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Process Improvement
MethodologyTM
1
Purpose
2
Code of Conduct
3
Expectations
4
!!!!!Quality!!!!!
• Condition of output
• Changing gaps between good & bad.
5
Pursuit of Quality
Statistical
Process
Control Process
(Deming) Modeling
(Taguchi)
Design for
Six Sigma
6
!!!!!What’s new!!!!!
● Active Leadership
● Integration with strategy
● Quality net income
● Special Matrics
● Special roles
● Project Management
● Facts decide not judgement.
● Alignmenet of drivers & behaviour
● System Approach
● Remuneration linkage with six-sigma initiatives.
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Six Sigma
8
Objectives
* What Is 6 Sigma ?
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Objectives
* What Is 6 Sigma ?
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What is Six Sigma?
● An approach to sustainable breakthrough
improvement that:
− Fosters a common language and cross-functional
cooperation within and between divisions
− Strengthens our productivity efforts
− Develops our process improvement core competency
− Uses statistical tools for significant variability reduction
− Helps
> Develop expert personnel and future leaders
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Six Sigma Focus
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Overall Perspective
Process
Capabilities Safety
Rolled
Throughput
Technology Yield
Capabilities
Materials
Organization Mangmnt &
Capabilities Inventory
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Six Sigma Systems
Reliability
Process Centered Maint.
Six Sigma Customer
New Product Leadership Operation Satisfaction
Development and Control
Systems Assessment
Measurement
Control
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What is Six Sigma?
● Simple:
Simple
− Eliminate variation and defects
− Eliminate the opportunity for variation and defects
● Complex
− Vision
− Metric (Standard of measurement)
− Benchmark
− Philosophy
− Method
− Tool for:
> Customer focus
− Aggressive Goals
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A Measurement
Sigma PPM
2 308,537
3 66,807
4 6,210
5 233
6 3.4
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Another Look . . .
σ % Non-Defective
2 69.1%
3 93.32%
4 99.379%
5 99.9767%
6 99.99966%
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Practical Meaning
Postal System
20,000 Lost Articles Of Mail / Hr 7 Lost Articles / Hr
Airline System
Two Short/Long Landings / Day 1 Short / Long Per 5 Years
Medical Profession
200,000 Wrong Drug Prescriptions / Year 68 Wrong Drug Prescriptions
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What Does 6 Sigma Mean In Your Daily Life?
PPM
Prescription Writing
Tax Advice
Restaurant Bills
1,000,000 Payroll Processing
100,000
10,000
Baggage Handling
1,000 Best in
100 Class
10
Airline
1 Safety Rate
1 2 3 4 5 6 7
Sigma Level
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Business Metrics
USA Today
Medical Article
September 22, 1997
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Business Metrics
USA Today
Medical Article
September 22, 1997
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Business Metrics
Anti-Obesity Drugs:
23,596,000
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Business Metrics
Instructor’s Note:
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Reality of Escaping Defects
Escaping Defects
Escaping Defects
Total Defects/Unit
No matter how good your inspection and test processes are, the
more defects you create, the more defects escape to the customer
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Premise for Six Sigma Methods
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3 Sigma Process
σ σ σ σ σ σ
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6 Sigma Process
Lower Spec Upper Spec
σ σ σ σ σ σ σ σ σ σ σ σ
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Dissecting Process Capability
Inadequate
Measurement Supplier
Capability Variation
Inadequate Inadequate
Process Design
Capability LSL USL Margin
Defects
Process Capability
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Dissecting Process Capability
1000 100
Percent
80
Count
60
500
40
20
0 0
ht.
n
r
olo
b le
Defect
atio
eig
gC
ub
m
W
for
on
LSL USL
er
Air
Ov
De
Wr
Process Capability
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Business Impacts of Variability
● Prevention Costs ● Internal Failure
− Education and training − Scrap
− Quality planning − Supplier caused losses
− Product design qualification − Rework
tests
− Retest / Re-inspection
− Supplier qualification
− Unplanned downtime
− Customer interface
− Trouble shooting
− Controlling processes
− Engineering change notices
● Appraisal Costs ● External Failures
− Incoming inspection
− Processing customer
− Maintenance and calibration
inquiries
of equipment
− Maintaining customer field
− Setup inspection and tests
service
− Field testing − Retro fit costs
− Process audits − Incurring penalties/claims
− Product warranty
− Lost sales
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Exercise
31
Sigma Level
6 3σ Cost of Failure : 20-25%
of Sales
5
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Objectives
* What Is 6 Sigma ?
33
Six Sigma
INITIATIVE METHODS & TOOLS
● Improvement ● Process Thinking
● Breakthrough ● Process Variation
● Focused Approach ● Facts, Figures, Data
● Right Projects ● DMAIC
● Right People ● 8 Key Tools
● Project Reviews ● Statistical Tools
● Sustain the Gains ● Minitab
● Results ($$) ● Critical Few Variables
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Process Excellence: The Right Metrics
Defects per 1000 Scrap
7 0.21
0.20
0.19
COPQ
0.18
RTY
65
0.17
0.16
0.15
55 0.14
0 5 10 0 5 10
Month Month
Baseline
Rate
Goal
Units per Day
Actual
400
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Actual Metrics Example
Scrap Downtime
Defects/Unit
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Using Pareto’s to Select Projects
Pareto Chart for Cause
1800
100
1600
1400 80
1200
Percent
Count
1000 60
800
40
600
400 20
200
0 0
ces
s cal bly ers
hni em
Defect Pro Tec Ass Oth
500 80
Percent
400
Count
60
300
40
200
20
Two Potential Projects: 100
0 0
- Knife Assembly ly mm p
mb et set mm Sto II
sse ask Re 100 g5 i eld ck
TS
Defect fe A er G ng, -500x sin y Sh pco
Kn
i Inn Spri fe Hou fet Sto
Kni Sa
- Inner Gasket
Count 148 128 75 74 72 69 50
Percent 24.0 20.8 12.2 12.0 11.7 11.2 8.1
Cum % 24.0 44.8 57.0 69.0 80.7 91.9 100.0
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Six Sigma Everywhere
SERVICE DESIGN
ADMIN. PURCH.
Six Sigma
Methods
QA MFG.
MAINT.
38
The Process Improvement MethodologyTM
Process Definition
Process Measurement
Process Analysis
Process Improvement
Process Control
39
The Process Improvement MethodologyTM
Phase 0: Define Phase I: Process Measurement
• Map process and Identify Inputs and Outputs
•Scopeand • Cause and Effects Matrix
Boundary
•Define Defects
•Team
• Establish Measurement System Capability
Charter and • Establish Process Capability Baseline
Sponsor
Phase II: Process Analysis
•Estimated $ Impact • Complete FMEA
• Perform Multi-vari Analysis
•Leadership approval • Identity Potential Critical Inputs
• Develop Plan for Next Phase
40