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Six SigmaTotal Quality Management

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Six Sigma at a Glance

Alan Larson One of the original divisional quality directors

at Motorola• Developing• Training• Deploying

the culture and methods of Six Sigma

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How to establish improvement programs Customer focused Team based Deployed throughout the entire workforce Applicable to

• Manufacturing• Administrative• Service

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Six-step continuous improvement methods1. Create the operational statement and metric

2. Define the improvement teams

3. Identify potential causes

4. Investigation and root cause identification

5. Make improvement permanent

6. Demonstrate improvement and celebrate

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JUSE seven tools• Pareto diagram• Fishbone diagram• Check sheet• Histogram • Stratification• Scatter diagram• Charting

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The Basics of Six Sigma

What is Six sigma and continuous improvement

Tools and Techniques • that can be learned • and successfully used • by all employees

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What is Six sigma and continuous improvement

Total Employee Involvement• Utilize your most valuable resources• The intelligence of your workforce

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What is Six sigma and continuous improvement

Building quality into all operations• Manufacturing: inspection increase cost• Service: every encounter is a moment of truth

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What is Six sigma and continuous improvement

Engaging the people who perform the work• Ownership and pride• High morale

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Why Six Sigma had to be invented

In the mid-1980s Motorola was losing ground to its Japanese

competitors Customer’s comments

• “Love, love, love the product; hate, hate, hate the company”

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Motorola’s systems for doing business– Contract review– Response to requests for quote– Response to customer complaints– ……

• Were not designed for customer satisfaction• The internal bureaucracy fed on itself

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Motorola’s product suffers• Too many out-of-box failures• High level of early-life failure

– Warranty returns– Were predominately units that

» Had failed at final test» Had gone through a rework cycle

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Motorola’s reaction• Benchmark those Japanese companies that were

destroying Motorola– Senior managers and executives sent on a

benchmarking tour of Japan» Operating methods» Product quality method

• Discovered– National program for employee involvement

» Use employee’s muscle and their brains and knowledge

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The Birth of Six Sigma

Motorola learned From customers

• Need to change all systems to focus on total customer satisfaction

From Japanese• Involvement all employees to increase efficiency

and moral• Simpler designs result higher levels of quality and

reliability

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From early-life field failure study• Products need to be built right the first time

Motorola’s leader pulled this together to establish vision and set the framework for six sigma

Six Sigma was launched in 1987

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Mathematics of Six Sigma

• Opportunities-for-error• DPMO: defect per million opportunity

A way of leveling the playing field Manufacturing operations vs order-entry work

Account for differing complexities An invoice consisting of 40 line items vs 2 line

items

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Sigma calculations are controversial Attribute data

– Go, no-go

• Utilizing normal curve and z-table violates many of the rules of statistics

Accounting for variation over time by adding 1.5 sigma to the actual z-table

Sigma calculations are developed empirically

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Black belts and Green belts

Local statistical resources (LSR) Engineers trained in advanced form

• Experimental design• Data analysis• Process control

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Total customer satisfaction (TCS) team Factory workers Received training and couching in problem-

solving methods

Green belt

“Black belts” and “Green belts” were not applied to six sigma program at Motorola until the 1990s

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Avoid special-assignment employee with the title of “Black Belt” External to the operations that they support

• Expensive• Less-than-optimum structure for six sigma

– Disenfranchise most employee– Convenient way for employee to abandon their

responsibility

Only result in short term benefits

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Requirements for Six Sigma

Transformation

1. Reward and Recognition• Honor the achievement of teams or work

unit• Executive bonus tie to six sigma

2. Training• Teach everyone the new skills

3. Uniform Measurement• Unacceptable deliveries (to the customers)

are counted and converted to a defect rate measurement

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4. Facilitators• Employees with aptitude and received

required training

5. Communication• Everyone understand what is expected

6. Senior executive behavior• Model the expectations of six sigma

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“Six Sigma is a successful evolution of total quality management systems.” Larson, p. 19, chapter 2

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TQM definition

Total: Everyone committed

Quality: Meeting the customers’ expectation

Management: Collaborative focus

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Six Sigma Definition

“Within a Six Sigma system, everyone is committed to meet the customers’ expectations through the use of a collaborative focus.” Larson, p. 20, chapter 2

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Senior Management Role

Create Six Sigma culture– Models new rules and norms– Enable all the good things to happen

• Set the vision– Framework of how the company will function to serve its

customer base» Mission» Objectives» Strategies» Tactics

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• All operations and functions concentrate on total customer satisfaction

– Mechanism in place to determine customer satisfaction levels

– Metrics in place to measure the quality level

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• Suppliers relations– Buying based on price only or– Buying from the lowest-cost-to-do-business-with

• Employee empowerment– Training, Training, Training– People are challenged to work more efficiently– Team are abundant

• Reward and recognition systems

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Change Managementfor transition to six

sigma

vision Skills Incentive Resources Action plan Change+ + + + =

Skills Incentive Resources Action plan Confusion+ + + =

vision Incentive Resources Action plan Anxiety+ + + =

vision Skills Resources Action plan GraduateChange

+ + + =

vision Skills Incentive Action plan Frustration+ + + =

vision Skills Incentive Resources FalseStarts

+ + + =

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Preliminary Tasks

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What do you want?Commit for a very long period of time to make it work

Six Sigma culture • Focuses on the voice of the customer• Includes teaming and empowerment• Complete organizational development

– Vision

– Mission

– Objectives

– Strategies

– Tactics

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Commits resources• Time available during working hours

– Improvement– Training

• Selects initial green belts and black belts– Create an environment where everyone is a positive

change agents

• Identifies internal and external resources– Phase out external as internal developed

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Select the initial projects Start with your customer data

• Complaints• Returns

– Pareto Diagram» Prioritize the chronic reasons for customer

dissatifactions

• Annual customer satisfaction survey– Third party service providers

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Data of cost of poor quality• Rework & repair cost• In-process scrap cost• Damage control cost

– Customer service

• Final inspection cost• Lost business

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Collecting Data Six sigma culture

• Decisions are made• Programs are established

based on DATA

Establishes way to collect data• If customer is lost, follow up• Data to identify where your problems are

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Goal of Six Sigma Ten-fold improvement Every two years

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Identify required teams Cross functional view

• Recruit team members from every units involved• EX: parties involved in delivering products &

services late– Sales: receiving the orders– Order entry personnel– Production control– Manufacturing engineering– …….