. Statistical analysis is not Consultants can’t make generally part of the engineering discipline in it happen. most IT shops. What are the Challenges of Six Sigma? Implementation tends to Reliability of data from be uneven and lapses the field. occur frequently. People must not fear giving “bad news”. Not everything has to be Design is critical and yet Six Sigma; this was our many IT organizations downfall on continue to go straight reengineering efforts! from poor requirements Lack of discipline and into coding without the accountability. benefits of even one design review. 5. What are the Rewards of Six Sigma? Improved reliability Increased marketplace and predictability of viability. software products Organizational and services. Increased value to recognition. the customers and Significant reduction shareholders. in defects. Improvements in Institutionalization of organizational a “process” mindset. morale. Some References Joseph M. Juran: Juran’s Quality Handbook (McGraw-Hill, 1999)
Mikel J. Harry: Six Sigma, A Breakthrough Strategy for
Profitability (Quality Progress, May 1998)
William J. Hill: Six Sigma at Allied Signal, Inc. (Presentation at
1999 Q&P Research Conference, May 1999)
Jack Welch: Six Sigma, the GE Way
Six Sigma Forum Magazine: www.asq.org/pub/sixsigma
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