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1. 2 Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and.

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Presentation on theme: "1. 2 Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and."— Presentation transcript:

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2 2 Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and work full-time on projects. They are change agents, and by working with the employees, will increase knowledge through the acquisition of data. Working together will make this philosophy part of the company culture in all aspects of the business. II-1

3 3 Green Belts are individuals that may come from various backgrounds in any functional area. (manufacturing or transactional/office) They are respected by their peers and are proficient in basic and advanced process improvement tools. Green Belts assist the Black Belts, leads process improvement teams within their own natural work team, trains and coaches on tools and analysis, is typically part-time on a project, and may lead groups or organization where multiple projects are being worked. II-1

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5 5 3 Process Centered Process is slightly WIDER than the specifications, causing waste and cost of poor quality 6 Process Centered Process FITS well within the specifications, so even if the process shifts, the values fall well within tolerances Lower Specification Limit Upper Specification Limit Determined by the customer -6 Determined by the customer +5 +6 3 Process +4 +1 +2 +3 -2 -1 -4 -3 -5 WASTE -6 0 6 Process +4 +5 +6 +1 +2 +3 -2 -1 -4 -3 -6 -5 0 WASTE Six Sigma is MUCH more than this! Metric based on standard deviation II-3

6 6 A statistical number 3.4 parts per million defective (+/- six standard deviations with mean shift of +/-1.5s) A proven, powerful five-step methodology for improving any process Define - Measure - Analyze - Improve - Control Tools are nothing new, but extremely powerful when executed in strict sequence A culture, a mindset the relentless pursuit and elimination of variation A business methodology SigmaDefects 2 308,537 3 66,807 4 6,210 5 233 6 3.4 A Six Sigma business lives these concepts in everything they do. II-3

7 7 6 is: a comprehensive business methodology for achieving breakthrough improvement in performance by linking metrics and goals to innovation 6 is not: a quality initiative from the quality department The elevator speech: Six Sigma is the relentless pursuit of variation reduction in all business processes. The elevator speech: Six Sigma is the relentless pursuit of variation reduction in all business processes. II-3

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10 10 Define Describe in detail the process/product you are trying to improve? Measure Baseline Analyze Identify the Critical Few Improve Reduce Variation Error Proofing Control Control input Control Plan See Quality Digest Article (MAIC_Introvert/Extrovert) Measure Analyze Control Improve Characterize Optimize Define II-4

11 11 1. What are my processes? (SIPOC) 2. What is the capability (sigma level) / defect levels (PPM) of my processes? (Defect sheets, histograms, run charts) 3. Which processes have the highest defect levels? (Pareto analysis) 4. Who would I need on my team to eliminate the defects? (Team building) 5. What is causing the variation / defects? (Cause and effect diagrams; Fishbone) 6. Is my gaging at fault? (Gage R&R studies) 7. Are all of the steps necessary in my process? (Process mapping) 8. Which steps can be removed to reduce cycle time, eliminate waste? (Work simplification / Waste elimination) 9. Are there set-up reduction opportunities? (SMED analysis) 10. How can I prevent this problem from reoccurring? (Error proofing, poka-yoke) 11. Are there simple visual aids that could help reduce defects? (Visual controls) 12. Are there designed experiments that could shed some light on the situation? (DOE) 13. Do I have the right tools available to do the job? Are tools organized in a neat and orderly manner in the work area? Is everything clearly labeled? (5S and ergonomics) 14. Can this problem be solved quickly, or is an in-depth investigation using a Black Belt or Kaizen event necessary? (Six Sigma project / Kaizen event identification) These 14 knowledge questions will lead you through the DMAIC steps II-4

12 12 Profit COPQ Theoretical COSTS Profit Total Cost to Produce or Provide Waste (COPQ) Theoretical Costs i.e.., Cost of Doing the Right Things Right the First Time Waste (COPQ) Theoretical COSTS Total Product or Service Price to Customers Budget Constraints and Competition Drive a Lowered Price a. b. c. d. e. 0 The price of gaining knowledge is nothing compared to the cost of ignorance. Anonymous Price $ II-4

13 13 There is a correlation between a companys Cost of Quality and the rating of its key processes. II-4

14 14 4X : 6X Traditional Quality Costs Inspection, Warranty, Scrap, Rework, Rejects Tangible... easy to measure! Additional COPQ More setups, Expediting Costs, Lost Sales, Late Delivery, etc... Intangible... difficult or impossible to measure! If Company Sales = $300M Traditional Costs = 4 - 6% of Sales = $15M Additional COPQ = 25 - 35% of Sales! = $90M II-4

15 15 Must have management support and understand COPQ Must see ROI and customer satisfaction increase Dont give up – no turning back NEVER remove anyone from the company because of process improvement Rigorous Black/Green Belt selection process Six Sigma implementation should follow the DMAIC cycle Must have management support and understand COPQ II-6

16 16 Provides common measurement and common goals Promotes team work Fixes quality problems Beats the competition Runs our whole business more effectively Puts more money on our bottom line Promotes prevention rather than detection Focus should be on: - Quality - Delivery - Responsiveness - Cost II-6

17 17 COPQ is defined as costs associated with using / maintaining business processes that produce services or products of inferior quality. There are four recognized categories: Prevention costs: costs related to avoiding costs in three areas listed below, as well as avoiding general quality failures. Appraisal costs: assessing sufficient conformance to quality requirements Internal failure costs: finding/correcting defects prior to delivery to the customer External failure costs: delivering inferior services or products to the customer See V-59 II-29

18 18 Preventative Costs: Training Quality Planning Design Review Quality system audits Continuous improvement Technical data review Process validation Marketing research Customer surveys Field trials Supplier quality planning SPC Process Control Appraisal Costs: Receiving/Incoming Inspection and Test Measurement Equipment Qualification of Supplier Product Source Inspection and Control Programs Planned Inspections, Tests Product or Service Quality Audits Review of Test and Inspection data Set-up Inspections and Tests Depreciation Allowances Measurement Equipment Expense Special Product Evaluations Evaluations of Field Stock and Spare Parts Process Control Measurement See V-59-61 II-29

19 19 Blame and train Try to widen tolerances Add inspection operations Which do you think will be effective? II-29

20 20 Four fully armored aircraft carriers launched fifteen flights of fighter planes on a daily basis. In each flight of planes, there were four F-15's, five F-14's, and a few support aircraft. For three hours the planes flew, finding target after target to attack, with few enemy fighters to bother them. Finally, after the mission was over, they did a flyby at the airfield, to show their friends how well they had fared. Their mission had been very successful. How many Fs do YOU see? II-29

21 21 1. How many F's did you find in the story after reading it only once? _______ 2. How many F's did you find in the story after reading it through the second time? _______ 3. What was your range from your first to second reading? _______ 4. How is this similar to common inspection systems? ________________________________________________________________________ ________________________________________________________ 5. What is the most cost-effective way to prevent non-conformances from passing through the system? ________________________________________________________________________ ________________________________________________________ II-29

22 22 There were 29 Fs How many did you find? Do you still think inspection is the answer? Visual inspection only catches 85% of the errors* I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdgnieg THE PAOMNNEHAL PWEOR OF THE HMUAN MNID. Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a word are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? II-29

23 The Boeing Company D1-9000 Long-Range Mission To be the number one aerospace company in the world and among the premier industrial concerns in terms of quality, profitability, and growth. Objectives To fulfill the Boeing mission, the following objectives will guide company actions. Continuous improvement in quality of products and processes A highly skilled and motivated workforce Capable and focused management Commitment to integrity Technical excellence Financial strength Introduction Continuous improvement in quality of products and processes Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall efficiency and productivity of our design, manufacturing, administrative and support organizations. The ability of Boeing to successfully accomplish its mission is dependent upon the quality of hardware provided by our suppliers. The primary purpose of this document is to establish The Boeing Companys quality requirements for its suppliers. The focus is on defect prevention rather than defect detection! Use of statistical methods described in this document enables suppliers to reduce variation in their processes in order to prevent defects. This variation reduction will provide direct benefits to both Boeing and the supplier. II-29 23

24 24 1. Where do we spend most of our money? ____________________________________________________________________ ____________________________________________________________ 2. How can the small moneybag on the left balance the large moneybag on the right? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________ II-29

25 25 Scrap Rework Customer Complaint Investigation Returned Goods Retrofit Costs Recall Costs Warranty Claims Liability Costs Penalties Customer/User Goodwill Other Failure Costs II-29

26 26 Perception and intuition are not always reality To gather the facts for good decision making Paradigms can limit our thought process To identify/verify problem areas/bottlenecks To understand our processes better (which factors are important, which are not) To characterize our processes (to know how inputs and outputs are related) II-30

27 27 To validate our processes (are they performing within requirements/specs) To evaluate customer satisfaction To document our processes and communicate about them To baseline a process To see if our processes are improving To determine if a process is stable or predictable and how much variation is inherent in the process II-30

28 28 Business functions are rarely well defined nor managed as production processes Measurements are typically non- existent Traditional cost accounting systems dont capture true costs of business processes Many business processes are not tied to strategic objectives of the organization They are complex and cross functional in nature -Quoted from Six Sigma on Business Processes: Common Organizational Issues, Six Sigma Associates II-30

29 29 Y = f(x) Y is the dependent output variable of a process. It is used to monitor a process to see if it is out of control, or if symptoms are developing within a process. It is a function of the Xs that contribute to the process. Once quantified through Design of Experiment, a transfer function Y=f(X) can be developed to define the relationship of elements and help control a process. Y is the output measure, such as process cycle time or customer satisfaction. f(x) is the transfer function, which explains the transformation of the inputs into the output. x is any process input process step that is involved in producing the output. II-30

30 30 A manager of a large agricultural collective in the former Soviet Union three years in a row won the prize for the most productive collective. The performance measure used was the number of kilos of meat produced per year. The fourth year, he shot himself. He had no breeding stock left. II-30

31 31 Output Variables Sales Growth Market Share Profitability Manage the outputs. II-30

32 32 Output Variables Input Variables Sales Growth Market Share Profitability Customer Satisfaction Product Quality On-Time Delivery COPQ Credit Terms Service Customer Training Manage the inputs - respond to the outputs. II-30

33 33 The percentage of parts from a process that are free of defects. It is also defined as the percentage of met commitments (total of defect free events) over the total number of opportunities. See V-18 II-35

34 34 Time frame: 4 weeks Quantity launched: 100 parts in one-piece flow Process: 2 processes including 3 operations (A-B-C) Process 1 Operation A Yield: 100 % Operation B Yield: 100% Operation C Yield: 100% Process 2 Operation A Yield: 90 % Operation B Yield: 90% Operation C Yield: 90% II-35

35 35 ABC 100 100 100 100 PARTS OUT Y = 100% THE TOTAL PROCESS YIELD= 1*1*1= 1 or 100% 100 90 81 73 ABC Y = 90% Process 1 Process 2 THE TOTAL PROCESS YIELD= 0.9*0.9*0.9= 0.73 or 73% PARTS OUTPARTS IN II-35

36 36 1.Each team will be handed 20 cards. 2.Each team will have three operators, each of whom will drop one card at a time onto a target area. 3.The method of drop will be to hold the card straight out at arms length (while standing upright) over the target area or not. Only those cards that fall completely within the target area may move on. 4.The goal is to deliver 20 completed products or units to the customer. 5.Metrics- 1.# of good units per station (A) 2.# of cards used per station (B) 3.Total time of exercise (C) 4.Total # of defects (D) Station 1Station 2Station 3Customer Start II-35

37 37 A = # of good unitsB = # of cards A1= B1= A2=B2= A3=B3= FPY:Y1 = A1/B1 = Y2 = A2/B2 = Y3 = A3/B3 = RTY = Y1 * Y2 * Y3 Total Cost = ($10 * D) + ($2 *[B1+B2+B3])= Average cost per unit = Total cost / 20 = Average cycle time = C / 20 = II-35

38 38 a.k.a. LeanSigma II-35

39 39 Whats the probability of a bent fender? II-35

40 40 Whats the probability of a bent fender…if the driver is not in control? II-35

41 41 Size Time Out of Control Special causes are present In Control Special causes are eliminated Definition of a Special Cause: A quality failure outside of the normal process that is unpredictable, intermittent or unstable. II-35

42 42 Size Time In Control but not capable Variation from common causes are excessive In Control and Capable Variation from common causes are reduced Upper Specification limit Lower Specification limit Definition of a Common Cause: A quality failure that is always present as part of the random variation in the normal process. II-35

43 43 USL LSL T USLLSL T Reduce Process Variation to Improve Process Capability Reduce Process Variation to Improve Process Capability 6 = only using half the tolerance 6 = only using half the tolerance 50% II-35

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