51152140 6 sigma ppt dhaara t

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Page 1: 51152140 6 Sigma Ppt Dhaara T
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Wat is Six sigma?

• A statistical term that measures how far a given process deviates from perfection• Central idea- measure how many defects and systematically figure out how to eliminate each defect and get as close to ‘zero defects’• About how you use your resources• Work smarter, not harder

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Six Sigma is about helping the organization make more money by improving customer value and efficiency. Six Sigma focuses on customer requirements, defect prevention, cycle time reduction, and cost savings. Thus, the benefits from Six Sigma go straight to the bottom line. Unlike mindless cost-cutting programs which also reduce value and quality, Six Sigma identifies and eliminates costs which provide no value to customers (waste cost).” The Six Sigma Handbook by Thomas Pyzdek

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How does it work?1. Info from customers2. Translate info into quantifiable data3. 1 sigma- precision of 68.27% 2 sigma- 95.45% 3 sigma- 99.73% 6 sigma- 99.9997%

THUS, try to achieve six sigma quality, i.e. no more than 3.4 defects in a million opportunities.*

*Opportunity= non-conformance, or not meeting the required specifications.

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How does it work?

1. DMAIC2. DFSS3. The Sigma Belt

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Define- aim or goals for a particular project, problems one could face, customer requirements, the metrics with their baseline and entitlement levels.Measure- Customer feedbacks>> ensure quantifiability>> measure them; Determine defects>> gather preliminary data to gauge the current performance.Analyze- Analyze the preliminary data to document current performance (baseline process capability), Identify root causes of defects and their impact, and act accordingly.Improve- Intervention in processes to eliminate or significantly reduce the defect levels. Several rounds of improvements may be required.Control- Once the desired improvements have been made, put the system into place to ensure the improvements are sustained.

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Design for Six sigma•Phases are not universal; most organizations define them differently.•A popular DFSS methodology is DMADV:

• Define the project goals and customer requirements.• Measure customer needs and specifications; benchmark

competitors. • Analyze the process options to meet the customer needs.• Design (detailed) the process to meet the customer needs.• Verify the design performance and ability to meet customer

needs.Some other methodologies in DFSS•DMADOV: Define, Measure, Analyze, Design, Optimize and Verify.•DMEDI: Define, Measure, Explore, Develop and Implement.•IDOV: Identify, Design, Optimize and Validate.•DCCDI: Define, Customer, Concept, Design and Implement.

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The sigma belt refers to a person (like in karate). It shows how well a person is trained in the 6 sigma methodology, AND how good he is when actual application comes into play.

1.Green Belt: Trained in the Six Sigma methodology; team member of Six Sigma process improvement action teams.

2.Black Belt (Team or project leader): Trained in the Six Sigma methodology, experienced leading cross-functional process improvement action teams.

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3. Master Black Belt (The Six Sigma Coach): Trained in the Six Sigma methodology and act as the organization-wide Six Sigma program manager. They oversee Black Belts and process improvement projects and provide guidance to Black Belts as required. A Master Black Belt teaches other Six Sigma students and helps them achieve Green Belt and Black Belt status.

4. Champion: A Six Sigma Champion is usually a top executive or senior manager who can demonstrate a good knowledge of Six Sigma. They are the catalyst and driving force behind the organization’s Six Sigma implementation. They have good relationships and involvement with executive management and serve as mentors to the Black Belts

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Pros & cons of Six sigmaCONS- 1.Sometimes improving efficiency may not even lead to improved profits and reducing waste may actually cost more than just having the waste there in the first place. 2.The real value that the product creates for the customer gets lost in the Six Sigma frenzy of perfection within the production process.3.Not all data is quantifiable4.Like so many major initiatives, Six Sigma can receive less than enthusiastic response from workers. For example, Six Sigma can be somewhat divisive – a few people are chosen as Black Belts, a larger group is selected as Green Belts, and others are not included at all. In order for Six Sigma to be truly accepted, everyone should be given an opportunity to become a Green Belt and people who have demonstrated strong leadership on improvement issues should be considered for Black Belts. Don't exclude people on such a major enterprise-wide initiative as Six Sigma.5.Misses focus on inventory6.The value of reducing variation may not actually be worth the time and money it takes to implement Six Sigma, especially when time is an important factor.7.In most cases, it fails to effectively proxy customer satisfaction. Also, opportunities are not weighted by importance to the customer in Six Sigma. 10 unimportant defects might improve while 5 important ones get worse. In that case the sigma metric would improve, but customer satisfaction goes down.

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Pros & cons of Six sigmaPROS- One reason that Six Sigma has become so important to many businesses is because they often don't have a chance to tell a customer about all the things that are great about their product, especially if they are buying online. Customers expect certain things from products and businesses are not necessarily capable of finding out what those things are before the customer reviews or purchases their product. The ability of customers to do this has made it even more important for businesses to exceed expectations and to delight consumers

1.Well-defined methodology for improving quality2.Leads to control over costs3.Excels in the setting of standards for measuring, analyzing, and reducing inefficiency4.Offers a manufacturer a way to have a competitive edge over other manufacturers5.Aims at cost reduction by means of defect reduction6.Reduced defects lead to yield improvement; higher yields improve customer satisfaction. The ultimate goal is enhanced net income7.Places an emphasis on achieving measurable and attainable goals

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Six sigma in various sectorsWipro Technologies, a global services provider delivering technology-driven business solutions has one of the most mature Six Sigma in the industry, thus ensuring 91% of the projects are completed on schedule (Industry average- 55%).• 1st indian company to adopt 6 sigma• World’s first CMMi level 5 certified software company•1st company outside of USA to have received the IEEE Software Process Award

• 1945- vegetable oil company• Early 1980- diversified into Information Technology

Understanding that alongside continuous improvement, aligning business operations with customer needs was important, led Wipro to concentrate more on Quality, and eventually implement Six Sigma. The six sigma program spreads right across verticals and impacts multiple areas such as project management, market development and resource utilization.

IT SECTOR: WIPRO

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Six sigma in various sectors

Intent- 1.Measure quality and strive for near perfection2.Bring rigor in upstream processes of the software development lifecycle3.Have products and services meet global benchmarks4.Ensure robust processes within the organization5.Consistently meet and exceed customer expectations6.Make quality a culture within7.Quantitative understanding8.Cost savings9.Performance improvement towards product quality

IT SECTOR: WIPRO

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Six sigma in various sectors

Some of the key challenges involved were-1.Reduce the data transfer time2.Reduce the risk3.Avoid interruption due to LAN/WAN downtime4.Parallel availability of the switch for the other administrative tasks during the same period5.Problems in the initial years- building cultures, project selection, training and resources.

IT SECTOR: WIPRO

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Six sigma in various sectors

Six sigma has helped Wipro-1.In developing new processes2.In improving existing processes3.For re-engineering (cross-functional process mapping)4.In customer satisfaction5.In improvement of shareholder value

IT SECTOR: WIPRO

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Six sigma in various sectorsCustomers benefit from:1.30%- 40% lower total cost of ownership2.20%- 30% higher productivity3.On-time deliveries (93% projects completed on time)4.Lower field defect rates (67% lower than industry average)Tools for implementation of Six Sigma at Wipro: •Ideation•Definition•Selection•Tracking•Reporting

IT SECTOR: WIPRO

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Six sigma in various sectorsOIL & GAS SECTOR

Due to increasing demand for petroleum products, 6 sigma applied to-•Improve production•Increase reliability•Reduce costs while running safe operations. Six Sigma Projects done in Oil and Gas sector are:•Improving Oil Production•Improving drilling equipment effectiveness and reliability•Improving fluid measurement systems•Cycle time reduction in core processes•Effective implementation of new technologies•Improvement in yield from existing technologies

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Six sigma in various sectorsOIL & GAS SECTOR

Leading companies-1.Chevron2.Aramco3.Texaco4.Aera Energy5.BakerPetroilite6.Halliburton7.Reliance Petroleum8.ONGC9.Indian Oil

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Six sigma in various sectorsAerospace and defence industry

• Founded in 1916 by William E. Boeing• Made up of multiple business units, which are Boeing Commercial Airplanes (BCA); Boeing Defence, Space and Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group• Follow the concept of ‘Lean’ manufacturing• Manage defects and continue to focus on quality across all production lines to remain competitive and be successful

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Six sigma in various sectorsAerospace and defence industry

Why Six sigma?•Meet the challenge of change• Design, build and deliver near-perfect products by reducing defects and variation, and improving quality, resulting in substantial cost savings.

"We're committed to following the Lean roadmap we've established—reducing variation and increasing quality—and embedding quality into our production system," said Steve Westby, VP of Manufacturing for Airplane Programs, Boeing

Since 1999, Boeing Commercial Airplanes has participated in numerous pilot projects using Six Sigma principles. Currently there are dozens of projects in work across Commercial Airplanes, with more than 300 trained as green belts and nearly 60 trained as black belts.

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Six sigma in various sectorsFMCG

• Founded in 1965 in USA with merger of Pepsi-Cola Company and Frito Lay Inc.• Fortune 500 company

Why six sigma?• Generating customer value• Reducing costs• Increasing quality production• Sustained growth• Measuring success

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Six sigma in various sectors

• Division of Deutsche Post• Founded in 1969 by Adrian Dalsey, Larry Hillblom & Robert Lynn• An environment-friendly company

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Six sigma in various sectors

• DMAIC- customer satisfaction• In an article, Jonathon O’Leary, head of First Choice Program in the Asia Pacific describes DHL’s Six Sigma Mandate as follows:The First Choice approach comes via the Six Sigma DMAIC (Define, Measure, Analyse, Improve, Control) methodology and the Lean process. • DMAIC- arrived from technology companies such as GE and Motorola• Lean- origins in manufacturing•Motorola is also one of the customers who have responded to DHL’s customer satisfaction survey.

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Six sigma in various sectorsPublishing

• Founded in 1917 in NYC• Standard and Poor’s- financial services• Publishers of The Six Sigma Handbook

Fortune 500 companies using Six sigma

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Six sigma in various sectorsOther Six Sigma Companies

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Cases where Six sigma failed• Forcing every single business activity into this Six Sigma Model may not work. Such was the case with NBC, a business unit of General Electric.

• Not every activity or process should be squeezed into a quantifiable model when in fact, the real value proposition gets completely lost. For example, a book publisher followed the Six Sigma Model in the production process of books. The production process became perfect – every letter on every page was produced without defects and no books were rejected from the assembly line. However, no-one was interested in buying the books – the content itself was poorly developed.

• Polaroid, a large manufacturer of cameras found out the hard way. Polaroid put enormous emphasis on quality, but failed to pay attention to a critical product substitute, digital cameras. As a result, Polaroid went bankrupt despite its outstanding quality

• Keep in mind that “quality” is almost a given in the marketplace; i.e. when you and I buy an automobile, we expect high quality. The point is simple – quality may not be as important to your long-term survival as other factors

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Six sigma vs other quality management systems

TQMA functional specialty within the organization.Focuses on quality.Motivated by quality idealism.Loosely monitors progress toward goals.People are engaged in routine duties (Planning, improvement, and control).Emphasizes problem solving.Focuses on standard performance, e.g. ISO 9000.Quality is a permanent, full-time job. Career path is in the quality profession.Provides a vast set of tools and techniques with no clear framework for using them effectively.Goals are developed by quality department based on quality criteria and the assumption that what is good for quality is good for the organization.Developed by technical personnel.Focuses on long-term results. Expected payoff is not well-defined.

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Six sigma vs other quality management systemsSix SigmaAn infrastructure of dedicated change agents. Focuses on cross-functional value delivery streams rather than functional division of labour.Focuses on strategic goals and applies them to cost, schedule and other key business metrics.Driven by tangible benefit far a major stockholder group (customers, shareholders, and employees).Ensures that the investment produces the expected return.“Slack” resources are created to change key business processes and the organization itself.Emphasizes breakthrough rates of improvement.Six Sigma job is temporary. Six Sigma is a stepping-stone; career path leads elsewhere.Provides a selected subset of tools and techniques and a clearly defined framework for using them to achieve results (DMAIC).Goals flow down from customers and senior leadership's strategic objectives. Goals and metrics are reviewed at the enterprise level to assure that local sub-optimization does not occur.Developed by CEOs.Six Sigma looks for a mix of short-term and long-term results, as dictated by business demands.

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Six sigma vs other quality management systems

Pro-Kaizen view point- 1.Many can get great gain with minimum investment2.Kaizen works well in slow-growth economy3.Kaizen tends to involve everybody and the pace of improvement is gradual and small but that eventually adds to the overall growth of the companyPro Six sigma view point- 1.Six sigma is better suited to fast-growth economy2.Mode of operation is scrap and rebuild and with a heavy dosage of technology leverage to get the results3.They want breakthrough improvemnt, not just continuous improvement4.Six Sigma is expected to solve problems which cannot be solved easily by Kaizen

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Making the most out of Six sigma• Start with selected processes; don't go full scale until you work out the bugs. From initial projects, you can roll-up “lessons learned” into further projects. Up to one-third of your process should be considered for Six Sigma at the outset since many will fail to fit with the Six Sigma methodology. You want to flush out the successful practices that will work since you need to leverage your investment in Six Sigma. And the investment can be high (especially for black belt training). Additionally, it's best to run pilot programs to work through design flows and techniques.• “Implementation of any change effort within an organization is difficult. However, compounding the difficulty with Six Sigma is the level of associated comprehensive tools and techniques. Resistance is a natural, often genetic reaction to any change in our lives. Unmanaged and unaddressed, the resistance to Six Sigma will spell the downfall of the effort.” - Making Six Sigma Last by George Eckes

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Bibliography:

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