Presenting Six Sigma by the ASQ Six Sigma Forum. Overview What is Six Sigma? What can Six Sigma do?...
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Transcript of Presenting Six Sigma by the ASQ Six Sigma Forum. Overview What is Six Sigma? What can Six Sigma do?...
Presenting Six Sigma
by the ASQ Six Sigma Forum
Overview
• What is Six Sigma?• What can Six Sigma do? • How does Six Sigma work?• Six Sigma infrastructure • The DMAIC methodology
A methodology that uses metrics and statistical analysis to improve processes, services, and products
What is Six Sigma?
A business philosophy that makes customer requirements top priority
What is Six Sigma?
A management system that unifies culture, standardizes processes, and
raises performance standards
What is Six Sigma?
Developed and deployed at Motorola
Six Sigma helps Motorola win Baldrige Award
1994-96
SS enters chemicals, healthcare, services 1996-98
SS enters finance, education, government
GE and Allied Signal results popularize the methodology for manufacturing
1988
1985-87
1999-2003
Six Sigma development milestones
Improve performance: reduce defects, systematize and stabilize processes, improve customer satisfaction
What can Six Sigma do?
Reduce costs: improve efficiency, eliminate waste, reduce costs of poor quality
What can Six Sigma do?
Improve the bottom line:
$GE: $3 billion in Six Sigma savings in the year 2000 alone
$Honeywell: $600 million dollars in savings in just one year
$Dow Chemical: $25 million investment regained within only one quarter
What can Six Sigma do?
The Greek letter σ refers to standard deviation, a measure of the variation of data about its average.
When we measure a process’s sigma value, we measure the number of units of standard deviations between the process center and the closest specification limit.
What is σ?
6 Sigma
6 Standard Deviations
UpperSpec
LowerSpec
Target
Process Center
A 6 σ process has 6 standard deviations between the target and the nearest specification limit
Higher σ = less variation = fewer defects
= better performance
Lower Specification
Limit (LSL)
Upper Specification Limit (USL)
6 σ process
A 6 σ processresults in only 3.4 defects per million
opportunities (DPMO)
3.46
2335
6,2104
66,8073
308,5372
690,0001
DPMOSigma level
4σ • 99.4% error free• Electrical outages
one hour per week• 6 out of every 1,000
invoices contain incorrect info
6σ
• 99.9997%
• Outages two seconds per week
• 3.4 out of every 1,000,000 invoices
How much better is 6σ?
The infrastructure: Executives and Champions secure organizational support for improvement projects run by Black Belts and Green Belts
How does Six Sigma work?
Green Belts
All staff
Master Black Belts
Black Belts
Project Team
Members
Champions
Executives
Six Sigma infrastructure
•Part-time SS (retain previous job duties)•Assist BBs with data collection and analysis•Lead teams and run projects
GBs
• Half- to full-time• Lead problem-solving projects• Train and coach project teams
BBs
•Full-time •Develop metrics and help establish strategic direction•Train and coach BBs and GBs
MBBs
• Up to 80% of time on Six Sigma• Project owners: remove obstacles,
provide resources, review progress• Translate company mission, goals,
and metrics into individual projects
Champions
• 25% of time on Six Sigma• Drive overall program• Align Six Sigma with organizational
culture and vision
Executives
Why the Belt terminology?
The methodology: teams apply the DMAIC (define, measure, analyze, improve, control) methodology to root out and eliminate the causes of defects
How does Six Sigma work?
DMAIC Methodology
no
Improve
Define
Measure
Analyze
Control
Modify design?
yes
Redesign
Define
• Identify processes to be improved
• Define defects, customer requirements, and opportunities for improvement
Define
• Establish project objectives, parameters, and
metrics
Define phase tools
• High-level, as-is business process map
• Voice of the Customer (VOC): determine what is critical to customer satisfaction
• Cost of quality/cost of poor quality (COQ, COPQ)
• Team charter
• Collect data on performance• Map the process
• Determine Critical to Quality (CTQ) characteristics
• Validate measurement system and establish a baseline
• Estimate process capability
Measure
Measure phase tools
• Detailed process map• Failure modes and
effects analysis (FMEA)
• Control charts• Gage reproducibility
and repeatability (Gage R&R)
• Process capability
• Identify possible sources of variation; narrow the search for key variables
• Perform hypothesis testing and correlation/regression
Analyze
• Outline areas for improvement; recommend redesign when necessary
Analyze phase tools
• Confidence intervals• Multi-vari analysis• Analysis of variance
(ANOVA)• Correlation/regression• Hypothesis testing
0
5
10
15
20
0 2 4 6 8 10
Correlation = 1
9.69.59.49.39.29.19.08.98.88.7
9.4
9.3
9.2
9.1
9.0
8.9
8.8
8.7
8.6
R-Sq = 92.0 %Y = 1.02031 + 0.872922X
Regression Plot
Ho = NullHa = Alternate
Improve
• Determine effect of key process variables on undesirable variation
• Develop and test potential solutions to reduce variation
• Implement validated solutions
Improve phase tools
• Completely randomized blocks• Design of experiments (DOE)
° Full-factorial—measures and analyzes the responses of all possible combinations of factors and factor levels
° Fractional-factorial—measures and analyzes responses for a balanced portion of the full-factorial array
• Response optimization• Response surface methodology
• Monitor the improved process
• Implement controls to hold the gains
• Establish and document new standard operating procedures
• Transfer responsibility to process owners
Control
Control phase tools
• Control plans• Evolutionary
operation (EVOP)
• Statistical process control (SPC)
• Process capability analysis
20100
4
3
2
1
0
U =1.930
UCL=3.794
LCL=0.06613
Lower Control Limit
Upper Control Limit
Center Line
How do we get started?
• Explore the business need: VOC, COQ, defect analysis
• Identify staff: Champions, BBs, GBs• Send staff for training:
Executives, 1-2 days GBs, 2 weeks Champions, 1 week BBs, 4 weeks
How long until we see results?
• Most projects require 4-8 months for completion and sustained results
• Ideally, an implementation never ends—new projects are continually launched to keep the company improving
Questions?
Looking for more information?
Please visit www.sixsigmaforum.com
Copyright © 2004 American Society for Quality.
All rights reserved.
www.sixsigmaforum.com