6sigma Introdution

Six Sigma
An Overview
Overview
What is Six Sigma Benefits of Six Sigma Basic Concept in Six Sigma Key Elements for Breakthrough
NEVILLE CLARKE Improving on Success
What Is Six Sigma?
A stretch quality goal (3.4 ppm)? A problem solving method?
A set of statistical tools?

A quality philosophy?
What Is Six Sigma?
A Management System That Focuses On Driving
Improvements To Gain Competitive Edge
History of Quality Innovations

2000
Six Sigma
ISO9000, BPR 1980 TQM (Total Quality Management)
1960
TQC (Total Quality Control)
1940
SQC (Statistical Quality Control)
Benefits of Six Sigma

Motorola Turn around from weak market position in early 80s Achieve a five-fold increase in sales AlliedSignal
Turn around from weak financial position in late 80s

Market value climbed from US$4B (91) to US$29B (98) General Electric Achieve 40% increase in operating margin since mid 90s Develop a better leadership for todays more competitive world
Basic Concept
Basic Concept
All work occurs in a system of interconnected processes

Variation exists in all processes
Understanding and reducing variation are the keys to improving customer satisfaction and reducing costs
Sigma Level of Process

Definition: The Number Of Sigmas That Can Be Fitted Into The Space Between The Process Center And The Nearest Specification Limit
Lower Spec Limit
Upper Spec Limit
Defectives
Sigma Level of Process

Sigma Rating 2 3 Defect per Million 308,538 66,807 Percent Good 69.2% 93.3%
4
5
6,210
233
99.4%
99.98%
3.4
99.9997%
Variation and Cost
Station 1
Station 2
Station 3
Rework
Re-check
Rework
Re-check
Rework
Re-check
Additional Inventory Ad-hoc Re-Scheduling Meeting Lost of Customer Loyalty Extra-Handling

COPQ of an Average Company

The Cost of Poor Quality Iceberg
Traditional Quality Cost Scraps Rework Waste Warranty Inspection Additional Cost of Poor Quality More Setups Expediting Cost Lost of Customer Loyalty Long Cycle Time Engineering Change Late Delivery Excess Inventory
4 - 8% of Sales
20 - 25 % of Sales
Huge Opportunity For Increasing Profit Margin
Process Variation and COPQ

Correlation Between A Companys COPQ And Variability Of Its Key Processes COPQ (% of Sales)
40 30 20 10
5
(233dpm)
6
(3.4dpm)
(308538dpm) (66807dpm) (6210dpm)
Sigma Rating (Variability)

Profit Formula
Profit = Price - Cost

In a seller market, profit can be maintained by increasing price
In a buyer market, the way to maintain profit is to reduce cost
Responding to Price Pressure

Price Profit COPQ Competition Drive a Lowered Price
B
A: Cut Base Cost
B: Reduce Profit C: Reduce COPQ
Base Cost
A
Reducing COPQ
High Hanging Fruit
Bulks Of Fruit Six Sigma Approach
Low Hanging Fruit
QCC & 7 Basic Tools Common Sense & Intuition

Ground Fruit
Stages of Process Improvement

Performance Measure Not Defined, Process Flow Not Defined Upper Limit
Performance Measure Defined, Process Flow Not Defined
Upper Limit

Performance Measure Defined, Current Process Flow Defined Upper Limit
Current Process Flow Is Defined, Key Input Factors Defined.
Upper Limit

Target (Max) Further Improvement By Streamlining
Key Elements
Key Elements for Breakthrough
Mindset Methodology Techniques and Tools Infrastructure
Mindset
Process Management Essential for ensuring customer satisfaction and cost reduction Measure We Dont Know Much About What We Dont Measure What Gets Measured Gets Done Quantitative Data Analysis Versus guesswork. Stretch Goals (aiming for excellence) Dont Worry About Failure; Worry About Low Aim Promote out-of-the-box thinking and innovation Critical Thinking Asking critical questions Identify root causes / surface underlying issues
Process Focus Versus Functional Focus

Design & Development Suppliers Production Distribution Market Research
Customer s
HEAD Market Research Design & Develop
Production
Distribution
Methodology
Phase Main Activities
Select CTQs Set Up Projects Verify Measurement System Grasp Current Capability
DEFINE
MEASURE ANALYSE IMPROVE CONTROL
Champion
Identify Variables Optimize Variables

Check Effectiveness Verify Goals Attained Establish Control System Disseminate Across Organization
Black Belt & Green Belt
DMAIC
Phase Step 1 DEFINE 2 3 Identify Projects Define Process Performance Measure (Y) Task Define Key Areas of Focus
MEASURE
4
5
Verify Measurement System

Establish Current Performance Status
DMAIC
Phase Step 6 ANALYSE 7 8 9 IMPROVE 10 Task Brainstorm All Possible Factors Shortlist Key Factors Verify Key Factors Determine and Implement Improvement Solution Confirm Improvement Solutions
11
CONTROL 12
Institutionalize Improvements
Close the Project
Projects and Project Teams

Project Management Cascading of improvement objectives Cluster projects Multi-generation projects Team / Project Charter Objective Scope Team Schedule Project Reviews A two-way communication channel Enforce application based learning Surface barriers to management attention Ask critical question Critical Thinking
Project Management
Sub-CTQ 1 CTQ 1 Objective A Business Plan Objective B Role & Responsibility
Executive Team Champion
Project 1
Sub-CTQ 2
Sub-CTQ 3
Project 2 Project 3
Project 4
CTQ 2 Sub-CTQ 4
Black Belts
Green Belts
Technique and Tools

A] Team Problem Solving Team Dynamics Ideas Generation Technique Ideas Selection Technique
Why use team? Addressing the diplomatic corps, US Secretary of State Colin Powell said that his military background told him that people in the field had the best understanding of any given situation
Technique and Tools

B] Quantitative Data Analysis
7 Basic QC Tools Failure Mode and Effect Analysis Process Capability Analysis Process Stability Analysis Measurement System Analysis Hypothesis Testing Regression Analysis Design of Experiment
Technique and Tools

C] Process Mapping and Analysis
Graphical Presentation Tools Decision Matrix 7 Basic QC Tools Nominal Group/Affinity Diagram Process Mapping Process Streamlining Value Add Analysis Mistake Proofing
How to succeed in Business?

Now, to succeed in business we need both functional capabilities and process management approach
Market Research
Design & Develop
Production
Distribution
Design & Development

Suppliers Production
Market Research
Customers
Distribution
Implementation
Key Components for Implementation

Roles & Responsibility
Leadership Team
Six Sigma Office Champion, MBB, BB, GB Project Team Finance Incentive System Training Meeting Room Software Project Management Project Savings Guideline Projects Tracking System Implementatio n Schedule
Training Program
Champion BB / GB MBB Awareness
Six Sigma Benefits
Training Schedule
Resources
Infrastructure
Implementation Plan
Roles & Responsibilities
Leadership Team
- Understand what Six Sigma is and evaluate how it serves business objectives - Give directive for Six Sigma implementation - Provide resources - Lead the change, be seen as an advocate and supporter
- Follow up: > effectiveness of approach > the extend of deployment > the results achieved
Change Principle for Leadership
VISION
PASSION
ACTION
Change Principle for New Work Habit

Know Why Do It - appreciate the purpose - understand what is in it for me Know What To Do - role and responsibility - expectation Know How To Do It - methodology / steps - tools
GE Leadership Model
E4
Energy
Energizer
Enormous personal energy - Strong bias for action

Ability to motivate and energize others Infectious enthusiasm to maximize organization potential Competitive spirit..Instinctive drive for speed/impact..Strong convictions and courageous advocacy Deliver results
Edge
Execution
Six Sigma Committee (or Six Sigma promotion office)

Secretariat to the leadership team
Key responsibilities : - promotion - planning - coordinating - controlling - monitoring - evaluating
Champions
Determine the CTQs - what are the key business goals? Ensure appropriate projects are set up - empower the project teams - ensure cross functional collaboration Follow up on the projects - check the progress - remove barriers - give guidance, share experience - promote critical thinking Assess projects results - evaluate lesson learned
Black Belt & Green Belt

Black Belt Expert in Six Sigma methodology and tools Coach and mentor green belts
Trainer on certain Six Sigma tools

Handle more challenging projects Green Belt Practitioner of Six Sigma method and tools Six Sigma project leader
Master Black Belt

Knowledge of Six Sigma concepts, method and tools
Understand how Six Sigma support business Experience in implementing Six Sigma
Six Sigma trainer
Implementation Plan
Overall Plan
1. Executive Briefing
2. Decide Six Sigma Strategy

3. Form Six Sigma Committee 4. Decide Implementation Plan 5. Train Champion 6. Identify CTQs 7. Selects Projects 8. Train BB & GB
Training Programme
Two Basic Objectives
Build appreciation for the need and create supports for Six Sigma.
Impart the necessary knowledge and skills for the respective roles.
Leadership Training
Concepts in Quality
Concepts of Six Sigma Six Sigma Methodology and Tools Role of Leadership
Six Sigma Implementation
Champion Training
Concepts in Quality Concepts of Six Sigma Six Sigma Methodology and Tools Role of Champion Six Sigma Implementation
Projects Selection and Management
Black Belt Training

Concepts in Quality Concepts of Six Sigma Define-Measure-Analyze-Improve-Control Statistics Foundation Measurement System Analysis Process Data Analysis Process Mapping and Analysis Effective Team and Tools
Green Belt Training

Concepts in Quality Concepts of Six Sigma Define-Measure-Analyze-Improve-Control Statistics Foundation Measurement System Analysis Process Data Analysis Process Mapping and Analysis Effective Team and Tools
Note: There is less breadth and depth in the Green Belt training as compared with the Black Belt training
Awareness Briefing
Concepts in Quality
Concepts of Six Sigma Six Sigma Methodology and Tools Six Sigma Implementation
Infrastructure
Communication Package Applications Software Meeting Facility Project Tracking Procedure Incentive system Project Saving Guideline Black Belt and Green Belt Certification Procedure
Summary
Six Sigma is about gaining competitive advantage (quality, speed, cost) through improving the processes. Six Sigma provides a detailed roadmap on how to achieve sustainable improvements. Through Six Sigma, management
- makes known the intention to achieve excellence - creates the appropriate climate and mindset - provides the enabling skills and knowledge - establishes the system and the processes
Six Sigma in NCI

Bajatex Tiga Raksa Great Giant Pineapple Jago Furniture
Our Six Sigma Consultant

More than 10 years experience in various industry Hand on experience on six sigma improvement Certified black belt from recognize institution Expertise also on Lean concept.
Our Six Sigma Training

Introduction to Six sigma Green Belt Training Black Belt Training
Thank You

6sigma Introdution

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Six Sigma

NEVILLE CLARKE Improving on Success

What Is Six Sigma?

A stretch quality goal (3.4 ppm)? A problem solving method?

A set of statistical tools?

NEVILLE CLARKE Improving on Success

What Is Six Sigma?

A Management System That Focuses On Driving

Improvements To Gain Competitive Edge

NEVILLE CLARKE Improving on Success

History of Quality Innovations

ISO9000, BPR 1980 TQM (Total Quality Management)

TQC (Total Quality Control)

SQC (Statistical Quality Control)

NEVILLE CLARKE Improving on Success

Benefits of Six Sigma

Turn around from weak financial position in late 80s

All work occurs in a system of interconnected processes

NEVILLE CLARKE Improving on Success

Sigma Level of Process

NEVILLE CLARKE Improving on Success

Sigma Level of Process

NEVILLE CLARKE Improving on Success

Variation and Cost

Additional Inventory Ad-hoc Re-Scheduling Meeting Lost of Customer Loyalty Extra-Handling

COPQ of an Average Company

Huge Opportunity For Increasing Profit Margin

Process Variation and COPQ

(308538dpm) (66807dpm) (6210dpm)

Sigma Rating (Variability)

Profit = Price - Cost

NEVILLE CLARKE Improving on Success

Responding to Price Pressure

B: Reduce Profit C: Reduce COPQ

Low Hanging Fruit

QCC & 7 Basic Tools Common Sense & Intuition

Stages of Process Improvement

Performance Measure Defined, Process Flow Not Defined

NEVILLE CLARKE Improving on Success

Stages of Process Improvement

Current Process Flow Is Defined, Key Input Factors Defined.

NEVILLE CLARKE Improving on Success

Stages of Process Improvement

NEVILLE CLARKE Improving on Success

Key Elements for Breakthrough

Mindset Methodology Techniques and Tools Infrastructure

NEVILLE CLARKE Improving on Success

Process Focus Versus Functional Focus

HEAD Market Research Design & Develop

NEVILLE CLARKE Improving on Success

Identify Variables Optimize Variables

Black Belt & Green Belt

NEVILLE CLARKE Improving on Success

Verify Measurement System

NEVILLE CLARKE Improving on Success

NEVILLE CLARKE Improving on Success

Projects and Project Teams

Technique and Tools

Technique and Tools

NEVILLE CLARKE Improving on Success

Technique and Tools

NEVILLE CLARKE Improving on Success

How to succeed in Business?