introduction to six sigma

Introduction to

SIX SIGMA

Facilitator: Khan Mohd. IbrahimIndustrial Engineer & Six Sigma Black Belt

Overview: Module # 1

The Helicopter View

Hello!This isKhan IbrahimYou can find me at:ibrahim.ipe06@gmail.com

This presentation is for the personnel who are going to be a part of Six Sigma project as team member & need to know the basics.

The scope of this presentation is “Overview” & “Define” of Six Sigma.

Name: Khan Md. IbrahimProfession: Industrial EngineerCompany: A & E Bangladesh

What do martial arts have to do with my job?

BLACK Belt??

Thousands of dollars $$ savings??

What is Six Sigma?A process improvement methodology

Developed by Mikel Harry & Richard Schroeder of Motorola in 1980’s

Focuses to deliver near-perfect products & services

First time right of 99.9997% quality

A story from Japan▷ “We will only accept 3

defective parts per 10,000”

---- IBM

▷ “The 3 defective parts have been separately manufactured and have been included in the consignment”

------ Japanese

Company

How does it improve ?

▷ A statistical measure of the process performance

▷A goal that reaches near perfection

▷A system of management to achieve & sustain the goal

Problem- Eat the Elephant

Eat the Elephant

Employee

Elephant

Boss

“Henry Ford

Founder of Ford Motor

Six Sigma Approach

▷Proceeds through small-small projects

▷3-6 months timeline per project

▷Very precise area of work in each project

Six Sigma Learning Curve

White Belt- 1 day workshop

Yellow Belt- 2 to 3 days workshop

Green Belt- 4 to 6 weeks workshop

Black Belt- In depth training of SS

Six Sigma…. Wait ... Six What??

What does that “Sigma” mean?

Sigma

▷ Sigma is a Greek alphabet

▷Statistics- It stands for “Standard Deviation”

▷Statistics- It depicts deviation from target in a specific process

99.9% QualityWHOA! THAT’S A BIG NUMBER, AREN’T WE PROUD?

Why not 99.9% Quality?

1 hour of unsafe drinking water every month

Why not 99.9% Quality?

2 long or short landing at every American Airport each day

Why not 99.9% Quality?

400 letters per hour which never arrive at their destination

Why not 99.9% Quality?

500 incorrect surgical operations each week

Why not 99.9% Quality?

3000 newborns accidentally falling from the hands of nurses

or doctors every year

Why not 99.9% Quality?

4000 incorrect drug prescriptions per year

Why not 99.9% Quality?

22,000 checks deducted from the wrong bank account each

year

Six Sigma Quality▷Only 3.4 defects per

million opportunities

▷Sigma level of 6 is difficult to achieve

▷Sigma level for Manufacturing companies is 2 – 4

▷Sigma level for Service companies is 3 -4

Six Sigma Indicators

▷Defects per Unit (DPU)

▷Defects per Million Opportunities (DPMO)

▷Sigma Level

Defects vs. Defectives

▷‘Defect’- A single non-conforming quality characteristics

▷‘Defectives’- items having one or more defects

▷3 defects in 1 defective item

1 Defective item

1. Weight in-accurate2. Inner diameter wrong3. Surface finish poor

TransitionNext: Module # 2

Facilitator: Khan Mohd. IbrahimIndustrial Engineer & Six Sigma Black Belt

Introduction to

SIX SIGMAOverview: Module # 2

Roles and Phases

The Players

Management

Champion

Process Owner

Team Member Others

Master Black Belt

Black Belt

Finance Rep

Green Belt

Process Owner: Roles1

• Functionally responsible for an area of the project

2 • Help to lead the culture change

3• Provide and support team

members for the project

4• Implement and Own the solution

provided by the Black belts / Green belts

5• Carry the torch after the

completion of the project

Team Member: Roles

1• Receive training on

basic Six sigma tools

2• Helps in data

collection

3• Supply the team with

process Expertise

Six Sigma: Phases of a Project

Phase: Define

▷Identify problems▷Define project▷Select Black Belt/ Green Belt▷Select Team Member▷Estimate Financial Impact

Define

Phase: Measure

▷Map the process▷Identify inputs & outputs▷Identify opportunity of failures▷Analyze measurement system▷Establish baseline capability

Measure

Phase: Analyze

▷Identify factors▷Hypothesis Testing▷Graphical &

Statistical analysis to identify critical factors

Analyze

Phase: Improve

▷Factorial Designs▷Identify Interactions▷Define Y = f(x)

Improve

Phase: Control

▷Optimize outputs▷Implement Control Plan▷Project Closure

Control

TransitionNext: Module # 3

Introduction to

SIX SIGMAOverview: Module # 3

Basic Statistics

Facilitator: Khan Mohd. IbrahimIndustrial Engineer & Six Sigma Black Belt

What is a Statistic?▷ Data or Information from a

sample

Population vs. Sample

▷Population: includes all members of a defined group

▷Sample: Sample is a proportion of a population, a slice of it

Sample

Population

What to measure?

▷Mean (µ): Weighted average of the measurement

▷Standard Deviation (σ): Statistical measure of variation from mean

“Jack Welch

CEO of General Electric

“Variation is Evil”

Types of variations

Variations

Common Cause

Variation

Special Cause

Variation

TransitionNext: Module # 4

Introduction to

SIX SIGMAOverview: Module # 4

Data Collection & Sampling

“Mark Twain

American Author

“Data is like garbage.”

“You’d better know what are you going to do with it before you collect it”

Data Collection System

Obtain Data

(Collect data needed to answer

the question )

Analyze Method (Define tools

needed to graphs/analyze

the data)

Question (Determine

what questions needs to be answered)

123

Types of Data

Data

Qualitative

AttributeMale, Female

Quantitative

Discrete1, 2, 3, 4, etc.

Continuous2.3, 4.5, 2.7,

etc.

History of Sampling▷ US Millitary in1934 on the eve of

WWII

Why do we need sampling?

▷Study a large population

▷Sampling is for speed

▷Sampling saves the source of data from being all consumed

▷Sampling is for economy

TransitionNext: Module # 5

Introduction to

SIX SIGMAOverview: Module # 5

Scoping Tools

Facilitator: Khan Mohd. IbrahimIndustrial Engineer & Six Sigma Black Belt

What is a project’s scope?

▷ Project's scope explains the boundaries of the project

▷Scope is defined by cascading a business problem into a very concise project idea through the scoping tools

Scoping Tools

▷ QuantitativePareto Chart

▷ QualitativeCause & Effect Diagram5 Why AnalysisAffinity Diagram

Pareto Chart- Pareto Principle

▷ Vilfredo Pareto- an Italian civil engineer

▷ 80% of land in Italy belongs to 20% people

Pareto ChartFr

eque

ncie

s/ C

ount

s

Perc

enta

ge

Problem Types

Cumulative Percentage line

Cut-off line

Cause & Effect Diagram

▷Kauro Ishikawa- Kawasaki Shipyard in 1960

▷Effects are reasoned under 6Ms

▷Man, Machine, Method, Material, Measurement & Mother Nature (Environment)

Cause & Effect DiagramEnvironment

Cause & Effect Diagram▷Man: Anyone involved with the

process▷Methods: How the process is

performed and the specific requirements for doing it

▷Machines: Any equipment or tools required to accomplish

the job▷Materials: Raw materials used

to produce the final product

▷Measurements: Data generated from the process that are used to evaluate its quality

5 WHY Analysis

Affinity Diagram

▷Get ideas from cross-functional teams

Introduction to

SIX SIGMAOverview: Module # 6

Project Definition WorkSheet

Facilitator: Khan Mohd. IbrahimIndustrial Engineer & Six Sigma Black Belt

1. Describe the Business Problem

2. Scoping for a project opportunity

3. Define Project Matrix and Objectives

4. Quantify Financial Impact

5. Assign Team Members

6. Launch Project

Project Definition Steps

Scoping for a project opportunity

Question Description

Output What is the Tangible output (Product or Service), related to the specific business problem

Process What Is the Process which Is delivering the product or Service

Number of Processes

How many processes are involved in delivering the Product or Service – (if there are more than two, the Problem is too broad and a scoping sessions needs to be executed in order to bring it down to ONE)

High level Macro Map

Develop a High level Macro Map illustrating the main steps of the process

Measurable Process Characteristics

Name the product or service features (or measureable process characteristics) that will help to improve the problem. If more than two features are identified, the scope of the project may be too broad.

Question Description

Tangible OutputThe Product or Service Delivered to the Customer in terms of an Output E.g.: Output

Process High level process or departmental function E.g.: Supply Chain, Sewing, Cutting, Planning, Finance

High level Macro Map

Process Map illustrating the macro process steps of a certain process

Jargon & Terminology

Define Project Metric & Objectives

Question Description Defect What is wrong with each feature named above (i.e., what is the

defect?) Primary Metric Name the Primary Metric(s) that measure the identified defect(s). The

Primary Metric should measure performance directly from the process. It will be the yardstick for tracking success of the project.

Consequential Metric List any Consequential Metrics measuring potential negative effects of successfully improving the Primary Metric.

Baseline Estimate the Baseline performance level for each Primary Metric.

Entitlement / Benchmark

Estimate the Entitlement and/or Benchmark for each Primary Metric.

Objective Statement Compose an Objective Statement as follows: Improve <primary metric> from <baseline level> to <target level> by <timeframe>.

Source of Data Identify which Sources of Data (reports, collection sheets, inspection points, etc) are available to measure the metrics listed.

Question Description Defect Define what is non conformance

Primary Metric The Key Performance Indicator or the key PROJECT FOCUS which will be approached in order to solve the specific Business Problem E.g.: Efficiency, Raw Material Wastage, Manufacturing Lead Time

Consequential Metric E.g.: Primary Metric -Wastage, Consequential Metric – Shortages

Jargon & Terminology

Quantify Financial Impact

Question Description Finance Representative

Who is the Finance Representative (provide name) assigned formally or informally to value the financial impact of this Six Sigma project?

Cost Centers List any potential Cost Centers that will likely be impacted by reducing the defect or improving the primary metric defined earlier.

Financial Metric List the Financial Metric(s) that will be used to track the improvement of the primary metric in dollars.

Original Forecast Complete the Original Forecast(s) (with 80% confidence) with the finance representative.

Question Description

Cost Centers The Cost which is incurred in terms Prevention (Controls, Training) or Rework (Correction )

Financial Metric The Financial Impact of the Primary Metric E.g.: Improvement of 1% of Wastage = Rs. 10,000 a month

Jargon & Terminology