six sigma - basic introduction
TRANSCRIPT
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Prof. Rushen Chahal
Prof. Rushen Chahal
SIX SIGMA Introduction
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What is Six Sigma
Six Sigma is the measure of quality thatstrives for near perfection. It is adisciplined, data-driven methodologyfocused on eliminating defects. A SixSigma defect is defined as anything thatfalls outside ofa customer's specifications.Six Sigma is a reference to a statisticalmeasuring system, equivalent to just 3.4defects per every million opportunities(Snee, 2003).
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WHY SIX SIGMA
Intense competitive pressures especiallyfrom rapid globalization.
Greater consumer demand for high qualityproducts and services, little tolerance forfailures ofany type.
Top management (and stockholder)recognition of the high costs of poor quality.
The a
va
ila
bility
and
acc
essibi
lity of
larg
ed
ata
bases and the increasing ability to explore,understand, and use the data.
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Sigmaand % accuracy
Defects per Million % Accur acyOpportunities (DPMO)
One Sigma691,500 30.85%
Two Sigma308,500 69.15%Three Sigma66,810 93.32%
Four Sigma 6,210 99.38%
Five
Sigma
23399
.977
%Six Sigma 3.4 99.9997%
Seven Sigma 0.020 99.999998%
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Cost of Poor Quality
Fig. 1 Cost of poor quality versus Sigma level
0%
10%
20%
30%
3 4 5 6 7
Sigma Level
Cos
tofpoorquality
as
%o
fearnings
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Inventor of Six Sigma
Motorola is known for its cool cell phones,but the company's mor e lastingcontribution to the world is the quality-
improvement process called Six Sigma. In1986 an engineer named Bill Smith, soldthen-Chief Executive Robert Galvin on aplan to strive for error-free products99.9997% o f the time. I t i s the origin of SixSigma.
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Six Sigmaat Motorola
Motorola saved $17 Billion from 1986 to2004, r eflecting hundreds of individualsuccesses in all Motorola business areasincluding: Sales and Marketing
Product design
Manufacturing
Customer service Transactional processes
Supply chain management
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General Electric: What Is Six Sigma?
First, what it is not. It is not a secret society,a slogan, or a clich. Six Sigma is a highlydisciplined process that helps us focus ondeveloping and delivering near-perfect
products and services Saved $750 million by theend of1998
Cut invoice defects and disputes by 98 percent,speeding payment, and creating better
productivity Streamlined contract review process, leading to
faster completion of deals and annual savings of$1 million
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Honeywell: Six Sigma Plus
Six Sigma is one of the most potentstrategies ever developed to accelerateimprovements in processes, products, andservices, and to r adically reducemanufacturing and/or administrative costsand improve quality. It achieves this byrelentlessly focusing on eliminating waste andreducing defects and variations.
Initiated Six Sigmaefforts in 1992 and saved more then $600 million ayear by 1999.
Reduced time from design to certification of new projects likeaircraftengines from 42 to 33 months.
Incr eased market value by a compounded 27% per year through fiscalyear1998.
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Selecting the right projects for SIX SIGMA
Assur e that the importance of the projects isevident or can be readily demonstrated.
Assur e
the
projects
ar
evi
ab
leand do
ab
lein
ashort time.
Assur e that the success of the projects can be
readily quantified.
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The Structure
Six Sigma Team
Prof. Rushen Chahal
Own vision, direction,
integration, results Lead change
Project owner Implement solutions Black Belt managers
Full time Train and coach
Black and Green Belts Statistical problem solving experts
Devote 50% - 100% of time to Black Belt activities Facilitateand practice problem solving Train and coach Green Belts and project teams
Part-time Help Black Belts
Master Black
Belts
Black Belts
Green BeltsProject Champions
Executive Leadership
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Six Sigma Methodology (DMAIC)
Define
Measure
Analyse
Control
Improve
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DMAIC Steps 1. Define
1. Define 2. Measure 3. Analyze 4. Improve 5. Control
Identify projects that are measurable Define projects including the demands of the customer
and the content of the internal process.
Dev
elop t
eam c
hart
er Define process map
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DMAIC Steps 2. Measure
2. Measure1. Define 3. Analyze 4. Improve 5. Control
Define performance standards
Measure current level of quality into Sigma. Itprecisely pinpoints thearea causing problems.
Identify all potential causes for such problems.
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DMAIC Steps 3. Analyse
3. Analyse1. Define 2. Measure 4. Improve 5. Control
Establish process capability
Define performance objectives Identify variation sources
Tools foranalysis
Process Mapping
Failure Mode & Effect Analysis Statistical Tests
Design of Experiments
Control charts
Quality Function Deployment (QFD)
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DMAIC Steps 4. Improve
4. Improve1. Define 2. Measure 3. Analyse 5. Control
Scr een potential causes
Discover variable relationships among causes and effects
Establish operating tolerances
Pursuea method to resolveand ultimately eliminate problems. It isalso a phase to explore the solution how to change, fix and modify theprocess.
Carryout a trial run fora planned period of time to ensure the revisionsand improvements implemented in the process result in achieving thetargeted values.
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DMAIC Steps 5. Control
5. Control1. Define 2. Measure 3. Analyse 4. Improve
Monitor the improved process continuously toensurelong term sustainability of the newdevelopments.
Share thelessons learnt Document the results and accomplishments ofall
the improvement activities for future reference.
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Six Sigma Case study
A dabbawala is a person in the Indian city ofMumbai whose job is to carry and deliverfreshly made food from home in lunch boxesto office workers.
Dabbawalas pick up 175,000 lunches fromhomes and deliver to their customerseveryday.
Only one mistake is made in every 6 milliondeliveries.
Accur acy rating is 99.999999. More than SixSigma.
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Six Sigma- First Generation (SSG 1)
The era 1986 to 1990 is referred to as the firstgeneration of Six Sigma, or SSG 1 for short.
Pioneered at Motorola
Statisticalapproach
Measured Defects Per Million Opportunities(DPMO)
Focused on: Elimination of defects
Improving product and service quality Reducing cost
Continuous process improvement
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Six Sigma- Second Generation (SSG 2)
In the1990s, the focus of Six Sigma shiftedfrom product quality to business quality.General Electric Corp. ushered in the secondgeneration of Six Sigma, or
SSG 2 as it is known. Six Sigma becamea business-centric system
of management.
Strong measurement on bringing dollars tothe bottom line.
High potential candidates were selected asBlack Belts.
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Six Sigma- Third Generation (Gen III)
Developed after the year 2000. Gen III can show companies how to
deliver products or services that, in theeyes of customers, have real value.
Combines Lean ManufacturingTechniques and Six Sigma. Termed asLean Six Sigma.
Kor ean steel maker Posco and electronicsmaker Samsung has begun a Gen IIIprogram.
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Conclusion
A gauge of quality and efficiency, Six Sigma is also ameasure of excellence. Embarking on a Six Sigma programmeans delivering top-quality service and products whilevirtually eliminating all internal inefficiencies (Dedhia, 2005).
A true Six Sigma organization produces not only excellent
product but also maintains highly efficient production andadministrative systems that work effectively with thecompany's other service processes (Lucas, 2002).
The primary factor in the successful implementation ofa sixsigma project is to have the necessary resources, the supportand leadership of top management.