six sigma lecture 4
DESCRIPTION
Six Sigma Six Sigma Three Sigma Reduces Variability Only 3.4 parts out of 1 million parts will fall out of specifications Three Sigma Hard to achieve, therefore many companies aim for a Three Sigma process will yield 2700 defects per million. Six Sigma’s goal is to reduce variability. It is a comprehensive system, meaning it has a strategy, a discipline, and a set of tools. In the statistical sense it describes a process, product, or service with an extremely high capability, 99.9997% accuracy. Let’s look at what that means. An example: If one million passengers pass through an airport with checked baggage each month, a six sigma program for baggage handling will result in only 3.4 passengers with misplace luggage, 99.9997% of one million. There is also three sigma programs would result in 2,700 passengers with misplace luggage every month. http://www.operationalexcellence.net/six-sigma/TRANSCRIPT
Six SigmaSix Sigma
Lecture 4
http:// www.sixsigmamk.com/six-sigma-man.htm
Six Sigma
Six Sigma
Reduces Variability
Only 3.4 parts out of 1 million parts will fall out of specifications
Three Sigma
Hard to achieve, therefore many companies aim for a Three Sigma process will yield 2700 defects per million.
Six Sigma’s goal is to reduce variability. It is a comprehensive system, meaning it has a strategy, a discipline, and a set of tools.
In the statistical sense it describes a process, product, or service with an extremely high capability, 99.9997% accuracy. Let’s look at what that means. An example: If one million passengers pass through an airport with checked baggage each month, a six sigma program for baggage handling will result in only 3.4 passengers with misplace luggage, 99.9997% of one million. There is also three sigma programs would result in 2,700 passengers with misplace luggage every month.
2
Let’s have a quick history lesson, Henry Ford is considered to be the first systematic lean thinker through his focus on value creation in his processes. He actually designed the Model T in 3 months.
Value Creation is a way to increase worth of goods, services or even a business. Henry Ford analyzed every step in every process to see if it created value, if it did not it was eliminated. He then tried to focus on how to make it better. He also had the first primitive pull system by using ‘shortage chasers’ on timed routes along the assembly line. They were employees that checked inventories at every assembly point and conveyed the information back to the fabrication area. This meant that there was not a lot of inventory taking up room, they only produced when needed.
Henry Ford II came along and decided to change things. He started to model General Motors management system, which involved decisions being made based on financial analysis. As a result lean concepts were no longer applied. Fast-forwarding to the future, this was not a smart tactic.
In the 1980’s, Toyota and Honda used an entirely different management system then General Motors. One very similar to that of the first Henry Ford. The lean approach is definitely proving to be the better management system.
3
Joseph Juran
“The U.S. improvements of quality has been evolutionary, not revolutionary. We have exported jobs and lost entire industries. If these standards continue, there will be a severe risk the U.S. will lose its status as an economic superpower.”
–Joseph Juran
http://smilestudysquat.blogspot.com/2013/08/every-accomplishment-begins-with.html
I would like to quote Joseph Juran. “The U.S. improvements of quality has been evolutionary, not revolutionary. We have exported jobs and lost entire industries. If these standards continue, there will be a severe risk the U.S. will lose its status as an economic superpower.” He knew what he was talking about, I wish we would have paid closer attention to him then.
4
https://pbs.twimg.com/profile_images/434750512718569472/00QUvJ_a_400x400.png
http://www.casino.org/news/poker-players-beware-malware-miscreants-lie-wait
Motorola developed Six Sigma in the 1980s in response to customer complaints and to stiff competition. Their first goal was to reduce defects by 90%, they were successful within a year. How? Through benchmarking competitors, soliciting new ideas from employees, changing reward plans, adding training, revamping critical processes, etc. They documented the procedures into what it called Six Sigma. The data-driven defect-reduction process has saved company more than $16 billion over the past 15 years.
Black Belts are project leaders skilled in the use of statistical methods and interpersonal communication. They are self-assured and knowledgeable, from a result of intensive training and real-world experience. Black belts have a measure of soft skills in change management, business awareness, and team dynamics which are all critical to Six Sigma success. Black Belt is in reference of Self-Defense.
Quick fact: Motorola actually holds the trademark for six sigma.
5
Father of Six Sigma
Bill Smith was an engineer at Motorola and is considered the “Father of Six Sigma.” He stated, “Today I think people sometimes try to make Six Sigma seem complicated and overly technical. His approach was, ‘if you want to improve something, involve the people who are doing the job.’ He always wanted to make it simple so people would use it.”
6
http://ucsandiegoextensionbiz.files.wordpress.com/2013/02/uc-san-diego-extension-lean-six-sigma-black-belt-information-session1.jpg
We hear a lot of terms and often they are used interchangeably. I would like to point out that when it comes to six sigma and lean, that there is a difference. Six Sigma’s primary goal is to reduce variation and Lean’s primary goal is to reduce waste. Take a look at the chart for more differences. So, which is best? Well, ideally, you would want both of them together. You will gain speed from lean and accuracy from six sigma. Add those together and you will have better delivery, better quality, satisfied employees, satisfied customers and ultimately more money!
7
Lecture 4
http:// www.sixsigmamk.com/six-sigma-man.htm
Six Sigma
Six Sigma
Reduces Variability
Only 3.4 parts out of 1 million parts will fall out of specifications
Three Sigma
Hard to achieve, therefore many companies aim for a Three Sigma process will yield 2700 defects per million.
Six Sigma’s goal is to reduce variability. It is a comprehensive system, meaning it has a strategy, a discipline, and a set of tools.
In the statistical sense it describes a process, product, or service with an extremely high capability, 99.9997% accuracy. Let’s look at what that means. An example: If one million passengers pass through an airport with checked baggage each month, a six sigma program for baggage handling will result in only 3.4 passengers with misplace luggage, 99.9997% of one million. There is also three sigma programs would result in 2,700 passengers with misplace luggage every month.
2
Let’s have a quick history lesson, Henry Ford is considered to be the first systematic lean thinker through his focus on value creation in his processes. He actually designed the Model T in 3 months.
Value Creation is a way to increase worth of goods, services or even a business. Henry Ford analyzed every step in every process to see if it created value, if it did not it was eliminated. He then tried to focus on how to make it better. He also had the first primitive pull system by using ‘shortage chasers’ on timed routes along the assembly line. They were employees that checked inventories at every assembly point and conveyed the information back to the fabrication area. This meant that there was not a lot of inventory taking up room, they only produced when needed.
Henry Ford II came along and decided to change things. He started to model General Motors management system, which involved decisions being made based on financial analysis. As a result lean concepts were no longer applied. Fast-forwarding to the future, this was not a smart tactic.
In the 1980’s, Toyota and Honda used an entirely different management system then General Motors. One very similar to that of the first Henry Ford. The lean approach is definitely proving to be the better management system.
3
Joseph Juran
“The U.S. improvements of quality has been evolutionary, not revolutionary. We have exported jobs and lost entire industries. If these standards continue, there will be a severe risk the U.S. will lose its status as an economic superpower.”
–Joseph Juran
http://smilestudysquat.blogspot.com/2013/08/every-accomplishment-begins-with.html
I would like to quote Joseph Juran. “The U.S. improvements of quality has been evolutionary, not revolutionary. We have exported jobs and lost entire industries. If these standards continue, there will be a severe risk the U.S. will lose its status as an economic superpower.” He knew what he was talking about, I wish we would have paid closer attention to him then.
4
https://pbs.twimg.com/profile_images/434750512718569472/00QUvJ_a_400x400.png
http://www.casino.org/news/poker-players-beware-malware-miscreants-lie-wait
Motorola developed Six Sigma in the 1980s in response to customer complaints and to stiff competition. Their first goal was to reduce defects by 90%, they were successful within a year. How? Through benchmarking competitors, soliciting new ideas from employees, changing reward plans, adding training, revamping critical processes, etc. They documented the procedures into what it called Six Sigma. The data-driven defect-reduction process has saved company more than $16 billion over the past 15 years.
Black Belts are project leaders skilled in the use of statistical methods and interpersonal communication. They are self-assured and knowledgeable, from a result of intensive training and real-world experience. Black belts have a measure of soft skills in change management, business awareness, and team dynamics which are all critical to Six Sigma success. Black Belt is in reference of Self-Defense.
Quick fact: Motorola actually holds the trademark for six sigma.
5
Father of Six Sigma
Bill Smith was an engineer at Motorola and is considered the “Father of Six Sigma.” He stated, “Today I think people sometimes try to make Six Sigma seem complicated and overly technical. His approach was, ‘if you want to improve something, involve the people who are doing the job.’ He always wanted to make it simple so people would use it.”
6
http://ucsandiegoextensionbiz.files.wordpress.com/2013/02/uc-san-diego-extension-lean-six-sigma-black-belt-information-session1.jpg
We hear a lot of terms and often they are used interchangeably. I would like to point out that when it comes to six sigma and lean, that there is a difference. Six Sigma’s primary goal is to reduce variation and Lean’s primary goal is to reduce waste. Take a look at the chart for more differences. So, which is best? Well, ideally, you would want both of them together. You will gain speed from lean and accuracy from six sigma. Add those together and you will have better delivery, better quality, satisfied employees, satisfied customers and ultimately more money!
7