Six Sigma Class Intro and Ppt

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INTRODUCTION TO SIX SIGMA

CONTENT FLOW…
 Understanding

Six Sigma

 Definition
 World

at Six Sigma examples  Six Sigma Scale  Why Six Sigma
 Six

Sigma Methodologies & Tools

 Define
 Measure

 Analyze
 Improve  Control

WHAT’S IN A NAME?
Sigma is the Greek letter representing the standard deviation of a population of data.  Sigma is a measure of standard deviation (the data spread) 

σ

μ

SIX SIGMA IS …


A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per million opportunities



A defect is anything that results in customer dissatisfaction Six Sigma is a methodology and a symbol of quality



HOW OFTEN ARE WE DELIVERING ON TIME?


If the target time is 30 Mins, the graphs below show two curves with average at 25 Mins

30 mins

30 mins

s

s

0

10

x 30 2 sigma
20

40

50

0

10

20

x 30 4 sigma

40

50

 

How many standard deviations can you “fit” within customer expectations? Managing by the average doesn’t tell the whole story. The average and the variation together show what’s happening.

MANAGING UP THE SIGMA SCALE

Sigma 1 2 3 4 5 6

% Good % Bad
30.9%
69.1% 93.3%

DPMO
691,462
308,538 66,807

69.1%
30.9% 6.7%

99.38% 99.977%

0.62% 0.023%

6,210 233
3.4

99.9997% 0.00034%

EXAMPLES OF THE SIGMA SCALE
In a world at 3 sigma. . .


In a world at 6 sigma. . .


There are 964 U.S. flight cancellations per day.
The police make 7 false arrests every 4 minutes.

1 U.S. flight is cancelled every 3 weeks.
There are fewer than 4 false arrests per month.







In one hour, 47,283 international long distance calls are accidentally disconnected.



It would take more than 2 years to see the same number of dropped international calls.

WHY SIX SIGMA?


At GE, Six Sigma added more than $ 2 billion to the bottom line in 1999 alone



Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort AlliedSignal reports saving $ 1,5 billion through Six Sigma.





Six Sigma is about practices that help you eliminate defects and always deliver products and services that meet customer specifications

How are these savings realized?
cost of scrap?

cost of rework?

cost of excessive cycle times and delays?

Benefits of added capacity and man-hours

DMAIC – THE IMPROVEMENT METHODOLOGY
Define
Objective: DEFINE the opportunity

Measure Analyze Improve Control
Objective: Objective: Objective: MEASURE current ANALYZE the root IMPROVE the performance causes of problems process to eliminate root causes Key Measure Tools: • Critical to Quality Requirements (CTQs) • Sample Plan • Capability Analysis • Failure Modes and Effect Analysis (FMEA) Key Analyze Tools: • Histograms, Boxplots, MultiVari Charts, etc. • Hypothesis Tests • Regression Analysis Objective: CONTROL the process to sustain the gains.

Key Define Tools: • Cost of Poor Quality (COPQ) • Voice of the Stakeholder (VOS) • Project Charter • As-Is Process Map(s) • Primary Metric (Y)

Key Improve Key Control Tools: Tools: • Solution Selection • Control Charts Matrix • Contingency • To-Be Process and/or Action Map(s) Plan(s)

DEFINE – DMAIC PROJECT
WHAT IS THE PROJECT?
$

Project Charter

Cost of Poor Quality

Stakeholders

Voice of the Stakeholde r

Six Sigma
What is the problem? The “problem” is the Output  What is the cost of this problem  Who are the stake holders / decision makers  Align resources and expectations 

DEFINE – CUSTOMER REQUIREMENTS
WHAT ARE THE CTQS? WHAT MOTIVATES CUSTOMER?
SECONDARY RESEARCH
Market Data

THE

Voice of the Customer

Key Customer Issue

Critical to Quality

Listening Posts Industry Intel

Industry Benchmarking

Customer Service

Customer Correspondence

PRIMARY RESEARCH
Survey s

OTM Observations

Focus Groups

MEASURE –...
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