Six Sigma

LETS START

What is six sigma? •Sigma is a measure of “goodness: the capability of a process to produce perfect work.

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•A “defect” is any mistake that results in customer dissatisfaction. •Sigma indicates how often defects are likely to occur. •The higher the sigma level, the lower the defect rate. • •The lower the defect rate, the higher the quality.

The Six Sigma Evolutionary Timeline 1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing. 1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve.

1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems. 1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique.

1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis.

1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram.

1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”.

1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality.

1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola

1995: Jack Welch launches Six Sigma at GE. 1994: Larry Bossidy launches Six Sigma at Allied Signal.

Why six sigma? •Sigma allows comparison of products and services of varying complexity • •Also, it provides a common basis for benchmarking (competitors and non-competitors). • •The higher the sigma level, the better your operation is performing. • •Sigma measures how well you’re doing in getting to zero defects.

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Cost of poor quality. Traditional Costs Inspection Overtime Defects Idle Time Rework •

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Real but Overlooked •Long Cycle Time •Cost of Capital •Redundant Processes •Expediting Costs •Lost Sales •Lost Customer Loyalty •Missed Deadlines •Excessive Planning •Inaccurate Reports •

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Big Question??? lIs it a Goal, a Measure, a Process, or a Tool?  •l

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lYes

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Customer Focused

Importance to Customers

Our Performance Compared to Competitors

•Quality

High

•Training •Price

We’re Better

Operational Excellence Training

•OTD

•Complaints

They’re Better

Moderateto-’Low’

Breakthrough performance

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(Distribution Shifted ± 1.5σ )

σσ

PPM PPM

2 3 4 5 6 Process Process Capability Capability

3 0 8 ,5 3 7 68 6 6 , 0 7 6 ,2 1 0 2 3 3 3 .4 Defects Defectsper perMillion Million Opportunities Opportunities

Possible applications •Human Resources: reduce the number of requisitions unfilled after 30 days. • •Customer Service: measure the number of calls answered on the first ring. • •Order Fulfillment: eliminate Customer returns because of incorrect parts or product being shipped. • •Finance: reduce the instances of accounts being paid after a specified time limit has elapsed.

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Calculating quality How Six sigma is calculated???.....

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Mechanically .

DMAIC it is an approach undertaken to improve existing business process Six sigma acronym of 5 interconnected phases of a process improvement project.following are the phases:

Process 1.Define high-level project goals and the current process.

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2.Measure key aspects of the current process and collect relevant data.

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3.Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. 4.Improve or optimize the process based upon data analysis using various tools 5.Control to ensure that any deviations from target are corrected before they result in defects.

Tools used for dmaic approach define measure 1.Stakeholders analysis 2.VOC 3.Surveys 4.CTQ’s 5.Benchmarking 6. 7. 8. Analysis Cause and Effect Chart Brainstorming Histogram Pareto analysis Scatter Plot Regression Analysis FMEA analysis

1.FMEA 2.Pareto analysis 3.Data collection 4.PDSA cycle 5. Run charts

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Improve

Brainstormin g Force Field Analysis (PDSA) Cycle Team Performance Improvement

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Control

FMEA Control Plans Plan, Do, Study, Act (PDSA) Cycle Plan Team Performance Improvement

DMADV APPROACH This approach is undertaken when there is a need to create new design or product: 5 steps in DMADV approachDefine Measure Analyze Design details Verification

DMADV Define design goals that are consistent with customer demands and the enterprise strategy.

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Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.

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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".

DMAIC

DMADV

. 1.Define customer needs 2.Measure customer needs & specifications

1.Defines a business process 2.Measuring current process 3.Identify root cause of the recurring problem 4.Improvements made to reduce defects 5. Keep check on future performance

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3.Analyze options to meet customer satisfaction 4.Model is designed to meet customer needs 5.Model put through simulation tests for verification

The six sigma organization. The six sigma team has five levels of hierarchy

What is a BELT? ØBelt refers to the level or the position, of a person in an organization at the time of performing a work or at the time of implementation of a project. Ø Ø ØThere are four “Belt” levels :-

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1.Champion 2.Master black belt(MBB) 3.Black belt(BB) 4.Green belt(GB) 5.Yellow belt(YB) Ø

Champion •Lay down policies and guidelines regarding functioning of six sigma teams •Approves six sigma projects •Removes road blocks in the path of six sigma implementation •Receives presentations •Monitors project •Make available necessary resources •Sort out conflicts

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Master black belts §The highest level of Six Sigma expertise; § §All duties involve implementation of Six Sigma, including statistical analysis, strategic and policy planning and implementation, and training and mentoring of Black Belts.

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Black belts §a Six Sigma-trained professional who has usually completed an examination and been certified in its methods; § §all job duties include implementation of Six Sigma methodology throughout all levels of the business, § §leading teams and projects, and providing Six Sigma training and mentoring to Green and Yellow Belts.

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Green belt §In many organizations, Six Sigma's "entry level"; § §a Six Sigma-trained professional who does not work on Six Sigma projects exclusively, but whose duties include leading projects and teams and implementing Six Sigma methodology at the project level

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Yellow belt

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§The lowest level of Six Sigma expertise; § §applies to a professional who has a basic working knowledge and who may manage smaller process improvement projects, § §but who does not function as a project or team leader.

Number game In hierarchy one 15 - 20

100-5GB

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Team members

Principles underlying six sigma •Variability is necessary. •Total variability is the result of two types of causes : chance causes and assignable causes . chance causes cant be identified and hence can not b e eliminated while assignable causes can be identified and immediately eliminated. •Process means in real life can shift from the nominal mean by 1.5 times of standard deviation. •Defects are randomly distributed throughout the units, and parts and processes are individual.

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Continue……. 6.For execution of any operation certain standard is specified for the output and some variations are allowed from the ideal measure. These requirements are usually stated in terms of USL=upper specification limit LSL=lower specification limit Defects are randomly distributed throughout the units and parts and processes are individual. since measured values follow a normal distribution with mean and standard deviation, the process capability of the process will be equal to mean.

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Continue………….

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•Since process mean in real life can shift from nominal by 1.5 times the standard deviation due to gradual drift or as a result of sudden drift, defects rates in practice expected at a different sigma levels are higher than in the mean centered process. • •Measurements are the key elements

How six sigma can reduce defects?

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•By reducing the value of variation (standard deviation). •Increasing the design width.

Defects in six sigma.

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•Six sigma is extracting but not exciting • •Detraction from creativity • •Six sigma not for small business

Examples : GE

1995 Operating margin—13.5%

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1998 Operating margin—16.7% Result: $600million bonus

Example : Dabbawalas

Example : Dabbawalas

Summary

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