6sigma introdution

8/13/2019 6sigma introdution

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An Overview


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Improving on SuccessNEVILLE CLARKE

What is Six Sigma

Benefits of Six SigmaBasic Concept in Six Sigma

Key Elements for Breakthrough

Overview


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What Is Six Sigma?

A stretch quality goal (3.4 ppm)?

A problem solving method? A set of statistical tools?

A quality philosophy?


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What Is Six Sigma?

A Management System

That Focuses On DrivingImprovements To Gain

Competitive Edge


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History of Quality Innovations

TQC (Total Quality Control)

TQM (Total Quality Management)

SQC (Statistical Quality Control)

Six Sigma

1940

1960

1980

ISO9000, BPR2000


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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


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Basic Concept


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Basic Concept

All work occurs in a system of interconnected processes

Variation exists in all processes

Understanding and reducing variation are the keys toimproving customer satisfaction and reducing costs


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Sigma Level of Process

The Number Of Sigmas That Can Be Fitted Into TheSpace Between The Process Center And The Nearest

Specification Limit

Definition:

Upper

Spec LimitLowerSpec Limit

Defectives


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Sigma Rating Defect per Million Percent Good

2 308,538 69.2%

3 66,807 93.3%

4 6,210 99.4%

5 233 99.98%

6 3.4 99.9997%

Sigma Level of Process


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Variation and Cost

Station 1 Station 3Station 2

Rework

Re-check

Rework

Re-check

Rework

Re-check

Re-Scheduling

Lost of Customer Loyalty

Ad-hoc

MeetingAdditional Inventory

Extra-Handling


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Process Variation and COPQ

Correlation Between A Companys COPQ And

Variability Of Its Key Processes

COPQ(%of

Sales)

5(233dpm)

Sigma Rating (Variability)

40

30

20

10

6(3.4dpm)

4(6210dpm)

3(66807dpm)

2(308538dpm)


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Profit Formula

Profit = Price - Cost

In a seller market, profit can bemaintained by increasing price

In a buyer market, the way to maintainprofit is to reduce cost


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Responding to Price Pressure

A: Cut Base Cost

B: Reduce Profit

C: Reduce COPQ

Price

Competition Drive

a Lowered Price

Base

Cost

COPQ

Profit

A

B

C


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Reducing COPQ

Low Hanging Fruit

Bulks Of Fruit

High Hanging Fruit

QCC & 7 Basic Tools

Six Sigma

Approach

Ground FruitCommon Sense &

Intuition


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Stages of Process Improvement

Performance Measure Not

Defined, Process Flow NotDefined

Performance Measure Defined,

Process Flow Not Defined

Upper

Limit

Upper

Limit


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Performance Measure Defined,

Current Process Flow Defined

Current Process Flow Is Defined,

Key Input Factors Defined.

Upper

Limit

Upper

Limit



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Further Improvement By

Streamlining

Target

(Max)



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Key Elements


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Key Elements for Breakthrough

Mindset

Methodology

Techniques and Tools

Infrastructure


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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


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Process Focus Versus Functional Focus

Production DistributionCustomer

s

MarketResearch

Design &Development

Suppliers

MarketResearch

Design &Develop Production Distribution

HEAD


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Methodology

Phase

CONTROL

DEFINE

MEASURE

ANALYSE

IMPROVE

Main Activities

Select CTQs

Set Up Projects

Verify Measurement System

Grasp Current Capability

Identify Variables

Optimize Variables

Check Effectiveness

Verify Goals Attained

Establish Control System

Disseminate Across

Organization

Black Belt

&

Green Belt

Champion


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DMAIC

Phase Step Task

DEFINE

1 Define Key Areas of Focus

2 Identify Projects

MEASURE

3 Define Process Performance Measure

(Y)

4 Verify Measurement System

5 Establish Current Performance Status


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Phase Step Task

ANALYSE

6 Brainstorm All Possible Factors

7 Shortlist Key Factors

8 Verify Key Factors

IMPROVE

9 Determine and Implement

Improvement Solution

10 Confirm Improvement Solutions

CONTROL

11 Institutionalize Improvements

12 Close the Project

DMAIC


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Project Management

Champion

Black Belts

Green Belts

Executive Team

Role &

Responsibility

Business

Plan

Objective A

Objective B

Sub-CTQ 2

Sub-CTQ 1CTQ 1

Project 1

Project 2

Project 3

Project 4

CTQ 2

Sub-CTQ 4

Sub-CTQ 3


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Technique and Tools

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

A] Team Problem Solving Team Dynamics

Ideas Generation Technique

Ideas Selection Technique


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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


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Production DistributionCustomers

Market

Research

Design &

Development

Suppliers

MarketResearch

Design &Develop

Production Distribution

+

Now, to succeed in business we need both functional

capabilities and process management approach

How to succeed in Business?


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Implementation


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Roles & Responsibilities


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Leadership Team

- Understand what Six Sigma is and evaluatehow it serves business objectives

- Give directive for Six Sigma implementation

- Provide resources

- Lead the change, be seen as an advocate andsupporter

- Follow up:> effectiveness of approach> the extend of deployment> the results achieved


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Change Principle for Leadership

VISION

PASSION

ACTION


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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


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GE Leadership Model

E4

Energy

Energizer

Edge

Execution

Enormous personal energy- Strong bias for action

Ability to motivate and energizeothers Infectious enthusiasm to

maximize organization potential

Competitive spirit..Instinctive drive

for speed/impact..Strong convictionsand courageous advocacy

Deliver results

Six Sigma Committee


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Six Sigma Committee

(or Six Sigma promotion office)

Secretariat to the leadership team

Key responsibilities :

- promotion- planning

- coordinating

- controlling

- monitoring

- evaluating


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Black Belt & Green Belt

Black BeltExpert 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


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Master Black Belt

Knowledge of Six Sigma concepts, methodand tools

Understand how Six Sigma support business

Experience in implementing Six Sigma

Six Sigma trainer


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Implementation Plan


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1. Executive Briefing

5. Train Champion

7. Selects Projects

2. Decide Six Sigma Strategy

6. Identify CTQs

8. Train BB & GB

3. Form Six Sigma Committee

4. Decide Implementation Plan

Overall Plan


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Training Programme


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Two Basic Objectives

Build appreciation for the need and createsupports for Six Sigma.

Impart the necessary knowledge and skillsfor the respective roles.


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Champion Training

Concepts in Quality

Concepts of Six Sigma

Six Sigma Methodology and Tools

Role of Champion

Six Sigma Implementation

Projects Selection and Management


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Black Belt Training

Concepts in Quality


Define-Measure-Analyze-Improve-Control

Statistics Foundation

Measurement System Analysis

Process Data Analysis

Process Mapping and Analysis Effective Team and Tools


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Green Belt Training

Concepts in QualityConcepts of Six Sigma

Define-Measure-Analyze-Improve-Control

Statistics Foundation

Measurement System AnalysisProcess 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


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Awareness Briefing

Concepts in Quality


Six Sigma Methodology and Tools

Six Sigma Implementation


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Infrastructure

Communication Package

Applications Software

Meeting Facility

Project Tracking Procedure

Incentive system

Project Saving Guideline

Black Belt and Green BeltCertification Procedure

S


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Summary

Six Sigma is about gaining competitive advantage(quality, speed, cost) through improving theprocesses.

Six Sigma provides a detailed roadmap on how toachieve 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


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Six Sigma in NCI

Bajatex

Tiga Raksa

Great Giant Pineapple

Jago Furniture


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i i i i


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Our Six Sigma Training

Introduction to Six sigma

Green Belt Training

Black Belt Training


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Thank You

6sigma introdution

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