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Aaron Khieu Who is Using Six Sigma in the Twin Cities Seagate, Medtronic, Donalson, Honeywell, American Express, Ceridian, 3M.

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Presentation on theme: "Aaron Khieu Who is Using Six Sigma in the Twin Cities Seagate, Medtronic, Donalson, Honeywell, American Express, Ceridian, 3M."— Presentation transcript:

1 Aaron Khieu Who is Using Six Sigma in the Twin Cities Seagate, Medtronic, Donalson, Honeywell, American Express, Ceridian, 3M

2 Aaron Khieu What is Six Sigma? Six Sigma - The Initiative Process Systematic approach to reducing defects which affect what is important to the customer Tools Qualitative, statistical and instructional Devices forobserving process variables and their relationships as well asmanaging their character

3 Aaron Khieu Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts- per-million defective, and the probability of a failure/error. PPM Process Capability Process Capability Defects per Million Opp. Six Sigma - Aggressive Goal

4 Aaron Khieu % Good (6 Sigma) 20,000 lost articles of mail per hour Unsafe drinking water for almost 15 minutes each day 5,000 incorrect surgical operations per week Two short or long landings at most major airports each day 200,000 wrong drug prescriptions each year No electricity for almost seven hours each month Seven articles lost per hour One unsafe minute every seven months 1.7 incorrect operations per week One short or long landing every five years 68 wrong prescriptions per year One hour without electricity every 34 years 99% Good (3.8 Sigma) Six Sigma -- Practical Meaning

5 Aaron Khieu How Does Six Sigma Make the Difference? Vision Philosophy Aggressive goal Breakthrough improvement Focus Customer focus Problem focus Process focus Metric (standard of measurement) Method

6 Aaron Khieu The Goals of Six Sigma Defect Reduction Yield Improvement Improved Customer Satisfaction Higher Net Income

7 Aaron Khieu Whats the Strategy Know whats important to the Customer Reduce defects Center around target Reduce Variation

8 Aaron Khieu Six Sigma Vision The Vision of Six Sigma The Vision of Six Sigma is to delight customers by delivering world- class quality products through the achievement of Six Sigma levels of performance in everything we do.

9 Aaron Khieu Six Sigma Philosophy The Philosophy of Six Sigma The Philosophy of Six Sigma is to apply a structured, systematic approach to achieve breakthrough improvement across all areas of our business.

10 Aaron Khieu Where Does Industry Stand? 7 Sigma Scale of Measure 1,000, ,000 10,000 1, PPM Restaurant Bills Doctor Prescription Writing Payroll Processing Order Write-up Journal Vouchers Wire Transfers Airline Baggage Handling Purchased Material Lot Reject Rate Domestic Airline Flight Fatality Rate (0.43 PPM) Best-in-Class Average Company IRS - Tax Advice (phone-in) (140,000 PPM)

11 Aaron Khieu 3 Sigma 6 Sigma 5 Sigma 4 Sigma % % % % Historical Current Intermediate Long-Run SigmaLong-Term YieldStandard Six Sigma - Performance Target

12 Aaron Khieu To deal with a world of declining product prices To compete successfully with the best companies in the world To establish standard language and approaches across functions and across businesses To develop our next generation of leaders To accelerate our rate of quality and productivity improvement faster than our competitors Six Sigma - Why?

13 Aaron Khieu You Could Select One of Your Most Highly Leveraged Problems... ? Identify One of Your Best People to Work on It... ? Provide That Person With All of the Training, Tools, and Resources They Need to Fix It... ? Guarantee Them Uninterrupted Time and Focus to Work on It... ? And Get a Well Thought Out, Data Driven Solution... ? Six Sigma Basics...What If...? That Is Six Sigma ! That Is Six Sigma !

14 The People Who Make it Happen BusinessChampions Hands on Champions Master Black Belts Finance Reps Six Sigma Directors & Six Sigma Executive DFSSEmployees Green Belts & All Employees

15 Aaron Khieu Six Sigma - Approaches to Improvement The problem with continuous improvement as the only goal…. Organization sees improvement BUT loses the game. Six Sigma Enables Breakthrough Level Improvement! Six Sigma Continuous Improvement Time in Years -Current Tools -Kaizen -Lean Manufacturing -Reengineering -Typical TQM Breakthrough Strategy -Trained & Dedicated Individuals -Analytical Expertise ->70% Improvement per Project

16 Aaron Khieu f (X) Y= Focus on X rather than Y, as done historically The Focus of Six Sigma KPIV(s) KPOV(s) * Defect (Gap) Critical To The Customer Metrics KPOV = Key Process Output Variable KPIV = Key Process Input Variable

17 Aaron Khieu Six Sigma as a Problem Solving System Six Sigma employs the Breakthrough Strategy, which is a multi-step problem solving and process improvement methodology. 1. Measure 2. Analyze 3. Improve 4. Control 0. Define 0. Define 5. Realize

18 Aaron Khieu Six Sigma Road Map - Define & Measure Problem Statement Cause and Effect FMEA Fishbone; other methods MSA Process Map CTQs COPQ est. Identify: process inputs process outputs Link KPIV & KPOV prioritize inputs to attack Is Measurement good enough to detect process variation? (see improvement!) Define the Situation Generates/Determines Create with Team with team... Root Causes Strong Links Check Gauges & Data Collection Devices & Procedures Define/Measure Rolled Throughput Yield Determine: opportunities for improvement Defect Rate per Step

19 Aaron Khieu Process Capability Study Confidence Intervals Indicators: Performance & Entitlement DPMO; Sigma Score Cp Pp Cp k Pp k Generates/Determines Gather Historical Data or Sample (Size & Subgroup) Determine Cost of Quality Review Internal & External Costs Potential Benefits Analytical Tools Minitab Trends & Behaviors in KPIV/KPOV relationships Measure Analyze Applies throughout Six Sigma Road Map - Measure & Analyze

20 Aaron Khieu Hypothesis for Variables - Means (t-tests) Generates/Determines Variables Data Hypotheses for Attributes (Contingency Tables, Non-parametric study) Proportion Defects Proportion Defectives Answers: Differences in % Def. Between pop.; Diff. in % Def. from overall mean Variables Data Answers: Difference in Means? One Pop. to Another; Before/After; to Spec Answers: Difference in Spread? One Pop. to another; to baseline; multiple Pops. Collecting data on several variables at the same time Hypotheses for Variables - Std. Dev. (Chi Sq., F-Test, Homogeneity of Variance) Multi-Vari Studies Points to variables warranting further analyses Analyze Six Sigma Road Map - Analyze

21 Aaron Khieu ANOVA Generates/Determines Answers: Difference in Means? One Variable (Factor) Multiple Types Variables Data Correlation & Regression This completes the Characterize phase confirming which Input Variables most directly affect the Output Variables: Move on to Optimize - Settings or Procedures For pairs of continuous Data Variables Answers: If know X; Predict Y Strength & Direction Analyze Six Sigma Road Map - Analyze

22 Aaron Khieu Design of Experiment Fractional Factorial Answers: How to Set X to get Best Y Generates/Determines Known Relationships between KPIVs & KPOVs Full Factorial Simple 2 K Testing Variables at 2 Levels (High/Low) Answers: Whats the Best Combination of the Xs for producing the Best Y Tests Multiple Variables, at Various Levels (High/Low) Answers: Whats the Best Combination of ALL Variables (X) to give the Best Output (Y) Full Factorial Multiple Variables Answers: Same as Above - But... Less Information; More Risk - but, requires less experimentation Tests Multiple Variables But Not All; Not All Levels Conserves Resources Improve Six Sigma Road Map - Improve

23 Aaron Khieu DOE- Blocking Clarifies Results when Interacting Variables Confound the Results Generates/Determines Isolates Parts of Data from other Parts Improve Now... We have established the parameters and procedures for operating the improved process... Keep it in Control ! EHS Review Reviews Affects on the Environment, Health & Safety Improves Current EHS Situation and/or Identifies Issues to be Managed Up- Front Six Sigma Road Map - Improve

24 Aaron Khieu Process Control Plans Instructions & Training Indicates if Process is Operating as Expected (In-Control); If Not, What Corrections to Make Generates/Determines CTQs, Specs, Measurements, Actions SPC Outlines: Parameters of Operations, Responsibilities, Actions, Measurements, etc. Gauges, Forms & Data Collection Methods Outlines: Checking, Maintenance, Care & Periodic Review of Data Collection Devices & Methods Gauge/Measurement Stability & Control Outlines: How Employees Do Procedures - Standard & Consistent, Opportunity for Understanding & Verification of Understanding Real-time Process Results; Trends; Control Limits Employees, Documented Proc. Learning Events Control Six Sigma Road Map - Control Outlines: Indicators to Monitor; Actions to Prevent Failures, Resources Needed On-Hand Preventive Maintenance Plan Spare Parts; System Back-Ups; Scheduled Downtime, etc.

25 Aaron Khieu Change Control Generates/Determines Inputs Affecting Project; Others Affected by Project Outlines: Procedures for Making Changes; Predictions of Change Affects Cost to Control vs CTQ Attainment & Benefits Achieved Checks: Project Controls Appropriate for Achieving CTQs and Benefits Cost Review Sustained Process Will Meet Customers Expectations All Agree and Commit to the Control Strategy as the Means of sustaining the Defect Reductions Control Re-Design Functional Team Sign-Off & Celebrate! Yes No DFSS Six Sigma Road Map - Control & DFSS DFSS = Design for Six Sigma

26 Aaron Khieu Six Sigma - How Does It Work? Champions Master BBs Black Belts Brown Belts Strong Analytical Skills Strong Problem Solving Skills People & Leadership Skills Critical to Success Chronic or Systemic Fastest or Largest Return Lead Focused Effort Apply Skills and Tools Determine Causes and Solutions Reduce Variability Select the Right People Provide Intense Training Select Key Problem Areas Assign Projects to Black Belts Obtain Results Preventative & Proactive Vs Appraisal & Reaction Fewer Trials Faster Accurate Solutions

27 Aaron Khieu Six Sigma Basics Six Sigma Provides a Disciplined Method for Reducing Defects. Customers Define Their Critical to Satisfaction Measures (CTSs). Champions Define Key Outputs of a Process Whose Defects Most Significantly Impact the CTSs & Assign Projects to Black/Green Belts. Black/Green Belts Identify the Process Inputs That Most Significantly Influence the Outputs. They Then Eliminate the Root Causes of Variation in the Inputs and Put in Controls to Prevent Reoccurrence of the Problem. Design For Six Sigma Engineers Identify and Exploit Areas of Decreased Sensitivity to the Input Variables in Order to Design In Quality.

28 Aaron Khieu Six Sigma Reference The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance by Peter S. Pande et al, Robert P. Neuman, Roland R. Cavanagh. The Six Sigma Handbook: A Complete Guide for Greenbelts, Blackbelts, & Managers at All Levels by Thomas Pyzdek

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