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What is six sigma -Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. This increase.

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Presentation on theme: "What is six sigma -Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. This increase."— Presentation transcript:

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2 What is six sigma -Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation leads to defect reduction and vast improvement in profits, employee morale and quality of product -at many organizations simply means a measure of quality that strives for near perfection -business management strategy methodology provides the techniques and tools to improve the capability and reduce the defects in any process

3 What is six sigma Six Sigma is systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company's operational performance, practices and systems by identifying and preventing 'defects' in manufacturing and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness Today's competitive environment leaves no room for error. We must delight our customers and relentlessly look for new ways to exceed their expectations. This is why Six Sigma Quality has become a part of our culture

4 Key Concepts of Six Sigma
What is six sigma Key Concepts of Six Sigma Attributes most important to the customer Critical to Quality Failing to deliver what the customer wants Defect What your process can deliver Process Capability What the customer sees and feels Variation Ensuring consistent, predictable processes to improve what the customer sees and feels Stable Operations Designing to meet customer needs and process capability Design for Six Sigma

5 Methodology: DMAIC/DFSS structured problem solving roadmap and tools.
Six Sigma can be understood/perceived at three levels Metric: 3.4 Defects Per Million Opportunities. DPMO allows you to take complexity of product/process into account. Rule of thumb is to consider at least three opportunities for a physical component - one for form, one for fit and one for function, in absence of better considerations.. Methodology: DMAIC/DFSS structured problem solving roadmap and tools. Philosophy: Reduce variation in your business and take customer-focused, data driven decisions

6 The central idea if you can measure how many "defects" you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects" as possible. To achieve Six Sigma Quality, a process must produce no more than 3.4 defects per million opportunities opportunity" is defined as a chance for nonconformance, or not meeting the required specifications

7 Historical view - It was started in Motorola, in its manufacturing division - The particulars of the methodology were first formulated by Bill Smith at Motorola Bill Smith (Motorola engineer) *Bill Smith ( ) is the "Father of Six Sigma". And he spent years convincing the higher management at Motorola about his new quality control process, Six Sigma.. *He was especially proud of his role in Motorola's winning the prestigious Malcolm Baldrige National Quality Award., two years after Motorola implemented Smith's Six Sigma principles.

8 The main goal of six sigma
-The goal of Six Sigma is to increase profits by eliminating variability, defects and waste that undermine customer loyalty - seeks to identify and remove the causes of defects and errors in manufacturing and business processes - provides the techniques and tools to improve the capability and reduce the defects in any process. . To improve customer satisfaction. . To reduce cycle times. . To reduce defects

9 Two key methodologies of six sigma
define measure analyze DMAIC improve control DMADV define analyze measure design verify

10 DMAIC Define high-level project goals and the current process.
Measure key aspects of the current process and collect relevant data. Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Improve or optimize the process based upon data analysis using techniques like Design of experiments. Control to ensure that any deviations from target are corrected before they result in defects. Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process

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12 DMADV Define design goals that are consistent with customer demands and the enterprise strategy. Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phase may require simulations. Verify the design, set up pilot runs, implement the production process and hand it over to the process owners. DMADV is also known as DFSS, an abbreviation of "Design For Six Sigma

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14 Other methodologies of six sigma
Methodology DCCDI (Define, Customer Concept, Design and Implement) CDOC (Conceptualize, Design, Optimize, Control) DCDOV* (Define, Concept, Design, Optimize, Verify) *derived from SBTI CDOC roadmap DMADOV (Define, Measure, Analyze, Design, Optimize and Verify) DMEDI (Define, Measure, Explore, Develop and Implement) IDOV (Identify, Design, Optimize and Validate) I2DOV (Invent, Innovate, Develop, Optimize, Validate)

15 Six Sigma asserts the following
-Continuous efforts to reduce variation in process outputs is key to business success -Manufacturing and business processes can be measured, analyzed, improved and controlled -Succeeding at achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management

16 Benefits' of six sigma decrease in defects that are allowed to reach the customer Focus on customers Less waste. Data based decisions Better safety performance Fewer customer complaints Understanding of processes.

17 Differences and Similarities Between Six Sigma and TQM,
IN TERM OF GOALS FOCUS CORE BUS ORGANIZATON

18 goals ·Improve everything ·3.4 defect per million opportunities
   ·Targeted areas ·Projects have a defined scope by management    ·Improve everything    ·Usually not targeted to a process or business    ·Frequently without focus    ·No projected performance levels

19 Focus ·Manufacturing ·All business processes ·Products
·Little on service ·Little on logistics ·Little on marketing ·All business processes    ·Non-manufacturing are often the largest opportunities.

20 Core Business ·Frequently not part of the Business Strategy.
·A strategy from the top of the Business Unit ·Champions and Senior Management are the Quality Council ·Projects frequently have a profitability hurdle ·Projects are carefully selected with managers accountable. ·Frequently not part of the Business Strategy. ·Quality Council did not include Senior Managers. ·No bottom line accountability ·Re-stripe the parking lot projects

21 Organization ·Separate organization
·Not accountable to the business unit ·Collection of "experts“ ·A career ·Not a respected or strong area of the corporation ·Parking place for ended careers. ·Champion reports within the Business ·Black Belts are in the Business Unit ·Black Belts are expected to return to line function ·Quality Council of Senior Leaders and Champions.

22 Companies that apply six sigma in away or another
Motorola Network Rail Vodafone Whirlpool Xerox 3M Amazon. COM Bank of America Boeing Canada Post Dell DHL Ford Motor Company General Electric HSBC Group Korea Telecom LG Group

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24 web sites www.sixsigmaonline.org www.isixsigma.com www.6sigma.us


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