six sigma presentation

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By: Aditya Singhal (CA, DISA. M.com) & Anand K Anand (Six sigma black belt)

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Page 1: Six Sigma  Presentation

By:

Aditya Singhal (CA, DISA. M.com) &

Anand K Anand (Six sigma black belt)

Page 2: Six Sigma  Presentation

Overview of Six sigma

Why do we need Six Sigma program ?

The Players in Six Sigma/ Six Sigma Certification levels

Sigma Improvement process

Q & A

The plan for today’s presentation

Page 3: Six Sigma  Presentation

Overview of

Six Sigma

Page 4: Six Sigma  Presentation

Evolution of Six Sigma

Page 5: Six Sigma  Presentation

A set of advanced tools/ techniques and methodologies which can be used to bring in rapid and breakthrough improvement in performance

and/ or

A business strategy used for bringing in enhanced customer focus in the organization , increase fact based decision making and create an environment for “tangible improvement”

What is Six Sigma ?

Page 6: Six Sigma  Presentation

What is Six Sigma … in a nutshell…… ?

Business Im

pact

Literal

Definition

Philosophical

Definition

Low

High

A Metric 3.4 DPMO

A process

Improvement MethodologyDMAIC

A Management

systemStart with the CTQ Dedicated Resources

Data Driven Decisions

Page 7: Six Sigma  Presentation

Six Sigma Metric

The term “Sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure

For a business or manufacturing process, the Sigma level is a metric that indicates how well that process is performing. The higher the sigma level , the better/ sigma level measures the capability of the process to perform defect-free work. A defect is anything that results in customer dissatisfaction.

D σAs defects

Go down….

The Sigma

Level goes up

Page 8: Six Sigma  Presentation

1.0 Define

Opportunities

3.0 Analyze

Opportunity

4.0 Improve

Performance

5.0Control

Performance

2.0 Measure

Performance

D M A I C

Define the

Project,

Assignment,

goals and

customer

(internal And

external)

deliverables

Measure the

process

to determine

Current performance

Analyze and

determine

the root causes

of the defects

Improve the process

by working

on the validated

root causes

Control the improved

Process performance

To ensure sustainable

results

An Improvement Methodology

Page 9: Six Sigma  Presentation

Strategic Six Sigma – form strategy to actionMargin

Improvement

Earnings per

share GrowthRevenue Growth

New Service

Development

Product

Reliability

Marketing

Effectiveness

Manufacturing

Productivity

Supply

Reliability

Developing

People

Brand Management

Market Share Growth

Grow Revenues

in key Markets by

20% by YE’s05

Improve Yield

of product “X”

By 5% YE’05

Develop & produce

Product “Z” by YE’06

Reduce Cycle time

of Key Process

“Y” 10% by YE’05

“Just Do It” “Lean Projects” “DMAIC Projects” “DFSS Projects”

Define key Business

Performance Targets

Articulate Core Enterprise

Issues & strategies

Identify Strategic

Improvement

goals

Identify & Prioritize Specific

Improvement Projects

Create active projects

Led by Black Belts/

Green belts

Page 10: Six Sigma  Presentation

Six Sigma is different from other traditional quality and process improvement methodologies

The extensive focus on customer requirementThe direct link to business strategy and financial resultsThe required commitment of top leadership up-front and continuouslythrough years of implementationEach project delivers bottom line results in a short time The disciplined improvement methodology based on measurement and analysisFull-time Six Sigma team leaders who are extensively trained in statistical thinking as well as team and project skillsThe integration of Six Sigma thinking into the business infrastructurethrough incentives and rewards

Page 11: Six Sigma  Presentation

Why do we need

Six Sigma project

Page 12: Six Sigma  Presentation

Benefits of Six Sigma

To Six sigma teamOpportunity to hone skills in diverse areas of problem solvingKnowledge on statistical tools, analytical methods, communications & leadership skill

To OrganizationRapid improvement in performanceEnhanced customer focusCultural change and a employee base dedicated to tangible performance improvement.Saving in bottom line

To Customer Quality improvement, cost reduction ,

Page 13: Six Sigma  Presentation

The Players

in Six Sigma

Page 14: Six Sigma  Presentation

Champions

Black Belts / Green Belts

ProjectSponsors

YellowBelts

Training & Projectguidance by

Central Quality Team

The core

team

The Players in Six Sigma

Focuses normally on one CTQ or

Project goal.

Duration normally 3 – 6 month- can

extend in special cases.

Executed by task force time team of 3 to 7 members (ideally 5).

The project is deemed to be completed once appreciate improvement is Registered and sustenance is ensures by monitoring over a reasonable period of time.

Thereafter the CTQ is monitored and

reported on on-going basis

Footnote: Six Sigma expertise hierarchy has no

Mapping with organization hierarchy.

Page 15: Six Sigma  Presentation

Six Sigma Process

Page 16: Six Sigma  Presentation

Sigma Improvement Process: DMAIC

Y = f (X)

1. Define : Customer expectations of the process ?

2. Measure : What is the frequency of defects ?

3. Analyze : Why, when, and where do defects occur ?

4. Improve : How can we fix the process ?

5. Control : How can we make the process stay fixed ?

Page 17: Six Sigma  Presentation

1.0 Define Opportunities

2.0 Measure

Performance

1.0 Define

Opportunities

3.0 Analyze

Opportunity

4.0 Improve

Performance

5.0Control

Performance

Objective Main Activities Potential Tools and Techniques Key Deliverables

•To identify and/or validate the improvement opportunity

•Develop the business processes

•Define critical customer requirements,

•Prepare themselves to be an effective project team

•Develop a Project Plan to Manage the Project

•VOC - Critical Customer Requirements – CTQ

•Team Charter•Process Maps•Quick Win Opportunities

•Project Plan•Team Resources

•Communications Plan

•Validate/Identify Business Opportunity

•Validate/Develop Team Charter

•Identify and Map Processes

•Identify Quick Win and Refine Process

•Translate VOC into CCRs

•Develop Team Guidelines & Ground Rules

•Develop Communication and Change Management Plan

Page 18: Six Sigma  Presentation

2.0 Measure Performance

Objective Main Activities Potential Tools and Techniques Key Deliverables

2.0Measure

Performance

1.0 Define

Opportunities

3.0 Analyze

Opportunity

4.0 Improve

Performance

5.0Control

Performance

•To identify critical measures that are necessary to meet CCR’s

•Develop a methodology to effectively collect data to measure process performance

•Understand the elements of the six sigma calculation

•Establish baseline sigma

•Understand the purpose and outputs of Measure

•Input, Process and Output Indicators

•Operational Definitions

•Data Collection Formats and Plans

•Baseline Six Sigma Performance

•Identify Input, Process and Output Indicators

•Develop Operational Definition & Measurement Plan

•Plot and Analyze Data•Determine if Special Cause Exists

•Determine/Target Sigma Performance

•Collect Other Baseline Performance Data

•Benchmarking

Page 19: Six Sigma  Presentation

3.0 Analyze opportunity

Objective Main Activities Potential Tools and Techniques Key Deliverables

3.0 Analyze

Opportunity

1.0 Define

Opportunities

2.0 Measure

Performance

4.0 Improve

Performance

5.0Control

Performance

•To stratify and analyze the opportunity

•Identify a specific problem

•Define an easily understood problem statement

•To identify and validate the root causes

•FMEA and action plan •Data Analysis•Potential Root Causes•Validated Root Causes

•Stratify Process•Stratify Data & Identify Specific Problem

•Develop Problem Statement

•Identify Root Causes•Design Root Cause Verification Analysis

•Validate Root Causes

•Enhance Team Creativity & Prevent Group-Think

Page 20: Six Sigma  Presentation

4.0 Improve Performance

Objective Main Activities Potential Tools and Techniques Key Deliverables

4.0 Improve

Performance

1.0 Define

Opportunities

2.0 Measure

Performance

3.0 Analyze

Opportunity

5.0Control

Performance

•To identify, evaluate, and select the right improvement solutions

•Develop a change management plan

•Solutions•To Be Process Maps and Documentation

•Implementation Milestones

•Improvement Impacts and Benefits

• Pilot plan and pilot results

•Projected Process performance (Sigma)

•Generate Solution Ideas

•Determine Solution Impacts: Benefits

•Evaluate and Select Solutions

•Develop Process Maps & High Level Plan

•Run pilot and test results

•Communicate Solutions to all Stakeholders

Page 21: Six Sigma  Presentation

5.0 control Performance

Objective Main Activities Potential Tools and Techniques Key Deliverables

5.0Control

Performance

1.0 Define

Opportunities

2.0 Measure

Performance

4.0 Improve

Performance

3.0 Analyze

Opportunity

•To understand the importance of planning and executing against the plan

•Determine the approach to be taken to assure achievement of the targeted results

•To understand how to disseminate lessons learned

•Identify replication and standardization opportunities/

•Processes, and develop related plans.

•Improved Bottom Line impact

•Process Control Systems & Plan

•Standards and Procedures

•Training•Change Implementation Plans

•Replication Opportunities

•Process Owner Transition Plan

•Verify sustainability of the results

•Identify if additional solutions are necessary to achieve Goal

•Identify and Develop Replication & Standardization Opportunities

•Integrate and Manage Solutions in Daily Work Processes

•Integrate Lessons Learned•Develop Communications Plans

•Transition Design•Develop Process Owner Transition Plan

•Rewards and Recognition

1

2

3

4

5

6

7

8

9

Page 22: Six Sigma  Presentation

Q & A

Page 23: Six Sigma  Presentation

Thanks

Contact Details:

Email: [email protected]

[email protected]

http://finance.groups.yahoo.com/group/fresher_ca/