5 - Introduction to Six Sigma - 2
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What is Six Sigma
A scientific and practical method to achieve improvements in a companyScientific: Structured approach. Assuming quantitative data.
Practical: Emphasis on financial result. Start with the voice of the customer.Show me the dataShow me the moneySix Sigma
Basics A new way of doing business Wise application of statistical tools within a structured methodology Repeated application of strategy to individual projects Projects selected that will have a substantial impact on the bottom line
Six Sigma MethodsProductionDesignServicePurchaseHRMAdministrationQualityDept.ManagementM & SITWhere can Six Sigma be applied?
KnowledgeManagementThe Six Sigma Initiativeintegrates these efforts
Lean Six Sigma Process ImprovementLean Six Sigma Seeks to improve the quality of manufacturing and business process by:
identifying and removing the causes of defects (errors) and variation.Identifying and removing sources of waste within the processFocusing on outputs that are critical to customers
Lean Six Sigma Process ImprovementLSS is a management philosophy that seeks to drive a quality culture change through a multi-level based program
Green BeltLSS Methodology and basic tool set
Black BeltGreen Belt content plus advanced data analysis
Master Black BeltBlack belt content plus program management, leadership skills, some advanced tools
WastesHealthcare ExamplesTransportMoving patients from room to roomPoor workplace layouts, for patient servicesMoving equipment in and out of procedure room or operating roomInventoryOverstocked medications on units/floors or in pharmacyUnnecessary instruments contained in operating kitsMotionLeaving patient rooms to:Get supplies or recordDocuments care providedLarge reach/walk distance to complete a process stepWaitingIdle equipment/peopleEarly admissions for procedures later in the dayWaiting for internal transport between departments Over-ProductionMultiple signature requirementsExtra copies of formsMultiple information systems entriesPrinting hard copy of report when digital is sufficientOver-ProcessingAsking the patient the same questions multiple timesUnnecessary carbon copyingBatch printing patient labelsDefectsHospital-acquired illnessWrong-site surgeriesMedication errorsDealing with service complaintsIllegible, handwritten informationCollection of incorrect patient informationSkillsNot using peoples mental, creative, and physical abilitiesStaff not involved in redesigning processes in their workplaceNurses and Doctors spending time locating equipment and suppliesStaff rework due to system failures
Lean FoundationsStandardized Work people should analyze their work and define the way that best meets the needs of all stakeholders. The current one best way to safely complete an activity with the proper outcome and the highest quality, using the fewest possible resourcesStandardized not Identical mindless conformity and the thoughtful setting of standards should not be confusedWritten by those who do the work.Level loading smoothing the workflow and patient flow throughout the hospital.Kaizen continuous improvement
Lean MethodsKaizen Events (or SCORE events)Planned and structured process that enables a small group of people to improve some aspect of their business in a quick, focused manner.SelectClarifyOrganizeRunEvaluate5S this methodology reduces waste through improved workplace organization and visual managementSort, Store, Shine, Standardize and SustainKanban a Japanese term that can be translated as signal, card, or sign.Most often a physical signal (paper card of plastic bin), that indicates when it is time to order more, from whom, and in what quantity.
Lean vs. Six SigmaLean tends to be used for shorter, less complex problems. Often time driven. Focus is on eliminating wasteful steps and practices.
Six Sigma is a bigger more analytical approach often quality driven it tends to have a statistical approach. Focus on optimizing the important steps reducing defects.
Some argue Lean moves the mean, Six Sigma moves the variance. But they are often used together and should not be viewed as having different objectives.Waste elimination eliminates an opportunity to make a defectLess rework means faster cycle times
Six Sigma training might be specialized to the quality department, but everyone in the organization should be trained in Lean
What Makes a Good Lean Six Sigma Project?There is no known solutionThe root cause is not knownThe problem is complex and needs statistical analysisThe problem is part of a processThe process is repeatableA defect can be defined Project will take 3-6 monthsThere are data available
The DMAIC MethodologyDefine describe the problem quantifiably and the underlying process to determine how performance will be measured.Measure use measures or metrics to understand performance and the improvement opportunity.Analyze identify the true root cause(s) of the underlying problem.Improve identify and test the best improvements that address the root causes.Control identify sustainment strategies that ensure process performance maintains the improved state.
DefineDefine Scope of the ProblemDocument the ProcessCollect and Translate the Voice of the CustomerDetermine Project Objective and BenefitsDefine Metrics and DefectsEstablish Preliminary BaselineDevelop Problem & Objective StatementsEstimate Financial Benefit
Define (continued)Create Project CharterConfirm Improvement MethodologyDefine Project Roles and ResponsibilitiesIdentify RisksEstablish TimelineManagerial Buy-inFocus here is on the problem
Measure Measure what is measurable, and make measurable what is not so GalileoDefine As Is processValue stream map/process flow diagramValidate Measurement System for OutputsDont assume your measurements are accurate measuring system must accurately tell what is happeningQuantify Process PerformanceCollect data (Ys)Examine process stability/capability analysis
AnalyzeIdentify Potential Causes (Xs)Investigate Significance of XsCollect data on xsGraphical/Quantitative analysisPareto ChartFishbone Diagram (cause and effect)Chi Square TestRegression AnalysisFailure Mode Effects AnalysisIdentify Significant Causes to focus on (y=f(X))Evaluate the impact of xs on yHere you identify the critical factors of a good output and the root causes of defects or bad output.
ImproveGenerate Potential SolutionsSelect & Test SolutionDevelop Implementation Plan
ControlCreate Control & Monitoring PlanMistake proof the processDetermine the xs to control and methodsDetermine Ys to monitorImplement Full Scale SolutionRevise/develop processImplement and evaluate solutionFinalize TransitionDevelop transition planHandoff process to owner
Six Sigma companies Companies who have successfully adopted Six Sigma strategies include:
Barrier #1: Engineers and managers are not interested in mathematical statisticsBarrier #2: Statisticians have problems communicating with managers and engineersBarrier #3: Non-statisticians experience statistical anxiety which has to be minimized before learning can take placeBarrier # 4: Statistical methods need to be matched to management style and organizational cultureBarriers to implementation
Reality Six Sigma through the correct application of statistical tools can reap a company enormous rewards that will have a positive effect for yearsor Six Sigma can be a dismal failure if not used correctly
The Six Sigma metric
Improvement cycle PDCA cycle*PlanDoCheckAct
Six-Sigma allows for un-foreseen problems and longer term issues when calculating failure error or re-work ratesAllows for a process shift
Performance Standards234563085376680762102333.4PPM69.1%93.3%99.38%99.977%99.9997%YieldProcessperformanceDefects permillionLong term yieldCurrent standardWorld Class
Six Sigma and other Quality programmes
Comparing three recent developments in Quality Management ISO 9000 (-2000) EFQM Model Quality Improvement and Six Sigma Programs
EFQM ModelA tool for assessment: Can measure where we are and how well we are doingAssessment is a small piece of the bigger scheme of Quality Management:Planning Control ImprovementEFQM provides a tool for assessment, but no tools, training, concepts and managerial approaches for improvement and planning
Change Management:Two Alternative ApproachesActivity Centered ProgramsResult Oriented ProgramsChangeManagementReference: Schaffer and Thomson
Activity Centered ProgramsActivity Centered Programs: The pursuit of activities that sound good, but contribute little to the bottom line
Assumption: If we carry out enough of the right activities, performance improvements will follow
This many people have been trainedThis many companies have been certified
An Alternative: Result-Driven Improvement ProgramsResult-Driven Programs: Focus on achieving specific, measurable, operational improvements within a few months Examples of specific measurable goals:Increase yieldReduce delivery timeIncrease inventory turnsImproved customer satisfactionReduce product development time
Result Oriented Programs Project based Experimental Guided by empirical evidence Measurable results Easier to assess cause and effect Cascading strategy
Keys to Success* Set clear expectations for results Measure the progress (metrics) Manage for results*Adapted from Zinkgraf, Sigma Breakthrough Technologies Inc., Austin, TX.
Example - QFDA method for meeting customer requirementsUses tools and techniques to set product strategiesDisplays requirements in matrix diagrams, including House of QualityProduces design initiatives to satisfy customer and beat competitors
House Of Quality
6. Technical assessment and target values
4. Relationship matrix
ES492b - Production Management for Engineers
Analysis phaseTopics include:
Hypothesis testing Comparing samples Confidence Intervals Multi-Vari analysis ANOVA (Analysis of Variance) Regression
Improvement phase Topics include:
History of Design of Experiments (DoE) DoE Pre-planning and Factors DoE Practical workshop DoE Analysis Response Surface Methodology (Optimisation) Lean Manufacturing
Example - Design of ExperimentsWhat can it do for you?Minimum costMaximum output
What does it involve?
Brainstorming sessions to identify important factorsConducting a few experimental trialsRecognising significant factors which influence a processSetting these factors to get maximum output
Control phase Topics include:
Control charts SPC case studies EWMA Poka-Yoke 5S Reliability testing Business impact assessment
Results of SPCAn improvement in the processReduction in variationBetter control over processProvides practical experience of collecting useful information for analysisHopefully some enthusiasm for measurement!
Project support Initial Black Belt projects will be considered in Week 1 by Executive management committee, Champions and Black Belt candidates
Projects will be advanced significantly during the training programme via: continuous application of newly acquired statistical techniques workshops and on-going support from ISRU and CAMT delivery of regular project updates by Black Belt candidates
TraditionalSix SigmaProject leader is obliged to make an effort.Set of tools.Focus on technical knowledge.Project leader is left to his own devices.Results are fuzzy.Safe targets.Projects conducted on the side.Black Belt is obliged to achieve financial results.Well-structured method.Focus on experimentation.Black Belt is coached by champion.Results are quantified.Stretched targets.Projects are top priority.Conducting projects
The right support+The right projects +The right people +The right tools+The right plan = The right results
Projects may be selected according to:
A complete list of requirements of customers.
A complete list of costs of poor quality.
A complete list of existing problems or targets.
Any sensible meaningful criteria
Usually improves bottom line - but exceptionsProject selection
Outcome ExamplesReduce defective parts per millionIncreased capacity or yieldImproved qualityReduced re-work or scrapFaster throughput
Key QuestionsIs this a new product - process? Yes - then potential six-sigmaDo you know how best to run a process? No - then potential six-sigma
Key CriteriaIs the potential gain enough - e.g. - saving > $50,000 per annum?Can you do this within 3-4 months?Will results be usable?Is this the most important issue at the moment?
BenefitsBetter monitoring of processesBetter involvement of peopleStaff morale is raisedThroughput is increasedProfits go up
Prepare for Short Quiz...