design for six sigma a key for growth

Design for Six Sigma: A Key for GrowthMartha Gardner, Ph.D.Global Quality LeaderGE Global Research

© 2006 General Electric Company - All Rights Reserved

2 /GE /Martha Gardner

Agenda

>Organic Growth at GE

>Lean Six Sigma Focus at Different Stages of the Growth Process

>Questions


Overall GE Growth Process

GE 2005 Annual Report


Organic Growth at GE

Goal: 2-3X GDP Organic Growth each year

Framework of Imagination Breakthrough (IB) projects launched in 2004 - each project has the potential for $100 million of incremental growth over next 3-5 years

Currently have > 90 IBs in two basic categories (evenly split): > Technical innovations: create markets and establish leadership by

being first with technology and services > Commercial innovations: drive growth by finding new and better

ways to accelerate time to market, build incremental share, and bring value to customers and improve price, mix and margins

34 Imagination Breakthrough projects are already in the Market


NPI Process

Common approach across GE

Fundamental process enabling organic growth

Lean Six Sigma focus depends on where you are in the process

Idea Generation

Market/Business Assessment

ProductDefinition

DesignPrototypeAnd Test

ProductionRamp

Commercialize


NPI Process: Up-Front Focus

GE CEO …

“Technology roadmaps aren’t possible without our researchers

and engineers working with marketing to understand the

businesses and helping them see where we need to go”

- J. Immelt, Sept. 2003

Idea Generation


ProductDefinition


ProductionRamp

Commercialize

More emphasis on this part of the process in the Imagination Breakthrough framework


Six Sigma in the Up-Front Stages

>Focus on both idea creation and opportunity identification – can be iterative

>Usage of business strategy tools to understand industry, customers, competition, and internal business capabilities

>Develop Multi-Generation Plans


NPI Process: Design Focus

Idea Generation


ProductDefinition


ProductionRamp

Commercialize

Design for Six Sigma (DFSS) is the common process across GE

Goal of Six Sigma – Attain Less Than 3.4 Defects per Million Opportunities


DFSS Motivation: Cost of Poor Quality and Reliability

CO

PQ

/ R

Difficult to See / PredictEasy to Fix

Easy to SeeCostly to Fix

Defects are:

Plannin

g

Resea

rch

Desig

n

Proto

type

Product

ion

Custom

er /

Servi

ce

DMAICMainly Here

Leverage & MaximizeDFSSHere


DFSS Motivation: Break the “3 – 4” wall

ProcessImprovements

Plus DFSS

Time

Z ()

Process Improvements

Only

4

6

2

1

By… . . .> Flowing-up “Downstream” Process

Capability, > Taking a Robust Design Approach, > “Designing in” Quality


DFSS Paradigm

Predictive Predictive Design QualityDesign QualityDFSSDFSSReactive Reactive

Design QualityDesign Quality

From• Evolving Design Requirements

• Extensive Design Rework

• Build and Test

• Performance and Producibility Problems Fixed after Product in Use

• Quality “tested in”

To

• Disciplined CTQ Flowdown

• Controlled Design Parameters

• Modeled and Simulated

• Designed for Robust Performance and Producibility

• Quality “designed in”


DFSS Process

1)Identify Product/Process Performance & Reliability CTQ’s

• Set Quality Goals

• VOC / QFD

DEFINE

2)CTQ Flowdown to Subsystems & Components

3)Measurement System Analysis & Capability

MEASURE8)Build

System & Sub-System Models

• Generate Transfer Functions

9)Capability Flow-up for All Subsystems & Gap Identification

DESIGN12)Statistically

Confirm that Product / Process Matches Predictions

13)Develop Manufacturing & Supplier Control Plans

14)Document & Transition

VERIFY4)Develop

Conceptual Designs

5)Statistical Reliability Analysis

6)Build Scorecards

7)Risk Assessment

ANALYZE10)Optimize

Design• Statistical

Analysis of Variance Drivers

• Robust Design

• Error Proofing

11)Tolerance Analysis & Allocation

OPTIMIZE

GE’s Design for Six Sigma MethodologyGE’s Design for Six Sigma Methodology


Where are we headed?

Trial & Error Empirical Mathematical Probabilistic

Random Experimentation

Experience-based

Graphical Approaches

Systematic Experimentation

Computer models based on system physics

Point estimates

Computer Simulations based on system physics

Robust Solutions

Deterministic(Factors of Safety)

Stochastic(Risk Quantified)

``

Ability to answer the question:How much Risk is in my design?


NPI Process: Final Steps

Lean Manufacturing and Transactional Processes are Critical

Idea Generation


ProductDefinition


ProductionRamp

Commercialize


Lean Concept

Goal: Eliminate Non-Value Added Activity that leads to Waste

The Seven Types of Waste…

> DEFECTIVE PARTS> OVERPRODUCTION> INVENTORY> MOTION> PROCESSING TRANSACTIONS> TRANSPORTATION> WAITING

Waste Exists In Every Process…Eliminate It!


Current Focus on Overall NPI Process

> Increase Throughput

> Decrease Resources per NPI

> Improve Quality of Process

….. Application of Lean to NPI Process


Lean NPI – The Benefits of Speed

• Competitive Advantage – being first in the market yields a higher success rate

• Speed Equals Profit – new products often have a fixed window of opportunity

• Speed Means Fewer Surprises at Launch – product lifetimes are getting ever shorter


* From “Product Leadership” by Robert Cooper, p. 86

Lean NPI – Speed, but not at the expense of Quality

Five ways to reduce NPI Cycle Time while not compromising Quality*: Do it right the first time – quality at every

stage Insist on sharp, early product definition Continuous VOC – e.g. early prototypes Parallel Processing – requires effective

multifunctional teams Prioritize and Focus – kill bad projects, which

drain resources from good projects


QUESTIONS?

design for six sigma a key for growth

Documents

ge martha gardner dfss

ge fundamental process

growth martha gardner

quality of process

ge lean

ge goal

common process

sigma methodologyges