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Lecture 1: Introduction
A. Ramesh PhD
Department of Management Studies
Indian Institute of Technology Roorkee
ramesh.anbanandam@gmail.com
Room No.LHC204
Monday From 8 AM - 8.55 AM
Wednesday - From 8 AM - 8.55 AM
Friday - From 8 AM - 8.55 AM
Welcome!!!
About me!!!
Flow of Presentation
1.
2.
3.
4.
5.
6.
Course content
Evaluation scheme
Six Sigma
Definition of quality
Dimensions quality
History of quality
1. Course content
Visualization of Data,
Confidence Intervals and Hypothesis Tests,
Inferences : Continuous Response,
Inference : Attribute (Pass/Fail) Response,
Comparison Tests : Continuous Response, Comparison Tests : Attribute
(Pass/Fail) Response,
Bootstrapping,
Variance Components,
Correlation and Simple Linear Regression,
Single Factor (One Way) Analysis of Variance (ANOVA) and Analysis of
Means (ANOM),
Two-Factor (Two-Way) Analysis of Variance,
Multiple Regression
Logistic Regression, and Indicator Variables.
References
S.
No.
Name of Authors/Book/Publisher
Year of
Publication
/ Reprint
1999
Harry, Mikel and Rich Schroeder, Six Sigma : The Breakthrough Management
Strategy Revolutionizing the Worlds Top Corporations, New York
Doubleday
2000
1999
2010
1991
1993
2. Evaluation Scheme
Evaluation Scheme
Midterm Evaluation
End Term Evaluation
Mini Project
Surprise Quizzes
: 35 %
: 50 %
: 10 %
: 05 %
Whats in a name?
Sigma is the Greek letter representing the standard
deviation of a population of data.
Sigma is a measure
of variation
(the data spread)
15
10
-5
-10
10
20
30
40
50
30 min. or less
10
20
30
40
50
4.20
Empirical Rule
Data are normally distributed (or approximately
normal)
Distance from
the Mean
1
2
3
Percentage of Values
Falling Within Distance
68
95
99.7
21
23
24
4- Definition of Quality
Definition of Quality
Delighting or
pleasing the
customer
Perfection
Elimination
of waste
Total
Customer
Service and
satisfaction
Fitness for
use
Doing it
right the first
time
Providing a
good usable
product
Consistency
Defining Quality
Quality is a predictable degree of uniformity and
dependability, at low cost and suited to the market
Deming
Quality is fitness for use
Juran
Quality is conformance to requirements
Crosby
30
Defining Quality
31
What Is Quality?
5. Dimensions quality
36
Performance
Will the product do the intended job?
2.
Reliability
How often the product fail?
3.
Durability
How long the product last?
4.
Serviceability
How easy it to repair the product?
5.
Aesthetics
What does the product look like?
6.
Features
What does the product do?
7.
Perceived quality
What is the reputation of the company or its product?
8.
Conformance to standards
is the product made exactly as the designer intended?
Examples
1. Tangibles
2. Convenience
3. Reliability
4. Responsiveness
5. Time
6. Assurance
7. Courtesy
Objective:
DEFINE the
opportunity
Objective:
Objective:
Objective:
MEASURE current ANALYZE the root IMPROVE the
performance
causes of problems process to
eliminate root
causes
Objective:
CONTROL the
process
to sustain the gains.
Key Measure
Tools:
Critical to Quality
Requirements
(CTQs)
Sample Plan
Capability
Analysis
Failure Modes
and Effect
Analysis (FMEA)
Key Control
Tools:
Control Charts
Contingency
and/or Action
Plan(s)
Key Analyze
Tools:
Histograms,
Boxplots, MultiVari Charts, etc.
Hypothesis Tests
Regression
Analysis
Key Improve
Tools:
Solution
Selection Matrix
To-Be Process
Map(s)
Project
Charter
Cost of
Poor
Quality
Stakeholders
Voice of
the
Stakeholde
r
Six Sigma
What is the problem? The problem is the Output (a Y
Mail Clerk
In-SortClerk
In-SortSupervisor DistanceFeeClerk
WeightFeeClerk
Accounts
ReceivableClerk
Accounts
Supervisor
Out-SortClerk
Out-SortSupervisor
Observ e package
weight (1 or 2) on
back of package
Look up
appropriate
Weight Fee and
write in top middle
box on package
back
Add Distance &
Weight Fees
together and write
in top right box on
package back
Accounting
Take packages
f rom Weight Fee
Clerk Outbox to
A/R Clerk Inbox.
Take packages
f rom A/R Clerk
Outbox to
Accounts
Superv isorInbox.
Does EVERYONE
agree how the current
process works?
Take packages
f rom Accounts
Superv isor
Outbox to OutSort Clerk Inbox.
Delivery
Finalizing
Take packages
f rom Out-Sort
Clerk Outbox to
Out-Sort
Superv isorInbox.
Sort packages in
order of Sender
Code bef ore
placing in outbox
Add up Total # of
Packages and
Total Fees f rom
log and create
client inv oice
Observ e sender
and receiv er
codes and make
entry in Out-Sort
Superv isors log
Deliv erPackages
to customers
according to N, S,
E, W route
Submit log to
General Manager
at end of round
Submit log to
General Manager
at conclusion of
round.
Submit log to
General Manager
at end of round
Market
Data
Customer
Service
Industry
Benchmarking
Customer
Correspondence
PRIMARY RESEARCH
Survey
s
OTM
Focus Groups
Observations
Critical to Quality
10
20
30
40
50
Mean
StDev
Variance
Skewness
Kurtosis
N
23.1692
10.2152
104.349
0.238483
0.240771
100
Minimum
1st Quartile
Median
3rd Quartile
Maximum
0.2156
16.4134
23.1475
29.6100
55.2907
100
22.5
23.5
24.5
40
20
0
te
La
79
79.0
79.0
nt
ou
Am
17
17.0
96.0
er s
Oth
4
4.0
100.0
25.5
26.5
25.1961
Percent
Count
60
50
Count
Percent
Cum %
21.5
80
Defect
20.5
100
0.211
0.854
11.8667
26.0572
Prepared by:
Responsible:
Process
Step/Part
Number
S
E
V
Potential Causes
X1
X2
X3
X4
etc
O
C
C
Current Controls
D
E
T
R
P
N
Actions
Recommended
Resp.
Actions Taken
S
E
V
O
C
C
D
E
T
R
P
N
Six Sigma
100
60
40
Percent
Count
80
50
20
0
0
te
Defect
La
Count
Percent
Cum %
79
79.0
79.0
nt
ou
Am
17
17.0
96.0
er s
Oth
Experimental Design
4
4.0
100.0
Data
Stratification
Regression
Analysis
60
10
40
5
20
0
Defect
Count
Percent
Cum %
Percent
Count
80
Process
Simulatio
n
0
n cy
rre
Cu
12
70.6
70.6
al
ric
Cle
3
17.6
88.2
er
Oth
2
11.8
100.0
Six Sigma
Evaluate
Clarify
Generate
Divergent | Convergent
Decision
Solution
Time
Sigma
Cost
Six Sigma
Implementation
Bad
Good
Solution
Right
Wrong
Nice
Try
Nice
Idea
Solution
Implementatio
n Plan
Time
CBA
Other
Score
Date:
Flowchart
Customer
Sales
Specs
&/or
Targets
Measures
Responsibility Contingency
(Tools)
(Who)
(Quick Fix)
Where &
Frequency
Remarks
35
Review
appliation for
completeness
No
Application
Complete?
P2 - # of
incomplete
loan
applications
UCL=33.48
Individual Value
1.1
Application & Review
1.2
Processing
1.3
Credit review
1.4
Review
1.5
Disclosure
Branch Manager
Key
Measure
ments
P1 - activity
duration,
min.
Apply for
loan
Complete
meeting
information
Processing
25
Mean=24.35
LCL=15.21
15
0
10
20
Observation Number
30
Verify
Uses
Design new processes, products, and/or services from scratch
Replace old processes where improvement will not suffice
Key Tools
Multi-Generational Planning (MGP)
Quality Function Deployment (QFD)
Champions
Promote awareness and execution of Six Sigma
within lines of business and/or functions
Identify potential Six Sigma projects to be executed
by Black Belts and Green Belts
Identify, select, and support Black Belt and
Green Belt candidates
Participate in 2-3 days of workshop training
Black Belts
Use Six Sigma methodologies and advanced tools (to
execute business improvement projects
Are dedicated full-time (100%) to Six Sigma
Serve as Six Sigma knowledge leaders within
Business Unit(s)
Undergo 5 weeks of training over 5-10 months
Green Belts
Use Six Sigma DMAIC methodology and basic tools
to execute improvements within their existing job
function(s)
May lead smaller improvement projects within
Business Unit(s)
Bring knowledge of Six Sigma concepts & tools to
their respective job function(s)
Undergo 8-11 days of training over 3-6 months
6 Sigma
QMS
Taguchi
DOE
SPC
Inspection
1930
1940
1975
1985
1990
2000
Thank You