Transcript
Page 1: Six Sigma Overview Lynn Cavanaugh, Black Belt

Six Sigma Overview

Lynn Cavanaugh, Black BeltSeptember 2005

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Sigma as a Measure

Six Sigma is a disciplined, data-driven methodology to eliminate defects in a process

A way to assess performance of a process Devised at Motorola in 1987 Higher the process sigma, the fewer the defects

Focused on customer requirements Internal, but especially external customers Track Defects (aka CTQs) that affect satisfaction, loyalty,

revenue, market share

Allows comparison of differing processes Marketing, Accounting, Manufacturing, Finance, Order

Fulfillment, etc. in common terms Adjust for complexity of the work, product, service

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Six Sigma

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Six Sigma as a Goal

Examples of what Six Sigma means in

business

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Deployment

Six Sigma is deployed by individuals certified in the methodology including: Green Belt - certified to participate in the

process Black Belt - certified to lead Six Sigma projects Master Black Belt - certified to train and certify others

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Six Sigma Methods

DMAIC Define, Measure, Analyze, Improve, Control Used to improve existing processes

DMADV / DFSS Define, Measure, Analyze, Design, Verify Used to develop new processes or implement new

technologies May be referred to as DFSS

Process Management Reviewing and analyzing an entire work process

from end to end

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Methodology Integration

Intiation Planning Execution Closure

Define Measure Analyze Improve Control

Inception Elaboration Contruction Transition

Pro

ject

M

anag

emen

t Li

fe C

ycle

DM

AIC

M

etho

dolo

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UP

M

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The matrix below defines how various methodologies align

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Process Design Flow

CustomerContact Point

Critical-to-QualityFeature 1

Defect 1

Root Cause 1

Solution 1

Critical-to-QualityFeature 2

Defect 2 Defect 3

Root Cause 4Root Cause 3Root Cause 2 Root Cause 5

Solution 2 Solution 3 Solution 4

Project 1 Project 2

Defect 4

Recognize

Define

Measure

Analyze

Improve

Control

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DMAIC Cycle - Define

Select specific problem/opportunity An appropriate DMAIC project Meaningful and Manageable

Create a Project Charter Validated by leadership Identifying key contributors

Define the process and

customer(s)

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Definition Stage Activities

Define Critical Customer Requirements Develop Team Charter Map “As Is” Business Process Complete SIPOC Develop the Business Case including high level

project plan

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SIPOC

A document that defines the context, specifics and plans of an improvement or design project

Define (and narrow) the project’s focus Clarify the results being sought Confirm value to the business Establish boundaries and resources for the

team Communicate goals and plans

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SIPOC

Suppliers Input Process Output CustomerClients Requirements Profile ClientSales People Resumes Interview Summaries Sales PeopleCandidates Profiles Offer Letters Delivery ManagementWeb Site Margin Template Candidate/EmployeeRecruiting Data Base

Get Requirement

Search for Candidate

Screen Candidate

Make Offer Fill RequirementPresent

Candidate

Example - SIPOCA SIPOC will allow your project team to put parameters around

the process being reviewed and identify the areas impacted both up and down stream

Suppliers – who feeds the process Inputs – what do they feed Process – steps in the process Outputs – outputs of the process Customer – who pulls from the process

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DMAIC Cycle - Measure

Determine what to measure and why Prepare plans to collect output, process

and/or input data Construct forms and test data collection

procedures Refine data collection Refine DMAIC Charter

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Measure Stage Activities

Identify Key Measurements Data Collection Plan Data Collection Execution Document Process Variations Establish Performance Baseline

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Input – Process – Output Measures

A DMAIC team must get Output measure(s) “upfront” to baseline the process/problem Focus on your Goal target or “Project Y”

Output measures can be taken before or after the “product” is delivered to the customer E.g., defects caught in-house prior to shipment vs. upon

delivery

There are usually more “options” for Process measures than Output or Input measures

Use your SIPOC diagram and sub-process maps to help select measures and ensure “balance”

Consider possible “X” measures early in the project to help get some initial data for the Analyze phase

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Review Y and X Measures

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Process Measurement Example

Delivery Time in Days

Critical Customer Requirement = 9.4 days

Defects: Service unacceptable to

customer

Nu

mb

er O

rder

s F

ille

d

Variation in results

1 2 3 4 5 6 7 8 9 10 11 12

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DMAIC Cycle - Analyze

Current state analysis Is the current state as good as the process

can do? Who will help make the changes? Resource requirements What could cause this change effort to fail? What major obstacles do I face in completing

the project?

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Analysis Stage Activities

Validate “As Is” Process Map Complete Root Cause Analysis

Fishbone Diagram House of Quality

Develop “To Be” Process Map Complete Gap Analysis

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Process Analysis

Disconnects Bottlenecks Redundancies Rework loops Decisions/Inspections Moves

Look for points in the process where work may be disrupted or delayed,

or where defects may be created.

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Analyze Current Process

Process Flow Example

Sys

tem

sM

anag

emen

t /

Oth

erLi

st S

elec

tion

Mar

ketin

g

Revise List Order to Reflect Cut-

Backs, Nth Requests

List Selection

Key in List Order in Vendor's Language

ExcelList Order /

Audit Spreadsheet

Vendor

ExcelList Order

List Selection

Complete Trial Run

Review and Approve Trial Run

VendorData Base

VendorData Base

Order Vendor Suppression Files

Audit with Excel Spreadsheet and Approve, Send to

List Selection

Review and Approve Trial Run

Develop List Order Instructions

Complete Internal List Order Using Instructions from DataBase Mgr

Work Flow Loop

Mrkt Manager

Review, Recommend Cut-

Backs

ExcelList Order

ExcelList Order

SAS

Dat

aBas

eM

anag

emen

t

Revise if Necessary, Place

Order with List Broker

Prepare External List Order

Mktg Manager

Review, Recommend Cut-

Backs

Vendor DataBase

ExcelList Order

ExcelList Order

List Selection

Revise if Necessary, Send Order to Vendor

Use symbols and colors to help you analyze the current state

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DMAIC Cycle - Improve

Create innovative ideas for improvement Narrow, screen and select best solution

possibilities Understand best practices for process

workflow Develop pilot and define implementation

strategies What is the work breakdown structure? What specific activities are necessary to meet the

project goals? How will I re-integrate the various subprojects?

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Improve Stage Activities

Define Solution Include IT when defining technical solutions

Develop Work Breakdown Structure Develop Implementation Plan Complete FMEA

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Generate and Select Solutions

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FMEA

Failure Modes & Effects Analysis Method to assess and plan for problems which

could impact safety, reliability, customer satisfaction, profits, etc. Failure Modes = types of possible error or defect

Looks at common or rare events and relative risk

Also a tool for process owners to allocate measurement and prevention resources (Control)

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Example - FMEA

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DMAIC Cycle - Control

How will I control risk, quality, cost, schedule, scope and changes to the plan?

What types of progress reports should I create?

How will I assure that the business goals of the project were accomplished?

How will I keep the gains made?

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Control Stage Activities

Complete Process Standardization Validate Process Map Develop Process Documentation

Develop Monitoring Plan Develop Response Plan Complete Transfer of Ownership

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Control Plan

Control Plan = FMEA + Monitoring + Response

From Improve Phase New!Dashboard/Control ChartVOC Systems

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Summary

Six Sigma 3.4 Defects per Million Opportunities

DMAIC Define Measure Analyze Improve Control

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Define What is the business case for the

project? Identify the customer Current state map Future state map What is the scope of the project? Deliverables Due date

Control During the project, how will I

control risk, quality, cost,schedule, scope and changes tothe plan?

What types of progress reportsshould I create?

How will I assure that thebusiness goals of the projectwere accomplished?

How will I keep the gains made?

Measure What are the key metrics for this

business process? Are metrics valid and reliable? Do we have adequate data on

this process? How will I measure progress? How will I measure project

success?

Analyze Current state analysis Is the current state as good as

the process can do? Who will help make the changes? Resource requirements What could cause this change

effort to fail? What major obstacles do I face in

completing the proejct?

Improve

What is the work breakdownstructure?

What specific activities arenecessary to meet the projectgoals?

How will I re-integrate the varioussubprojects?

Nex

tP

roje

ct

DMAIC Cycle

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Closing

Questions and Answers

Lynn CavanaughVice PresidentWells Fargo Home MortgageCell – (515)988-7779eMail – [email protected]


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