Transcript
Page 1: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Six Sigma

By: Tim BaumanApril 2, 2007

Page 2: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Overview

What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Page 3: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

What is Six Sigma? Improve customer satisfaction by

producing virtually free processes and products

To achieve Six Sigma a process must not produce more than 3.4 defects per million opportunities

6 standard deviations between the mean and the nearest specification limit

Developed by Bill Smith at Motorola in 1986 as a way to standardize the way defects are counted

Page 4: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Key Concepts Critical to Quality: Attributes most important

to the customer Defect: Failing to deliver what the customer

wants Process Capability: What your process can

deliver Variation: What the customer sees and feels Stable Operations: Ensuring consistent,

predictable processes to improve what the customer sees and feels

Design for Six Sigma: Designing to meet customer needs and process capability

Page 5: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies

DMAIC Improvement system for existing

processes DMADV

Improvement system for developing new processes or products

Page 6: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC Define – “the project goals and

deliverables for both internal and external customers”

Measure – “the process to determine current performance”

Analyze – “and determine the root cause(s) of the defects”

Improve – “the process by eliminating defects”

Control – “future process performance”

Page 7: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC Define

Identify the Critical To Quality characteristics

Create a map of the process to be improved with defined and measurable, deliverables, and goals

Tools: Benchmark, Baseline, Voice of the Customer and Business, Quality Function Deployment, Process Flow Map

Page 8: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC Measure

Establish valid and reliable metrics to monitor the progress of the project

Input, process, and output indicators are identified Determine the impact of defects from each

input on the CTQs Once reasons for input failure are determined,

preventative actions are put into place Tools: Defect Metrics, Data Collection,

Sampling Techniques

Page 9: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC Measure Defects Per Million

Opportunities (DPMO) = (Total Defects / Total Opportunities) * 1,000,000

Defects (%) = (Total Defects / Total Opportunities)* 100%

Yield (%) = 100 - %Defects

Process Sigma (type this formula into Excel): =NORMSINV(1-(total defects / total opportunities))+1.5

http://www.isixsigma.com/sixsigma/six_sigma_calculator.asp

Page 10: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC

Analyze Identify the gap between existing

performance and desired performance Root Cause Analysis – finding the causes

of defects Process Improvement Scenarios Tools: Cause and Effect diagrams,

Decision and Risk Analysis, Control Charts

Page 11: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC Improve

Create new improvement solutions for each root cause

Cost/Benefit Analysis What happens if improvements are not made

or improvements take too long to implement Process experimentation and simulation Implement and adapt to these solutions

and the results from these changes

Page 12: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC Control

A monitoring plan with proper change management methods

Implement the lesson learned Put tools in place to maintain process

improvement gains Training Document the project

New procedures and lessons learned are maintained and give a solid example

Identify future Six Sigma improvement opportunities

Page 13: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC

Extra Step: Synergize Integrate and institutionalize the

improvements throughout the whole organization

Create a learning organization Multiply the gains achieved by Six

Sigma

Page 14: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMAIC

Checklistshttp://www.americanheart.org/presenter.jhtml?identifier=3039772

Page 15: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMADV First three steps are the same Define – “the project goals and deliverables for

both internal and external customers” Measure – “and determine customer needs

and specifications” Analyze – “the process options to meet the

customer needs” Design – “the process to meet the customer

needs” Verify – “the design performance and ability to

meet customer needs”

Page 16: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMADV

Design Specification Limits Simulation model Test Plan Measurement and Control Plan

Page 17: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Methodologies: DMADV

Verify Pilot runs Training Implementing the processes Document the processes

Page 18: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Roles

Yellow Belt or Team Member Professional who works on project Awareness of Six Sigma, but no

training

Page 19: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Roles

Green Belt Part time professional Receives direction from Black Belts Works with a Black Belt’s project or

leads smaller projects Two weeks of training in methods and

basic statistical tools

Page 20: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Roles

Black Belt Full time professional Team Leader on Six Sigma projects Four to Five weeks of training in:

Methods Statistical tools Team skills

Page 21: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Roles

Master Black Belt Expert in Six Sigma methods and tools Mentors other belts on complex issues Responsible for training others to the

Green and Black belt levels Assists the Champion with deployment

Page 22: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Roles

Champion Middle or Senior level executive who

helps a specific Six Sigma project In charge of making sure resources

are available Resolves cross-functional issues

Page 23: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Roles

Leader Senior level executive responsible for

implementing Six Sigma throughout the business

Sponsor Senior executive in charge of the

overall Six Sigma Initiative

Page 24: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Examples of Six Sigma

Current average industry runs at 4 sigma

Domestic airline flights run at a rate higher than 6 sigma

Non competitive companies typically run at a sigma level of 2

Page 25: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Examples of Six Sigma

Companies currently using Six Sigma Motorola General Electric Allied Signal Citibank Microsoft Many others

Page 26: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Benefits

Save Money Black Belts save companies

approximately $230,000 per project General Electric has estimated

benefits of $10 billion in the first five years of its implementation

Raise customer satisfaction

Page 27: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Benefits

Save lives Health Care

Intensive care results from 53 minutes to 22 minutes

Reduce error rates for patient controlled pumps to administer pain medication

Airplane Industry

Page 28: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Criticism

Cost of training at Motorola Green Belt Certification: $2,950 Black Belt Certification: $12,950

Cost of infrastructure Creating the roles and responsibilities

Page 29: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Criticism Six Sigma does not always work

Need active leadership Align with organizational strategy Need aggressive performance tracking and

accountability for results Green and Black belts need to be process

oriented and willing to learn and use statistical tools

Pay more attention to steps than the actual result

Page 30: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Sources[1] Functional Methods. “DMADV (Define, Measure,

Analyze, Design, Verify) Roadmap.” 2004. Retrieved 25 March 2007 <http://www.functionalmethods.com/DMADV%20Roadmap.pdf>.

[2] General Electric. “What is Six Sigma?” 2007. Retrieved 23 March 2007 <http://www.ge.com/en/company/companyinfo/quality/whatis.htm>.

[3] ISixSigma LLC. “Six Sigma – What is Six Sigma.” 2007. Retrieved 24 March 2007 <http://www.isixsigma.com/sixsigma/six_sigma.asp>.

[4] Motorola, Inc. “Motorola Univerisity, Six Sigma in Action.” 2007. Retrieved 22 March 2007 <http://www.motorola.com/motorolauniversity.jsp>.

Page 31: Six Sigma By: Tim Bauman April 2, 2007. Overview What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms

Sources[5] Peterka, Peter. “The DMAIC Method in Six Sigma.” 25

October 2007. Retrieved 25 March 2007. <http://www.buzzle.com/editorials/10-24-2005-79640.asp>.

[6] “Roles.” 2007. Retrieved 25 March 2007 <http://www.onesixsigma.com/node/2485>.

[7] Siviy, Jenannine. “Six Sigma.” 11 January 2007. Retrieved 22 March 2007 <http://www.sei.cmu.edu/str/descriptions/sigma6_body.html>.


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