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Six Sigma for Beginners- Yellow and Green Belt
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Transcript of Six Sigma for Beginners- Yellow and Green Belt
Six Sigma Concepts for Beginners (Yellow and Green Belt level)
Rajiv Kumar Tiwari
CONTENT
• Origin Of Six Sigma
• Overview Of Six Sigma
• Six Sigma Goals
• Basic Quality Concepts
• DPU & DPMO
• Cost of Quality – Impact on Sigma Level
• Seven Tools of Quality
• Six Sigma Components
• Project Selection
Origin of Six Sigma
1987 Motorola Develops Six Sigma
Raised Quality Standards
Other Companies Adopt Six Sigma
GE, Dow Chemical, Dupont, Honeywell, Whirlpool
Dr Mikel J Harry wrote a paper relating early failures to quality
19921987
1985
MotorolaAllied Signal
1995
General Electric
2002
Johnson & Johnson
Ford
Nissan
Honeywell
Current Leadership Challenges
Delighting Customers
Reducing Cycle Times
Keeping up with Technology Advances
Retaining People
Reducing Costs
Responding More Quickly
Structuring for Flexibility
Growing Overseas Markets
Six Sigma— Benefits?
Generated sustained success
Project selection tied to organizational strategy
Customer focused
Profits
Project outcomes / benefits tied to financial reporting system.
Full-time Black Belts in a rigorous, project-oriented method.
Recognition and reward system established to provide motivation.
• Motorola:
– 5-Fold growth in Sales
– Profits climbing by 20% pa
– Cumulative savings of $14 billion over 11 years
• General Electric:
– $2 billion savings in just 3 years
– The no.1 company in the USA
• Bechtel Corporation:
– $200 million savings with investment of $30 million
Overview of Six Sigma
It is a PhilosophyAnything less than ideal is an
opportunity for improvement
Defects costs money
Understanding processes and
improving them is the most efficient
way to achieve lasting results
It is a Process
To achieve this level of
performance you need to:
Define, Measure, Analyse,
Improve and Control
It is Statistics
6 Sigma processes will
produce less than 3.4
defects per million
opportunities
Management involvement?
Executives and upper management drive the effort through:
Understanding Six Sigma
Significant financial commitments
Actively selecting projects tied to strategy
Setting up formal review process]
Selecting Champions
Determining strategic measures
Six Sigma Goals
Reduce defects
Eliminate Wasteful practices
Delight Internal & External Customer
Fitness for use (Juran principle)Component said to possess good quality if they work well in equipment for which they
are meant
Quality Characteristics Appearance
Performance
Reliability
Taste
Maintainability etc
Voice Of Customer
Basic Quality Concepts
Quality is customer satisfaction, aimed at meeting:
Stated needs (Satisfiers) – Videos & Internet Facility in Cellphone
Unstated needs (Dis-Satisfiers) – Calling, SMS
Expectations (Delighters) – 100 free audio songs
CTQ - Measure of “What is important to Customer”
6 Sigma projects are designed to improve CTQ
Derived from VOC
Examples:
Waiting time in clinic
Spelling mistakes in letter
% of valves leaking in operation
Process Approach
A Process is a group of steps, tasks, or activities, which take inputs (People, Material,
Information …..) and in some way change them to produce an output (Service, Product……)
Transformation
(Using Resources & Management of Activities)X1, X2, X3….Xn Output (Y)
Controllable (& Measurable) Factors
Non Controllable (Measurable or Not measurable) Factors
Inputs
If we understand X1, X3, X4 are causes, why do we constantly test Y
Y X1, X2, X3,……Xn
Dependent variable Independent Variable
Output Input & Controllable factors
Effect Causes
Sympton Problem
Monitor Monitor
Achieving Process Improvement
What we need?
Identify Measurable Outputs – CTQs
Identify Measurable & Controllable inputs/factor that affect CTQs - CTPs
Assign a owner to the Process – Process Owner
Ensure every step in process Adds value – Reduce Waste
How We Achieve?
Reduce Error – Increase Effectiveness
POKA YOKE :
RCO – Reduce chances of Occurrence – e.g. Microwave will shut down the moment we open the door
ICD – increase chances of detection – e.g. Alarms & Signals
Reduce Waste – Increase efficiency
Remove processes that's not adding value to CTQs
Use less resources
Defective - A non-conforming unit
Defect - A non-conformance on any of quality characteristics of a unit that may led to customer dissatisfaction. Defect does not necessarily make the unit defective
E.g. - Design issues in jewellary
DPO & DPMO
Defect Per Unit (DPU) – No. Of defects in a given unit of product or process
DPU = No. Of Defects detected (at given review point) / No. Of units processed at that review point
Defect Per Opportunity (DPO) - Circumstances in which CTQ can fail to meet
E.g. - A units has 5 parts, and in each part there are 3 opportunities of defects –
Total defect opportunities are 5 x 3 = 15
Defect Per Million Opportunity (DPMO) - DPO multiplies by 1 million
E.g. - In previous case (15 defect opportunities), if 10 units have 2 defects.
DPU = Defects detected / no. of units = 2 / 10 = 0.2
DPO = DPU/ (Defect Opportunity *No. Of Units) = 2 / (15 x 10) = 0.0133333
DPMO = DPO * 1 million = 0.013333333 x 1,000,000 = 13,333
Defects, Units & Opportunities
Every process should have definitions for defect, unit and Opportunity
HOW TO IDENTIFY ?
Start with Customer1. Understand the need of your customer (VOC)
2. From VOC identify the critical to Quality – a product or service characteristics that must be met to satisfy a customer requirement
Define Product/Service Defects – Any part of product or service that:1. Does not meet customer specifications or requirements
2. Causes customer dissatisfaction
3. Does not fulfil functional or physical requirements
Define your Product/Service Units:1. Measurable and Observable output of your business process
2. For product – must be seen as physical unit
3. For Service – Must have a specific start and end point
Define your Product/Service Opportunities for error1. Total number of chances per unit to have a defect
2. Each opportunity must be independent of other
3. It must be directly related to CTQs
DPMO & Sigma Level
Six Sigma performance is 3.4 DPMO
Sigma Level DPMO %Defects
One Sigma 690,000 69.0%
Two Sigma 308,000 30.8%
Three Sigma 66,800 6.68%
Four Sigma 6,210 0.62%
Five Sigma 230 0.023%
Six Sigma 3.4 0.0003%
COPQ (Cost of Poor Quality/Defects)
- Lost Opportunities
- The Hidden Factory
- More Setups
- Expediting Costs
- Lost Sales
- Late Delivery
- Lost Customer Loyalty
- Excess Inventory
- Long Cycle Times
- Costly Engineering
Changes
Average COPQ
approximately 15% of Sales
Hidden Costs:
Intangible
Difficult to Measure
Traditional Quality Costs:
Tangible
Easy to Measure
- Inspection
- Warranty
- Scrap
- Rework
- Rejects
7 Tools of Quality
Flow Chart
Check Sheet
Pareto Chart
Histogram
Cause & Effect (Ishikawa/Fishbone diagram)
Scatter Diagram
Control Chart
Note: Pareto Chart and Cause & Effect Diagram are widely used tools
Tools of Quality
Flow Chart:
Describe a process in as much detail by graphically displaying the steps in proper
sequence
How it helps in Six Sigma ?
By Identifying critical process points that need to be controlled so that suitable appraisals
and preventions can be added
Checking the value additions provided by each step in the process
Start/Finish Activity/Operation Decision
Link to ext
activity
A Document
Tools of Quality – Flowchart
A Typical Flow Chart
START
Customer Applied for Loan
Application Form Validated
Information
provided
Valid?
Sent to Audit depart for eligibility check
Eligible for
Loan?
Application Form Rejected
Loan Rejected
No
Yes
Yes
Loan Granted
Check Sheet:
It’s a data collecting device
How it Helps in Six Sigma ?
Organizing the data by category
Shows how many time each value occurred
Setting priorities based on results shown on the check sheets
Tools of Quality – Check sheet
Pareto Chart:
Identify the factors which have greater effect on Service delivery challenges
How it Helps in Six Sigma ?
Using 80:20 principle help user to focus on few important factors in a process
known as vital few
Example of Pareto
Tools of Quality – Pareto Chart
Histogram:
Displays the frequency of distribution of continuous/variable data
How it Helps in Six Sigma ?
Provides a view of data distribution in a process
0
0.5
1
1.5
2
2.5
3
3.5
Freq
uenc
y
Students Performance
Tools of Quality – Histogram
Measures of Central Tendency Mean = Provides the average of a data set
Median = midpoint of the distribution of the data i.e. 50 % above and 50 % below
Mode = Range with maximum observations
Range – (Xmax – Xmin) = spread of the distribution
Standard Deviation – Measure the variation in process represented by Greek letter б
Tools of Quality – Central Tendency
How it Helps in Six Sigma ?
When mean median and Mode are closer to each other it represent less variation in process
If bars are more spread out that means variation is high
More than one Mode represent presence of another distribution imposing on main distribution
and need to be investigated
Cause & Effect (Fishbone) Diagram – ISHIKAWA
Provides a scope to brainstorm and identify failure areas related to 5 M’s
Men Money Machine
MaterialMethodEnvironment
Drunk Driving
Lack of Accident
proof mechanism
Signal failure
Railway TracksProper regulating
mechanism
Bad Weather
Obstruction on
Tracks
Rail Accidents
How it Helps in Six Sigma ?
Most Effective tool for brainstorming
Mapping of failures against 5 M’s
Tools of Quality – Cause & Effect Diagram
Co-Relation Diagram/Scatter Diagram
How it helps in Six Sigma ?
To Find Critical parameters in ProcessY: dependent Variable
Xs (X1, X2, X3 …….Xn): Independent Variable
Scatter diagram is drawn to see the kind of
relationship of Y with each of the Xs i.e. X1, X2, X3,
X4……Xn)If Y increases as X1 increases, it’s a positive Co-relation
If Y decreases as X1 increases, it’s a negative Co-relation
Coefficient of Co-relation – denoted by ‘r’
a) If r>0.7 – Strong Co-relation – CTP
b) If r>=0.3 & r<=0.7 – Weak Co-relation – Not CTP
c) If r<0.3 – No Co-relation – Not CTP
Tools of Quality – Co-relation/Scatter Diagram
Tools of Quality – Co-relation/Scatter Diagram
Control Charts:
Displays statistically determined upper and lower limits drawn on either side of
process average.
Limits are:
Upper control Limit = X + 3σ
Lower Control Limit = X - 3σ
How it helps in Six Sigma?
It reveals whether the data is within upper and lower control limit. If it is then the process is
said to be in Control
It also can sense likelihood of process to go out of control.
Upper & Lower control limit must remain within the Upper Specification limit AND Lower Specification Limit, generally provided or
agreed with Customer
Tools of Quality – Control Charts
Characteristics of any process are dependent on 2 elements
Mean i.e. X
Standard Deviation i.e. σ
Calculating process Capability: Cp
a) Specification Width (SW) = USL-LSL
b) Process Width (PW) = UCL – LCL
= (X + 3σ) – (X - 3σ)
= 6σ
C) Process Capability index:
Cp = SW/PW = SW/6σ
Process is capable only is Cp>1
Control Charts
Tools of Quality – Control Charts
Causes Of Variation
Non-Assignable/Inherent Assignable/Special
Acceptable Variation
If UCL , LCL inside USL &
LSL
UnAcceptable Variation
If data point outside UCL
LCl
Need breakthrough
improvement
Corrective Action required
(By Employees)
Process Power People Power
Approach
Pra
ctica
l
Pro
ble
m
Sta
tistica
l
Pro
ble
m
Sta
tistica
l
So
lutio
n
Pra
ctica
l
So
lutio
n
DMAIC - simplified
Define What is important?
Measure How are we doing?
Analyze What is wrong?
Improve Fix what’s wrong
Control Ensure gains are maintained to guarantee performance
DMAIC approach
M
Measure
A
Analyze
I
Improve
C
Control
Identify and state the practical problem
Validate the practical problem by collecting data
Convert the practical problem to a statistical one, define
statistical goal and identify potential statistical solution
Confirm and test the statistical solution
Convert the statistical solution to a practical solution
D
Define
Define
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
VoC - Who wants the project and why ?
The scope of project / improvement (SMART Objective)
Key team members / resources for the project
Critical milestones and stakeholder review
Budget allocation
Key Output:
Project Charter
SIPOC
Measure
Ensure measurement system reliability
Prepare data collection plan
Collect data
- Is tool used to measure the output variable flawed ?
- How many data points do you need to collect ?
How many days do you need to collect data for ?
What is the sampling strategy ?
Who will collect data and how will data get stored ?
What could the potential drivers of variation be ?
D
Define
M
Measure
A
Analyze
I
Improve
C
Control Key Output:
Sigma Level
Pareto/Correlations
Analyze
How well or poorly processes are working compared with
- Best possible (Benchmarking)
- Competitor’s
Shows you maximum possible result
Don’t focus on symptoms, find the root cause
D
Define
M
Measure
A
Analyze
I
Improve
C
Control Key Output:
Control Chart
Fish Bone
SWOT Analysis
Improve
Present recommendations to process owner.
Pilot runFormulate Pilot run.Test improved process (run pilot).Analyze pilot and results.Develop implementation plan.Prepare final presentation.
Present final recommendation to Management Team.
DDefine
MMeasure
AAnalyze
IImprove
CControl
Key Output:RecommendationsTested Solutuions
Control
Don’t be too hasty to declare victory.
How will you maintain to gains made?
Change policy & procedures
Change drawings
Change planning
Revise budget
Training
D
Define
M
Measure
A
Analyze
I
Improve
C
ControlKey Output:
Sigma Level achieved
Documentation
People Power
Tell me, I forget.
Show me , I remember.
Involve me, I understand.
6 s Training
Master
Black Belt
Black Belts
Green Belts
Team Members /
Yellow Belts
Ch
am
pio
ns
Mentor, trainer, and coach of Black Belts and others
in the organization.
Leader of teams implementing the six sigma
methodology on projects.
Delivers successful focused projects using
the six sigma methodology and tools.
Participates on and supports the project teams,
typically in the context of his or her existing
responsibilities.
Ch
am
pio
ns
Champion
Plans improvement projects
Charters or champions chartering process
Identifies, sponsors and directs Six Sigma projects
Holds regular project reviews in accordance with project charters
Includes Six Sigma requirements in expense and capital budgets
Identifies and removes organizational and cultural barriers to Six Sigma success.
Rewards and recognizes team and individual accomplishments (formally and informally)
Communicates leadership vision
Monitors and reports Six Sigma progress
Validates Six Sigma project results
Nominates highly qualified Black Belt and/or Green Belt candidates
Master Black Belt
Enterprise Six Sigma expert
Permanent full-time change agent
Certified Black Belt with additional specialized skills or experience
especially useful in deployment of Six Sigma across the enterprise
Highly proficient in using Six Sigma methodology (e.g.,
advanced statistical analysis, project management, communications,
program administration, teaching, project coaching)
Identifies high-leverage opportunities for applying the Six Sigma
Basic Black Belt training
Green Belt training
Coach / Mentor Black Belts
Master
Black Belt
Black Belt
Six Sigma technical expert
Temporary, full-time change agent (will return to other duties after completing a two to three year tour of duty as a Black Belt)
Leads business process improvement projects where Six Sigma approach is indicated.
Successfully completes high-impact projects that result in tangible benefits to the enterprise
Demonstrated mastery of Black Belt body of knowledge
Demonstrated proficiency at achieving results through the application of the Six Sigma approach
Coach / Mentor Green Belts
Recommends Green Belts for Certification
Black Belts
Green Belt
Six Sigma Project originator
Part-time Six Sigma change agent. Continues to perform normal duties while participating on Six Sigma project teams
Six Sigma champion in local area
Recommends Six Sigma projects
Participates on Six Sigma project teams
Leads Six Sigma teams in local improvement projects
Green Belts
Yellow Belt
Learns and applies Six Sigma tools to projects
Actively participates in team tasks
Communicates well with other team members
Demonstrates basic improvement tool knowledge
Accepts and executes assignments as determined by team
Team Members /
Yellow Belts
Sources of Projects
External Sources:
Voice of Customer
What are we falling short of meeting customer needs?
What are the new needs of customers?
Voice of Market
What are market trends, and are we ready to adapt?
Voice of Competitors
What are we behind our competitors?
Internal Sources:
Voice of Process
Where are the defects, repairs, reworks?
What are the major delays?
What are the major wastes?
Voice of Employee
What concerns or ideas have employees or managers raised?
What are we behind our competitors?
What Qualifies as a Six Sigma Project
Three basic qualifications:
There is a gap between current and desired / needed performance.
The cause of problem is not clearly understood.
The solution is not pre-determined, nor is the optimal solution
apparent.