sixsigma intro

8/3/2019 SixSigma Intro

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Lean Six SigmaA journey to excellence


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Six Sigma IntroLets get started!


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What is Six Sigma ( ) ?

JR Consulting - 1 (787) 367 1862

Six Sigma is a total management commitment and

philosophy of excellence.

The central idea behind Six Sigma is that if you can

measure how many defects you have in a process,

you can systematically figure out how to eliminate

them and get as close to zero defects as possible.

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Is Six Sigma another fad ?

JR Consulting - 1 (787) 367 1862

No, the record shows that its been a hugesuccess in many organizations.

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Motorolasaves $16billion in 15

years*

JR Consulting - 1 (787) 367 1862

we will share Six Sigma with the world, and itwill come back to us with new ideas and new

perspectives.Bob Galvin, Board Member, Motorola

For Which We Stand. A Statement of Purpose; Objectives and Ethics.May, 1986

* As of 2001 5


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GE saves$4.4 billion

in 4 years*

JR Consulting - 1 (787) 367 1862

Six Sigma has spread like wildfire across thecompany and its transforming everything we do.

Jack Welch, CEO, GEBusiness Week special report

June 8, 1998* As of 1999

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Why use Six Sigma ?

JR Consulting - 1 (787) 367 1862

Decisions based on facts and data rather than opinion.

Reduces the dependency on Tribal Knowledge.

Attacks the high-hanging fruitthe hard stuff.

Eliminates chronic problemsa common cause of variation. Improves customer satisfaction.

Changes the company culture.

Provides a disciplined approach to problem solving.

Creates a competitive advantage.

Improves profits!

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Process Variation

JR Consulting - 1 (787) 367 1862

8

Sigma

Level (Z)

Defects perMillion

Opportunities (DPMO)

Percent

Defects (%)

PercentSuccess

(Yield %)

Capability

(CP)

1 691,462 69 31 0.33

2 308,538 31 69 0.67

3 66,807 6.7 93.3 1.00

4 6,210 0.62 99.38 1.33

5 233 0.023 99.977 1.67

6 3.4 0.00034 99.99966 2.00

The higher the sigma score, the better the process.


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Six Sigma Targets Variation JR Consulting - 1 (787) 367 1862

Poor process:

66,807 defectsper millionopportunities.

9

3s

LCL UCLTolerance

Target =

66,807ppm

66,807

ppm

3s


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Less Variation, Less Defects JR Consulting - 1 (787) 367 1862

Process withalmost no defects:3.4 defects per

million opportunities.

10

6s

LSL USL

Tolerance

Target =

3.4ppm

3.4ppm

6s


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LessVariation,

BetterYield

JR Consulting - 1 (787) 367 1862

11Z = 2

Z = 3

Z = 4

Z = 5

Z = 6

USLLSL Mean


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Inspection vs. a Capable Process

JR Consulting - 1 (787) 367 1862

12

125.08125.06125.04125.02125.00124.98124.96124.94124.92

Upper SpecLower Spec

s

Mean-3s

Mean+3s

Mean

n

k

LSL

USL

Targ

Cpm

Ppk

PPL

PPU

Pp

Long-Term Capability

0

24969

0

32255

0.00

2.50

0.00

3.23

Obs

PPMUSL Exp

Obs

%USL Exp

0.026

124.923

125.080

125.001

782.000

0.029

124.950

125.050

*

*

0.62

0.65

0.62

0.63

Process Capability Analysis for Supplier 1

125.04125.02125.00124.98124.96

Upper SpecLower Spec

s

Mean-3s

Mean+3s

Mean

n

k

LSL

USL

Targ

Cpm

Ppk

PPL

PPU

Pp

Long-Term Capability

0

1

0

1

0.00

0.00

0.00

0.00

Obs

PPMUSL Exp

Obs

%USL Exp

0.010

124.969

125.031

125.000

1000.00

0.00

124.95

125.05

*

*

1.62

1.63

1.62

1.62

Process Capability Analysis for Supplier 2

100 % Yield due to 100 % Inspection 100 % Yield due to a capable Process

Which Supplier would you select ?


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What causes variation inyour trip home ?

JR Consulting - 1 (787) 367 1862

Stop Signs. School bus.

Red lights.

People in crosswalks.

The gas tanker truck that crashed into the bridge.

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Six Sigmas main elements

JR Consulting - 1 (787) 367 1862

Customer focus is a top priority.

SS is always data driven.

Understanding processes is the key to success.

Management is proactivelooking for new ways.

Collaboration has no boundaries.

Overachievement demands failure tolerance.

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Process Capability

JR Consulting - 1 (787) 367 1862

It depends on the process

We must be able to measure its key input and output variables.

But also on the customer We must also know the customers requirements, or tolerances.

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Tolerance

JR Consulting - 1 (787) 367 1862

The capability of a processor how good it is

depends on how well it meets the customers specific

requirements (CTQs), and their Tolerance limits. E.g.

Customer service wait time: less than 5 minutes.

Pizza delivery time: within 30 minutes.

Diameter of a shaft: 2.5 0.0001 inches.

A greater tolerance is less costly.

Does the customer really need the specified level oftolerance? Why does he require this tolerance? Could hiscustomers live with a lesser tolerance?

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Measurement challenges

JR Consulting - 1 (787) 367 1862

What should be measured? KPIV and KPOV ?

Who will measure?

How often?

With what precision? Min 10 readings withintolerance.

Whats the Gage error? Max 30% of tolerance.

How big a sample of data? Min 30 for var. data.

Hawthorne effect?

Cheating the system?

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JR Consulting - 1 (787) 367 1862

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CpkProcess Capability

UCL = Upper Control Limit of Tolerance.

LCL = Lower Control Limit of Tolerance.

s = {s sample sigma (for n > 25 sample).

s / c4 (for n


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JR Consulting - 1 (787) 367 1862

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Define Find a meaningful problem.

Measure Specify baseline Y performance.

Analyze Find root causes Xs of the problem.

Improve Implement new improved solution.

Control Assure new Y performance.

The DMAIC Roadmap

Redesign?

Improve


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Define Measure Analyze Improve Control

JR Consulting - 1 (787) 367 1862

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Review project

Charter.

Validate problemstatement and goals.

Validate Voice

of the Customer.

Validate financial

Benefits.

Validate high-level

Value Stream Map

and scope.

Createcommunication plan.

Select team roster.

Develop project

Schedule.

Draw Value Stream

Map for deeper

understanding & focus. Identify key input,

process, & output

metrics.

Develop Field Guide

for measurement taking

procedures.

Develop data

collection plan.

ValidateMeasurement System.

Collectbaseline Data.

Determine baseline

process capability.

The To Do List

Determine critical

Inputs.

Identify potentialroot causes.

Reduce list of

potential root causes.

Confirm root cause

Effect on output.

Estimate impact

of root causes on key

outputs.

Prioritize rootcauses.

Develop potential

Solutions.

Evaluate, select, andoptimize Best

solutions.

Develop Future

Value Stream Map.

Develop and

implement pilot

Solution.

Confirm attainment

of project goals. Develop full-scale

Implementation Plan.

Implement mistake

Proofing.

Develop SOPs,

training plan, and

process controls. Implement solution

and ongoing Process

measurements.

Identify opportunities

to apply project Lessons.

TransferMonitoring -

control to process Owner.

Close Project.

Source:TheSixSigmaPocketToolbox

Find a

meaningfulproblem.

Specify

baseline Yperformance.

Find root

causes Xs ofthe problem.

Implement

new improvedsolution.

Assure new Yperformance.

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