MGS 4020 Business Intelligence LSS Jul 19, 2018

What is Quality? Meeting Our Customer’s Requirements Doing Things Right the First Time; Freedom from Failure (Defects) Consistency (Reduction in Variation) Continuous Improvement Quality in Everything We Do

Comprehensive Management Philosophy Analytics Driven Management What is Six Sigma? Proactive Management Comprehensive Management Philosophy Empowerment and Quality at the Source Structured Methodology (DMAIC) Six Sigma Genuine Focus on the Customer Goal of 3.4 defects per million opportunities Culture for Quality and Change Analytics Driven Management

What is Six Sigma? A goal of near perfection in meeting customer requirements A sweeping culture change effort to position a company for greater customer satisfaction, profitability and competitiveness A comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes Source: The Six Sigma Way by Pande, Neuman and Cavanagh

Six Sigma Quality The objective of Six Sigma quality is 3.4 defects per million opportunities!

Lean What is Lean? JIT Delivery Continuous Flow Elimination of Non-Value Add Activity JIT Delivery Visual Management Continuous Flow Genuine Focus on the Customer Lean Customer Pull Culture for Lean Increase Offering/Decrease Changeover The elimination of all types of waste in a production process E.g., non-value added work, delays Opportunity is 40-60% in services and 25-40% in manufacturing “Just in Time” Delivery Precise timing of production resources Requires notification systems (Kanbans) and frequent deliveries by suppliers and for internal suppliers obtain limited quantities of materials and parts only when needed; utilizes MRPII systems (“backflush”) Customer Pull Production/service based on “pull” from the customer In small lot sizes, rather than “push” (or “make to stock”) based on forecasts Reduce inventories expose problems and bottlenecks, requiring better management Increase Product/Service Offering Increase number of change-over’s Reduced set-up times “Visual Management” Focuses on what can be seen and understood The methodology is easy to comprehend and implement Kaizen 5-day events Address process improvement opportunities, where known/observed problems and their solutions are addressed in proximity to the problem location Group (also called “Cellular”) Technology and Focused Factory Networks Creating factories within factories to reduce wasted motion and time Specialized plants produce a smaller range of products Lean tools, methods, and measures 5S, value stream maps, line balancing, U-shaped work areas, and takt time Culture for Lean! Respect and encouragement for people Reliance and trust in workers to suggest and execute change Kaizen Events Lean Tools, Methods and Measures LEAN - Like water running downstream - more speed with less effort!

The “Voices” of Six Sigma Voice of the Customer The most important “voice” Customer requirements/ specs/tolerances/satisfaction Voice of the Employee Employee satisfaction Employee Empowerment/Self Measurement Voice of the Process/Voice of the Data Determine if process is predictable and capable Elimination of blame/fear

Six Sigma Improvement Methods Six Sigma accommodates both Improvement and Reengineering Define Measure DMADV DMAIC Analyze Reengineering Continuous Improvement Continuous Improvement Reengineering Improve Design Control Validate