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Six Sigma: Ankit Vijayvargiya

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Six Sigma

SIX SIGMA
ANKIT VIJAYVARGIYA

What is Six Sigma?


Six Sigma is a highly disciplined process that helps us focus on developing and delivering nearperfect products and services. Why Sigma? The word is a statistical term that measures how far a given process deviates from perfection. The central idea behind Six Sigma is that if you can measure how many defects you have in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible.
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Six Sigma

Sigma ()
A term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of measurements or a process. A onesigma process produces 691462.5 defects per million opportunitiesa percentage of satisfactory outputs of only 30.854%.

Six Sigma

Standard deviation

Six Sigma

A measure of the spread of data points in relation to the mean. Its the most common measure of variation in a set of data

Six Sigma
A philosophy of managing that focuses on eliminating defects through practices that emphasize understanding, measuring, and improving processes. Its based on the statistical concept of six sigma, measuring a process at only 3.4 defects per million opportunities (DPMO).

Six Sigma

DPMO at sigma levels

Six Sigma

HISTORICAL PERSPECTIVE ON SIX SIGMA


In the mid-1980s, Motorola, under the leadership of Robert W. Galvin, was the initial developer of Six Sigma. Most credit the late Bill Smith for inventing Six Sigma; Smith, a senior engineer and scientist with n Motorolas Communications Division, had noted that its final product tests had not predicted the high level of system failure rates Motorola was experiencing. He suggested that the increasing level of complexity of the system and the resulting high number of opportunities for failure could be possible causes for this. He came to the conclusion that Motorola needed to require a higher level of internal quality, and he brought this idea to then-CEO Bob Galvins attention, persuading him that Six Sigma should be set as a quality goal.
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Six Sigma

Six Sigma: DMAIC


Methodology Define Measure Analyze Improve Control

Six Sigma

Define Key Items

Six Sigma

Customers, Value, Problem Statement Scope, Timeline, Team Primary/Secondary & OpEx Metrics Current Value Stream Map Voice Of Customer (QFD)
(Quality Function Deployment)

Measure
Establish measurement capability

Six Sigma

Validate the database (transactional) Gage R&R (Repeatability & Reproducibility) Calibration is not enough Many (or most) measurement systems are not capable How good is the data you are using to make decisions?

Fix the measurement system


Enables calculation of process capability
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Analyze
(and fix the obvious)
Find all KPOVs & KPIVs

Six Sigma

(Key Process Output Variables; Key Process Input Variables)

FMEA, DOE, critical Xs, VA/NVA


(Failure Modes Effects Analysis; Design Of Experiment)

Graphical Analysis, ANOVA


(Analysis Of Variance)

Future Value Stream Map


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Improve
Optimize KPOVs & test the KPIVs

Six Sigma

(Key Process Output Variables; Key Process Input Variables)

Redesign process, set pacemaker 5S, Cell design, MRS


(Material Replenishment System)

Visual controls Value Stream Plan

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Control
Management of Change

Six Sigma

Owned by project champion and value stream manager Critical to long term success of project Physical and cultural changes

Measurement controls
On-going metrics

Visual Controls
Enable workers to self-manage the process
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Define
Customers, Value, Problem Statement

Next Project

Scope, Timeline, Team Primary/Secondary & OpEx Metrics Current Value Stream Map Voice Of Customer (QFD)

Validate Project $

Six Sigma

Celebrate Project $

Measure
Assess specification / Demand Measurement Capability (Gage R&R) Correct the measurement system Process map, Spaghetti, Time obs. Measure OVs & IVs / Queues

Control
Document process (WIs, Std Work) Mistake proof, TT sheet, CI List Analyze change in metrics Value Stream Review Prepare final report

Validate Project $ Validate Project $

Improve
Optimize KPOVs & test the KPIVs Redesign process, set pacemaker 5S, Cell design, MRS Visual controls Value Stream Plan

Analyze (and fix the obvious)


Validate Project $
Root Cause (Pareto, C&E, brainstorm) Find all KPOVs & KPIVs FMEA, DOE, critical Xs, VA/NVA Graphical Analysis, ANOVA Future Value Stream Map

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Plan

Execute Strategic Link to Business Plan defined in Project Selection Process Defined Business Impact with Op Ex Champion support Structured Brainstorming at all organizational levels Cause and Effect Diagrams identifying critical factors Primary and Secondary Metrics defined and charted Multi-Level Pareto Charts to confirm project focus

Identify Problem

Six Sigma

Practical Problem

Develop a focused Problem Statement and Objective Develop a Process Map and/or FMEA Develop a Current State Map Identify the response variable(s) and how to measure them Analyze measurement system capability Assess the specification (Is one in place? Is it the right one?)

Problem Definition

Characterize the response, look at the raw data Abnormal? Other Clues? Mean or Variance problem? Time Observation Spaghetti Diagram Takt Time Future State Maps Percent Loading Standard Work Combination Use Graphical Analysis, Multi-Vari, ANOVA and basic statistical tools to identify the likely families of variability Identify the likely Xs 5S Set Up Time Reduction (SMED) Material Replenishment Systems Level Loading / Line Leveling Cell Design Visual Controls Use Design of Experiments to find the critical few Xs Move the distribution; Shrink the spread; Confirm the results

Problem Solution

Problem Control
Execute Plan

Mistake Proof the process (Poka-Yoke) Tolerance the process Measure the final capability Place appropriate process controls on the critical Xs Document the effort and results Standard Work TPM

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Breakthrough performance gains


(Distribution Shifted 1.5)

Six Sigma

PPM

2 3 4 5 6
Process Capability

308,537 66,807 6,210 233 3.4


Defects per Million Opportunities

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Basic Implementation
Roadmap
Identify Customer Requirements

Six Sigma

Understand and Define Entire Value Streams


Vision (Strategic Business Plan)

Deploy Key Business Objectives


- Measure and target (metrics)

- Align and involve all employees - Develop and motivate

Continuous Improvement (DMAIC)

Define, Measure, Analyze, Improve


Identify root causes, prioritize, eliminate waste, make things flow and pulled by customers

Control
-Sustain Improvement -Drive Towards Perfection
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The Normal Curve and Capability

Six Sigma

Poor Process Capability


Very High Probability of Defects Very High Probability of Defects Very Low Probability of Defects

Excellent Process Capability


Very Low Probability of Defects

LSL

USL

LSL

USL

Low Sigma

High Sigma

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What about Lean, TOC, TQM


Six Sigma

Six Sigma

Remove defects, minimize variance

Lean
Remove waste, shorten the flow

TOC
Remove and manage constraints

TQM
Continuous Improvement

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Does it work?.
The top companies in Customer Satisfaction grow MVA at nearly twice the rate of their poor-performing counterparts.

Six Sigma

In Billions $

1999 73 companies

Market Value Added

50 40 30 20 10 0 Low $23

$42

Ralston Purina Quaker Oats Hilton Hotels Coca-Cola Unilever etc.

High

Customer Satisfaction Index Score


Source: American Customer Satisfaction Index, U Michigan, HBR, 2001 20

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