Introduction of Six Sigma

IntroductionofSixSigmaBeltonGroupRexWongBeltonConfidential:FortrainingonlyScopeofModuleWhatisSixSigmaWhytheneedforSixSigmaHowtoapplySixSigmaBeltonConfidential:FortrainingonlyWhatisSixSigma?SixSigmaisacomprehensiveandflexiblesystemforachieving,sustainingandmaximizingbusinesssuccess.Itisuniquelydrivenbycloseunderstandingofcustomerneeds,disciplineduseoffacts,dataandstatisticalanalysis,withdiligentattentiontomanaging,improvingandreinventingbusinessprocesses.PeterSPande,RobertPNeuman,RolandRCavanaghTheSixSigmaWay(McGrawHill,©2000)BeltonConfidential:FortrainingonlySixSigmaIsThreeThingsAstatisticalmeasurementAbusinessstrategyAphilosophyBeltonConfidential:Fortrainingonly1)SixSigma—AStatisticalMeasurementItprovidesaquantitativeperformanceassessmentofourproducts,servicesandprocesses.Itallowsforcomparisonsagainstothersimilarordissimilarproducts,servicesandprocesses.Itprovidesfeedbackonhowfaraheadorbehindweare.SixSigmahelpstoestablishourcourseandtogaugeourpaceintheracefortotalcustomersatisfaction.BeltonConfidential:FortrainingonlySixSigma–AbusinessstrategyImprovedSigma-RatingofProcessImprovedProductorProcessQualityReducedCostofOperationsGreaterCustomerSatisfactionBeltonConfidential:FortrainingonlyCostOfPoorQuality(COPQ)TraditionalQualityCosts(tangible)LostOpportunityHiddenFactoryAdditionalCostsofPoorQuality(intangible)(Difficultorimpossibletomeasure)COPQisafunctionofSigmaCapabilityInspectionWarrantyScrapReworkRejectsMoreSetupsExpeditingCostsLostsalesLateDeliveryLostCustomerLoyaltyExcessInventoryLongCycle-TimesEngineeringChangeOrdersBeltonConfidential:FortrainingonlyCostOfPoorQuality(COPQ)ProfitTotalCosttoManufactureandDeliverProductsProfitTheoreticalCostsCostofPoorQualityCOPQPriceErosionTheoreticalCostsCostofPoorQualityCOPQProfitTheoreticalCostsCOPQBeltonConfidential:Fortrainingonly3)SixSigma–AphilosophySixSigmaisaboutworkingsmarter,notharder.DiscoverandneutralizeharmfulsourcesofvariationMistakesarereduced(oreliminated)ImprovedprocesscapabilitySigmaratinggoesupBeltonConfidential:FortrainingonlyQualityBreakthroughTimeRejectRateHistoricalLevel(0)NaturalVariationunder0(±30)SpecialVariationOptimumLevel(1)NaturalVariationunder1(±31)BeltonConfidential:FortrainingonlyWhyneedsofSixSigma?ThegoalofSixSigmaisnottoachievesixsigmalevelsofquality(i.e.3.4dpmo).SixSigmaisaboutimprovingprofitability;improvedqualityandefficiencyareimmediateby-products.BeltonConfidential:FortrainingonlySixSigma–aggressivegoalSigmaisastatisticalunitofmeasurethatreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,parts-permilliondefective,andtheprobabilityofafailure/error.2308,537366,80746,210523363.4PPMProcessCapabilityDefectsperMillionOpp.BeltonConfidential:FortrainingonlySixSigmaProcessPointofInflection1TUSLp(d)1234563Thisisa6SigmaProcessBeltonConfidential:FortrainingonlyBenefitofSixSigmaCostreductionProductivityimprovementMarket-sharegrowthCustomerretentionCycle-timereductionDefectreductionCulturechangeProduct/servicedevelopmentBeltonConfidential:FortrainingonlyCustomers’NeedsInternalMetricsDeliveryPriceQualityCustomerSupplierNeedCycleTimeCostDefectsDoBeltonConfidential:FortrainingonlyHowtoapplySixSigma?Unlikeconventionalimprovementprogramswhichfocusesonimprovingthedefectsonthe“output”,SixSigmafocusesonthe“process”thatcreatesoreliminatesthedefects.SixSigmaseekstoreducevariabilityinaprocessbymeansofasystematicapproachcalledtheBreakthroughStrategy.ProcessInputOutputBeltonConfidential:FortrainingonlySixSigmaapproach•IdentifytheCustomer’sNeed•CenteraroundtheTarget•ReduceVariation•ReduceDefectsBeltonConfidential:FortrainingonlyFocusofSixSigma?ProcessInputOutputTheoutput(Y)isperceivedasafunctionoftheinput(X).InputtoProcessOutputofProcessX1,,XkYCausesEffectTobeControlledTobeMonitoredKeyProcessInputVariablesKeyProcessOutputVariable(KPIVs)(KPOV)BeltonConfidential:FortrainingonlyBreakthroughStrategyBeltonConfidential:FortrainingonlyDefineTheDefinephasesetsthestageforasuccessfulSixSigmaprojectbyaddressingthefollowingquestions:•Whatistheproblemofourfocus?•What’sourgoal?Andbywhen?•Who’sthecustomerimpacted?•WhataretheCTX’sin-concern?•What’stheprocessunderinvestigation?BeltonConfidential:FortrainingonlyProjectDefinitionImprovetimetomarketforallproductsLeadtheindustryinkeytechnologiesCreateworld-classmanufacturingprocessesDevelopstrategicsupplierrelationshipsProvidebest-in-classproductandprocessqualityDevelopstrategicrelationshipswithkeycustomersBecomeanemployerofchoiceBeltonConfidential:FortrainingonlyBaselineMetricDataBaselineTheaveragelong-termdefectlevelofaprocesswhenallinputvariablesintheprocessarerunninginanunconstrainedfashion.EntitlementThebest-caseshort-termdefectlevelofaprocesswhenallinputvariablesintheprocessarecenteredandin-control.BenchmarkThedefectleveloftheprocessdeemedbycomparisontobethebestprocesspossible.BeltonConfidential:FortrainingonlyBreakthroughImprovementTimeRejectRateBaseline~NID(0,0²)NaturalVariation(±30)SpecialVariationG