Group 5DavidMattAssalAmit

Madhu

Six Sigma

Quality Definition

Six Sigma Definition

Six Sigma Methodology

Six Sigma Implementation

Case Studies

Benefits & Limitations

Conclusion

Citations and References

To understand six sigma, we first need to understand quality

◦ “Delighting the customer by fully meeting their needs and expectations” [1]

Six Sigma at many organizations is a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven philosophy and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process. [2]

[3]

Defects produced as process goes outside Specification Limits

Reducing variation in process reduces opportunity of producing out of specification product

Since the 1920‟s „sigma‟ has been used by mathematicians and engineers as a symbol for a unit of measurement in product quality variation.

The term „Six Sigma‟ was coined by Motorola in 1986. They began projects to reduce defects in electrical components to less than 3.4 in 1,000,000 opportunities (3.4 DPMO)

As Six Sigma evolved in Motorola, less emphasis was placed on the literal definition of 3.4 DPMO. Instead a methodology of aligning the business to the customer requirement developed. Process variation was minimised in key processes, improvements were rapid and sustainable.

Six Sigma is now a complete Management System. It is the most popular improvement methodology applied across all business sectors in history. [4]

Six Sigma

Methods Production

DesignService

Purchase

HRM

Administration

QualityDepart.

Management

M & S

IT

Like Six Sigma, the approach to quality has also evolved…

◦ Inspection (accept / reject)

◦ Quality Control (defect prevention)

◦ Quality Assurance (systematic monitoring and evaluation of process to ensure quality is met)

◦ Total Quality Management (a business management strategy aimed at embedding awareness of quality in all organizational processes )

TQM

Both methodologies have the same aim and use the same long established quality tools

(delight the customer, reduce variation, reduce cost, improve efficiencies)

Affinity Diagrams

Brain Storming

Calculators

Cause and Effect Diagrams

Control Charting

DOE

Document Control

FMEA

Risk Assessment

HistogramsKano Analysis

Pareto Diagrams

Poke Yoke

Process Mapping QFD

Scatter Diagrams

SIX SIGMAV

Use Pareto Principle or 80/20 rule – majority of problems (80%) are caused by a few special causes (20%). Simple graphical tool which shows you which problems to tackle first……

[5]

Roughly 80% of electrical costs attributable to 20% of the appliances –tackle these to make biggest savings

Six Sigma can be used as:

◦ A Metric – Used as a scale to measure the quality or the goodness of the product

◦ A Methodology – Used to improve the business process that focuses on understanding and managing the customer requirements

◦ A Management System – Used to drive clarity around business strategy that reflects success

At the heart of Six Sigma methodology are the DMAIC and DMADV models for process improvement:

◦ DMAIC

Current Processes/Products

Performance deficiencies in processes that already exists in the organisation

◦ DMADV

New Projects/Products

Identifies the best processes to offer a superior product or service

DMAICDefine

◦ Select project/areas for improvement

◦ Set project goals

◦ Identify customer (internal and external) deliverables.

◦ Form teams

Communication plan

Project schedule

DMAICMeasure

◦ Determine current performance

◦ Collect data for the selected problem

◦ Determine key product and process characteristics

Data Collection Plan

Value Stream Map (VSM – Current)

DMAICAnalyze

◦ Determine the root causes of the defects

◦ Analyze data, establish and confirm the “vital few” determinants of the performance

◦ Validate Hypothesis

Prioritise determinants

DMAICImprove

◦ Develop solutions to remove root causes

◦ Experimental improvements

◦ Optimize the process

Improvement Strategy

Value Stream Map (VSM – Future)

◦ Final Solutions Implemented

DMAICControl

◦ Establish standards to maintain process

◦ Design the controls, implement and monitor

Standard Operating Procedures (SOPs)

Training Plans

◦ Evaluate financial impact

◦ Pass project to process owner

DMADV◦ Define the project goals and customer (internal and

external) deliverables

◦ Measure and determine customer needs and specification

◦ Analyze process option to meet customer needs

◦ Design (detailed) the process to meet customer needs

◦ Verify the design performance and ability to meet customer needs

Executive ownership

/ leadership alignment

Effective support

infrastructure in place

Integration with existing

business improvement

initiatives

Selecting the right people and

projects

Integrated training materials

and software

Financial and implementation

accountability

Reward and recognition

Enterprise wide knowledge

sharing

Customer and supply chain

involvement

Change management and

cultural strengths

Six Sigma

Implementation

Better

Faster

Lower Cost

Six Sigma

Realisation

Customer Value

Intellectual Capacity

Top Line Growth

Bottom Line Growth

Lower Cost

[6]

Six Sigma in Retail Display

◦ Define: Marketing has designed a "fancy" display unit that they think will outperform the "standard" display unit and they want to put one in every store. "Fancy" display is 10X cost of a "standard" display and all stores already have "standard" units. Should the new displays be purchased.

◦ Measures: Have data for each store on sales of this product for every day.

◦ Analyze: The stores identified at least three other factors besides display type that could impact sales. Range for each factor was identified. Design of Experiments was conducted.

◦ Improve: "Fancy" display had no significant impact on sales. The "fancy" displays were not ordered for any more stores, with considerable cost savings.

◦ Control: Future changes will be tested and evaluated using statistical techniques. [7]

Six Sigma in Machine Shop

◦ Define: Unacceptable levels of finished parts rejected due to poor quality in a machine shop.

◦ Measures: Product yield determined and different defects categorised. Sigma levels calculated.

◦ Analyze: Machine operators & Engineers identified variables which could cause defects. Control limits determined for each machining step. Five DOES‟s carried out to optimise machine settings

◦ Improve: Results of DOE‟s used to write SOP‟s so that machines always operated at settings which maximise yield. Yield increased 13%

◦ Control: Control charting used to predict machine drift. Decision trees written to direct operators in corrective action steps. [7]

Cost Saving

Reduction in Process Time

Development of Skills

Recognised Standard

Removal of Waste

Customer Satisfaction

Need all employees involved

3.4 defects per million opportunities may not be achievable

Big cost saving moving from 2σ to 4σ. Is 6σnecessary?

High initial expenditure requirement

Results are not always guaranteed

A gauge of quality and efficiency, Six Sigma is also ameasure of excellence. Embarking on a Six Sigmaprogram means delivering top-quality service andproducts while virtually eliminating all internalinefficiencies.

A true Six Sigma organization produces not onlyexcellent product but also maintains highly efficientproduction and administrative systems that workeffectively with the company's other service processes.

The primary factor in the successful implementation ofa six sigma project is to have the necessary resources,the support and leadership of top management.

ANY QUESTIONS??

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2. MG Rush. Glossary. Facilitation Training. [Online] 2010. [Cited: February 10, 2010.] http://www.mgrush.com/content/view/70/33/#s.

3. Six Sigma Tutorial. Sic Sigma Capability Improvement. Six Sigma Tutorial. [Online] 2008. [Cited: February 12, 2010.] http://sixsigmatutorial.com/images/SixSigma-Capability-Improvement.GIF.

4. BusinessBalls. six sigma training, history, definitions - six sigma and quality management glossary. six sigma. [Online] 2009. [Cited: February 10, 2010.] http://www.businessballs.com/sixsigma.htm.

5. ProblemSolvingTechniques.com. A Pareto Diagram Example. A Pareto Diagram Example. [Online] 2009. [Cited: February 10, 2010.] http://www.problem-solving-techniques.com/Pareto-Diagram-Example.html.

6. Schmidt, S. R, Kiemele, M. J and Berdine, R. J. Knowledge Based Management: Unleashing the Power of Quality Improvement. Houston : Air Academy Press, 1996.

7. adams six sigma. six sigma projects examples. six sigma projects are where the work to achieve the gains is done. [Online] 2003. [Cited: February 11, 2010.] http://www.adamssixsigma.com/Sample_Projects/six_sigma_projects.htm.

8. Itil & TSM. Related Process Models - The Six Sigma Methodology. Itil and TSM World. [Online] 2003. [Cited: February 10, 2010.] http://www.itil-itsm-world.com/sigma.gif.

9. iSixSigma. DMAIC Versus DMADV. Six Sigma Methodologies. [Online] 2010. [Cited: February 10, 2010.] http://www.isixsigma.com/library/content/c001211a.asp.

10. iSixSigmaPublications. Meeting changing business needs. Applying Six Sigma To Six Sigma Project Example. [Online] 2008. [Cited: February 11, 2010.] http://store.isixsigma.com/PROJECT-EXAMPLES/Applying-Six-Sigma-To-Six-Sigma-Project-Example/p-92-306/.

11. airacad.com. Reduce Handling Due to Packaging. Lean Six Sigma Project Report. [Online] 2006. [Cited: February 11, 2010.] http://www.airacad.com/Doc/GB%20Project%20-%20Reduce%20Handling%20Due%20to%20Packaging.pdf.

12. Pexton, Caroline. Advantages of the Six Sigma Approach. One Piece of the Patient Safety Puzzle. [Online] 2005. [Cited: February 11, 2010.] http://www.gehealthcare.com/usen/service/docs/patientsafetypuzzle.pdf.

13. Perez-Wilson, M. Six Sigma Strategies: Creating Excellence in the Workplace. NSF. [Online] 1997. [Cited: February 11, 2010.] http://www.qualitydigest.com/dec97/html/sixsigma.html.

14. Stack, N, Chambers, S and Johnston, R. Operations Management. Essex : Pearson Education Limited, 2004.

15. Pyzdek, T. The Six Sigma Handbook, Revised and Expanded: The Complete Guide for Greenbelts, Blackbelts, and Managers at All Levels . s.l. : McGraw-Hill, 2003.