rc six sigma

8/12/2019 RC Six Sigma

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SIX SIGMA : AN OVERVIEW


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Quality : John Ruskin


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Make a Difference


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Success


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Understand


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Improvement


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SONY TV

US Make

Japanese Make

Which one will you buy?


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Japanese supplier

companies

U. S. supplier

companies

%

E

F

F

O

R

T

Product

development

Design Manufacturing

and assembly

Problem

solving

Quality Effort by Activity


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The Build Up of Quality in Seven Stages

STAGE 7 (Consumer oriented)

Quality function deployment todefine the voice of thecustomer in operational terms

STAGE 6 (Cost oriented)

Quality loss function

STAGE 5 (Society oriented)

Product and process design optimization for

more robust function at lower costs

STAGE 4 (Humanistic Aspect of Quality)

To change the thinking of all employees througheducation and training. Personal Capability > ProcessCapability

STAGE 3 (System oriented)

Quality assurance involving all departments, i.e. design,manufacturing, sales, and services

STAGE 2 (Process oriented)

Quality Control during production, Power of Control Charts, andfoolproofing

STAGE 1 (Product oriented)

Inspection after production, audits of finished products, and problem solvingactivities

Japanese Style CWQC100%

U. S. Style TQC40%

0%


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The Weave of Quality

President

Staff

ProductPlanning

Service

Voice of

theCustomer

Design

Quality Control Quality Control

CWQC Promotion Activity

Education and Training

Quality Function Development

Management Audit

QC Research Group

Manu-facturing

Sales

THE COMPANY WIDE QUALITY CONTROL


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Quality contributionDue to inspection

Quality

contribution

due toprocess control

Quality

contribution

due to process and

product design

100%

75%

50%

25%

0%

1945 1950 1960 1970 19801983 2000 +

Japanese Quality Evolution


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Definition of Sigma Level

Sigma level: The businessmetric used to indicate theperformance of a processto some specification. The number of standard

deviations we can fit betweenthe mean and the nearestspec.

1

2

1

LSL USL

What is the sigma level

of the characteristic

above


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Practical Meaning of 99%

Good2,000 lost pieces of mail every hour

5,000 incorrect surgical procedures

every week2 short or long landings at most

major airports every day

200,000 incorrect drug prescription

every year99% just isnt good enough !!


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2 3 4 5 6

Operational Excellence

(with 1.5 shift)

100000

10000

1000

100

10

5

0

Average

Company

RestaurantBills Doctor Prescription Writing

Payroll Processing

Order Write upJournal Vouchers

Wire Transfers

Purchase Material

Lot Reject Rate

Airline Baggage

handling

Sigma Scale of Measure

Best-in-Class


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Process ImprovementReduce Overall Variation

2

LSL USL

LSL USL

1 SONY


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Change the Specification(Customer Acceptability)

1

LSL USL

LSL USL

1

Six Sigma relies on valid data to identifythe cause of excessive variation &

deficiencies as well as continuously

monitoring critical in-process steps, and

attainment of customer requirements


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Shift the Mean

Without reducing overall variation (hard).

Can the entire process be shifted (new

center, same range)

LSL USL

1

Non

Conformances


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The Goal :

Quantitatively this means that the average

process at the org. will generate less than

3.4 defects per million opportunities

Culturally it means we need to learn how

to be nearly flawless in executing our key

processes.


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Visible & Invisible Factory

Total Cost

Total UnitsCost / unit =


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Total Cost

Total UnitsCost / unit =

CORRECTIONDEFECTS

EFFECIENCY

WASTE

WAITING

UNDER UTILISATION

CONVEYANCE

INVENTORY

NON VALUE ADD

OVER PRODUCTION


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DEFECTS

EFFECIENCY

WASTE

WAITING

INVENTORY

UNDER UTILISATION

CONVEYANCE

CORRECTION

OVER PRODUCTION

NON VALUE ADD

Cost

PRODUCT

Net Income

VISIBLEPulled By Customer

INVISIBLE

Pushed By US


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The Hidden Factory

To analyze, re-work, and/or scrap potential product werequire More Manpower

Extra floor space

Longer cycle time

More raw material

More moneyHow big is your hidden factory?

What happens to cost as defects increase?

Re-Work

or Scrap

FailureAnalysis

Re-Work

or Scrap

FailureAnalysis

Operation 1 Operation 2 ProductTestTest


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Cost of Poor Quality (COPQ)

Beyond the direct costs associated with finding andfixing defects, COPQ also includes: The hidden opportunity for increased efficiency

The hidden labor associated with ordering replacementmaterial

The hidden costs associated with disposing off defectsFor an average company, the COPQ can be as highas 40% of sales

In almost every company where the COPQ isunknown, the COPQ exceeds the profit margin.


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Process Improvement

The Goal: Produce goods and services through processmanagement to:

Eliminate defects

Reduce production and development costs

Reduce cycle times and inventory levels

Increase profit margins Improve customer satisfaction

The Strategy: Use a data driven structured approach toattack defects to improve the sigma level of your goods andservices


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The Cost of Poor Quality/Cost of

Running the Hidden Factory

Sigma Level

DPMO

Defects per Million

Opportunities

COPQ

Cost of Poor

Quality

2 308,537 Not Applicable

3 66,807 25-40% of Sales

4 6,210 15-25% of Sales

5 233 5-15% of Sales

6 3.4


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Sigma Level from Defects

Sigma DPMO Yield

6 3.4 99.99966%

5.5 32 99.9968%

5 233 99.977%

4 6210 99.38%

3.5 22,750 97.7%

3 66,807 93.3%

2.5 158,655 84.1%


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Way to maximise the Harvest(Shut Down the Hidden Factory)

Foundations/Lean

Visual Workplace

5S

Tribal Knowledge

Common Sense

Tools

Continuous Process

Improvement


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Define

MeasurementPhase

Analysis

Phase

Improvement

Phase

Control

Phase

Learning aboutan application

of Six Sigma principles

are driven by selected

projects

Projects are worked

through these 5 main phases

of methodology

Tools and Tactics

DMAIC


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5 Step Problem Solving Approach

ScopingCalculate

COPQ

Business

Case

Establish

Team

Primary

Metric

ControlImproveAnalyzeMeasureDefine

Process MapFishbone

X/Y Matrix

FMEA

Data

CollectionGage Analysis

Graphical

Analysis

Identify

Probable Xs

InferentialStatistics

Hypothesis

Tests

Correlation/

Regression

Process

Simulation

Design ofExperiments

Develop New

Process

Identify New

Metrics

Pilot & Test

Control Plan PBL

Implementati

on Actions

Mistake

Proofing

Control Charts


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WHY DMAIC?

We dont know what we dont know

If we cant express what we know in the form

of nos., we really dont know much about it.

If we dont know much about it, we cant

control it

If we cant control it, we are at the mercy of

chance


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Roles and Responsibilities

CHAMPION

WHITE BELTLEADERS

GREEN BELTBLACK BELT


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Harvesting the Fruits in Our Orchards

5 Sigma Wall

4 Sigma Wall

3 Sigma Wall

Low Hanging Fruit

Basics

Ground Fruit

Logic and Intuition

Bulk of Fruit

Optimization

Sweet Fruit

Design

Service Safety

QualityCustomer

Initiatives


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Attacking the Sources of Variability

What tool(s) should we use?

Where is Your Process? What Kind Of Tools Should You Be Using?

4

12

3

5

6 Tools

Product ScorecardTM

Design for Manufcturability

Tools

Design Experiments

Failure Modes and Effects

Multi-Vary Analysis Tools

Fishbone Diagrams

Pareto Diagram

Tools

Common Sense

Discrete EventSimulation

Process Mapping

MeasurementSystem Analysis

Capability Studies

Brainstorming

SPC Charts

Tribal Knowledge


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EXAMPLES : TRIBAL KNOWLEDGE

Example 1: A measurement system was out ofcontrol and the inspectors began fighting over whatthey believed to be the accurate gages. Gage R&Rshowed that 92% of the variation came from how the

inspectors used the gage, not the gage itself.

Example 2: A product line was re-started after beingdown for two years but the original operators had tobe re-hired in order to produce product that worked.


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The Journey:How to plan to

get to Six SigmaLearn from others who have triedbefore us. and transform that

learning into rapid actionIdentifying business talent andchannel resources to improve our

processesFollow a structured:Define,Measure, Analyse,

Improve & Controlmethodology


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Customer

Wants

How to

Satisfy

Wants

To get results, should we focus our behaviour on the wants

or the how ?

-Wants

- Dependent- Output

- Effect

- Symptom

- Monitor

- How

- Independent- Input-Process

- Cause

-Problem

-Empower


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Process Defects-Per-Million

Opportunities

We dont know what we dont knowIf we cant express what we know in the form of

numbers, we really dont know much about it.

If we dont know much about it, we cant control it.

If we cant control it, we are at the mercy of chance

Importance of Training


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Six Sigma applies statistical tools to practical

problemsData-driven decision making is the key

The Approach

Statistical

Problem

Statistical

Solution

Practical

SolutionPracticalProblem

Low Yield Process off

Target

Center

Process

Replace Worn

Locator Pin


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Performance Obsession

Income Boosting Initiatives (IBI)

P & L StatementIncome Shortfall (due to Special Causes ) =

Savings target for Operations

Energy

Mission

Possible

Waste

Mission

Possible

Chemical

Mission

Possible

Sourcing

Initiatives

PowerGas

CEJE

Yield

AE LocalizationConsumablesSparesChemical

IdentifiedProjectsSix Sigma

Methodology


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Voice of Process

VoCVoP Matrix

High

High

Low

Low

No Selection

Block

MEDIUM

Impact

HIGH

Impact

MEDIUM

Impact

Voice Of

Customer

Material Efficiency

Inventory

Errors

Manpower Efficiency

Investment Avoidance

Surveys

ReturnsComplaints

Disputes

Concessions

Recalls

Voice of Customer + Voice of Process = ImpactIMPACT

Si Si P j t


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Six Sigma Projects

Measure

Analyze

Improve

Control

DEFINE

Champion

Process Stakeholder

6S Practitioner

6S Practitioner

6S Practitioner

6S Practitioner

Champion

Process StakeholderSUSTAIN


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Six Sigma Contribution to

Strategic Architecture

100% Engaged Employees

Transforming the Supply Chain

Performance Obsession

Customer Experience Second to None

Leveraging the Brand


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Tangible Benefits of Six Sigma

Six Sigma has a strong focus on money

Management buy-ins easier for tangiblebenefit projects

Tangible benefits could be of varioustypes. Cost Reduction / Saving

Increase in Sales / Revenue

Enhanced productivity Enhanced measurable Customer

Satisfaction

Enhanced measurable Employee

Satisfaction


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Six Sigma Inputs for Success

CommittedChampions

InternalTrainingMentoringSupport

ProjectMetricsTrackingMechanism

EngagementLevels of allsix sigma

practitioners

Si Si Q lit P


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Six Sigma Quality Program

Six Sigma

Quality

Program

Improvement Process

Define products & services

Identify customerrequirements

Compare the two

Follow the DMAIC app.

Quality Measurement

Process Mean & Stand. Dev.Capability Index Cp, CpkDPU, DPMO

Business Strategy

Reduce Cycle TimeReduce Energy Cost

Participative Management

Benchmarking

Integrate with Suppliers

Improvement Tools

7 QC Tools

X-Y Matrix

QFD

DOE

etc.


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The Reward

The reward for work welldone is the opportunity to

do more- Jonas Salk

sg/apg/p4-10

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