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 SimilaritiesDifferences
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. 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 V a r i a t i o n –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 X X X X X X X XX X Variation- Which Pilot Would You Choose? Airplane landing’s example X X X X X X X 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 thousands since 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 Define Measure Analyze Improve Control Initiating Planning Executing Controlling Closing 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 Need Company Vision Project Definition Project Approval Form Team No Yes
16 Team Charter Returnable Container Process Team The team gets together and completes a team charter. They all agree on the goals.
Customer Requirements What are the REAL customer requirements and rank them!
18 The Six Sigma Process Measure 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 Measurement Phase Need more Data? Analyze Data Collect data Yes No Yes Collect existing data Run DOE’s
NOWpak ® Process Map How is the process done, step by step.
Cause & Effect Diagram Steps taken from Process Map and rated as importance to customer requirements
22 The Six Sigma Process Analyze 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 Analysis Phase Statistically analyze data Review data and draw conclusions Brainstorm and propose solutions
23 The Six Sigma Process Improvement 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 the process Monitor the process Modify the process
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 on maintaining the improvements Becomes standard operating procedure Process working 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 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
Process Map Ask CustomerGet BreadSpread to OrderGet Toast Write OrderLoad ToasterJelly to OrderDeliver to Table Take to KitchenStart ToasterCut ToastGet Feedback Turn Off ToasterArrange on Plate Remove BreadPut on Pickup Shelf Call Server Order Neatly WrittenButter at 90° F Age of Bread Darkness to Order Spreads match order Toaster Power Toasting Time Temp. at StartTime to Order P/U Line Voltage Age of Elements Take Order Toast Bread Add Spread Deliver to Customer Steps Result/ Output Control Settings Uncontrolled Inputs (“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’kness Right Spread Hot Del. in 5 Min. Appetite Bread 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!