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Six Sigma – Basic overview

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WHAT IS THIS SIX SIGMA ?WHAT IS THIS SIX SIGMA ?

• A Philosophy

• A Statistical Measurement

• A Metric

• A Business Strategy

• make fewer mistakes in all that we do.

• helps gage adequacy of product, process and services

• A measuring system

• good quality reduces cost

Sigma is a Greek word which denotes Standard deviation

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SIGMA RATING AND PPM ARE CORRELATEDSIGMA RATING AND PPM ARE CORRELATED

SIGMA RATING A PERFORMANCE MEASURE

Sigma Rating PPM 1 691,462

2 308,5373 66,8074 6,2105 2336 3.4

Process Defects per Capability Million Opportunities

6 SIGMA MEANS 3.4 DEFTS IN PER MILLION OPPORTUNITIES

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Six sigma is when the inherent variability of the process is half that of the requirements

LSL USL6

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6

A WORD OF CAUTION:

It is possible to achieve six sigma by widening specifications but the issue is that would the customer accept it.

WHAT IS SIX SIGMAWHAT IS SIX SIGMA

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Logic and intuitionQuick hits-Kaizen

Low hanging fruitsSimple QC tools

Bulk of fruitsProcess characterizationand optimization

Process limitations

Sweet fruits DFSS

Increase of sigma rating requires an exponential decrease in defect reduction

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• TO REDUCE VARIATION

• TO REDUCE DEFECTS

• TO IMPROVE YIELD

• TO ENHANCE CUSTOMER SATISFACTION

• TO IMPROVE THE BOTTOMLINE

THE GOALS OF SIX SIGMATHE GOALS OF SIX SIGMA 6 Sigma is a customer driven process improvement system that:

–puts our Customers (BOTH INTERNAL & EXTERNAL) and their requirements first

6 Sigma is THE change programme :

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HOW THIS WORK GETS DONEHOW THIS WORK GETS DONE

Leadership TeamMaster

Black Belt Team Leader Team Members

Draft charter

Discuss/revise charter

Review &approve charter

Select project

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IDENTIFYING THE KEY PLAYERSIDENTIFYING THE KEY PLAYERS

• There are four major roles that need to be filled for a successful project.– Black Belt/Green Belts– Team Members– Master Black Belt– Champion

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BeforeProject

DuringProject

AfterProject

Black Belt/

Green Belt

(Project Leader)

• Review purpose projectstatement withsponsor/ champion

• Draft rest of charter

• Finalize team members

• Manage schedules

• Lead meetings

• CoordinateCommunication

• Serve as liaison withMBB, champion(s), andstakeholders

• Keep records

• Lead team’s work

•See that documentationis completed andlessons captured

•Update dashboard

•Monitor implementation

•Monitor results

•Use improved methods

Team Members

• Participate in meetings

• Carry out assignments

• Help in data collection

• Assist in piloting

• Contribute knowledgeand expertise

• Learn necessary skillsand methods

•Use improved methods

PROJECT ROLES & PROJECT ROLES & RESPONSIBILITIESRESPONSIBILITIES

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To get results should we focus on Y or X?

• Y

• Dependent variable

• Output of the process

• Effect

• Symptom

• It is monitored

• X1, X2, …….., Xn

• Independent variable

• Input to the process

• Cause

• Problem

• It is controlled

Y = f(X)

THE FOCUS OF SIX SIGMATHE FOCUS OF SIX SIGMA

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• IMPACT ON COST OF QUALITY

20

15

10

5

233 6210 66807 308537 50000005 4 3 2 1

36

DPMOSIGMA

Percent of Sales

WHY 6 SIGMA FOR YOUR COMPANYWHY 6 SIGMA FOR YOUR COMPANY

DMAIC approach : 5 steps to solve the problems

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ROAD MAP Define Phase

• Why this Project ? – Business Case • Project Charter • SIPOC – to find process scope and inputs• CTQ identification – to come down from Macro to

micro objectives – CTQs have to be specific and measurable.

• Create CTQ specification table – Operational definition of measure – Specifications / defect definition – Kano status

• Review and Finalize Your Project Charter

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Importance of Project Selection

The process and the method we use to select Projects are critical success factors in the achievement of business results through 6 Sigma

A good Project selection activity not only guarantees the successful completion of the Project itself, but improves resource productivity and maximizes the total impact for the business

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Fundamentals of 6 Sigma Project Selection

• Must be driven by leadership

• Must be focused on opportunities that are real and important to the business

• Usually based on either business financial or customer performance

• Approach may be quantitative and scientific - is always logical

• Involves people who are familiar with and accountable for process performance

• Moves from broad and high-level to precise, narrow and specific

• Ends with a Project charter

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Improvement ideas may come from a variety of sources

customer complaint /feedback

systems

key competitive strategies

business improvement

initiatives

suggestion boxes

histories and observations

Voice of the Customer systems

periodic process evaluations

existing Project pipelines or

backlogs

COPQ evaluations

process “escapes”

risk assessment

Candidate improvementopportunities

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Key considerations in selecting Projects

• What are the improvement objectives for our business?• What sources of improvement ideas are available?

What additional considerations need to be made?• Which approaches to Project selection are best for us?

How may this change over time?• What processes do we focus on? Why?• What criteria do we use to prioritize opportunities?• To what extent do we rely on data to drive Project

selection?• Who should be involved in Project selection? How?• How do we translate improvement ideas into defined,

specific and chartered Projects for Belts?

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CHARTER

Charter Consist • Problem statement

• Goal of project ( from to in which time span)

• Scope of project

• Measurable ( CTQs)

• Team and stakeholders ( BB/GBs/MBB/Effected parties)

• Benefit from the project

• Support required

• Schedule for project ( Milestones)

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Problem Statement• Criteria for a good problem statement

– It must…• be specific• be quantifiable (measurable)• state the effect/pain

• It should not…• imply a cause• imply a solution

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Problem Statement Criteria

• Should not imply a cause — Avoid expressions such as “because of,” “due to,” etc.

• Should not imply a solution — Avoid expressions such as “a lack of,” “need to,” etc.

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Problem Statement Criteria• Be specific — Avoid terms which lend themselves to

ambiguity, such as “quality,” “responsiveness,” “productivity,” etc.

• Quantify the problem — State explicitly when, how much, how long, how often, and what direction (magnitude/trend).

• State the effect/pain — states explicitly the effect the problem is having on the customer (how customers are affected or impacted).

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