introduction to sixsigma

0613 Silicon valleySixsigma

Introduction to Six sigma(Presented for Silicon Valley SPIN)

Compiled & Presented by Govind Ramu, P.Eng,ASQ CQMgr, CQE, CSSBB, CQA, CSQE, CRE,

Senior Member ASQ,QMS 2000 Principal Auditor IRCA (UK)

Past Section Chair Ottawa Valley- ASQ Canadahttp://www.asq.org/sixsigma/about/govind.html

Source of the material: Various, mostly web search.

http://www.asq.org/sixsigma/about/govind.html

Objectives• Gain an introductory-level understanding of Six

Sigma methodology.• Brief history of Six sigma • Tools & applications.• Understand the roles and responsibilities of Six

Sigma practitioners• Identify some of the benefits of Six Sigma as a

business improvement methodology• Global Trends• ASQ Certification/ others – Six sigma

What Six Sigma Means

“Past definitions of quality focused on conformance to standards, as companies strived to create products and services that fell within certain specification limits.” -Mikel Harry and Richard Schroeder

What Six Sigma Does

“...this Six Sigma journey will change the paradigm from fixing products so they are perfect to fixing processes so that they produce nothing but perfection, or close to it.” - Jack Welch

Performance in Context

• 20,000 lost articles of mail per hour

• Unsafe drinking water for almost 15 minutes each day

• 5,000 incorrect surgical operations per week

• 340 Passengers with Misplaced Luggage every day

• 200,000 wrong drug prescriptions each year

• Seven articles lost per hour

• One unsafe minute every seven months

• 1.7 incorrect operations per week

• 6 Passengers with Misplaced luggage each month

• 68 wrong prescriptions per year

99.73% Good (3.0 Sigma) 99.99966% Good (6 Sigma)

Basic Six Sigma Philosophy

Shift the Focus of Quality from Inspecting the outputs (critical To Quality characteristics)

to…

Inspecting the Key inputs/controls to the process (critical to Process characteristics) to

ensure a high yield output

The Focus of Six Sigma

f (X)f (X)Y=Y=

If we are so good at X, why do we constantly test and inspect Y?

• Y• Dependent• Output• Effect• Symptom• Monitor

X1 . . . XN

IndependentInput-ProcessCauseProblemControl

• To get results, should we focus our behavior on the Y or X ?

Design Opportunity

1000:1PRODUCT

DEFINITION 100:1PRODUCTDESIGN 10:1

PROCESSDESIGN 1:1

PRODUCTION PRODUCTIMPROVEMENT

1000:1ROBUST

TECHNOLOGY

LOW VISIBILITYHIGH RETURNS

HIGH VISIBILITYLOW RETURNS

Six Sigma - Some Key Players

• Pioneered by Motorola in 1980’s– Coined by Bill Smith in 1984

– Developed methodology to focus resources on solving problems to increase customer satisfaction with an emphasis on profits (bottom line)

• Some Key Players in Six Sigma History:– Mikel Harry - one of the original Motorola architects who

later founded Six Sigma Academy

– Jack Welch, CEO General Electric

– Larry Bossidy, CEO Allied Signal– These CEOs are largely responsible for the spread of Six Sigma by embracing the

methodology and demonstrating it’s potential in their respective companies

Mikel Harry

Methodologies

• DMAIC–Define–Measure–Analyze–Improve–ControlWhen a process needs to be improved

• DMADV–Define–Measure–Analyze–Design–VerifyWhen a process needs to be invented(aka. DFSS-Designed For Six Sigma)

• Two distinctly different methodologies

DMAIC Vs IDOV

MEASURE

ANALYZE

IMPROVE

CONTROL

Is achieving entitlement acceptable?

IDENTIFY

DESIGN

OPTIMIZE

VALIDATE

Process Capable

DMAIC IDOV

YESNO

NO

DEFINE

YES

Comparison of MethodologiesCI CYCLE SIX SIGMA 8D

PLAN Define Establish the Team

Measure Describe the Problem

Develop an “ICA”

DO Analyze Define / Verify Root Causes

STUDY Improve Choose / Verfiy Permanent Corrective Action (PCA)

ACT Improve Implement / Validate PCA

Control Implement/Validate Preventive Action

Recognize Team

The Normal Probability DistributionThe Normal Probability Distribution

µµ Mean -A measure of

the central tendency

The Standard DeviationThe Standard Deviation

1σ1σ

3σ

A measure of dispersion or variation

σ2 = Variance

The Standard DeviationThe Standard Deviation

µµ

1σ1σ

68%95%99.7%

The Normal Curve and CapabilityThe Normal Curve and Capability

LSL USL

Probability of Defects



LSL USL


A B

Center the Process and Reduce VariabilityCenter the Process and Reduce VariabilityCp = 2.0, Cpk = 2.0Cp = 2.0, Cpk = 2.0

ButBut……..Processes Drift..Processes Drift

LSL

Short-Term Capability

Long-Term Capability

Short-Term Capability

USL

Over time, a process tends to shift by approximately 1.5σ.Over time, a process tends to shift by approximately 1.5σ.

Six Sigma - SHIFT HAPPENS !

The Improvement Methodology

Identify Customer Wants• Who are your customers?

– Internal vs. external customers• Collect VOC-Voice Of Customer data

– Interviews– Surveys– Complaints– Focus groups

• Define CTQs-Critical To Quality measures– How does the customer judge your product or

service?

DefineDefineDefine

need

VOCI want…

CTQ

CTQ

CTQ

CTQ

CTQ

CTP

CTP

CustomerNeeds

Business Needs

Product CTQs

Need Drivers CTQs

Customer Drivers

Business

Drivers

CTP

CTP

CTP

Primary Needs

Secondary Needs

Tertiary Needs

CTPs

General Specific

Hard to measure Easy to measure

need

VOCI want…

Need Drivers CTQs/ CTCs

General Specific

Hard to measure Easy to measure

CTPs

I want my pizza to be crispyI want my pizza to have fresh toppings

I want my pizza to be quickerEvery time I get either wrong pizza or wrong toppings! Not so expensive

Average order-deliveryTime

Quantity &Right product

CustomerRecovery

Complaint handlingtime

Vegetable aging (days)

Order delivery time (By type & volume)Material Cost

Processing Cost

Yield %

Margin %

I want to get the replacement for the mistake

Order check

Response time

Replacement time

Oven Process ControlTempr. X1 deg +/- 5 deg F

Product Quality

Delivery

Cost

ServiceQuality

I want tasty pizzaI want hot Pizza

Taste

Selling Price

Raw material Aging (days)

Oven Process ControlTime. X2 min +/- 2 min

Order Processing time

Order handling time

• Project scope• Business case• Cost benefit• Roles & responsibilities• Milestones• Deliverables

Project CharterDefineDefineDefine

Action PartRequest

ReceivePart into

WIP

Use /Consume

Part

Fulfill &Ship Part to

Vendor /NPC

Part Required fora Service Call

Part Removedfrom WIP

Create PartRequest

High-level Process MapDefineDefineDefine

INPUTS 1) Part Request2) Physical Inventory 3) Call Transfers 4) Parts5) Customer/Equipment

data

SUPPLIERS

PROCESS

OUTPUTS

CUSTOMERS1) Technicians2) Buyers3) NPC4) Refurb5) Vendors6) NSC

1) Part Usage2) Inventory3) Credit/Debit to P&L 4) Part5)

1) Finance2) Technicians3) Buyers4) NPC5) Vendors

SIPOC / COPIS

Measure

DefineDefineDefine MeasureMeasureMeasure AnalyzeAnalyzeAnalyze ImproveImproveImprove ControlControlControl

Deliverables1. Identify CTQ characteristic2. Collect data3. Calculate sigma

Identify CTQ CharacteristicMeasureMeasureMeasure

• Getting down to the thing that the project will target using tools like:– Detailed process mapping– QFD-Quality Functional Deployment– Cause & effect analysis– FMEA-Failure Modes & Effects Analysis

MeasureMeasureMeasure Collect Data

• Create a data collection plan• Perform a MSA

– Measurement Systems Analysis• Gage R & R• Attribute R & R• Test re-test study

• Collect data

Analyze


Deliverables1. Identify possible causes2. Narrow down to root cause3. Confirm the benefit

15

CTP Vs CTQ

Screening DOE

EngineeringJudgment

CTP Vs CTQExplore InteractionsInterrelationships

Similar idea Referenced by : Mikel Harry : http://www.isixsigma.com/forum/ask_dr_harry.asp?ToDo=view&questId=82&catId=11

http://www.isixsigma.com/forum/ask_dr_harry.asp?ToDo=view&questId=82&catId=11

• Identify sources of variation using:– Process map

analysis– Graphical

analysis– Brainstorming

Identify Possible CausesAnalyzeAnalyzeAnalyze

Narrow To Root CausesAnalyzeAnalyzeAnalyze

Regression Plot• Confirm statistically significant factors through:– Hypothesis

testing– DOE-Design

Of Experiment

R-Sq = 87.9 %Y = 1026.02 + 98.0500X

P value = 0.000

Improve


Deliverables1. Generate and select solution2. Implement solution3. Confirm results

• Comprehensive pilot planning– Detailed process maps– SOP-Standard Operating Procedures– Monitoring plans– Contingency planning– Risk management plan

Implement SolutionImproveImproveImprove

• Ensure that an improvement has been made and is consistent with expectations– Learn and adapt– Re-assess measurement systems– Adjust improvements as required– Re-calculate sigma– Confirm improvement is statistically significant

Confirm ResultsImproveImproveImprove

Control


Deliverables1. Standardization and documentation2. Process monitoring and control3. Closing the project

ControlControlControl Standardize and Document

• Rollout confirmed solution across business with updated information from pilot– Detailed process maps– SOP-Standard Operating Procedures– Monitoring plans– Contingency planning– Risk management plan

ControlControlControl Monitoring and Control

• Ensure project x’sand y’sremain in statistical control– SPC-

Statistical Process Control

Four Key Phases & Associated Quality Tools

MeasureMeasureMeasure AnalyzeAnalyzeAnalyze ImproveImproveImprove ControlControlControl

Process MapsControl Charts Capability StudiesBasic Tools

fishbonechecksheetparetohistograms)

Gage Repeatability and Reproducibility Failure Mode and Effects Analysis

Process MapsControl Charts Capability StudiesBasic Tools

fishbonechecksheetparetohistograms)

Gage Repeatability and Reproducibility Failure Mode and Effects Analysis

Box plotsScatter diagramst testF testANOVA

Box plotsScatter diagramst testF testANOVA

DOEMistakeproofing

DOEMistakeproofing

SPCControl Plans

SPCControl Plans

Enterprise LeadershipUnderstand leadership roles in the deployment of six sigma

(e.g. resources, organizational structure)

Senior Management – Sponsorship Training

Master Black Belt Candidates – MBB Training

Management – Executive Training

Black Belt Candidates – BB Training

Supervisors – Overview Training

Green Belt Candidates - BB Training

Everyone – Six Sigma Orientation Training

Six Sigma Roles & Responsibilities

Understand the roles/responsibilities of black belt, master black belt, green belt, champion, executive, process owners

Provides strategic direction for project selection &

monitors program effectiveness

Champions(Leadership Team)

Sponsors Six Sigma Projects in area of

responsibilityProcess Owner

Facilitates Leadership Team, Guides Project and Candidate

Selection, Provides Training and Project Mentoring

MASTER BLACK BELT

BLACK BELT

A Certified Skill Set. May also be a full time position. Applies skills on projects,

assists other team members and green belts

Works part time on Six Sigmaprojects - provides local level

support and deployment.GREEN BELT

Champions & Master Black Belts

Champions Master Black Belts

•Create the vision of Six Sigma•Define the path to implement Six Sigma across the organization

•Carefully select high-impact projects•Develop a comprehensive training plan for implementing the Six Sigma strategy

•Ask Black Belts and Green Belts many questions to ensure that they are properly focused

•Make sure that project opportunities are acted upon by organization’s leadership and the finance department

•Recognize people for their efforts

•Understand the big business picture•Develop and deliver training to various levels of the organization

•Assist in the identification of projects•Coach and support Black Belts in project work

•Participate in project reviews to offer technical expertise

•Take on leadership of major programs

•Facilitate sharing of best practices across the corporation

Black Belts & Green Belts

Black Belts Green Belts

•Act as Six Sigma experts•Lead and direct teams in project execution

•Coach and Mentor Green Belts

•Ensure that the results are sustained

•Identify potential barriers to project completion

•Report progress of both BB and GB projects to appropriate leadership

•Function as Green Belts on a part-time basis

•Participate on Black Belt projects as content experts

•Lead Green Belt projects•Identify potential Six Sigma projects

Return on Investment• In 2000 GE’s gross annual benefit was $6.6 billion.

• CEO Larry Bossidy brought AlliedSignal back from the verge of bankruptcy. Cumulative benefits $2 billion in direct savings

• Raytheon improved its cost of doing business by more than $1 billion annually in 2001.

• Average financial benefit per project $120,000

• Motorola claims a Six Sigma ROI of between 10:1 & 50:1

Six sigma Certifications• ASQ’s Six sigma Black belt and Greenbelt

certifications are the most recognized among Six sigma community.

• International Society for Six sigma professionals also offer Six sigma certifications.

• International Quality Federation is the another organization that offer Black belt certifications.

• Several reputed consultancy offer training and certification. Body of Knowledge is defined by them for their certification.

Six sigma Trend• There are over 5000 ASQ Six Sigma Black belt

certifications so far with USA having over 4000, India with over 300, Canada close to 300 certifications. Rest of the world share over 400 certifications.

• A search in Beta tool of Google trends reveal the key word “Six sigma” is being searched in India than any other country in the world.

• In the recent years Six sigma is implemented in combination with Lean Enterprise to get the most benefit to the organizations.

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