six sigma overview lynn cavanaugh, black belt
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Six Sigma Overview
Lynn Cavanaugh, Black BeltSeptember 2005
Page 2 Six Sigma Overview
Sigma as a Measure
Six Sigma is a disciplined, data-driven methodology to eliminate defects in a process
A way to assess performance of a process Devised at Motorola in 1987 Higher the process sigma, the fewer the defects
Focused on customer requirements Internal, but especially external customers Track Defects (aka CTQs) that affect satisfaction, loyalty,
revenue, market share
Allows comparison of differing processes Marketing, Accounting, Manufacturing, Finance, Order
Fulfillment, etc. in common terms Adjust for complexity of the work, product, service
Page 3 Six Sigma Overview
Six Sigma
Page 4 Six Sigma Overview
Six Sigma as a Goal
Examples of what Six Sigma means in
business
Page 5 Six Sigma Overview
Deployment
Six Sigma is deployed by individuals certified in the methodology including: Green Belt - certified to participate in the
process Black Belt - certified to lead Six Sigma projects Master Black Belt - certified to train and certify others
Page 6 Six Sigma Overview
Six Sigma Methods
DMAIC Define, Measure, Analyze, Improve, Control Used to improve existing processes
DMADV / DFSS Define, Measure, Analyze, Design, Verify Used to develop new processes or implement new
technologies May be referred to as DFSS
Process Management Reviewing and analyzing an entire work process
from end to end
Page 7 Six Sigma Overview
Methodology Integration
Intiation Planning Execution Closure
Define Measure Analyze Improve Control
Inception Elaboration Contruction Transition
Pro
ject
M
anag
emen
t Li
fe C
ycle
DM
AIC
M
etho
dolo
gyR
UP
M
etho
dolo
gy
The matrix below defines how various methodologies align
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Process Design Flow
CustomerContact Point
Critical-to-QualityFeature 1
Defect 1
Root Cause 1
Solution 1
Critical-to-QualityFeature 2
Defect 2 Defect 3
Root Cause 4Root Cause 3Root Cause 2 Root Cause 5
Solution 2 Solution 3 Solution 4
Project 1 Project 2
Defect 4
Recognize
Define
Measure
Analyze
Improve
Control
Page 9 Six Sigma Overview
DMAIC Cycle - Define
Select specific problem/opportunity An appropriate DMAIC project Meaningful and Manageable
Create a Project Charter Validated by leadership Identifying key contributors
Define the process and
customer(s)
Page 10 Six Sigma Overview
Definition Stage Activities
Define Critical Customer Requirements Develop Team Charter Map “As Is” Business Process Complete SIPOC Develop the Business Case including high level
project plan
Page 11 Six Sigma Overview
SIPOC
A document that defines the context, specifics and plans of an improvement or design project
Define (and narrow) the project’s focus Clarify the results being sought Confirm value to the business Establish boundaries and resources for the
team Communicate 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 - SIPOCA SIPOC will allow your project team to put parameters around
the process being reviewed and identify the areas impacted both up and down stream
Suppliers – who feeds the process Inputs – what do they feed Process – steps in the process Outputs – outputs of the process Customer – who pulls from the process
Page 13 Six Sigma Overview
DMAIC Cycle - Measure
Determine what to measure and why Prepare plans to collect output, process
and/or input data Construct forms and test data collection
procedures Refine data collection Refine DMAIC Charter
Page 14 Six Sigma Overview
Measure Stage Activities
Identify Key Measurements Data Collection Plan Data Collection Execution Document Process Variations Establish Performance Baseline
Page 15 Six Sigma Overview
Input – Process – Output Measures
A DMAIC team must get Output measure(s) “upfront” to baseline the process/problem Focus on your Goal target or “Project Y”
Output measures can be taken before or after the “product” is delivered to the customer E.g., defects caught in-house prior to shipment vs. upon
delivery
There are usually more “options” for Process measures than Output or Input measures
Use your SIPOC diagram and sub-process maps to help select measures and ensure “balance”
Consider possible “X” measures early in the project to help get some initial data for the Analyze phase
Page 16 Six Sigma Overview
Review Y and X Measures
Page 17 Six Sigma Overview
Process 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
Page 18 Six Sigma Overview
DMAIC Cycle - Analyze
Current state analysis Is the current state as good as the process
can do? Who will help make the changes? Resource requirements What could cause this change effort to fail? What major obstacles do I face in completing
the project?
Page 19 Six Sigma Overview
Analysis Stage Activities
Validate “As Is” Process Map Complete Root Cause Analysis
Fishbone Diagram House of Quality
Develop “To Be” Process Map Complete Gap Analysis
Page 20 Six Sigma Overview
Process Analysis
Disconnects Bottlenecks Redundancies Rework loops Decisions/Inspections Moves
Look for points in the process where work may be disrupted or delayed,
or where defects may be created.
Page 21 Six Sigma Overview
Analyze 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
Page 22 Six Sigma Overview
DMAIC Cycle - Improve
Create innovative ideas for improvement Narrow, screen and select best solution
possibilities Understand best practices for process
workflow Develop pilot and define implementation
strategies What is the work breakdown structure? What specific activities are necessary to meet the
project goals? How will I re-integrate the various subprojects?
Page 23 Six Sigma Overview
Improve Stage Activities
Define Solution Include IT when defining technical solutions
Develop Work Breakdown Structure Develop Implementation Plan Complete FMEA
Page 24 Six Sigma Overview
Generate and Select Solutions
Page 25 Six Sigma Overview
FMEA
Failure Modes & Effects Analysis Method to assess and plan for problems which
could impact safety, reliability, customer satisfaction, profits, etc. Failure Modes = types of possible error or defect
Looks at common or rare events and relative risk
Also a tool for process owners to allocate measurement and prevention resources (Control)
Page 26 Six Sigma Overview
Example - FMEA
Page 27 Six Sigma Overview
DMAIC Cycle - Control
How will I control risk, quality, cost, schedule, scope and changes to the plan?
What types of progress reports should I create?
How will I assure that the business goals of the project were accomplished?
How will I keep the gains made?
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Control Stage Activities
Complete Process Standardization Validate Process Map Develop Process Documentation
Develop Monitoring Plan Develop Response Plan Complete Transfer of Ownership
Page 29 Six Sigma Overview
Control Plan
Control Plan = FMEA + Monitoring + Response
From Improve Phase New!Dashboard/Control ChartVOC Systems
Page 30 Six Sigma Overview
Summary
Six Sigma 3.4 Defects per Million Opportunities
DMAIC Define Measure Analyze Improve Control
Page 31 Six Sigma Overview
Define What is the business case for the
project? Identify the customer Current state map Future state map What is the scope of the project? Deliverables Due date
Control During the project, how will I
control risk, quality, cost,schedule, scope and changes tothe plan?
What types of progress reportsshould I create?
How will I assure that thebusiness goals of the projectwere accomplished?
How will I keep the gains made?
Measure What are the key metrics for this
business process? Are metrics valid and reliable? Do we have adequate data on
this process? How will I measure progress? How will I measure project
success?
Analyze Current state analysis Is the current state as good as
the process can do? Who will help make the changes? Resource requirements What could cause this change
effort to fail? What major obstacles do I face in
completing the proejct?
Improve
What is the work breakdownstructure?
What specific activities arenecessary to meet the projectgoals?
How will I re-integrate the varioussubprojects?
Nex
tP
roje
ct
DMAIC Cycle
Page 32 Six Sigma Overview
Closing
Questions and Answers
Lynn CavanaughVice PresidentWells Fargo Home MortgageCell – (515)988-7779eMail – [email protected]