six sigma overview lynn cavanaugh, black belt

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  • 1. Six Sigma Overview Lynn Cavanaugh, Black Belt September 2005

2. Sigma as a Measure

  • Six Sigma is a disciplined, data-driven methodology to eliminate defects in a process
  • A way to assess performance of a process
    • Devised at Motorola in 1987
    • Higher the process sigma, the fewer the defects
  • Focused oncustomerrequirements
    • Internal, but especiallyexternal customers
    • TrackDefects(aka CTQs) that affect satisfaction, loyalty, revenue, market share
  • Allows comparison of differing processes
    • Marketing, Accounting, Manufacturing, Finance, Order Fulfillment, etc. in common terms
    • Adjust for complexity of the work, product, service

3. Six Sigma 4. Six Sigma as a Goal Examples of what Six Sigma means in business 5. Deployment

  • Six Sigma is deployed by individuals certified in the methodology including:
    • Green Belt - certified to participate in the process
    • Black Belt - certified to
    • lead Six Sigma projects
    • Master Black Belt - certified
    • to train and certify others

6. Six Sigma Methods

  • DMAIC
    • Define, Measure, Analyze, Improve, Control
    • Used to improve existing processes
  • DMADV / DFSS
    • Define, Measure, Analyze, Design, Verify
    • Used to develop new processes or implement new technologies
    • May be referred to as DFSS
  • Process Management
    • Reviewing and analyzing an entire work process from end to end

7. Methodology Integration The matrix below defines how various methodologies align 8. Process Design Flow Recognize Define Measure Analyze Improve Control 9. DMAIC Cycle - Define

  • Select specific problem/opportunity
    • An appropriate DMAIC project
    • Meaningful and Manageable
  • Create a Project Charter
    • Validated by leadership
    • Identifying key contributors
  • Define the process and
  • customer(s)

10. Definition Stage Activities

  • Define Critical Customer Requirements
  • Develop Team Charter
  • Map As Is Business Process
  • Complete SIPOC
  • Develop the Business Case including high level project plan

11. SIPOC

  • A document that definesthe context, specifics and plans ofan improvement or design project
  • Define (and narrow) the projects focus
  • Clarify the results being sought
  • Confirm value to the business
  • Establish boundaries and resources for the team
  • Communicate goals and plans

12. Example - SIPOC

  • A SIPOC will allow your project team to put parameters around the process being reviewed and identify the areas impacted both up and down stream
  • Suppliers who feeds the process
  • Inputs what do they feed
  • Process steps in the process
  • Outputs outputs of the process
  • Customer who pulls from the process

13. DMAIC Cycle - Measure

  • Determine what to measure and why
  • Prepare plans to collect output, process and/or input data
  • Construct forms and test datacollection procedures
  • Refine data collection
  • Refine DMAIC Charter

14. Measure Stage Activities

  • Identify Key Measurements
  • Data Collection Plan
  • Data Collection Execution
  • Document Process Variations
  • Establish Performance Baseline

15. Input Process Output Measures

  • A DMAIC team must get Output measure(s) upfront to baseline the process/problem
    • Focus on your Goal target or Project Y
  • Output measures can be taken before or after the product is delivered to the customer
    • E.g., defects caught in-house prior to shipment vs. upon delivery
  • There are usually more options for Process measures than Output or Input measures
  • Use your SIPOC diagram and sub-process maps to help select measures and ensure balance
  • Consider possible X measures early in the project to help get some initial data for the Analyze phase

16. Review Y and X Measures 17. Process Measurement Example Delivery Time in Days Critical Customer Requirement = 9.4 days Defects:Service unacceptable to customer Number Orders FilledVariation in results 123456789101112 18. DMAIC Cycle - Analyze

  • Current state analysis
  • Is the current state as good as the process can do?
  • Who will help make the changes?
  • Resource requirements
  • What could cause this change effort to fail?
  • What major obstacles do I face in completing the project?

19. Analysis Stage Activities

  • Validate As Is Process Map
  • Complete Root Cause Analysis
    • Fishbone Diagram
    • House of Quality
  • Develop To Be Process Map
  • Complete Gap Analysis

20. Process Analysis

  • Disconnects
  • Bottlenecks
  • Redundancies
  • Rework loops
  • Decisions/Inspections
  • Moves

Look for points in the processwhere work may be disrupted or delayed,or where defects may be created. 21. Analyze Current Process Use symbols and colors to help you analyze the current state 22. DMAIC Cycle - Improve

  • Create innovative ideas for improvement
  • Narrow, screen and select best solution possibilities
  • Understand best practices for process workflow
  • Develop pilot and define implementation strategies
    • What is the work breakdown structure?
    • What specific activities are necessary to meet the project goals?
    • How will I re-integrate the various subprojects?

23. Improve Stage Activities

  • Define Solution
    • Include IT when defining technical solutions
  • Develop Work Breakdown Structure
  • Develop Implementation Plan
  • Complete FMEA

24. Generate and Select Solutions 25. FMEA

  • Failure Modes & Effects Analysis
  • Method to assess and plan for problems which could impact safety, reliability, customer satisfaction, profits, etc.
    • Failure Modes = types of possible error or defect
    • Looks at common or rare events and relative risk
  • Also a tool for process owners toallocate measurement and prevention resources (Control)

26. Example - FMEA 27. DMAIC Cycle - Control

  • How will I control risk, quality, cost, schedule, scope and changes to the plan?
  • What types of progress reports should I create?
  • How will I assure that the business goals of the project were accomplished?
  • How will I keep the gains made?

28. Control Stage Activities

  • Complete Process Standardization
    • Validate Process Map
    • Develop Process Documentation
  • Develop Monitoring Plan
  • Develop Response Plan
  • Complete Transfer of Ownership

29. Control Plan Control Plan = FMEA + Monitoring + Response From Improve Phase New! Dashboard/Control Chart VOC Systems 30. Summary

  • Six Sigma
    • 3.4 Defects per Million Opportunities
  • DMAIC
    • Define
    • Measure
    • Analyze
    • Improve
    • Control

31. DMAIC Cycle 32. Closing

  • Questions and Answers
  • Lynn Cavanaugh
  • Vice President
  • Wells Fargo Home Mortgage
  • Cell (515)988-7779
  • eMail lynn.c.cavanaugh@wellsfargo.com