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  • Design. Build. Ship. Service.

    Six Sigma Operational Green Belt Training

    FSG-S-M01

    Introduction to Six Sigma

  • 2Design. Build. Ship. Service.

    Course Navigation Tips

    This course is designed so that the user advances the slides. Use the movie control panel at the bottom (1), or the course menu on the right (2) to navigate between the slides.

    11

    22

    Click Play to startClick Play to start

  • 3Design. Build. Ship. Service.

    APPROVALS

    NAME TITLE DEPT NAME DATE Anand Pradhan Senior Director Six Sigma

    REVISION HISTORY

    REVISION DESCRIPTION OF CHANGE ORIGINATOR RELEASE DATE 01 Document formatted as per DMS policy Victor Chow April 26, 2010

    This document is proprietary and confidential property of Flextronics.

    Document Title: Introduction to Six Sigma

    Document# FSG-S-M01

    Organization: Global Business Excellence

    Revision: 01

    Document Owner: Victor Chow

    Effective Date: April 26, 2010

  • 4Design. Build. Ship. Service.

    Green Belt Training Objectives

    To learn the systematic approach of Six Sigma problem solving method: M before A before I before C

    To understand and effectively utilise the M.A.I.C. tool kit

    To understand how you will be affected by the application of the Six Sigma methodology

  • 5Design. Build. Ship. Service.

    Module Objectives

    Six Sigma concept

    Define, Measure, Analyze, Improve and Control

    Explain the definition and scope of Green Belt and Black Belt

    Define KPIV and KPOV

    Explain how process outputs are a function of the inputs

    Explain the value of measurement

  • 6Design. Build. Ship. Service.

    99% Good is Not Good Enough

    5,000 incorrect surgical procedures each week

    20,000 lost articles of mail each hour

    No electricity for almost 7 hours each month

    Unsafe drinking water for almost 15 minutes each day

  • 7Design. Build. Ship. Service.

    7

    Sigma Scale of Measure

    1,000,000

    100,000

    10,000

    1,000

    100

    10

    1

    PPM

    Restaurant BillsDoctor Prescription Writing

    Payroll Processing

    Order Write-upJournal Vouchers

    Wire TransfersAirline Baggage Handling

    Purchased Material

    Lot Reject Rate

    Domestic Airline Flight Fatality Rate (0.43 PPM)

    Best-in-Class

    AverageCompany

    3 4 5 621

    IRS - Tax Advice

    (phone-in)

    (140,000 PPM)

    Where Do Industries Stand?

  • 8Design. Build. Ship. Service.

    How Does Six Sigma Make the Difference?

    Vision

    Philosophy

    Vehicle for: Customer focus Breakthrough improvement Continuous improvement People involvement

    Aggressive goal

    Metric (standard of measurement)

    Method

  • 9Design. Build. Ship. Service.

    Six Sigma Vision

    The Vision of Six Sigma is to delight customers by delivering world-class quality products

    through the achievement of Six Sigma levels of

    performance in everything we do

  • 10Design. Build. Ship. Service.

    Six Sigma Philosophy

    The Philosophy of Six Sigma is to apply a structured, systematic

    approach to achieve breakthrough

    improvement across all areas of our business

  • 11Design. Build. Ship. Service.

    TechnologyCapability

    Organization

    PeopleProcesses

    Customer Focus: A Model for Success

    Business survival is dependent upon how well we satisfy our customers

    Customer satisfaction is a function of quality, price, and delivery

    Quality, cost, and prompt delivery are dependent upon capability

  • 12Design. Build. Ship. Service.

    Whats the Strategy?

    Know whats important to the Customer (CTQs)

    Reduce defects

    Center around target

    Reduce Variation

  • 13Design. Build. Ship. Service.

    Six Sigma - Six Sigma Enables Breakthrough Level Improvement!

    1 2 3 4 5The problem with continuous improvements as the only goal,Organization sees improvement BUT loses the game.

    Time in Years

    Standard Approaches

    Curr ent Tools Kaizen Lean Manufactur ing Re-engineer ing Typical TQM

    I

    m

    p

    r

    o

    v

    e

    m

    e

    n

    tBreakthrough Strategy

    - Tr ained & Dedicated Individuals

    - Analytical Exper tise- >70% Improvement per

    Project

    Six Sigma

    Breakthrough Strategy

  • 14Design. Build. Ship. Service.

    Time

    R

    e

    j

    e

    c

    t

    R

    a

    t

    e

    Special Variation

    Historical Level (0 )

    Optimum Level (1 )

    Natural Variation under 0

    Natural Variation under 1

    (30 )

    (31 )

    Quality Breakthrough

  • 15Design. Build. Ship. Service.

    Process Variation Causes A Hidden Factory Increased Cost Lost Capacity

    Each defect must be detected, repaired and placed backin the process. Each defect costs time and money.

    Yield After Inspection or Test

    ScrapScrap

    ReworkReworkHidden Factory

    NOT OK

    OperationOperationInputsInputs InspectInspect First Time First Time YieldYieldOK

    Time, cost, people

    90% 90% Customer QualityCustomer Quality

    The Hidden Factory

  • 16Design. Build. Ship. Service.

    66% 66% is notis not 90% 90% ... why not?... why not?

    ScrapScrap

    90% 90% Customer QualityCustomer Quality

    ReworkReworkHidden Factory

    NOT OK

    Yield After Inspection or Test

    OperationOperationInputsInputs InspectInspect First TimeFirst Time YieldYield =OK

    Process1 2 3

    Rolled Yield 81 % 73 %

    4

    66 %

    Final Test

    =90%90% YieldYield90%90% YieldYield

    90%90% YieldYield

    90%90% YieldYield

    90%90% YieldYield

    Using Final Test first time yield ignores the hidden factory. Final test performance is a function of inspection/test or prevention.

    Rolled Yield vs. First-Time Yield

  • 17Design. Build. Ship. Service.

    Formulas to Know

    Measures:

    DPU (Defects per Unit) = Defects / Unit

    PPM (Defects per Million Units) = Defects / Unit 106

    TOP (Total Opportunities) = Units Opportunities to make defects

    DPMO (Defects per Million Opportunities) = Defects / TOP 106

    RTY (Rolled Throughput Yield) = The likelihood that any given unit of product will contain 0 defects

    YRT = RTY = Yield Process1 YieldP2 YieldP(Final Inspection)n

  • 18Design. Build. Ship. Service.

    Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.

    2 308,5373 66,8074 6,2105 2336 3.4

    PPMPPM

    ProcessCapabilityProcess

    CapabilityDefects perMillion Opp.

    Six Sigma Aggressive Goal

  • 19Design. Build. Ship. Service.

    How Does a 6 Sigma Process Look Like ?

    Average Deviation from Mean

    1

    TUSL

    p(d)p(d)

    1 2 3 4 5 633

    This is a 6 Sigma Process

  • 20Design. Build. Ship. Service.

    If the initial data were given as 3

    short-term, the conversion to long-term would be:

    The Industry Standard is to report a process as short term Sigma for benchmarking purposes.

    1.5 1.5 Short-TermSigma level

    ShiftFactor

    Long-TermSigma level

    LSL USL

    Short-Term: 1350 ppmLong-Term: 66810 ppm1.5

    Short-TermCapability

    3Long-TermCapability

    1.5

    Short-Term: 1350 ppmLong-Term: 0 ppm

    What is Sigma Shift?

  • 21Design. Build. Ship. Service.

    99.99966% Good (6 Sigma)

    20,000 lost articles of mail per hour

    Unsafe drinking water for almost 15 minutes each day

    5,000 incorrect surgical operations per week

    Two short or long landings at most major airports each day

    200,000 wrong drug prescriptions each year

    No electricity for almost seven hours each month

    Seven articles lost per hour

    One unsafe minute every seven months

    1.7 incorrect operations per week

    One short or long landing every five years

    68 wrong prescriptions per year

    One hour without electricity every 34 years

    99% Good (3.8 Sigma)

    Six Sigma Practical Meaning

  • 22Design. Build. Ship. Service.

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    Sweet FruitDesign for Six Sigma (DFSS)

    Bulk of FruitProcess Characterization and Optimization (DMAIC)

    Low Hanging FruitSeven Basic Tools (QCC)

    Ground FruitLogic and Intuition

    Process EntitlementProcess Entitlement

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    The Fruit of Six Sigma

  • 23Design. Build. Ship. Service.

    Y

    Dependent

    Output

    Effect

    Symptom

    Monitor

    X1 . . . XN

    Independent

    Input-Process

    Cause

    Problem

    Control

    f (X)f (X)Y=Y=To get results, should we focus our behavior on the Y or X?

    Control well of inputs, then eventually the good output will follow

    Six Sigma Methodology Philosophy Y=f(X)

  • 24Design. Build. Ship. Service.

    ProcessX1X2X3..

    Y1Y2..

    Either operational or transactional, all consists of process

    y f x x xk ( , ,... , )1 2

    Practical Problem

    Measure

    Statistical Problem

    Analyse

    Statistical Problem

    Analyse

    Statistical Solution

    Improve

    Statistical Solution

    Improve

    Practical Solution

    Control

    Practical Solution