six sigma an overview

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    Six Sigma

    An Overview

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    What is Six Sigma?

    A Metric

    Philosophy

    Initiative Method / Tools

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    Philosophy

    Sources of variation can be

    Identified

    Quantified Eliminated

    Controlled

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    Initiative

    Breakthrough Improvement

    Systematic, Focused Approach

    Projects Linked to Business Strategy

    Key People Selected & Trained

    Project Management & Reviews

    Results

    Strategic Process Improvement Financial Results

    Sustain the Gains

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    Method and Tools

    Process Thinking

    Process Variation

    Facts, Figures, Data

    Critical Few Drivers Customer Satisfaction

    Cycle Time

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    Six Sigma Organization

    Champions

    Master Black Belts

    Black Belts Green Belts

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    Champions

    Provide direction and resources.

    Facilitate the identification and

    selection of projects with seniorleadership.

    Track progress of projects.

    Breakdown barriers.

    Create support systems.

    Six Sigma Catalysts

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    Master Black Belts

    Internal experts in Six Sigmamethods and tools.

    Train and mentor Black Belts.

    Develop and deliver training.

    Assist Champions.

    Leverage best practices. Six Sigma Experts

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    Black Belts

    Project Lead

    Strategic high impact multi-

    functional projects 2-4 projects per year

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    Black Belts contd.

    Mentor and coach Green Belts

    Dedicated role for 18 30 months

    Six Sigma Change Agents

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    What Makes a Good BlackBelt?

    Open mind.

    Desire to find out why things happen.

    Ability to lead and direct people.

    Ability to handle conflict.

    Capable of self-directed activity.

    Sense of urgency.

    Good grasp of computer skills and abasic understanding of math.

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    Green Belts

    Lead day-to-day functionalprojects and support strategicBlack Belt projects

    Maintain current role inorganization with 20-50% of timededicated to a Six Sigma project

    Sustain the gains

    Six Sigma Institutionalizers

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    Characteristics of a GoodProject

    Problem is clearly connected tobusiness priorities Improvement in process metrics > 50%

    Financial impact >

    People will support a project they understandand see as important

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    Characteristics of a Good Projectcontd.

    Clear quantitative measures ofsuccess

    Reasonable scope Do able in 4-6months

    Has the support and approval ofmanagement needed to get resources

    and remove barriers

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    Examples of Black BeltProjects

    Increase process throughput

    Reduce cycle time of assembly

    Reduce process downtime and scrap

    Reduce freight costs Reduce costs of waste disposal

    Reduce bulk material transportationcosts

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    Reduce amount of accountsreceivable

    Material loss: Reduce scrap &increase yield

    Reduce warranty costs 50%

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    Examples of Black BeltProjects (Actual)

    Reduce road construction changeorders 20%.

    Improve sewage plant efficiency by

    25%. Reduce lime usage in water softening

    at city water plant by 20%.

    Reduce invoice to cash cycle time by

    50%. Reduce processing time of billing

    customers for 3rd party orders.

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    Examples of Black BeltProjects (Actual) contd

    Reduce overpayment of benefits.

    Reduce document retention for legalcases.

    Reduce cycle time of legal transcripttransmittals.

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    Six Sigma Applies to AllProcesses in All Industries

    Customer Service

    Design

    PurchasingManufacturing

    Sales

    MarketingAdministration

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    Manufacturing

    Financial

    TelecommunicationsHealth Care

    Government

    Education

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    What is Different? Why DoesSix Sigma Work?

    Driven by top leadership

    Top-down deployment - integratedwith business strategies

    Bottom-line cost-benefit

    Disciplined approach (Define-Measure-Analyze-Improve-Control)

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    Sense of urgency (4-6 monthprojects)

    Well defined roles &infrastructure (Champion, MBB,BB, GB, etc)

    Statistical and data baseddecisions

    Customer and process focus

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    Analyze: Analyze data to assesspatterns and trends between inputsand outputs.

    Improve: Verify critical inputs anddetermine optimum settings.Implement.

    Control: Implement controls tosustain the gains.

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    DMAICis a structured, disciplined andaggressive approach to processimprovement that consists of the above fivephases.

    Each phase is linked logically to theprevious phase, and to the next phase atthe same time.

    The purpose of this rigorous methodology isto achieve the overall goal of Six Sigma,which is 3.4 defects per million parts, oropportunities.

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    PHASE ONE - DEFINE

    In this phase, the project's purpose andscope are defined. Customer informationand background information on the process

    is collected. The output of this phase is: 1. A clear statement of the intended

    improvement.2. A high-level map of the process (SIPOC -

    defined further later).3. A list of what is important to thecustomer (Voice of the customer).

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    PHASE TWO - MEASURE

    The goal of the Measure phase is to focusthe improvement effort by gatheringinformation on the current situation. The

    output of Measure is: 1. Baseline data on current process

    performance.2. Data that pinpoints problem location or

    occurrence.3. A more focused problem statement.

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    PHASE THREE - ANALYZE

    The goal of the Analyze phase is toidentify root cause(s) and confirmthose with data.

    The output is a theory that has beentested and confirmed.

    The verified cause(s) will form the

    basis for solutions in the next phase.

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    PHASE FIVE - CONTROL

    The goal of the Control phase is toevaluate the solutions and the plan,maintain the gains accomplished bystandardizing the process, andoutline steps for on-goingimprovements including

    opportunities for replication.

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    Step #1 - DEFINE

    Project

    SIPOC (Suppliers, Inputs, Process,Outputs and Customers )

    VOC (Voice Of The Customer )

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    In this phase, you will be settingproject goals and boundaries basedupon your knowledge of your

    organization's business goals,customer needs, and the process thatneeds to be improved to get you to a

    higher sigma level.

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    Project Charter

    The charter is a contract between theorganization's leadership and the teamcreated at the onset of the project with the

    purpose of: Clarifying what is expected of the team.

    Keeping the team focused. Keeping the team aligned with

    organizational priorities. Transferring the project from thechampion to the team.

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    Some examples could be:

    Reduce inventory levels to reduce capitalinvestment in inventory.

    Reduce time-to-market to increase

    revenues through increased sales. Reduce equipment downtime to increase

    capacity and production.

    Reduce rejects and rework to decreasematerial costs rendering a greater ROI

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    Six Sigma Deployment &

    Baldrige Performance ExcellenceFramework

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    Leadership

    Set Values, Direction, & PerformanceExpectations, Manage Performance

    Strategic

    Planning

    Strategy Formulation, Planning,Budgeting & Resource Allocation

    Focus = Customer & MarketKnowledge

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    Human Resource

    Belt Selection

    Compensation

    Career Development

    Training Process

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    Management

    Project Selection

    Project Assign

    Project Tracking

    Review Results

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    Business =Six Sigma Deployment

    Information and Analysis

    Organizational Environment,Relationships & Challenges

    Data & IS Support

    Mfg, Design & Service Capability

    FinanceCommunication