1. MGS 4020 Business Intelligence LSS Jul 19, 2018

2. 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

3. 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

4. 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

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

6. 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!

7. 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

8. 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