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1 TPS House (Liker, The Toyota Way.). 2 (Implementation Models) Malcolm Baldrige National Quality Award Six Sigma Organizational Quality Models.

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Presentation on theme: "1 TPS House (Liker, The Toyota Way.). 2 (Implementation Models) Malcolm Baldrige National Quality Award Six Sigma Organizational Quality Models."— Presentation transcript:

1 1 TPS House (Liker, The Toyota Way.)

2 2 (Implementation Models) Malcolm Baldrige National Quality Award Six Sigma Organizational Quality Models

3 3 Organizational Profile: Environment, Relationships and Challenges 4 Measurement, Analysis and Knowledge Management 1 Leadership 2 Strategic Planning 3 Customer and Market Focus 5 Human Resource Focus 6 Process Management 7 Business Results Baldrige Criteria

4 4 GE Six Sigma Brochure

5 5 What Makes Six Sigma Different? 1. Integrating the human and process elements of improvement. 2. Focusing on the bottom line. 3. Linking improvement tools in an overall approach. (Define - Measure - Analyze - Improve - Control) Ronald Snee, Why Should Statisticians Pay Attention to Six Sigma, Quality Progress, September 1999, pp Human Issues Bottom line Management leadership Sense of urgency Customer focus Project teams Culture change Process Issues Process improvement Analysis of variance Disciplined approach Quantitative measures Statistical methods Process management

6 6 Deming Chain Reaction Source: W. Edwards Deming, Out of the Crisis, p. 3. Improve Quality Costs Decrease Productivity Improves Capture the Market Stay in Business Provide jobs and more jobs

7 7 Source: adapted from material presented by Kurt Hofmeister, ASI, in a 3-day QFD workshop at Texas Instruments in Customer satisfaction Degree of Achievement

8 8 Source: adapted from material presented by Kurt Hofmeister, ASI, in a 3-day QFD workshop at Texas Instruments in 1989.

9 9 “More and more, the language of GE is the language of Six Sigma, the quality initiative begun in late It has become central to GE’s ability to operate as a global whole. ‘Six Sigma’ refers to a standard of excellence defined as having no more than 3.4 defects per million - in anything, whether it’s manufacturing, billing or loan processing. GE says it will spend $500 million on Six Sigma projects this year and will get more than $2 billion in benefits.” “See Jack. See Jack run.” Thomas Stewart. Fortune, September 27, 1999, p “Jack Welch tells his young management charges to master the Six Sigma discipline that leads to black belts if they want to move up at General Electric.” “This Kind of Black Belt Can Help You Score Some Points at Work.” Hal Lancaster. Wall Street Journal, Tuesday, September 14, 1999, p. B1. (emphasis added)

10 10 Why Six Sigma Works Bottom line results created. Senior management leadership is active. A disciplined approach (DMAIC) is used. Rapid project completion (3-6 months). Clearly defines success. Infrastructure (MBB, BB, GB) established. Customers and processes are the focus. A sound statistical approach is used. Ronald Snee, Why Should Statisticians Pay Attention to Six Sigma, Quality Progress, September 1999, pp

11 11 Motorola’s Six Steps to Six Sigma 1. Define your product or service 2. Identify customers and their needs. 3. Determine how to satisfy the customer. 4. Identify the process for creating your product. 5. Eliminate waste and defects from the process. 6. Measure your results for continuous improvement. note: adapted from Motorola six step process

12 12 Develop the charter. Map the process. Understand the voice of the customer. TOOLS: Affinity diagram, charter, communication plan, control charts, critical to quality tree, data collection, kano model, Pareto diagram, run chart, SIPOC, y=f(x). The “Define Step” Source: The Six Sigma Memory Jogger II. See entire Chapter 1, “Using DMAIC to Improve Speed, Quality and Cost”, The Lean Six Sigma Pocket Toolbook. Review project charter Validate problem statement and goals Validate voice of the customer and voice of the business Validate business benefits Validate high-level value stream map and scope Create communication plan Select and launch team Develop project schedule Complete define gate Source: The Lean Six Sigma Pocket Toolbook.

13 13 Define Gate 1.An updated project charter –Problem statement –Key stakeholders –Business impact –Goal statement –Verification of project scope –High level project plan –List of team members 2.Documentation of your customer knowledge 3.A high level process map and/or SIPOC diagram 4.Detailed project management plans Source: The Lean Six Sigma Pocket Toolbook.

14 14 Collect baseline data on defects and their possible causes. Plot defect data over time and analyze for special causes. Create & stratify frequency plots and do Pareto analysis. Calculate process sigma. Create detailed process maps. TOOLS: Control charts, data collection, flowchart, histogram, operational definitions, Pareto chart, process sigma, run chart, Taguchi loss function. The “Measure Step” Source: The Six Sigma Memory Jogger II. Value stream map for deeper understanding and focus Identify key input, process and output metrics Develop operational definitions Develop data collection plan Validate measurement system Collect baseline data Determine process capability Complete measure gate Source: The Lean Six Sigma Pocket Toolbook.

15 15 Measure Gate 1.Detailed value stream map 2.Data and metrics 3.Capability analysis 4.Updated project charter and plans 5.Quick improvements Source: The Lean Six Sigma Pocket Toolbook.

16 16 Develop a focused problem statement. Explore potential causes. Organize potential causes. Collect data. Use statistical methods to quantify a cause-and- effect relationship. TOOLS: Brainstorming, cause-and- effect diagram, design of experiments, histogram, hypothesis testing, interrelationship digraph, scatter diagram, tree diagram. The “Analyze Step” Source: The Six Sigma Memory Jogger II. Identify potential root causes Reduce list of potential root causes Confirm root cause effect on output Estimate impact of root causes on key outputs Prioritize root causes Complete analyze gate Source: The Lean Six Sigma Pocket Toolbook.

17 17 Analyze Gate 1.Process analysis 2.Root cause analysis 3.Updated charter and project plans Source: The Lean Six Sigma Pocket Toolbook.

18 18 Pilot plans. TOOLS: Gantt chart, brainstorming, commitment scale, control charts, failure mode and effects analysis, histograms, involvement matrix, Pareto chart, PDCA cycle, prioritization matrix, process sigma, run chart. The “Improve Step” Create possible solutions for root causes. Select solutions. Develop plans. Implement plans. Measure results. Evaluate benefits. Source: The Six Sigma Memory Jogger II. Develop potential solutions Evaluate, select, and optimize best solution Develop “to be” value stream map(s) Develop and implement pilot solution Confirm attainment of project goals Develop full-scale implementation plan Complete improve gate Source: The Lean Six Sigma Pocket Toolbook.

19 19 Improve Gate 1.Solution development and selection 2.Pilot testing 3.Full scale implementation 4.Updated charter and project plans Source: The Lean Six Sigma Pocket Toolbook.

20 20 TOOLS: Communication plan, control charts, PDCA cycle, process management chart, run chart, six sigma storyboard. The “Control Step” Develop and document standard practices. Train teams. Monitor performance. Create process for updating procedures. Summarize and communicate learnings. Recommend future plans. Source: The Six Sigma Memory Jogger II. Implement mistake proofing Develop SOPs, training plan, and process controls Implement solution and ongoing process measurements Identify opportunities to apply project lessons Complete control gate Transition monitoring / control to process owner Source: The Lean Six Sigma Pocket Toolbook.

21 21 ProcessActivityTools Define (Confirm the opportunity and define the boundaries and goals of the project.) 1. Establish Team Charter 2. Identify Sponsor and Team Resources 3. Administer Pre- Work  Project ID Tools  Project Definition Form  NPV/IRR/DCF Analysis The tools associated with the Define stage primarily serve the function of “information documentation.” The team needs a clear written charter that documents the business case for working on this project, the expected returns, team membership, the project sponsor, and so on. Measure (Gather data to establish the current state, what is actually going on in the workplace with the process as it works today.) 1. Confirm Team Goal 2. Define Current State 3. Collect and Display Data  Process Mapping  Value Analysis  Brainstorming  Voting Techniques  Check Sheets  Run Charts  Pareto Charts  Affinity/ID  C&E/Fishbones  FMEA  Control Charts  Gage R&R There is a broad range of data and process tools used in Measure, including:  Brainstorming techniques, to encourage creativity.  Process mapping tools, to document how the process works today.  Numerous data tools, to collect and display different types of data. Analyze (Interpret the data to establish cause-and-effect relationships.) 1. Determine Process Capability and Speed 2. Determine Sources of Variation and Time Bottlenecks  Cp and Cpk  Multi-Vari  Box Plots  Marginal Plots  Interaction Plots  Regression  ANOVA  C&E Matrices  FMEA  Problem Definition Forms  Opportunity Maps The Analyze tools are often used to analyze historical data – that is, data that already exists. Using existing data is appropriate because you are looking for “clues” that will help you determine potential causes of problems. You have to be careful because sometimes you simply cannot get the information you need and you need to use a more powerful tool such as DOE.

22 22 Improve (Develop solutions targeted to confirmred causes.) 1. Generate Ideas 2. Conduct Experiments 3. Create Straw Models 4. Conduct B’s and C’s 5. Develop Action Plans 6. Implement  Brainstorming  Pull Systems  Setup Reduction  TPM  Process Flow  Benchmarking  Affinity/ID  DOE  Hypothesis Testing  Process Mapping  B’s and C’s / Force Field  Tree Diagrams  PERT/CPM  PDPC/FMEA  Gantt Charts Of all the toolsets associated with DMAIC, those most commonly used in Improve represent perhaps the broadest mix of both Lean and Six Sigma tools. Pull systems, set up reduction, and Total Productive Maintenance, for example, as traditionally Lean tools used in Improve to eliminate work-in-process and time delays; tools such as Design of Experiments and process mapping represent approaches inherited from the Six Sigma / quality improvement tradition. Control (Implement procedures to make sure the improvement gains can be sustained.) 1. Develop Control Plan 2. Monitor Performance 3. Mistake-Proof Process  Check Sheets  Run Charts  Histograms  Scatter Diagrams  Control Charts  Pareto Charts  Interactive Reviews  Poka-Yoke The tools used in Control are focused on implementation: how to document the new procedures, what data to collect regularly on the process to monitor performance, and so on. In many cases, the team will be using tools used earlier in DMAIC (such as control charts), but switching the emphasis to “ongoing monitoring” instead of “cause investigation”. Source: (George, Lean Six Sigma, Chapter 10)

23 23 Problem-Solving / Process Improvement Model Plan 1. Select the problem / process that will be addressed and describe the improvement opportunity. TOOLS: survey, Pareto chart, cause-and-effect (C&E) diagram, flow chart. 2. Describe the current process surrounding the improvement opportunity. TOOLS: check sheet, run chart, flow chart, histogram, control chart, Pareto diagram, C&E. 3. Describe all the possible causes of the problem and agree on the root cause(s). TOOLS: C&E, check sheet, Pareto, run chart, scatter diagram 4. Develop an effective and workable solution and action plan, including targets for improvement. TOOLS: flowchart, GANTT chart, tree diagram. Do 5. Implement the solution or process change.TOOLS: run chart, histogram, flow chart. Check 6. Review and evaluate the result of the change. TOOLS: run chart, histogram, control chart. Act 7. Reflect and act on learning.TOOLS: improvement story board. Source: PP , Memory Jogger II

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