Cindy Seaver

Six Sigma Blackbelt and Honeywell Six Sigma Plus

Muskegon Site Leader

2

How Six Sigma Relates to Project Management

• Tools for projects• Relates to other

management disciplines• Related tools

– Resource management– Process maps-work

breakdown structure

• 6 changes the culture• Every employee trained• Every project uses 6 tools• Benefits captured &

reported

Similarities Differences

3

History of Six Sigma

Began in 1987 when Motorola

published it’s Six Sigma quality program.

Developed by Mikel J. Harry.

Motorola won the Malcom Baldrige Quality Award

4

What is Six Sigma (6 )?

6 = 3.4 defects per million opportunities

99.9997% error free operation

Methodology/tools to move toward this target

Combines the right people with the right projects using the right tools

Typical Industrial Company Operates at 4

5 Sigma Results at Shanghai Garrett Plant E-News, January 3, Company-wide News Section -- Achieving a 5 Sigma for any operation is a notable accomplishment. Achieving this high level of performance for an entire plant is an even more impressive feat. That's what occurred at Garrett® Engine Boosting Systems' plant in Shanghai, China, which is performing above a 5 Sigma level by providing customers with the highest level of quality and customer service.

The "5 Sigma" means the plant is maintaining a 99.977% error-free performance -- a defect rate of less than 233 parts per million.

1 690,000

2 308,000

3 66,810

4 6,210

5 233

6 3.4

Statistical Sigma Level

Defects per million

6

Examples of Sigma

Electric companies operated at – 4 Sigma = no power 1 hour/week– 6 Sigma = no power for 2 seconds/week

Telephone Companies– 4 Sigma = No phone service 4 hours/month– 6 Sigma = No phone service 9 seconds/month

6 Evolved - Incorporation of Business Related Goals

Company leadership that sees the vision and supports from the top

Team members use Six Sigma methodology to resolve issues

“Bottom line” focus, target $ savings

Projects start/link with company goals

8

Improvement strategies for:

• Reducing Variation– Variation is the enemy!

• Reducing Cycle Time– In order to be quicker, we must simplify!

• Reducing Costs– Reducing total life-cycle cost requires improvements

in all processes associated with the product or service!

Key Benefits - Dollar Gains

• New ideas and products that come from Six Sigma effort

• Increased productivity

• Increased sales

• Increased customer loyalty

• 1 in 5 projects at Dupont is creating revenue as well as cost cutting

X

XX

X

XXXX

XXX

Variation- Which Pilot Would You Choose?

Airplane landing’s example

XXX

X

X

XX

X

X

X

Who is Using Six Sigma?

Dupont 1,139 Blackbelts,>$1 billion/year savings

>$1.5 billion savings in 2000, $188 million in 1998

Honeywell saved $1.5 billion 1993-1997, >$500 million in 1998

Dow trained thousandssince 1999

Motorola has been doing since the 80’s

Wall Street’s Response to Six Sigma

• Companies started touting increases in earnings as results of Six Sigma initiatives

“Companies get more than statistics with Six Sigma”

Six Sigma’s Secret

• Fact’s oriented

– Statistics improve the decision-making process

– Statistics instill confidence in changes

• Build a team of problem solvers

– Greenbelts, Blackbelts, Master Blackbelts

• Intense company wide training

– All employees

– Management is trained to understand and support

– Cultural company-wide change

14

Structure of Six Sigma Projects-DMAIC

DefineMeasureAnalyzeImproveControl

InitiatingPlanningExecutingControllingClosing

5 Steps 6 5 Steps of Project

Management

15

The Six Sigma Process Define

• What are the company goals?

• What is the actual issue/project?

• Does it need a Six Sigma Team

– Cross functional team members

– Problem solving, process improvement or development

• Leadership approves team & needed resources

• Define customer requirements

Company NeedCompany Vision

Project Definition

Project Approval

FormTeam

No

Yes

16

Team Charter

Returnable Container Process Team

Six Sigma Project Team Charter

Team Name: Returnable Container Process Improvement Team (RCPIT)Team Leader: Cindy Seaver Leader Extension/Phone Number X6260Blackbelt Cindy Seaver Product Impacted NP IIs and SSPDSsChampion Perry Gasperini/Todd McGee Product Impacted Sales(‘2000 proj$) $5.2MStart Date September 2000 Target Completion Date December 2000

Element Description Team Charter1. Process: The process in which

opportunity exists.1) Internal process of receiving, cleaning, filling and shipping NP IIs

and SSPDS containers2) Process of getting containers back from customers.3) Management of Customer Requirements (i.e. Contracts, Fleet size,

special shipping requests, etc.)2. Project Description: Describe the project and how

it links to the goal tree.Decrease customer complaints concerning the products packagedin NP IIs and SSPDS containers. This will support our Growthobjective for the analytical market and the biopharmaceuticalmarket. (1999, $27.3M-2000,$30.5M-2001,XX.XM)

3. Project Objective: What improvement istargeted and what will be theimpact on RTY (RolledThroughput

Baseline $ GOAL $ Entitle-ment

Units

Yield), COPQ (Cost of PoorQuality) and C-P (Capacity-

RTY %

Productivity). COPQ $/A

C-P Units/A

4. Benefits Category: Which of the 8 Six Sigmabenefit categories will thisimpact?

Capacity Increase, Variable and Fixed Cost Takeout, Sales Growth,Customer Defect Reduction, Increase Employee Satisfaction andEmployee Timesaving

5. Benefits Impact: What is the financial impactof the project, and what isthe basis for the calculation?

Volume and sales growth, assume sales = volume,1999 11% of volume, total sales $27.3M=$3.0M2000 17% of volume, total sales $30.5M=$5.2M2001 20% of volume, total sales $xx.xM=$xxMPossible Growth in sales benefit $xM

Team Members: List the full-time membersand any expert consultants.

Jim McNabney, Teresa Belinger, Matt Bosma, Bruce Wolters, DennisJones

6. Boundaries/Inputs: List any significant activitiesor information that will besupplied by other teams orpeople.

Resources: Barb Hollingsworth, Lissie Boyle, Toni Patterson, LindaJones, Patty AbdelkaderComplaint Database, Packaging Alternative Database

7. Benefit toCustomers:

List the people or groups thatwill be affected by thischange, how they benefit andtheir requirements.

Customers, RPT, MFG, Sales

8. Schedule: Give the key milestones. Project Start September 2000

M- Measurement “M” Completion October 2000

A- Analysis “A” Completion November 2000

I- Improvement “I” Completion Proposed December 2000

C- Control “C” Completion February 2001

Include appropriate Safety Reviews As needed/required

safety reviews. Project Completion April 2001

9. Budget Required: Breakdown costs toimplement. Labor,materials, and other.

TBD

The team getstogether and

completes a team charter. They all agree on the goals.

NOWPAK II Returnable Container Worksheet for Customer RequirementsOctober 2000

Customer (one per worksheet): End-userOutputs (What products, services or information do we provide?) Solvents in returnablecontainers

Requirement Measure Importance toCustomer

1 = Nice to Have

2 = Important 3 = Critical, Must Have

CustomerSatisfaction

1= Very Satisfied2 = OK - Could be Better3 = Unhappy, Must Be Improved

Priority

(Importance xSatisfaction)

On-time delivery Complaint log 3 2 6

Quality of solvent Complaint log 3 1 3

NOWPAK Received intact & clean Complaint log 2 1 2

What is this customer’s major complaint? On-time delivery is the major potential failure

What issue would they want us to work on? Delivery of the product when needed.

Customer RequirementsWhat are the REAL

customer requirementsand rank them!

18

The Six Sigma ProcessMeasure

• Identify “key” characteristics that can be measured

• Collect/review statistically

• Develop detailed process map

• Use other tools

– ie. Cause & Effects Diagram

– Gage R&R

– Process Capability

– Benchmarking

MeasurementPhase

Need moreData?

AnalyzeData

Collect data

Yes

No

Yes

Collectexisting data Run DOE’s

NOWpak® Process MapN O W Pak® Flow C hart

R evised 12/20/00

R eturned N Prece ived in p lant

B ottle rs in itia tere tu rned

con ta ine r fo rmF N 194

W heneve r theyhave tim e

R em ove cap &does N P have

line r?

R em ove line rS O P #

R em oves leeve and

labe ls

Inse rt T e flonline r

D oes line rpass tes t?

R edo tes tN otify R P T

Ins ta ll tes ts ticke r & dus t

cap

P lacecon ta ine r inready to fill

a rea

R P T upda tess ta tus to

"ready to fill"fo rm F N 194

R P T no tifiesschedu le r by

e -m a il o rphone , no fo rm

used

S chedu le r pu tson schedu leand no tifies

S /S

S S o r s ta tusshee r, B o ttle rs

loca tecon ta ine rs

N ew con ta ine rrece ived in

p lan t

H ascon ta ine r been

inspec ted?

Inspec tcon ta ine r pe r

3 .301 .021

Lab issuespackag ing

authorization

B ottle rs D oub lecheck labe lsaga ins t Lab

au tho riza tion

N o tify R P TR P T reso lves

p rob lem

B ad

M ove to pa lle tand reco rd onlo t pkg . reco rd

fo rm

W hse F ill ou t N P IIfill reco rd F N 354w /se ria l no . and

subm it to R P TR P T pu ts

se ria l # & lo t# on p icke r &rem oves Z 3b lock in S A P

Lot pkgrecord to

Labe l Tech

C on ta ine rs m oved toW hse and w a it fo r

o rde r

R P T U pgradescon ta ine rs to"sh ipped tocus tom er;"

from copy . S h ippe rfiled

W arehousep icks p roduc t

P roduc tsh ipped

N o

Y es

yes

N oFail

G ood

Y es

N o P ass

O rderhand lingprocess

KEYR P T = R e tu rn P ackageT echn ic ianN P = N O W P akW IP = W ork in P rog ress

D ec is ion po in t

A c tion item

C onnec to r

B oundary

\

F IllC on ta ine r

R eco rd S e ria l#s in D a tabase

F ow ardo rig ina l

sh ippe r tow ha rehouse

M akescopy o fp icke r

S h ippe ren te red inda tabase

N P IIs m oved toba pu lling s ta tiona rea o r ou ts ide if

no room

How is the processdone, step by step.

Cause & Effect Diagram

Rating of Importance to Customer

6 3 2

1 3 4 6 7 8 9 10 11 12 13 14 15

Returnable Container NP II Process

On-

time

deliv

ery

Sol

vent

Qua

lity

Inta

ct a

nd

clea

n

Total

Process Step Process Input

1 Container Received Delivery by shipping co. 4 1 1 292 Warehouse personnel 4 1 1 293 Paperwork (FN194) 4 1 1 294 Chemical Package operator 10 1 4 715 warehouse 3 1 1 1 116 NP Liner removal NP liner removal equip 7 1 1 477 Chemical Package operator 10 1 4 718 09 Container preparation Remove sleeve & labels 1 1 4 1710 Chemical Package operator 10 1 4 7111 012 Liner insertion new liner 4 7 1 4713 New sleeves & dust caps 1 1 1 1114 personnel 7 1 4 5315 Inflation fixture 4 1 1 2916 test sticker 1 1 1 1117 Ready to fill fill area 1 1 1 1118 Personnel available 10 1 1 6519 FN194 4 1 1 2920 Schedular Scheduler 7 1 1 47

Schedule 10 1 1 65Container fill Chemical Package operator 7 1 4 53

lab authorization 4 7 1 47Spiquot 1 1 1 11WIP form 1 1 1 11Fill record-accurate 10 1 1 65Container available 10 1 1 65Solvent available from prod. 10 7 1 83Scale for weighing-filling 10 1 1 65cart for moving NPs 7 1 1 47

Ship container RPT 7 1 1 47full container/wlabel 7 1 4 53Shipper 4 1 1 29database 4 1 1 29Warehouse personnel 7 1 1 47ship truck 4 1 4 35

00

Total 540

72 66 0 0 0 0 0 0 0 0 0 0 0 0

Lower Spec

Target

Upper Spec

NOWPAK II Returnable Container Cause and Effect Matrix 10/2000

Steps taken from Process Map and rated as

importance to customer requirements

NOWpak® II Process FMEA-Critical Issues

Process Step/InputPotential Failure

ModePotential Failure

Effects

SEV

Potential Causes

OCC

Current Controls

DET

RPN

Actions Recommended

Resp.Actions Taken

SEV

OCC

DET

RPN

Container Fill/Fill record accurate

Container not located No on-time delivery10

Wrong serial numbers recorded

7None

7 490Bar-coding eliminate errors 0

Container Fill/container available

Container not located No on-time delivery10

Not returned from customer 7

None7 490

Fleet Mgt.0

Container not located No on-time delivery10

Misplaced in warehouse

7None

7 490Bar-coding eliminate errors

0

Container not located No on-time delivery10

Liner not pulled

7None

7 490Personnel required

0

Container Fill/Solvent available

Solvent not available No on-time delivery10

Solvent needed in other

7 7 490Fleet Mgt.

0

NP Liner Removal/equip fail

Chemical package operator not available

No on-time delivery10

Not enough man-power

10None

4 400Personnel required

0

Container Preparation Chemical package operator not available

No on-time delivery10

Not enough man-power

10None

4 400Personnel required

0

Chemical package operator not available

Intact & Clean10

Not enough man-power

10None

4 400Personnel required

0

Ship Container/shipping personnel

Personnel No on-time delivery7

Personnel out sick/vacation/ meetings

7None

7 343Personnel required

0

Container Fill/Chemical Package operator

Personnel No on-time delivery7

Not enough man-power 7

None7 343

Personnel required0

Liner Insertion Personnel No on-time delivery7

Not enough man-power

10None

4 280Personnel required

0

Personnel Intact & Clean7

Not enough man-power

10None

4 280Personnel required

0

Schedule No on-time delivery 10 SAP 7 None 4 280 SAP Flexibility 0Receipt of container/delivery by shipping co

Containers not made No on-time delivery7

Order not placed in time 5

None7 245

Re-Order program 0

22

The Six Sigma ProcessAnalyze

• Understand the root cause driving defects (why-why-why-why-why)

• Brainstorm

• Use tools

– FMEA

– reduce process waste

– eliminate scrap

– eliminate rework

• Prioritize & Plan Proposed Solutions

AnalysisPhase

Statistically analyze data

Review dataand draw

conclusions

Brainstorm andpropose solutions

23

The Six Sigma ProcessImprovement

• Change the process – Acquire appropriate approval– Create new process map– Train appropriate people– Purchase equipment– Implement new process

• Monitor & Quantify the improvement– Run chart– Control charts– Histograms

• Modify process as needed based on data collected

Change theprocess

Monitor theprocess

Modify theprocess

24

Equipment Improvements

Short Term

• Install bar coding equipment ASAP, priority project

• Purchase scale and cart for NPII filling process

• Storage area designated for NPIIs

• Install dual manifold for filling

Long Term

• Dedicated NOWpak® filling room with appropriate conveyors for moving containers safely and in a “flow”

• Filling by weight is timely, develop better/faster ways to fill containers

NOWpak® Improvement Recommendations

25

The Six Sigma Process Control

• Ensure that the modified process now enables the the key variables to stay within acceptable ranges

Control Phase

Develop plan onmaintaining the improvements

Becomes standard

operating procedure

Processworking

Communicate & Reward

Team returns to analysis

phase

26

Exercise: Applying DMAIC

• Think of the things you value doing on a day off

• Select one that is most important to you

Example: Achieving What’s Important

Stage Our ActivitiesDefine…what's important

Measure…how we're doing

Analyze…what's wrong

Improve…by fixing what's wrong

Control …to guarantee performance

USING THE PROCESS IMPROVEMENT MODEL

28

Capture the $$Benefits of Six Sigma

• Capacity increase

• Fixed cost takeout

• Variable cost takeout

• System cost takeout

• Product mix improvement

• Sales growth

• New product sales growth

29

Six Sigma Throughout An Organization

• Manufacturing & Engineering

• Maintenance

• Administration & Support

• Technology

• Planning & Design

• Sales & Marketing

What it takes to be a Six Sigma Organization

• Not a spectator sport

• Leadership commitment

• Cultural Change

• Customer Focus & Driven

31

Levels of Training

• Introduction - 2 days, terms and tools

• Fundamentals - 3 days, how to use tools

• Greenbelts - 3 days, leaders of projects

• Blackbelts - 4 weeks, site expert & trainer

• Master Blackbelts - 8-12 weeks +, mentor & teach

32

Six Sigma Intangibles

• Cross functional teams

• Document actual processes

• Use project data for training

• Find & utilize talent throughout the organization

One focus throughout the

entire organization

33

High Level Process Map

Result/Output

Controls/Settings

Tasks

11UncontrolledInputs

Process Map

Ask Customer Get Bread Spread to Order Get ToastWrite Order Load Toaster Jelly to Order Deliver to TableTake to Kitchen Start Toaster Cut Toast Get Feedback Turn Off Toaster Arrange on Plate

Remove Bread Put on Pickup ShelfCall Server

Order Neatly Written Butter at 90° F Age of Bread Darkness to Order Spreads match order

Toaster PowerToasting Time

Temp. at Start Time to Order P/U Line Voltage Age of Elements

Take Order

Toast Bread

Add Spread

Deliver to Customer

Steps

Result/Output

ControlSettings

UncontrolledInputs (“Noise”)

Tasks

What:A picture of what we do in each step (the tasks, process controls), the results (outputs) produced and inputs which we don’t control, like room temperature.Why:The map gives all team members a common understanding of key potential sources of variation and defects.

Right D’knessRight SpreadHotDel. in 5 Min.

AppetiteBread

Conceptual Example: Restaurant Process for Toast

35

Summary

6 = 3.4 defects per million opportunities

99.9997% error free operation

Methodology/tools to move toward this target

NOT another Quality Program, it’s a way of doing business!