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Six sigma Introduction

Six sigma Introduction © All Rights Reserved TreQna 2005
Six sigma Introduction © All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

expectatio n s •Awareness with respect to origin and history of Six Sigma. •The utility

expectatio

ns

•Awareness with respect to origin and history of Six Sigma.

•The utility and benefits

•Introduction to Six Sigma as methodology

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•The Six Sigma organization

contents Six Sigma Intro BPMS DMAIC 15 min © All Rights Reserved TreQna 2005

contents

Six Sigma Intro BPMS DMAIC

15 min

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Two Meanings of Sigma • The term “sigma” is used to designate the distribution or

Two Meanings of Sigma

Two Meanings of Sigma • The term “sigma” is used to designate the distribution or spread
Two Meanings of Sigma • The term “sigma” is used to designate the distribution or spread

• The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure.

• For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigma capability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction.

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Origin of Six Sigma M M o o t t o o ro ro la

Origin of Six Sigma

Origin of Six Sigma M M o o t t o o ro ro la la

MMoottoororolala

tthhee compacompanyny tthahatt iinvenvenntteded SSixix SiSigmagma

ha t t i i nve nve n n t t ed ed S S ix

• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola

• Late 1970s - Motorola started experimenting with problem solving through statistical analysis

• 1987 - Motorola officially launched it’s Six Sigma program

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The Growth of Six Sigma GE GE t t h h e e compa compa

The Growth of Six Sigma

The Growth of Six Sigma GE GE t t h h e e compa compa ny

GEGE

tthhee compacompanyny tthahatt ppererffecectedted SiSixx SiSigmagma

t t p p er er f f ec ec ted ted Si Si x x

• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the criteria for management promotions

• 2002/03 - Green Belt certification became the criteria for promotion to management roles

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The Growth of Six Sigma The GE model for process improvements DDefiefinnee MeasuMeasurree AnAnalalyzyzee ImImprprooveve

The Growth of Six Sigma

The GE model for process improvements

The Growth of Six Sigma The GE model for process improvements DDefiefinnee MeasuMeasurree AnAnalalyzyzee ImImprprooveve
DDefiefinnee MeasuMeasurree AnAnalalyzyzee ImImprprooveve ConContrtrolol
DDefiefinnee
MeasuMeasurree AnAnalalyzyzee ImImprprooveve
ConContrtrolol

Combination of change management & statistical analysis

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The Growth of Six Sigma © All Rights Reserved TreQna 2005

The Growth of Six Sigma

The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005
The Growth of Six Sigma © All Rights Reserved TreQna 2005

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BPMS BPMS Bu Bu siness siness P P r r oc oc e e ss
BPMS BPMS Bu Bu siness siness P P r r oc oc e e ss

BPMSBPMS

BuBusinesssiness PPrrococeessss MaMannaagemengementt SySyststemem

siness P P r r oc oc e e ss ss Ma Ma n n a

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The Need of BPMS • To understand the process; it’s mission, flow and scope •

The Need of BPMS

The Need of BPMS • To understand the process; it’s mission, flow and scope • To

• To understand the process; it’s mission, flow and scope

• To know the customers and their expectations

• To identify, monitor and improve correct performance measures for the process

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The Methodology Map process steps, identify input/ output measures MSA, DCP, indicators and monitors Service

The Methodology

The Methodology Map process steps, identify input/ output measures MSA, DCP, indicators and monitors Service excellence
The Methodology Map process steps, identify input/ output measures MSA, DCP, indicators and monitors Service excellence

Map process steps, identify input/ output measures

MSA, DCP, indicators and monitors

Service excellence and process excellence

Identify Define Process Mission Develop Map Process VOC and VOP Build PMS Improvement Dashboards
Identify
Define Process
Mission
Develop
Map Process
VOC and VOP
Build PMS
Improvement
Dashboards

Define purpose of the process,

its goal and its boundaries

Identify

Critical to

Quality and

Critical to

process

Visual representatio n of performance

The DMAIC cycle

Opportunities
Opportunities

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DMA DMA I I C C Six Six Sigm Sigm a a I I mprovemen
DMA DMA I I C C Six Six Sigm Sigm a a I I mprovemen

DMADMAIICC

SixSix SigmSigmaa IImprovemenmprovementt MeMetthodhodologologyy

Six Six Sigm Sigm a a I I mprovemen mprovemen t t Me Me t t

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What is DMAIC ? • A logical and structured approach to problem solving and process

What is DMAIC ?

What is DMAIC ? • A logical and structured approach to problem solving and process improvement

• A logical and structured approach to problem solving and process improvement

• An iterative process (continuous improvement)

• A quality tool with focus on change management

EE

Effectiveness =

QQ

Quality

x

Improvement

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AA

Acceptance

The Approach © All Rights Reserved TreQna 2005 Practical Problem Statistical Problem Statistical Solution Practical

The Approach

The Approach © All Rights Reserved TreQna 2005 Practical Problem Statistical Problem Statistical Solution Practical

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Practical Problem Statistical Problem Statistical Solution Practical Solution
Practical
Problem
Statistical
Problem
Statistical
Solution
Practical
Solution
© All Rights Reserved TreQna 2005 Practical Problem Statistical Problem Statistical Solution Practical Solution
© All Rights Reserved TreQna 2005 Practical Problem Statistical Problem Statistical Solution Practical Solution
Methodology D Define M Measure A Analyze I Improve C Control © All Rights Reserved

Methodology

Methodology D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna
D Define M Measure A Analyze I Improve C Control © All Rights Reserved TreQna
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
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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

Define D Define M Measure A Analyze I Improve C Control © All Rights Reserved

Define

D Define M Measure A Analyze I Improve C Control
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

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I Improve C Control © All Rights Reserved TreQna 2005 VoC VoC - Who wants the

VoCVoC - Who wants the project and why ? VoC - Who wants the project and why ?

The scope of project / improvementTreQna 2005 VoC VoC - Who wants the project and why ? Key team members /

Key team members / resources for the projectthe project and why ? The scope of project / improvement Critical milestones and stakeholder review

Critical milestones and stakeholder reviewthe project and why ? The scope of project / improvement Key team members / resources

Budget allocationscope of project / improvement Key team members / resources for the project Critical milestones and

D

Measure D Define M Measure A Analyze I Improve C Control © All Rights Reserved

Measure

D Define M Measure A Analyze I Improve C Control
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

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I Improve C Control © All Rights Reserved TreQna 2005 Ensure measurement system reliability - Is

Ensure measurement system reliabilityI Improve C Control © All Rights Reserved TreQna 2005 - Is tool used to measure

- Is tool used to measure the output variable flawed ?

- Do all operators interpret the tool reading in the same way ?

Prepare data collection planall operators interpret the tool reading in the same way ? - How many data points

- 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 ?

M

Collect datastrategy ? - Who will collect data and how will data get stored ? - What

Analyze D Define M Measure A Analyze I Improve C Control © All Rights Reserved

Analyze

D Define M Measure A Analyze I Improve C Control
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

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I Improve C Control © All Rights Reserved TreQna 2005 Understand statistical problem Baseline current process

Understand statistical problemI Improve C Control © All Rights Reserved TreQna 2005 Baseline current process capability Define statistical

Baseline current process capabilityRights Reserved TreQna 2005 Understand statistical problem Define statistical improvement goal A Identify drivers of

Define statistical improvement goalUnderstand statistical problem Baseline current process capability A Identify drivers of variation (significant factors)

A

Identify drivers of variation (significant factors)TreQna 2005 Understand statistical problem Baseline current process capability Define statistical improvement goal A

Analyze – Identify Drivers of Variation Root Cause Analysis (fish bone) • A brainstorming tool

Analyze – Identify Drivers of Variation

Root Cause Analysis (fish bone)

Drivers of Variation Root Cause Analysis (fish bone) • A brainstorming tool that helps define and

• A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process

• Visualize the potential relationship between causes which may be creating problems or defects

Primary

causes which may be creating problems or defects Primary Secondary Cause Proble m A C a
Secondary Cause Proble m
Secondary
Cause
Proble
m
problems or defects Primary Secondary Cause Proble m A C a u s e Backbon e
problems or defects Primary Secondary Cause Proble m A C a u s e Backbon e
problems or defects Primary Secondary Cause Proble m A C a u s e Backbon e

A

Cause

Backbon

e

Root

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Cause

Analyze – Identify Drivers of Variation Control – Impact Matrix • A visual tool that

Analyze – Identify Drivers of Variation

Control – Impact Matrix

– Identify Drivers of Variation Control – Impact Matrix • A visual tool that helps in

• A visual tool that helps in separating the vital few from the trivial many

ImpactImpact
ImpactImpact

CCoonnttroroll

from the trivial many ImpactImpact C C o o n n t t ro ro l

Vital Few

High Control – High Impact

CCoostst InefInefffeeccttiveive

HigHighh CoContntrolrol LoLoww ImpImpactact

CoCostst InefInefffectectiveive

LoLoww CoContntroroll HigHighh ImpImpactact

TTrivriviialal MMananyy

LoLoww CoContntroroll LoLoww ImpImpactact

A

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Analyze – Identify Drivers of Variation Pareto Chart • Pareto principle states that disproportionately large

Analyze – Identify Drivers of Variation

Pareto Chart

Analyze – Identify Drivers of Variation Pareto Chart • Pareto principle states that disproportionately large

• Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors)

35

30

25

20

15

10

5

0

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35 30 25 20 15 10 5 0 © All Rights Reserved TreQna 2005 L K
35 30 25 20 15 10 5 0 © All Rights Reserved TreQna 2005 L K

L

K

35 30 25 20 15 10 5 0 © All Rights Reserved TreQna 2005 L K

A

30 25 20 15 10 5 0 © All Rights Reserved TreQna 2005 L K A

F

B C
B
C
20 15 10 5 0 © All Rights Reserved TreQna 2005 L K A F B

G

R

D

Frequency35 30 25 20 15 10 5 0 © All Rights Reserved TreQna 2005 L K

15 10 5 0 © All Rights Reserved TreQna 2005 L K A F B C

Cumulative Frequency

100%

80%

60%

40%

20%

0%

A

Analyze – Identify Drivers of Variation Process Map Analysis • Visually highlights hand off points

Analyze – Identify Drivers of Variation

Process Map Analysis

– Identify Drivers of Variation Process Map Analysis • Visually highlights hand off points / working

• Visually highlights hand off points / working relationships between people, processes and organizations

• Helps identify rework loops and non value add steps

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CustomCustomerer CustomCustomerer PPrrocessocess AA PPrrocessocess AA ProceProcessss BB ProceProcessss BB
CustomCustomerer
CustomCustomerer
PPrrocessocess AA
PPrrocessocess AA
ProceProcessss BB
ProceProcessss BB
VendoVendorr
VendoVendorr

A

Analyze – Identify Drivers of Variation Hypothesis Testing • A statistical tool used to validate

Analyze – Identify Drivers of Variation

Hypothesis Testing

Analyze – Identify Drivers of Variation Hypothesis Testing • A statistical tool used to validate if

• A statistical tool used to validate if two samples are different or whether a sample belongs to a given population

NullNull HHypoypoththesiesiss (H(H oo )) is the statement of the status quo

AlAltternaternatee HypoHypotthehesisiss ((HH aa )) is the statement of difference

One way ANOVA
One way ANOVA
Homogeneity of Variance Moods Median Regression Chi-Square
Homogeneity of
Variance
Moods Median
Regression
Chi-Square

A

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Improve D Define M Measure A Analyze I Improve C Control © All Rights Reserved

Improve

D Define M Measure A Analyze I Improve C Control
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

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Map improved processI Improve C Control © All Rights Reserved TreQna 2005 Pilot solution I Identify operating tolerance

© All Rights Reserved TreQna 2005 Map improved process Pilot solution I Identify operating tolerance on

Pilot solutionC Control © All Rights Reserved TreQna 2005 Map improved process I Identify operating tolerance on

I

Identify operating tolerance on significant factorsM Measure A Analyze I Improve C Control © All Rights Reserved TreQna 2005 Map improved

Control D Define M Measure A Analyze I Improve C Control Ensure measurement system reliability

Control

D Define M Measure A Analyze I Improve C Control
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
D Define M Measure A Analyze I Improve C Control Ensure measurement system reliability for significant

Ensure measurement system reliability for significant factorsD Define M Measure A Analyze I Improve C Control - Is tool used to measure

measurement system reliability for significant factors - Is tool used to measure the input / process

- Is tool used to measure the input / process variables flawed ?

- Do all operators interpret the tool reading in the same way ?

Improved process capabilityall operators interpret the tool reading in the same way ? Sustenance Plan - Statistical Process

tool reading in the same way ? Improved process capability Sustenance Plan - Statistical Process Control

Sustenance Plantool reading in the same way ? Improved process capability - Statistical Process Control - Mistake

the same way ? Improved process capability Sustenance Plan - Statistical Process Control - Mistake Proofing

- Statistical Process Control

- Mistake Proofing
- Mistake Proofing

- Control Plan

C

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Control – Sustenance Plan Control Plan • Have the new operating procedures and standards been

Control – Sustenance Plan

Control Plan

Control – Sustenance Plan Control Plan • Have the new operating procedures and standards been documented

• Have the new operating procedures and standards been documented ?

• What Statistical Process Control (SPC) tools will be used to monitor the process performance ?

• Who will review the performance of the output variable and significant factors on closure of the project and how frequently ?

• What is the corrective action or reaction plan if any of the factors were to be out of control ?

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C

Six Six S S i i gma gma Org Org a a ni ni zation
Six Six S S i i gma gma Org Org a a ni ni zation

SixSix SSiigmagma OrgOrgaaninizationzation

Six Six S S i i gma gma Org Org a a ni ni zation zation

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Six Sigma - Three Dimensions CuCusstotommeerr CuCusstotommeerr ProcProceessss AA ProcProceessss AA PProcroceessss BB

Six Sigma - Three Dimensions

Six Sigma - Three Dimensions CuCusstotommeerr CuCusstotommeerr ProcProceessss AA ProcProceessss AA PProcroceessss BB
CuCusstotommeerr CuCusstotommeerr ProcProceessss AA ProcProceessss AA PProcroceessss BB PProcroceessss BB
CuCusstotommeerr
CuCusstotommeerr
ProcProceessss AA
ProcProceessss AA
PProcroceessss BB
PProcroceessss BB
VeVennddoorr
VeVennddoorr
Define
Measur
Analyze
Improve
Control
e
Process Map Analysis
LSL
US
L
Methodology
Upper/Lower
specification
•• •
• • • •
limits
Tools
• • •• ••
Organization
•• • •• • •
Regression
•••
•• • • • • • • • • •
35
100%
30
80%
25
60%
20
15
40%
10
20%
5
Process variation
0
0%
L
K
A
F
B
C
G
R
D
Frequency
Cumulative Frequency
Pareto Chart
Driven by custom er needs Led by Senior Mgmt
Driven
by
custom
er
needs
Led by
Senior
Mgmt
Enabled by quality team.
Enabled by quality
team.

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The Quality Team Mas Mas t t e e r r B B lack lack

The Quality Team

MasMastteerr BBlacklack BBeeltlt

Team Mas Mas t t e e r r B B lack lack B B e
B B lack lack B B e e lt lt

BBlacklack BBeeltlt

BlackBlack BeBeltlt

lt lt B B lack lack B B e e lt lt Black Black Be Be
lt lt B B lack lack B B e e lt lt Black Black Be Be
lt lt B B lack lack B B e e lt lt Black Black Be Be

GGrreeeenn BBeeltlt

GrGreeeenn BBeeltlt

e e e e n n B B e e lt lt Gr Gr e e

GrGreeeenn BBeeltlt

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e e e n n B B e e lt lt © All Rights Reserved TreQna

- Thought Leadership

- Expert on Six Sigma

- Mentor Green and Black Belts

- Backbone of Six Sigma Org

- Full time resource

- Deployed to complex or “high risk” projects

- Part time or full time resource

- Deployed to less complex projects in areas of functional expertise

Than Than k k You You © All Rights Reserved TreQna 2005
Than Than k k You You © All Rights Reserved TreQna 2005

ThanThankk YouYou

Than Than k k You You © All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005