gianna clark

Six Sigma

2006 North American Young Generation in Nuclear Workshop

May 2006

Gianna C. ClarkManaging Director Six Sigma

Dominion Confidential & Proprietary

Manufacturing• E&P• Generation

Transportation• Pipeline and storage• Electric transmission

Retail• Electric & Gas Distribution• Unregulated Products & Services

Energy . . . Make It, Move It, Sell It


Dominion’s Nuclear Fleet

North AnnaVirginia

SurryVirginia

MillstoneConnecticut

KewauneeWisconsin

North Anna: Two Units – 1786 MW

Surry: Two Units – 1625 MW

Millstone: Two Units – 2020 MW

Kewaunee: Single Unit – 568 MW


Today’s Topics

• What is Six Sigma?

• Six Sigma Methodology - DMAIC

• Six Sigma Roles

• Six Sigma at Dominion


Six Sigma

• Fact based methodology used to achieve,

sustain and maximize business success

• Understands customer needs

• Driven by a disciplined use of data and analysis

• Results in continually improving business

processes

• Brings the benefits of quality to the bottom line


Why Six Sigma at Dominion?

Provides Dominion with an enterprise-

wide methodology for achieving and

sustaining excellence . . . in everything

we do


Sigma

A letter in the Greek alphabet that describes the distribution of any process

Terms

Six Sigma

A philosophy that aims to increase the Sigma Value of all business processes

Sigma Value

A metric that indicates how well a business process is performing


Terms

CustomerAnyone who receives products, service or information (internal or external)

Opportunity Every chance to do something either “Right” or “Wrong”

SuccessEvery result of an opportunity that meets the customer specification

Defect Every result of an opportunity that fails to meet the customer specification


The Sigma Value is derived from the number of Defects Per Million Opportunities (DPMO)

Six Sigma as a Measure

Sigma

1

2

3

4

5

6

DPMO

691,462.1

308,537.5

66,807.2

6209.7

232.7

3.4

Yield (%)

30.854

69.146

93.319

99.379

99.977

99.9997

Isn’t 99% Good Enough?


99.9997% Good (6 Sigma)

•Seven articles lost per hour

• 1.7 incorrect operations per week

• One short or long landing every five years

• 68 wrong prescriptions per year

• One hour without electricity every 34 years

99% Good (3.8 Sigma)

• 20,000 lost articles of mail per hour

• 5,000 incorrect surgical operations per week

• Two short or long landings at most major airports each day

• 200,000 wrong drug prescriptions each year

• No electricity for almost seven hours each month

Practical Meaning of Six Sigma


Who’s Doing it?

Conoco Phillips*

Corning

Dominion*

Dow

Dupont

Entergy*

Home Depot

Allegheny*

Alliant*

American Express

Aquilla*

Bank of America

Carlson

Constellation*

ITT

JP Morgan Chase

Johnson & Johnson

Raytheon

SRS

Westinghouse

Xerox

*Energy/Gas companies

. . . Just to name a few

Bombardier

Caterpillar

General Electric

Honeywell

McKesson

Motorola


Y = f(X)

Output VariableInput or Process Variable

YYProducts

Y

Y

X

X

XInputsX

What is Six Sigma About?

Six Sigma focuses on processes

Source: The Six Sigma Way by Peter S. Pande, Robert P. Neuman, and Roland R. Cavanagh


LSL USL

Process Off Target

TargetMean

Precise

Defects

Good Processes Produce Good Results

LSL

Accurate and Precise

USL

Good Process Control

TargetMean

LSLLSL USL

Excessive Variation

Defects

Accurate

Defects

TargetMean


We don't know what we don't know.

We can't act on what we don't know.

We won't know until we search.

We won't search for what we don't question.

We don't question what we don't measure.

Hence, we just don't know.

What Do We Know About Our Processes?

Ref: Six Sigma Academy


Six Sigma Methodology can be applied to all functions, disciplines, and business processes.

Methodology

When there is an Output, there is a process.

When there is a Process, there is a Six Sigma Opportunity.


Six Sigma Project Methodology“DMAIC”

Define: Identifies areas for making improvements and defines customers, service requirements, and processes

Measure: Evaluates current process performance

Analyze: Identifies where and why the defects or customer dissatisfaction areas occur

Improve: Determines how to improve a process with lasting results

Control: Ensures that the improvement is implemented and sustained

The phases of a Six Sigma Project are:


Define25-50 Inputs Tools are applied

to drill down into a process and identify inputs that need further investigation and improvement

The DMAICDrilldown

Measure10-25 Inputs

Analyze5 -10 Inputs

Improve2-5

Inputs


Blue Belts

• Work large projects • Focus on major process changes and optimization

• Work cross-functional multi-faceted projects

• Work small projects• Focus on incremental process improvementsGreen Belts

Black Belts

MBB

Six Sigma Roles “The Belts”

• Process Mapping• Focus on understanding & documenting processes


More Than 2,000 “Belts” Have Been Trained

May 2006

25860

303

1365

86

0

200

400

600

800

1000

1200

1400

Black Belts /Master Black

Belts

Executive GreenBelts

Green Belts Blue Belts

# ac

tive

em

plo

yees


What Makes Six Sigma Different?

LEADERSHIP

• Commitment

• Involvement

66 METHODOLOGY & TOOLS

• Driven by Data

• Statistically Validated

• Dedicated Resources

• Control Plans

• Financial Validation FOCUS ON THE

CUSTOMER

• Customer Involvement

PROJECTS • Tied to Strategic Objectives


How Projects Create Value

Six Sigma Projects:• Reduce defects• Improve cycle time• Increase customer satisfaction

Which results in:• Improved Performance • Increased revenue• Reduced cost

Selecting projects that support Dominion’s

strategy and

goals ensures that process improvements and resources are focused in areas that maximize business results.


Dominion has used Six Sigma to find innovative ways to:

• Improve customer reliability • Reduce lost day/restricted injuries • Reduce the number of non-economic wells drilled • Reduce gas losses• Increase megawatt-hour production• Recover megawatts• Reduce forced network outages

. . . and bring over $500 million of positive value to the bottom line

Dominion Results


Nuclear Business UnitSix Sigma Project Results

Since deployment• Completed more than 260 projects• Improved hundreds of work processes• Increased production by over 1,000,000

megawatt-hours system-wide

– Reduced outage length by more than 600 hours

– Improved power ascension following outages

• Achieved over $61 million in positive P&L contribution


Six Sigma is teaching our employees to:

. . . which will help us find better ways to make it, move it and sell it.

Six Sigma and Continuous Learning

• Measure what matters• Make data-based decisions• Analyze processes• Manage change• Continuously improve

Six Sigma

. . . It’s Just Good Business

gianna clark

Documents

sigma projects

sigma opportunity

sigma roles

sigma academy

sigma fact

sigma different

sigma methodology dmaic

business processes sigma