Presentation on theme: "Who is Using Six Sigma in the Twin Cities"— Presentation transcript:
1Who is Using Six Sigma in the Twin Cities Seagate, Medtronic, Donalson, Honeywell, American Express, Ceridian, 3M
2What is Six Sigma?Six Sigma - The InitiativeProcessSystematic approach to reducing defects which affect what is important to the customerToolsQualitative, statistical and instructional Devices for “observing” process variables and their relationships as well as “managing” their character
3Six Sigma - Aggressive Goal PPMProcessCapabilityDefects perMillion Opp.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.
4Six Sigma -- Practical Meaning % Good (6 Sigma)20,000 lost articles of mail per hourUnsafe drinking water for almost 15 minutes each day5,000 incorrect surgical operations per weekTwo short or long landings at most major airports each day200,000 wrong drug prescriptions each yearNo electricity for almost seven hours each monthSeven articles lost per hourOne unsafe minute every seven months1.7 incorrect operations per weekOne short or long landing every five years68 wrong prescriptions per yearOne hour without electricity every 34 years99% Good (3.8 Sigma)
5How Does Six Sigma Make the Difference? VisionPhilosophyAggressive goalBreakthrough improvementFocusCustomer focusProblem focusProcess focusMetric (standard of measurement)Method
6Improved Customer Satisfaction The Goals of Six SigmaDefect ReductionYield ImprovementImproved Customer SatisfactionHigher Net Income
7What’s the Strategy Know what’s important to the Customer Reduce defectsCenter around targetReduce Variation
8Six Sigma VisionThe 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.
9Six Sigma PhilosophyThe Philosophy of Six Sigma is to apply a structured, systematic approach to achieve breakthrough improvement across all areas of our business.
10Where Does Industry Stand? 1,000,000100,00010,0001,000100101PPMIRS - Tax Advice(phone-in)(140,000 PPM)Restaurant BillsDoctor Prescription WritingPayroll Processing•OrderWrite-upJournal VouchersWire TransfersAirline Baggage HandlingPurchased MaterialLot Reject RateBest-in-ClassAverageDomestic Airline FlightCompanyFatality Rate(0.43 PPM)3456217Sigma Scale of Measure
12Six Sigma - Why? To deal with a world of declining product prices To compete successfully with the best companies in the worldTo establish standard language and approaches across functions and across businessesTo develop our next generation of leadersTo accelerate our rate of quality and productivity improvement faster than our competitors
13Six Sigma Basics ...What If...? That IsSix Sigma !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 ?
14The People Who Make it Happen DFSSEmployeesGreen Belts &All EmployeesBusinessChampionsHands onChampionsSix Sigma Directors &Six Sigma ExecutiveFinance RepsMasterBlack BeltsBlack Belts
15Six Sigma - Approaches to Improvement Breakthrough StrategyContinuous Improvement-Trained & DedicatedIndividuals-Analytical Expertise->70% Improvementper Project-Current Tools-Kaizen-Lean Manufacturing-Reengineering-Typical TQMTime in Years12345The problem with continuous improvement as the only goal….Organization sees improvement BUT loses the game.Six Sigma Enables Breakthrough Level Improvement!
16Focus on X rather than Y, as done historically The Focus of Six SigmaKPIV(s)Y=f (X)KPOV(s)Focus on X rather than Y, as done historicallyMetricsKPOV = Key Process Output VariableKPIV = Key Process Input VariableDefect(Gap)Critical To The Customer*
17Six Sigma as a Problem Solving System Six Sigma employs the Breakthrough Strategy, which is a multi-step problem solving and process improvement methodology.1. Measure2. Analyze3. Improve4. Control0. Define5. Realize
18FMEA Fishbone; other methods Rolled Throughput Yield Six Sigma Road Map - Define & MeasureProblem StatementCause and EffectFMEA Fishbone; other methodsMSAProcess MapCTQsCOPQ est.Identify:process inputsprocess outputsLink KPIV & KPOVprioritize inputs to attackIs Measurement goodenough to detectprocess variation?(see improvement!)Define theSituationGenerates/DeterminesCreate withTeamwith teamRoot CausesStrong LinksCheck Gauges &Data CollectionDevices & ProceduresDefine/MeasureRolled Throughput YieldDetermine:opportunities for improvementDefect Rateper Step
19Six Sigma Road Map - Measure & Analyze Generates/DeterminesGather HistoricalData or Sample(Size & Subgroup)Indicators:Performance & EntitlementDPMO; Sigma ScoreCp Pp Cpk PpkProcess CapabilityStudyMeasureDetermineCost of QualityReview Internal &External CostsPotential BenefitsAnalytical ToolsTrends & Behaviors in KPIV/KPOV relationshipsMinitabAnalyzeConfidence IntervalsApplies throughout
20Six Sigma Road Map - Analyze Generates/DeterminesAnswers:Difference in Means?One Pop. to Another;Before/After; to SpecHypothesis for Variables - Means(t-tests)Variables DataHypotheses forVariables - Std. Dev.(Chi Sq., F-Test, Homogeneity of Variance)Answers:Difference in Spread?One Pop. to another;to baseline; multiplePops.Variables DataAnalyzeAnswers:Differences in % Def.Between pop.;Diff. in % Def. fromoverall meanHypotheses forAttributes(Contingency Tables,Non-parametric study)Proportion DefectsProportion DefectivesCollecting data onseveral variablesat the same timePoints to variableswarranting furtheranalysesMulti-Vari Studies
21Six Sigma Road Map - Analyze Generates/DeterminesVariables DataAnswers:Difference in Means?One Variable (Factor)Multiple TypesANOVAAnalyzeFor pairs ofcontinuousData VariablesCorrelation & RegressionAnswers:If know X; Predict YStrength & DirectionThis completes the Characterize phaseconfirming which Input Variables most directly affect the Output Variables:Move on to Optimize - Settings or Procedures
22Six Sigma Road Map - Improve Generates/DeterminesKnown Relationshipsbetween KPIVs & KPOVsDesign ofExperimentAnswers:How to Set “X” to getBest “Y”Answers:What’s the BestCombination of the “Xs’for producing the Best “Y”Testing Variablesat 2 Levels(High/Low)Full FactorialSimple 2KImproveTests MultipleVariables, atVarious Levels(High/Low)Answers:What’s the Best Combination of ALL Variables (X) to give the Best Output (Y)Full FactorialMultiple VariablesAnswers:Same as Above - But . ..Less Information; More Risk - but, requires less experimentationTests Multiple Variables But NotAll; Not All LevelsConserves ResourcesFractional Factorial
23Six Sigma Road Map - Improve Generates/DeterminesIsolates Parts of Data from other PartsClarifies Results whenInteracting Variables“Confound” the ResultsDOE- BlockingImproveImproves Current EHSSituation and/or IdentifiesIssues to be Managed Up-FrontReviews Affects onthe Environment,Health & SafetyEHS ReviewNow We have established the parameters and procedures foroperating the improved processKeep it in Control !
24“Process” Control Plans Instructions & Training Six Sigma Road Map - ControlGenerates/DeterminesReal-time ProcessResults; Trends;Control LimitsSPCIndicates if Process is Operating as Expected (In-Control); If Not, What Corrections to MakeOutlines:Parameters of Operations, Responsibilities, Actions, Measurements, etc.CTQs, Specs,Measurements,Actions“Process” Control PlansControlOutlines:Checking, Maintenance,Care & Periodic Review of Data Collection Devices & MethodsGauge/MeasurementStability & ControlGauges, Forms &Data CollectionMethodsOutlines:How Employees “Do” Procedures - Standard & Consistent, Opportunity for Understanding & Verification of UnderstandingEmployees,Documented Proc.Learning EventsInstructions & TrainingSpare Parts; SystemBack-Ups; ScheduledDowntime, etc.PreventiveMaintenancePlanOutlines:Indicators to Monitor; Actions toPrevent Failures, ResourcesNeeded On-Hand
25Six Sigma Road Map - Control & DFSS Generates/DeterminesInputs AffectingProject; OthersAffected by ProjectOutlines:Procedures for Making Changes; Predictions of Change AffectsChange ControlCost to Controlvs CTQ Attainment& Benefits AchievedChecks:Project Controls Appropriate for Achieving CTQs and BenefitsControlCost ReviewSustained Process Will Meet Customers ExpectationsAll Agree and Commit to theControl Strategy as the Meansof sustaining the Defect ReductionsDFSSDFSS = Design for Six SigmaYesFunctional Team Sign-Off&Celebrate!NoRe-Design
26Provide Intense Training Six Sigma - How Does It Work?Select the RightPeopleProvide Intense TrainingSelect KeyProblem AreasAssign Projects toBlack BeltsObtainResultsChampionsMaster BB’sBlack BeltsBrown BeltsStrongAnalytical SkillsStrong ProblemSolving SkillsPeople &Leadership SkillsCritical toSuccessChronic or SystemicFastest orLargest ReturnLead FocusedEffortApply Skills andToolsDetermineCauses andSolutionsReduce VariabilityPreventative &Proactive VsAppraisal &ReactionFewer TrialsFasterAccurateSolutions
27Six Sigma BasicsSix Sigma Provides a Disciplined Method for Reducing Defects.Customers Define Their Critical to Satisfaction Measures (CTS’s).Champions Define Key Outputs of a Process Whose Defects Most Significantly Impact the CTS’s & 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.
28Six Sigma Reference www.isixsigma.com 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