Presentation is loading. Please wait.

Presentation is loading. Please wait.

Six Sigma Green Belt -6-4-2024 6 Six Sigma Overview - What is Six Sigma?

Similar presentations


Presentation on theme: "Six Sigma Green Belt -6-4-2024 6 Six Sigma Overview - What is Six Sigma?"— Presentation transcript:

1 Six Sigma Green Belt Six Sigma Overview - What is Six Sigma?

2 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take?

3 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take?

4 Six Sigma Green Belt Six Sigma Includes… Master Black Belts, Black Belts, Green Belts Training Sponsors/Champions Business Process Council Rewards, Recognition, Promotions, Bonuses: NOT OPTIONAL! Change Acceleration Teams DASHBOARDS that Drive to Achieve Strategy Sigma Calcs ACTIVE Leadership Strategy Processes Projects Six Sigma can seem overwhelming! What IS 6 ? DOE DMAIEC DFSS Lean Sigma

5 Six Sigma Green Belt Sigma Is a Measure of Process Capability... …that focuses on the average and variation of the output. Sigma DPMO 680, ,000 67,000 6, Customer Requirement DPMO – Defects per Million Opportunities

6 Six Sigma Green Belt Importance of Reducing Variation To increase a process performance, you have to decrease variation Less variation provides Greater predictability in the process Less waste and rework, which lowers costs Products and services that perform better and last longer Happier customers

7 Six Sigma Green Belt What Is the Goal? Six Sigma is about satisfying customer needs profitably From GE Capitals Six Sigma Vision

8 Six Sigma Green Belt Six Sigma Design For Six Sigma DMAIEC Process Management Improve existing processes so that their outputs meet customer requirements Control and Manage cross-functional processes to meet business goals Design new products and processes that meet customer needs Six Sigmas Methodologies Alignment & Linkage to Business Strategy & Transformation Objectives

9 Six Sigma Green Belt How Can Six Sigma Help Us? Provides a standard toolkit to improve business processes Makes processes transparent, manageable Enables fact-based decision making Provides a platform for profitable growth Aligns organizational and process goals Helps establish customer focus Establishes a common language

10 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take?

11 Six Sigma Green Belt What Is Sigma? Sigma is the scale that compares the output of a process to customer or design specifications FREQUENCY Dimension Getting better requires reducing the variation and moving the average away from the spec limit FREQUENCY Dimension Customer spec

12 Six Sigma Green Belt Sigma Advantages Which process is performing best? PROCESSPERFORMANCE Call servicing32 seconds vs goal of 35 Manufacturing Cable98% defect free Accounts Receivable33 days average aging vs goal of 40 Customer Service82% rated 4 or 5 on responsiveness The Sigma Scale provides a common metric for comparison.

13 Six Sigma Green Belt Percent 93%3.0 98%3.5 99% % %6.0 DPMO 66,800 22,700 6,210 1, Sigma Advantages 99% seems outstanding; but 6,210 DPMO reveals significant room for improvement.

14 Six Sigma Green Belt Calculating the Sigma Level Counting Defects Approach: A packaging process is required to put at least 5 kg. of fertilizer in each bag. In addition, the fill date must be stamped on the bag. Last weeks performance: Bags produced (units) – 10,000 Under-filled bags – 62 Fill dates missing – 21 Number of defect opportunities - 2 Sigma Calculation: From Sigma Table: Sigma Level ~ 4.1

15 Six Sigma Green Belt Sigma Conversion Table Long-Term Process Yield (%) Short-Term Sigma DPMO , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

16 Six Sigma Green Belt Calculating the Sigma Level When Process Data is Continuous: A packaging process is required to put at least 5 kg. of fertilizer in each bag. Last weeks performance: Bags produced (units) – 10,000 Mean Fill Weight: 5.1 kg. Standard Deviation of Fill Weight: 0.03 kg. Sigma Calculation: Short-Term Sigma Level

17 Six Sigma Green Belt PRACTICAL PROBLEM PRACTICAL SOLUTION In some cases, effective... But can result in fire fighting and in recurring problems. NEXT PROBLEM Attacking ProblemsPre-Six Sigma

18 Six Sigma Green Belt The Six Sigma Way to Attack Problems NEXT PROBLEM STATISTICAL SOLUTION Analyze PRACTICAL SOLUTION Identify PRACTICAL PROBLEM Define STATISTICAL PROBLEM Measure Control What Factors Drive Performance? How Can We Prevent Problem Reoccurrence? What Factors Drive Performance? How Can We Prevent Problem Reoccurrence? Execute

19 Six Sigma Green Belt The Power of the DMAIEC... Common language and synergy of employing a standard improvement approach DoE Regression ANOVA t-tests Process Analysis Analyze Charter VOC SIPOC CE Matrix Define Data Collection Plan Gage R&R Control Chart Capability Analysis Measure Select Solutions Risk Analysis Improve QC Chart Documentation Monitoring Control Not just an assortment of tools, but what to do at each step of the improvement process. Planning Piloting Planning Implementation Execute

20 Six Sigma Green Belt The DMAIEC Way to Attack Problems PRACTICAL PROBLEM DEFINE: We are not consistently achieving Ready for Control (Y). STATISTICAL PROBLEM MEASURE: There was a lot of variation in Y - poor performance (RFC = 35%, 1.1 ). Determined RFC was a function of (1) boiler tube failures, (2) excessive cooldown (previous shutdown), (3) turbine first-stage metal temperature control, and (4) operator errors. The boiler tube failures and temperature control were major contributors STATISTICAL SOLUTION ANALYZE: Pareto Analysis & Weibull Analysis of boiler tube failures revealed inadequate water/steam flow in the ends of the waterwall tubesheet PRACTICAL SOLUTION IDENTIFY/EXECUTE AND CONTROL: Design changes improving flow distribution were implemented and process is currently achieving RFC 91% of the time (2.7 ) (other countermeasures also contributing).

21 Six Sigma Green Belt Design For Six Sigma (DFSS)…What is it?? A process - a more structured approach to design A tool set An enhancement to our current design process A tool for assessing and mitigating risk Teamwork Customer focused A culture change …a continuation of the six sigma tool set being applied specifically to process, product, or service design.

22 Six Sigma Green Belt DFSS – 50,000 foot View Launch The Project Define Outcomes Scope Project Identify Stakeholders Select Team Determine Project Approach Create Project Plan Define Project Controls Identify Customers Define State of Current Customer Knowledge Develop & Implement Customer Research Plan Translate Customer Needs to Product/ Service CTQs Specify Targets, Tolerance Limits & Sigma Targets Develop Product/ Service Necessary Functions Develop Conceptual Product/ Service Designs Develop High- Level Production Processes Predict Capability & Evaluate Gaps Develop Detailed Product & Service Designs Develop Detailed Production Processes Refine Capability & Gap Evaluation, Perform Tradeoffs Develop Process Control & Validation Plans Build Pilot Processes Validate Pilot Readiness Perform Pilot Testing Analyze Gaps, Determine Root Causes Evaluate Scale- up Potential Develop Implementation & Transition Plans Build Full-Scale Processes, Train Staff Perform Start-up Testing Analyze Gaps, Determine Root Causes Transition to Process Owners Evaluate & Close Design Project Define Measure Explore Design Validate Implement - Design Review

23 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take?

24 Six Sigma Green Belt Six Sigmas Broad Application Sigma often reveals that less than 10% of total service process time is devoted to value-added work. Measuring the soft stuff becomes not only possible but profitable. Quality of Deal teams. VOC says experience in industry and size of deal were the decisive factors in which firm to engage for an IPO. Quantified & easily measured. Quality of Communications in a leasing business. Do you notify me of changes in schedule, do I have a designated rep, do you return calls, s etc within 8 hours? Quantified & easily measured. Quality of Customer Contact. 10, 5, first and last teller measures. Quantified & easily measured J&J over $1 Billion in 2 years GE Capital over $1 Billion in value in JP Morgan created $510 Million in value in year one AIG found $38 million in revenue from one of first nine projects Six Sigma Results

25 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take?

26 Six Sigma Green Belt Six Sigma Challenges New (?) Ways of Thinking... Customer Thinking (customer specs) Process Thinking (leading indicators) Statistical Thinking (variation) Causal Thinking [y = (x 1, x 2, x 3 … x n )] Experimental Thinking (data-driven hypothesis testing) Control Thinking Stretch Thinking Adopting Common language/way of thinking about problems Accountability Thinking The real Six Sigma advantage… the transformation of the culture.

27 Six Sigma Green Belt What is Six Sigma? What is it?What is it? How does it work?How does it work? What are the Benefits?What are the Benefits? What are the Main Challenges?What are the Main Challenges? What will it take?What will it take?

28 Six Sigma Green Belt Senior leadership, especially Jack Welch, provided unyielding commitment to get the initiative going and ensure its continued success. This will not be easy for other companies to copy. Hoerl, Roger (2002), An Inside Look at Six Sigma at GE, Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages General Electric – The Benchmark!

29 Six Sigma Green Belt Six Sigma was directed toward specific, tangible objectives, including financial objectives. The culture changed as a result of delivering tangible benefits, not because of a focus on the culture itself. Hoerl, Roger (2002), An Inside Look at Six Sigma at GE, Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages General Electric – The Benchmark!

30 Six Sigma Green Belt Six Sigma At 3M 500 Black Belts and Master Black Belts for ever and ever Each has a two-year assignment. All 28,000 salaried and technical people trained at least at Green Belt level. Many hourly people selected also for Green Belt training. Major goal is to have for first time common approach to problem solving, new product development, and measurement across entire company. W. James McNerney, Jr. CEO, 3M Company, 25 June 2002

31 Six Sigma Green Belt Twenty Key Lessons Learned Gerald J. Hahn, 20 Key Lessons Learned, Six Sigma Forum Magazine, May 2002, pages The time is right. 2.The enthusiastic commitment of top management is critical. 3.Develop an infrastructure. 4.Commit top people. 5.Invest in relevant hands-on training. 6.Select initial projects to build credibility quickly. 7.Make it all pervasive, and involve everybody. 8.Emphasize DFSS. 9.Dont forget design for reliability. 10.Focus on the entire system.

32 Six Sigma Green Belt Twenty Key Lessons Learned Gerald J. Hahn, 20 Key Lessons Learned, Six Sigma Forum Magazine, May 2002, pages Emphasize customer CTQs (critical to quality). 12.Include commercial quality improvement. 13.Recognize all savings. 14.Customize to meet business needs. 15.Consider the variability as well as the mean. 16.Plan to get the right data. 17.Beware of dogmatism. 18.Avoid nonessential bureaucracy. 19.Keep the tool box vital. 20.Expect Six Sigma to become a more silent partner.

33 Six Sigma Green Belt Six Sigma Methodologies & Tools Voice of the Customer Process Management Business Dashboards Shareholder Value Customer Loyalty/Revenue Growth Cost/Working Capital Reduction The Essential Role of Leadership Change Management

34 Six Sigma Green Belt The Strategic Process-Management Approach 1. Identify Core Business Processes and Strategic Opportunities 2. Define Process Goals that lead to Competitive Advantage 3. Determine the Process Measures needed to evaluate Process Performance Identify & Prioritize Performance Gaps Identify Priority Projects Charter, Launch and Support Projects Develop Process Goals & Dashboards Validate Measurement & Causal Relationships Assign and Build Accountabilities 5. Project Selection4. Process Management

35 Six Sigma Green Belt Six Sigma Companies - Characteristics Start with a prioritized list of customer and business requirements and specifications Have a clear sense of process owners Track performance over time Analyze causes of process and output variation with statistical and process analysis tools Think systematically about solutions and determine financial return (the ROI may not be there to move from 4.5 to 6.0 Sigma) Standardize processes to hold the gains Six Sigma is prioritized, disciplined problem solving to deliver on-target performance with minimum variation.

36 Six Sigma Green Belt Six Sigma Summary Six Sigma ISs: A Framework to Improve Performance Applicable to Every Function and Business About Business Performance Six Sigma NOTs: The Solution for Everything Applicable Only to Manufacturing Its Just About Statistics

37 Six Sigma Green Belt 1.Large Group Discussion: What are the Your Company Business Objectives/Opportunities? 2.As a small group, discuss how the Six Sigma Approach can help Your Company Achieve the Business Objectives. 3.What will Six Sigma not achieve, relative to the Objectives? 4.Summarize your team conclusions on a flipchart and be prepared to discuss your list with the large group. Using 6 to Achieve Your Cos Objectives


Download ppt "Six Sigma Green Belt -6-4-2024 6 Six Sigma Overview - What is Six Sigma?"

Similar presentations


Ads by Google