six sigma-basics
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TRANSCRIPT
Six Sigma OverviewSix Sigma Overview
Roma Mohanti, 04/2008Roma Mohanti, 04/2008
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Page 2 Six Sigma Overview
Sigma as a Business StrategySigma as a Business Strategy Focused on Focused on customercustomer requirements requirements
o Internal, and externalInternal, and external customerscustomerso Root cause of defects that impact satisfaction, loyalty, Root cause of defects that impact satisfaction, loyalty,
revenue, market sharerevenue, market share A disciplined, fact-based approach to managing a A disciplined, fact-based approach to managing a
business and its processesbusiness and its processes A way to assess performance of a processA way to assess performance of a process
o Devised at Motorola in 1987Devised at Motorola in 1987o Higher the process sigma, the fewer the defectsHigher the process sigma, the fewer the defects
Comparison of differing processesComparison of differing processeso Marketing, Finance, Manufacturing, Order Fulfillment, Marketing, Finance, Manufacturing, Order Fulfillment,
Service Delivery in common terms Service Delivery in common terms o Adjust for complexity of the work, product, serviceAdjust for complexity of the work, product, service
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Six SigmaSix Sigma
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DeploymentDeployment
Six Sigma is deployed by individuals Six Sigma is deployed by individuals certified in the methodology including:certified in the methodology including:• Master Black Belt - certified to train and certify Master Black Belt - certified to train and certify
othersothers• Black Belt - certified to train and lead Six Sigma Black Belt - certified to train and lead Six Sigma
projectsprojects• Green Belt - certified to train and participate in Green Belt - certified to train and participate in
the processthe process
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Six Sigma MethodsSix Sigma Methods
DMAICDMAIC• Define, Measure, Analyze, Improve, ControlDefine, Measure, Analyze, Improve, Control• Used to improve existing processesUsed to improve existing processes
DMADV / DFSSDMADV / DFSS• Define, Measure, Analyze, Design, VerifyDefine, Measure, Analyze, Design, Verify• Used to develop new processes or implement new Used to develop new processes or implement new
technologiestechnologies• May be referred to as DFSSMay be referred to as DFSS
Process ManagementProcess Management• Reviewing and analyzing E2E of work processesReviewing and analyzing E2E of work processes
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Methodology IntegrationMethodology Integration
Intiation Planning Execution Closure
Define Measure Analyze Improve Control
Inception Elaboration Contruction Transition
Pro
ject
Ma
na
ge
me
nt
Life
Cycle
DM
AIC
M
eth
od
olo
gy
RU
P
Me
tho
do
log
y
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DMAIC Cycle - DefineDMAIC Cycle - Define
Select specific problem/opportunitySelect specific problem/opportunity An appropriate DMAIC project An appropriate DMAIC project Meaningful and ManageableMeaningful and Manageable
Create a Project CharterCreate a Project Charter Validated by leadershipValidated by leadership Identifying key contributorsIdentifying key contributors
Define the process and Define the process and
customer(s)customer(s)
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Define Stage ActivitiesDefine Stage Activities
Define Critical Customer RequirementsDefine Critical Customer Requirements Develop Team CharterDevelop Team Charter Map “As Is” Business Process Map “As Is” Business Process Complete SIPOCComplete SIPOC Develop the Business Case including high Develop the Business Case including high
level project planlevel project plan
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SIPOCSIPOC
A document that defines A document that defines the context, specifics and plans of the context, specifics and plans of an improvement or design projectan improvement or design project
Define (and narrow) the project’s focusDefine (and narrow) the project’s focus Clarify the results being soughtClarify the results being sought Confirm value to the businessConfirm value to the business Establish boundaries and resources for Establish boundaries and resources for
the teamthe team Communicate goals and plansCommunicate goals and plans
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SIPOC
Suppliers Input Process Output CustomerClients Requirements Profile ClientSales People Resumes Interview Summaries Sales PeopleCandidates Profiles Offer Letters Delivery ManagementWeb Site Margin Template Candidate/EmployeeRecruiting Data Base
Get Requirement
Search for Candidate
Screen Candidate
Make Offer Fill RequirementPresent
Candidate
Example - SIPOCExample - SIPOCA SIPOC will allow your project team to put parameters A SIPOC will allow your project team to put parameters around the process being reviewed and identify the areas around the process being reviewed and identify the areas
impacted both up and down streamimpacted both up and down stream
Suppliers – who feeds the processSuppliers – who feeds the process Inputs – what do they feedInputs – what do they feed Process – steps in the processProcess – steps in the process Outputs – outputs of the processOutputs – outputs of the process Customer – who pulls from the processCustomer – who pulls from the process
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DMAIC Cycle - MeasureDMAIC Cycle - Measure
Determine what to measure and whyDetermine what to measure and why Prepare plans to collect output, process Prepare plans to collect output, process
and/or input dataand/or input data Construct forms and test data collection Construct forms and test data collection
proceduresprocedures Refine data collectionRefine data collection Refine DMAIC CharterRefine DMAIC Charter
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Measure Stage ActivitiesMeasure Stage Activities
Identify Key MeasurementsIdentify Key Measurements Data Collection PlanData Collection Plan Data Collection ExecutionData Collection Execution Document Process VariationsDocument Process Variations Establish Performance BaselineEstablish Performance Baseline
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Input – Process – Output MeasuresInput – Process – Output Measures A DMAIC team must get Output measures to baseline A DMAIC team must get Output measures to baseline
the process/problemthe process/problem• Focus on your Goal target or “Project Y” Focus on your Goal target or “Project Y”
Output measures can be taken before or after the Output measures can be taken before or after the product or service is delivered to the customerproduct or service is delivered to the customer• Defects caught in-house prior to shipment vs. on delivery or Defects caught in-house prior to shipment vs. on delivery or
inserviceinservice
Use SIPOC diagram and sub-process maps to help Use SIPOC diagram and sub-process maps to help select measures and ensure “balance” select measures and ensure “balance”
Consider possible “X” measures early in the project to Consider possible “X” measures early in the project to help get some initial data for the Analyze phasehelp get some initial data for the Analyze phase
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Review Y and X MeasuresReview Y and X Measures
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Process Measurement ExampleProcess Measurement Example
Delivery Time in Days
Critical Customer Requirement = 9.4 days
Defects: Service unacceptable to
customer
Nu
mb
er O
rder
s F
ille
d
Variation in results
1 2 3 4 5 6 7 8 9 10 11 12
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DMAIC Cycle - AnalyzeDMAIC Cycle - Analyze
Current state analysisCurrent state analysis Is the current state as good as the Is the current state as good as the
process can do?process can do? Who will help make the changes?Who will help make the changes? Resource requirementsResource requirements What could cause this change effort to What could cause this change effort to
fail?fail? What major obstacles do I face in What major obstacles do I face in
completing the project?completing the project?
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Analyze Stage ActivitiesAnalyze Stage Activities
Validate “As Is” Process MapValidate “As Is” Process Map Complete Root Cause AnalysisComplete Root Cause Analysis
• Fishbone DiagramFishbone Diagram• House of QualityHouse of Quality
Develop “To Be” Process MapDevelop “To Be” Process Map Complete Gap AnalysisComplete Gap Analysis
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Process AnalysisProcess Analysis
DisconnectsDisconnects BottlenecksBottlenecks RedundanciesRedundancies Rework loopsRework loops Decisions/InspectionsDecisions/Inspections
MovesMoves
Look for points in the process that generate defects or where work may be disrupted or
delayed
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Analyze Current ProcessAnalyze Current Process
Process Flow Example
Sys
tem
sM
anag
emen
t /
Oth
erLi
st S
elec
tion
Mar
ketin
g
Revise List Order to Reflect Cut-
Backs, Nth Requests
List Selection
Key in List Order in Vendor's Language
ExcelList Order /
Audit Spreadsheet
Vendor
ExcelList Order
List Selection
Complete Trial Run
Review and Approve Trial Run
VendorData Base
VendorData Base
Order Vendor Suppression Files
Audit with Excel Spreadsheet and Approve, Send to
List Selection
Review and Approve Trial Run
Develop List Order Instructions
Complete Internal List Order Using Instructions from DataBase Mgr
Work Flow Loop
Mrkt Manager
Review, Recommend Cut-
Backs
ExcelList Order
ExcelList Order
SAS
Dat
aBas
eM
anag
emen
t
Revise if Necessary, Place
Order with List Broker
Prepare External List Order
Mktg Manager
Review, Recommend Cut-
Backs
Vendor DataBase
ExcelList Order
ExcelList Order
List Selection
Revise if Necessary, Send Order to Vendor
Use symbols and colors to help you analyze the current state
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DMAIC Cycle - ImproveDMAIC Cycle - Improve
Create innovative ideas for improvementCreate innovative ideas for improvement Funnel and select best solution possibilitiesFunnel and select best solution possibilities Understand best practices for process Understand best practices for process
workflowworkflow Develop pilot and define implementation Develop pilot and define implementation
strategiesstrategies• Work breakdown structureWork breakdown structure
• Specific activities to meet the project goalsSpecific activities to meet the project goals
• Alignment or re-integration of various subprojectsAlignment or re-integration of various subprojects
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Improve Stage ActivitiesImprove Stage Activities
Define SolutionDefine Solution• Include IT when defining technical solutionsInclude IT when defining technical solutions
Develop Work Breakdown StructureDevelop Work Breakdown Structure Develop Implementation PlanDevelop Implementation Plan Complete FMEAComplete FMEA
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Generate and Select SolutionsGenerate and Select Solutions
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FMEAFMEA
Failure Modes & Effects AnalysisFailure Modes & Effects Analysis Method to assess and plan for problems which Method to assess and plan for problems which
could impact safety, reliability, customer could impact safety, reliability, customer satisfaction, profits, etc.satisfaction, profits, etc.• Failure Modes = types of possible error or defectFailure Modes = types of possible error or defect
• Looks at common or rare events and relative riskLooks at common or rare events and relative risk
A tool for process owners to allocate A tool for process owners to allocate measurement and prevention resources measurement and prevention resources (Control)(Control)
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Example - FMEAExample - FMEA
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DMAIC Cycle - ControlDMAIC Cycle - Control
How will I control risk, quality, cost, How will I control risk, quality, cost, schedule, scope and changes to the plan?schedule, scope and changes to the plan?
What types of progress reports should I What types of progress reports should I create?create?
How will I assure that the business goals of How will I assure that the business goals of the project were accomplished?the project were accomplished?
How will I keep the gains made?How will I keep the gains made?
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Control Stage ActivitiesControl Stage Activities Complete Process StandardizationComplete Process Standardization
• Validate Process MapValidate Process Map• Develop Process DocumentationDevelop Process Documentation
Develop Monitoring PlanDevelop Monitoring Plan Develop Response PlanDevelop Response Plan Complete Transfer of OwnershipComplete Transfer of Ownership
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Control PlanControl Plan
Control Plan = FMEA + Monitoring + Response
From Improve Phase New!Dashboard/Control ChartVOC Systems
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SummarySummary
Six Sigma Six Sigma • 3.4 Defects per Million Opportunities3.4 Defects per Million Opportunities
DMAICDMAIC• DefineDefine• MeasureMeasure• AnalyzeAnalyze• ImproveImprove• ControlControl