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Transcript of 134432294-SIX-SIGMA
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SEMINARON
SIX SIGMAMETHODOLOGY
Presented By:
PRADIPTA ROUT
M.TECH.(I.E.)
REGD.NO.-
C.E.T.,BHUBANESWAR
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INTRODUCTION
Todays competitive environment leaves no room for errors.
Companies must delight their customers.
Companies must look for new ways to exceed customers
satisfaction.
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HOW GOOD IS GOOD ENOUGH?With 99.9 %
quality
With Six Sigma
Quality
No. of wrong medicalprescriptions per
year
4000 13
No. of lost mails per
hour
400 One lost article of
mail per hour
Out of every 500000
computer restarts
4100 crashes Less than 2 crashes
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ORIGIN OF SIX SIGMA
Three sigma(95%) was introduced by Walter Shewhart in 1920.
Credit of coining term Six Sigma goes to Motorola Engineernamed Bill Smith in 1986.
Six Sigma was introduced by Motorola to reduce defect rate of
manufactured electronic boards.
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WHAT IS SIX SIGMA?Business Definition
Data-driven approach and methodology to significantly improvecustomer satisfaction and quality of process outputs by identifying and
reducing variability as well as defects in every aspect of business.
Technical Definition
A statistical term signifying 3.4 defects per million opportunities wherea defect is defined as anything that could lead to customers
dissatisfaction. An opportunity is the total quantity of chances for a
defect.
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PROCESS CAPABILITYProcess capability is also defined as the capability of a process to
meet its purpose as managed by an organization's management
and process definition structures
Two parts of process capability are:
1) Measure the variability of the output of a process.2) Compare that variability with a proposed specification or
product tolerance.
Standard Deviation ,
Where
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SIX SIGMA CONCEPT OF PROCESSCAPABILITY
Capability studies measure the number of standard
deviations between the process mean and the nearest
specification limit in sigma units. As process standarddeviation goes up, or the mean of the process moves away
from the center of the tolerance, fewer standard deviations
will fit between the mean and the nearest specification limit,
decreasing the sigma number and increasing the likelihoodof items outside specification.
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SIX SIGMA CAPABILITYIMPROVEMENTSigma Performance Levels -- One To Six Sigma
Sigma Level Defects Per Million Opportunities (DPMO)
1 690,000
2 308,537
3 66,807
4 6,210
5 233
6 3.4
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CHIEF CHARACTERISTICSSMART (Specific Measurable Attainable Relevant Time-
Bound)
Distinguish vital few from trivial many. Six Sigma is a customer focussed programme.
Manufacturing and business processes have characteristics
that can be measured, analyzed, improved and controlled.
Making decisions with verifiable data rather than guesswork.
Timely Execution of processes.
Training and cultural change to build a special
infrastructure in the organisation.
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THE ROAD MAP
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SUB METHODOLOGIESDMAIC process(define, measure , analyze , improve , control )
It is an improvement system forexisting processes falling belowspecification and looking for incremental improvement
DMADV process (define, measure, analyze, design, verify)
It is an improvement system used to develop new processes or
products at Six Sigma quality levels. It can also be employed if a
current process requires more than just incremental
improvement.
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DMAICDEFINE
Define who customers are, what their requirements are for
products and services, and what their expectations are
Define project boundaries the stop and start of the process
Define the process to be improved by mapping the process flow
MEASURE
Develop a data collection plan for the process
Collect data from many sources to determine types of defects andmetrics
Compare to customer survey results to determine shortfall
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DMAICANALYZE
Identify gaps between current performance and goal performance
Prioritize opportunities to improve
Identify sources of variation
IMPROVE
Create potential solutions using technology and discipline
Develop and deploy implementation plan
CONTROL
Prevent reverting back to the "old way" Require the development, documentation and implementation of
an ongoing monitoring plan
Institutionalize the improvements through the modification of
systems and structures (staffing, training, incentives)
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WORKING OF SIX SIGMA DMAICDefine - high level goals and current process
Measure - key aspects of current process and collect relevant data.
Analyze - the data to verify cause-and-effect relationships.
Improve - the process based upon data analysis.
Control - the improvements to keep the process on the new course.
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DFSS(Design For Six Sigma)
More of an approach than a defined methodology as there are no
universally recognized phases or steps.
Is used to design or re-design a product or service from the ground
up.
Expected process Sigma level for a DFSS product or service is at
least 4.5 (no more than approximately 1 defect per thousand
opportunities), but can be 6 Sigma or higher depending the product.One popular design is DMADV.
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WORKING OF SIX SIGMA DMADVDefine - design goals that are consistent with customer demands
and the enterprise strategy.
Measure -and identify CTQs (characteristics that are Critical To
Quality), process capabilities and risks.
Analyze -to develop and design alternatives, create a high-level
design and evaluate design capability to select the best design.
Design - details ,optimize the design, and plan for design
verification.
Verify - the design, set up pilot runs, implement the production
process and hand it over to the process owners.
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SIX SIGMA DEPLOYMENT
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SIX SIGMA DEPLOYMENT1. Champions take responsibility for Six Sigma implementation
across the organization in an integrated manner. Champions
also act as mentors to Black Belts.
2. Master Black Belts, identified by champions, act as in-house
coaches on Six Sigma. They devote 100% of their time to Six
Sigma. They assist champions and guide Black Belts and
Green Belts. Apart from statistical tasks, they spend their time
on ensuring consistent application of Six Sigma across various
functions and departments.3. Black Belts apply Six Sigma methodology to specific
projects. They devote 100% of their time to Six Sigma. They
primarily focus on Six Sigma project execution, whereas
Champions and Master Black Belts focus on identifyingprojects/functions for Six Sigma
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SIX SIGMA DEPLOYMENT4. Green Belts, the employees who take up Six Sigma
implementation along with their other job responsibilities,
operate under the guidance of Black Belts.
5. Yellow Belts, trained in the basic application of Six Sigma
management tools, work with the Black Belt throughout the
project stages and are often the closest to the work.
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BENEFITS OF SIX SIGMAIncreased revenue from removing process variability.
Increased revenue from excellent new products or greatly
improved existing products
Dramatic reduction in defects, cycle time and cost
Reduced reliance on inspection for quality
Greatly improved customer satisfaction
Reduced costs from rework and elimination of non
value-adding work
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SIX SIGMA DRIVES MEASURABLERESULTSThe pioneer company, Motorola has reported savings upto $21
billion.
General Electric reported $750 million savings in cost in
1998.
A Rubber Manufacturer was unable to perform fast mold
changes, impacting delivery schedules and customer satisfaction.
Six Sigma was applied, reducing mold change time 53% and
creating $525,000 in sales capacity.
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SUCCESS STORY OF SIX SIGMA ININDIAIn 1998-99, its first year of implementing six sigma, Wipro
recorded savings of Rs. 4.40 crore and it is growing year by year.
Godrej-GEs assembly-lines at Mohali, Pune has brought
down the defects to 1000 per million parts, between four and
five sigma, with a saving of Rs. 10 crore.
Maruti Udyog, despite its faith in Japanese Quality Practice,
has started a six sigma pilot project in its spares deptt.
Hero Motors is using six sigma to bring down warranty-costs.
Modi Xerox has blended six sigma with their on-going quality
programmes, says D.P. Roy, Executive director, Modi Xerox.
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CONCLUSION
Generates sustained success
Sets performance goal for everyone
Enhances value for customers;
Accelerates rate of improvement;