j0444 operation management six sigma pert 12 universitas bina nusantara
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J0444J0444
OPERATION MANAGEMENTOPERATION MANAGEMENT
Six SigmaSix Sigma
Pert
12
Universitas Bina Universitas Bina NusantaraNusantara
HistoryHistory
•Carl Frederick Gauss (1777-1885) introduced the Normal Curve concept.
•Walter Shewhart (1920): Six Sigma as a measurement standard in product variation
•Bill Smith, an engineer from Motorola terminologized the “Six Sigma”
•In the late 1970's, Mikel Harry, a senior engineer at Motorola's Government Electronics Group (GEG), began to experiment with problem solving through statistical analysis. Using his methodology, GEG began to show dramatic results
•Dr. Mikel Harry and Richard Schroeder, were responsible for creating the unique combination of change management and data-driven methodologies that transformed six sigma from a simple quality measurement
Metric Benchmar
k Vision Philosophy Method Tool Symbol Goal Value
• Letter in the Greek Alphabet.
• Used to Describe the Distribution of Any Process.
• The “Sigma Value” is a Metric. It Indicates How Well a Business Process is Performing.
• “Six Sigma” is a Philosophy Aimed at Increasing the Sigma Value of All Business Processes.
Konsep Six SigmaKonsep Six Sigma
• Measure of Quality
• Process For Continuous Improvement
• Enabler for Culture Change
What is Six SigmaWhat is Six Sigma
Measure of QualityExample #1: Manufacturing Steel Rolling Mill
Sheet Thickness is a CTQ(Critical to Quality Parameter)
Nominal Thickness = 1000 mm
Minimum Spec = 950 mm
Maximum Spec = 1050 mm
Scrap Production averages 100 Scrap Production averages 100 meter / Coilmeter / Coil
Measure of Quality
Steel StripThickness
Quite some Variation
-Ending up as Scrap
UpperSpecification
Limit
No Less Than
950mm
Lower Specification
Limit
No More Than
1050mm
Scrap Scrap
Measure of Quality
Let’s Look at some Basic Statistics
Mean Thickness = 993 mm
Standard Deviation = 25 mm
UpperSpecification
Limit
Lower Specification
Limit
Mean Thickness
993mm
Standard Deviation
25mm
On Average it’s OK - it’s a Variation issue
Measure of Quality
How Capable is How Capable is our Process to our Process to Produce within Produce within
Spec?Spec?
Sigma Rating = Spec Width / 2* Sigma Rating = Spec Width / 2* SDSD
UpperUpperSpecificationSpecification
LimitLimit
Lower Lower SpecificationSpecification
LimitLimit
Spec Width (1050-950)Spec Width (1050-950)
100100mmmm
Standard Standard DeviationDeviation
2525mmmm
= 100 / 50= 100 / 50
22==
Measure of Quality
Reducing Variation is
Clearly the Key to Improving
Process Capability
UpperSpecification
Limit
Lower Specification
Limit
Std Dev
Spec Width
2100 m
25 m
Measure of Quality
Reducing Variation is
Clearly the Key to Improving
Process Capability
UpperSpecification
Limit
Lower Specification
Limit
Std Dev
Spec Width
3100 m
17 m
Measure of Quality
Reducing Variation is
Clearly the Key to Improving
Process Capability
UpperSpecification
Limit
Lower Specification
Limit
Std Dev
Spec Width
4100 m
12 m
Measure of Quality
Reducing Variation is
Clearly the Key to Improving
Process Capability
UpperSpecification
Limit
Lower Specification
Limit
Std Dev
Spec Width
5100 m
10 m
Measure of Quality
Reducing Variation is
Clearly the Key to Improving
Process Capability
UpperSpecification
Limit
Lower Specification
Limit
Std Dev
Spec Width
6100 m
8 m
Measure of Quality
Spec Standard Sigma DPMO %Width DeviationLevel In Spec
UpperSpecification
Limit
Lower Specification
Limit
2
100 25 2 308,500 69.1
Unit : Each Measurement
Defect : Measurement out of Spec
Defect Opportunities per Unit : 1
Quality expressed as DPMO
( Defects per Million Opportunities)
6 Sigma Lingo
Measure of QualityUpper
SpecificationLimit
Lower Specification
Limit
33
Spec StandardSigma DPMO %Width Deviation Level In Spec 100 25 2 308,500 69.1 100 17 3 66,800 93.3
Unit : Each Measurement
Defect : Measurement out of Spec
Defect Opportunities per Unit : 1
Quality expressed as DPMO
( Defects per Million Opportunities)
6 Sigma Lingo
Measure of QualityUpper
SpecificationLimit
Lower Specification
Limit
4Spec StandardSigma DPMO %Width Deviation Level In Spec 100 25 2 308,500 69.1 100 17 3 66,800 93.3 100 12 4 6,200 99.4
Unit : Each Measurement
Defect : Measurement out of Spec
Defect Opportunities per Unit : 1
Quality expressed as DPMO
( Defects per Million Opportunities)
6 Sigma Lingo
Measure of QualityUpper
SpecificationLimit
Lower Specification
Limit
5Spec StandardSigma DPMO %Width Deviation Level In Spec 100 25 2 308,500 69.1 100 17 3 66,800 93.3 100 12 4 6,200 99.4 100 10 5 233 99.98
Unit : Each Measurement
Defect : Measurement out of Spec
Defect Opportunities per Unit : 1
Quality expressed as DPMO
( Defects per Million Opportunities)
6 Sigma Lingo
Measure of Quality
Unit : Each Measurement
Defect : Measurement out of Spec
Defect Opportunities per Unit : 1
Quality expressed as DPMO
( Defects per Million Opportunities)
6 Sigma Lingo
UpperSpecification
Limit
Lower Specification
Limit
Spec StandardSigma DPMO %Width Deviation Level In Spec 100 25 2 308,500 69.1
6
100 17 3 66,800 93.3 100 12 4 6,200 99.4 100 10 5 233 99.98 100 8 6 3 99.9997
Example #2: Product DeliveryPT X deliver their products to it’s customer five times, their delivery time data are
•21 days,
•15 days,
•12 days,
•10 days, and
•2 days.
The AVERAGE (Mean) of Their Delivery Time is:21 + 15 + 12 + 10 + 2 = 60/5 = 12 DAYS
PT Y deliver their products to it’s customer five times, their delivery time data are
•14 days,
•12 days,
•12 days,
•12 days, and
•10 days.
The AVERAGE (Mean) of Their Delivery Time is:14 + 12 + 12 + 12 + 10 = 60/5 = 12 DAYS
Measure of Quality
Measure of QualityUpper
SpecificationLimit
UpperSpecification
Limit
Lower Specification
Limit
Lower Specification
Limit
UpperSpecification
Limit
UpperSpecification
Limit
Lower Specification
Limit
Lower Specification
Limit
PT X The AVERAGE (Mean) of
Their Delivery Time is: 12 DAYS
But…
Standard Deviation = 7.0PT Y The AVERAGE (Mean) of
Their Delivery Time is: 12 DAYS
And….
Standard Deviation = 1.4
Measure of QualityBaseline
122414716820251410113016
15.8
Improved (?)277154186236224265
11.2Mean
SD 7.0 9.0
• BUT….our customer only feels the VARIANCE,….and cancel the next orders!
What the Company Feels
11.2 15.8
What Customer Feel
•Using mean-based thinking, we improve average performance by 29%, and break out the champagne…..
Example #2: Service Time
Measure of QualityImproved
(?)11111010121111111112121210
11.07Mean
SD 0.76
• but UNFORTUNATELY, what the customer wants is 9 days (or what competitors can do is 9 days)….so it is not variance issue anymore, but now about the Process Centering issue
•Now it is improved….the Mean is 11, and the STD is below 1….
2323
Variation is the enemy!
•Variation reduction = Defect reduction
•Six Sigma process = Defect reduction until 3.14 out of 1 Million products/process
•Quality measurement = measurement of defect on the process/products
2424
Variation Reduction
Goal: Reduce Process Width-Variation is the Enemy
A Process is “A Distribution of Distributions”
2525
The Athletic View of Performance
•Consider a goalkeeper who plays 50 games a year and faces 40 shots on goal each game.
•A defect is when the opposition scores.
•A 6s goalkeeper will be scored against once in every 147 years
US airline fatality rate:< ½ per million flights, > 6s
Is 6 Sigma Impossible? • US airline baggage handling: 30-50,000 lost items per
million, ~ 3 - 3.5• Average Companies: 30-50,000 defects per million ~ 3 -
3.5• World-Class Companies: <1000 defects per million 5 -
5.5
ReduceSpreadReduceSpread
CenterProcessCenterProcess
Off-Target
XXXXXXX XX
On-Target
XXXXXXX XXXVariation
XX
X
X
X
X
XXX
XX
X
Nature Of The Problem
Process for Continuous Improvement
Process for Continuous Improvement
Y = f {X1, X2, X3, …Xn}
Output(Dependent Variable)
Process(Independent Variables)
2929
Identifying Variation Sources
Y = f ( X1, X2, X3, X4, … , Xn-2, Xn-1, Xn)
OUTPUTY
ProcessX1
X2
X3
X4
Xn-2 Xn-1 Xn
Inside the Box XsControllable
Outside the Box Xs
Un-Controllable
Six Sigma approach is focus on process…Fixing process so they will produce perfection on products and services
Define
Measure
Analyze
Improve
Control
For improve existing process/products
DMAIC
Six Sigma Methodology
Define
Measure
Analyze
Design
Verify
For new process/products (sometime called DFSS, Design For Six Sigma)
DMADV
Six Sigma Methodology
3333
Define Phase• Voice of Customer (VOC)?• Problems?• Unit, Defects, Opportunities?
3434
Measure Phase• Collect data baseline• Identify frequency of defects?• Baseline process capability?• Target or benchmark process capability?
3535
Analyze Phase• Why, when, where defects occurs?• Data analysis• Process analysis• Identify Vital X’s
3636
Improve Phase• How to reduce defects?• Fix problems• Collect improved data
3737
Control Phase• Calculate new process capability• Verify statistically improvement made• Implement process control
Establishing these factors provides the seeds of success.
They need to be integrated consistently to fit each business.
They are all necessary for the best result
The most powerful success factor is “committed leadership.”
Committed and Involved
Leadership
Business Process Framework
Six SigmaProjects
StrategyIntegration
Full Time 6 Sigma Team Leaders
Incentives & Accountability
Quantifiable Measures &
Results
The 6 Sigma Success Factors
What Is Six Sigma Projects?• Project needs to be done by Every Employee (Green
Belt)
• Project using Six Sigma methodology (DMAIC/DMADV)
• Project that making Improvement (DPMO reduction)
• Project that has a measurable unit and defect
• Project that has a measurable impact
• Project that start with Customer (internal/external) CTQ
Harvesting the Fruit of Six Sigma
Sweet Fruit - 6s Design for Six Sigma (DFSS)
Bulk of Fruit - 4 to 5s Process ImprovementSix Sigma Tools
Low Hanging Fruit - 3 to 4sBasic Quality Tools
Ground Fruit - up to 2sLogic and Intuition
Process Entitlement
Start With Low Hanging Fruit