6-Sigma

EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingYouhavethequalityyoudeserve...EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingWhatisSixSigma?The“hottest”qualityprogramItisaframeworkforoperationaldevelopmentManagementPeopleToolbox“Abreakthroughstrategyforprofitability”WORLDEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsulting“SixSigmaisagoalforprocessimprovementthatforcesustoputourvisionofqualityinnumericalterms”EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsulting“Goodqualitydoesnotnecessarilymeanhighquality.Itmeansapredictabledegreeofuniformityanddependabilityatlowcostwithaqualitysuitedtothemarket.”Dr.W.EdwardsDemingEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingBuildingBlocksSixSigmaCustomerFocusBusinessProcessRe-engineeringISO9001/14001SPC,StatisticalProcessControlTQM,TotalQualityManagementEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingWhySixSigma???SixSigma=systematicreductionofvariationLessinventoryHigherthroughputLowercostHigherpredictabilityMorenimbleWehavedefinableprocesses,automaticdatacaptureandlotsofopportunitiesfordefectsEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingSixSigmainaNutshellVision6s-3.4defectsper1millionopportunities-99.99997%yieldPeopleBlackBelts&YellowBelts-WehavethepeopletodoitToolsStatisticsandTeamwork-WeprovidethetoolstodotheworkEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultinge-OperationschallengesTimesensitive,demandingcustomersFreeordiscountedshipping&handlingConventionalbestpracticesforretailchannelefficiencyarenotbeingusedLargetransactionsSmalltransactionsRetailpick-upHomedeliveryUsevalue-addingDirectrelationshipschannelmemberswithcustomersEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingAfewsubtletiesVariousproductslikebooks,music,video,toys,consumerelectronics,software,homeimprovements...whoknowswhat’snextAquisitionslikeToolCribandBacktoBasicsVerysteeprampsFournewdistributioncenters16+millioncustomersin160countries20007500employeeslastyearEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingItisanewworld,but...CustomerstillwantvalueCompaniesstillhavetoimproveproductivityThebasicmathremainsthesame:Reducevariationandcycletime...Focusonleadership...“Chancefavourstheprepared”e-Commerce:it’sstillabusiness...EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingChangingyouqualitymeansChanging!!!Today’squalityistheresultofyesterday'smanagement.Tomorrow'squalitywillbetheresultoftoday'smanagement.Ifyoualwaysdowhatyou'vealwaysdone,you'llalwaysgetwhatyoualwaysgot.EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsulting“Ifyoucontinuetomanagethebusinessthewayyouhavealwaysmanagedit,youwillcontinuetoachievethesameresults.”Continuingtomanagethebusinessasyouhavealwaysmanagedit,andbelievingthatsomehow,mysteriously,performancewillimprove.….Weneedtochangethewaywedothings.Ifwewantthingstoimprove…...EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingVariationOurbusinessenemy#1EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingWhatisVariation?Unit1Unit2Unit3Unit4Unit1Unit2Unit3Unit4Unit1Unit2Unit3Unit4Unit1Unit2Unit3Unit4Process1Process2Process1Process2Process1Process2TimeEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingUnitProcess1Process2Process3Process1Process2Process3155551015255510152035551520254555202530555525303565553035407555354045855540455095554550551055550556011555556065125556065701355565707514555707580155557580851655580859017555859095185559095100AverageProcessTime5,0OrderDelivered100StandardDeviation0,0PROCESSTIMEFINISHEDINUnitProcess1Process2Process3Process1Process2Process3176471317274114181939232325284783303841526732445162643450557453385558814439596398864767731046251737511657577885123826086881336563929714492671011031597876108116168698411412517343871181281834390122131AverageProcessTime5,0OrderDelivered131StandardDeviation2,3PROCESSTIMEFINISHEDINProcess1Process2Process3WhatisVariation?EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingsm99.9999998%99.999943%99.9937%99.73%95.45%68.27%1s2s3s4s5s6s-6s-5s-4s-3s-2s-1s01s2s3s4s5s6s1s222)(21smsxeyTheNormalDistributionEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultings6s6s99.9999998%yield99.9999998%yieldreducevariationincreasetolerance99.73%yieldHowDoYouGetToSixSigmaPerformance?EN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingShort-termLSLUSL-6s-5s-4s-3s-2s-1s01s2s3s4s5s6sShort-term99.9999998%or0.002DPMO1.5s99.99966%or3.4DPMOShortTermVersusLongTermEN/FAD1090015EricssonQualityManagementInstituteCambridgeManagementConsultingLSLUSL6s6ssTargetSixSigmaConceptEN/FAD1090015EricssonQ