six sigma process improvement
DESCRIPTION
TRANSCRIPT
Process Process Improvement using Improvement using
Six SigmaSix SigmaMBA 8125
April 14th, 2011
______Team 6______Elliott Wienstroer Brad Thielemann
Matt Tinaglia Denzil Tauro
AgendaAgenda• Lean/Six Sigma Methodologies• TQM and Six Sigma• DMAIC• Belts and Certifications• Pro-Six Sigma Companies• Benefits/Criticism• Recommendations• Questions
Six Sigma Six Sigma MethodologyMethodology
This methodology is driven by:
A methodology used to reduce variation to achieve very small standard deviations so that almost all products or services meet or exceed customer expectations
Proactive ManagementFormal
Tollgates (DMAIC)
Genuine Focus on the Customer Culture for
Quality and Change
Analytics Driven Management
Comprehensive Management Philosophy
Goal of 3.4 defects per million
opportunities (DPMO)
Quality at the Source
Lean MethodologyLean Methodology• Process improvement methodology focusing on time improvements
• Identify each process step as Value Added or Non-Value Added
• Mgmt philosophy derived from the Toyota Production System
• Seeks to reduce costs by eliminating 7
types of waste (muda):• Overproduction• Excessive Inventory• Processing• Transportation • Motion• Waiting time• Product Defects
TQM and Six SigmaTQM and Six Sigma• TQM is an integrative philosophy of management for
continuously improving the quality of products and processes
• Main difference lies in the approach: o TQM attempts to improve quality by ensuring conformance
to internal requirements, while Six Sigma focuses on improving quality by reducing the number of defects and impurities
o Six Sigma is a more structured approach that forces data-driven decision making in order to avoid: fixing what isn’t broken, using intuition or guessing, or jumping to conclusions
• Worst projects mistake: Invest in fixing the wrong problem!
DMAIC OverviewDMAIC OverviewDMAIC Objective: Collect and analyze data for the purpose of making decisions
ProcessProcess
xxxxxxxxx
y
DEFINE
11
ANALYZEANALYZE
33
MEASURE
22
Determine the optimal solution, and what settings will yield the very best process in the future
IMPROVE
IMPROVE
44CONTRO
L
Defined, has an owner
Documented
Standardized
Controlled
World class
Process Maturity
55
The DEFINE PhaseThe DEFINE PhaseObjectives
• Clearly define and measure the problem• Understand the process
Tasks & Deliverable
s
• Identify project team members• Train team on Process Improvement tools• Define and measure problem statement• Map current process (high level)• Write and approve project charter
“For some clients, many of their transactions have processed slower lately”From:
To:“For Client A and Client B, their website transactions took two days longer (on average) to process this month than they did last month”
Typical Problem Statement:
The MEASURE The MEASURE PhasePhase
Objectives• Identify inputs / process factors• Measure process capability
Tasks & Deliverable
s
• Identify and measure process inputs• Measure process capability• Map and measure current process (detailed)• Calculate Performance / Quality level
“If you can’t measure it, you can’t manage it!”
400
420
440
460
480
500
0 1 2 3 4 5 6 7 8 9 10
11
12
13
14
15
LCL
UCL
The ANALYZE PhaseThe ANALYZE PhaseObjectives
• Identify the root cause(s) of the issue• Identify potential solution
Tasks & Deliverable
s
• Identify and prioritize input / output relationships• Identify root cause / improvement opportunity• Identify optimum settings for process inputs (X’s)• Current / future state gap identified
The IMPROVE PhaseThe IMPROVE PhaseObjectives
• Develop and test potential solutions (future state)• Evaluate risk
Tasks & Deliverable
s
• Generate possible solutions• Perform cost/benefit analysis• Develop future-state process map• Implement the improvement• Measure new process
The CONTROL The CONTROL PhasePhase
Objectives• Implement controls and standardize• Evaluate benefits
Tasks & Deliverable
s
• Assign ownership of the process• Implement visual controls• Perform periodic reviews• Measure actual financial gain
DMAIC DeliverablesDMAIC DeliverablesDefine
Team is trained and committed, customers are identified, problem identified, charter developed, current process mapped
MeasureData collection complete, current process measured, all inputs and outputs defined, performance / quality level calculated
AnalyzeProcess analysis, input / output relationships, root cause analysis (what needs to be improved), current / future state gap identified and quantified
Improve
Generate (and test) possible solutions, cost/benefit analysis, best solution selected, future-state process developed, implement change or produce implementation plan
ControlNew procedures documented, process monitors / dashboard in place, transfer of ownership back to business management (project closure)
Belts and Belts and CertificationsCertifications
Yellow Belt
Green Belt
Black Belt
Master Black Belt
Certifications for both green belts and black belts are offered by the Institute for Industrial Engineers and the American Society for Quality as well as by most organizations using Six Sigma
Pro-Six Sigma Pro-Six Sigma CompaniesCompanies
$2B$2B
$2B$2B
$11B$11B
$1B$1B
$170
M$170
M
$30B$30B
$350
M$350
M
Benefits & CriticismBenefits & CriticismBenefits• Increased Employee Involvement• Reduced Costs & Greater Profits• Increased Customer & Employee Satisfaction• Competitive Advantage • Processes are Simplified & ImprovedCriticism• Expenses• Hiring New Employees• Lack of Innovation• Support and Acceptance• Marketing Ploy• Negative Effects and Arbitrary Standards
RecommendationsRecommendations• Provide Training• Start Slow• Perform Adequate Business Analysis• Use Analytical/Software Tools• Reduce Errors• Reduce Costs• Perform Periodic Auditing• Select the Right Team• Subdivide Projects into Smaller Six Sigma Projects• Suggest Improvements in Projects for Long Term Benefits
Questions?Questions?