SIX SIGMA Quick Overview

Lean Six Sigma Courses in ICALMS

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Why Six Sigma

An associate travels from his home to office by three different routes, viz., Route A, Route B and Route C . He starts to office at 9.00 AM and reach by 9.30AM as the customer meeting is scheduled at 9.30AM which he cant miss at any time. He has captured the travelling time for 15 consecutive days and recorded. He wants to know which route is the best route to reach office.

Day
Day1 Day2 Day3 Day4 Day5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14 Day 15

Route A
15 35 45 25 30 40 20 25 45 40 15 20 25 40 30 450

Route B
28 29 31 32 30 29 31 34 50 33 31 28 28 30 27 471

Route C
42 38 40 42 38 39 41 43 43 38 41 42 38 37 38 600

Mean

30
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31.4

40

Why Six Sigma

30 MINS

15 MINS

45 MINS

Route A

30 MINS 31.4 MINS 40 MINS

27 MINS

34 MINS

37 MINS

43 MINS

Route B
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Route C

Six Sigma Goal

Hitting the Target

(Centralizing Process)

Six Sigma Quality

Eliminating Variation

Six Sigma Shift the Mean or reduce variation

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Six Sigma Goal

Reduce Variation Through Better Control
Reducing Reducing Variation variation reduces reduces defects defects Excessive Excessive Variation variation creates creates defects defects

LSL

USL

Target
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Six Sigma Goal

Technology Case

LSL

USL

Shifting the mean reduces defects

Mean > USL creates defects

Target

Shift the process mean (technology case)

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Six Sigma Goal

Reduce Variation

USL

USL

Reduce Variation

Mean Shifts For FREE!

Cycle Time

Cycle Time

Reduce process variation and shift the process mean

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Reduce Variation Mean Shifts

Day
Day1 Day2 Day3 Day4 Day5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14 Day 15

Route A(Before Improvement)

15 35 45 25 30 40 20 25 45 40 15 20 32 40 23 450

Route A(After Improvement)

15 35 35 25 30 35 20 25 35 35 15 20 25 35 30 415

Mean

30

27.66666667

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Types Of Variations
Common Cause Variation
Inherent to process Always Present Cannot eliminate Random in Nature Improvement Plan

Day
Day1 Day2 Day3 Day4 Day5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14 Day 15

Route A Route B Route C

15 35 45 25 30 40 20 25 45 40 15 20 25 40 30 450 28 29 31 32 30 29 31 34 50 33 31 28 28 30 27 421 42 38 40 42 38 39 41 43 43 38 41 42 38 37 38 600

Special Cause Variation

External Factors Few Occurrences Exclude/Ignore Containment Plan

Mean

30 30.0714

40

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Defects / Sigma calculation

Day
Day1 Day2 Day3 Day4 Day5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14 Day 15

Route A
15 35 45 25 30 40 20 25 45 40 15 20 32 40 23 450

Route B
28 29 31 32 30 29 31 34 50 33 31 28 28 30 27 421

Route C
42 38 40 42 38 39 41 43 43 38 41 42 38 37 38 600

USL : 30 Mins LSL : N/A Defect > 30 Mins Route A :

Number Of Opportunities : 15 Defects : 7 DPO = 7/15 = 0.466667 DPMO = 046*1000,000 = 466667

Route B :
Number Of Opportunities : 14 Defects : 7 DPO = 7/14 = .50 DPMO = .50*1000,000 = 500000

Mean

30

30.07143

40

Defect :
Not Meeting Customers Specification

2 Sigma = 308,000 Defects

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Data Types
It is necessary to carefully distinguish the data type as most of the statistical tools are generally specific for the kind of data being collected Broadly, data can be classified into two types Discrete Data - If there are only a finite number of values possible or if there is a gap between two possible values Continuous Data - This data type is measured on a continuum or scale and can be expressed by whole numbers or fractions Discrete data can often be treated as continuous
Discrete
Ordered Categories (Limited Option, i.e., 1-15) Ordered Categories (Many Option, i.e., 1-100) Count Data (Limited Possibilities)

Continuous

Count Data (Many Possibilities)

Discrete Data : Range, Count, Binary, Categories Continuous Data : Temperatures, Date, Time
As we move right along the scale, technically discrete data can often be analyzed as Continuous. One must try to have continuous data to the extent possible
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Binary (Y/N)

Length

Finding Causes for variations Tools :

Fishbone Diagram 5 Whys method Control Impact Matrix Pareto Chart

Factors Impacting travel time

Road Condition Number Of lanes / Road Width Number Of Signals Number of Offices/Schools Mode of Travel Vehicle Condition

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Imperative To Succeed In Six Sigma

Managing Change is the Key

Q*A=E

Business Results
Influence Strategy : * Quality of Six Sigma solution times its Acceptance = Effectiveness of the solution
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Case Study : Customers View

Brings In The OUTSIDE-IN Perspective

Customer Process:
Process START

Internal Process

Process FINISH

Remove and Ship Engine

Engine Arrives Engine Arrives Repairs Engine Ship Back to the Customer

Plane Out Of Service

Engine Returned to Wing

VOC is Important than VOP

Customers View
The Eye Of The Beholder
Voice of the Customer A C Customers view of the organizations performance ?

Customer Process
A B C

Organizations Process

A B Organizations traditional view of its contribution

Voice of the Process

Having an OUTSIDE IN perspective

VOC Vs CTQ VOC :

Vague and not quantifiable No Specifications and Cant be measured Examples I want to reach office as early as Possible Traffic Sucks. Where is the Road I should have started early

CTQ :
Specific and Quantifiable Measurable and improvement plan is possible Example The travel time should be 30 mins maximum from house to office on all days / all through the day

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How Much Sigma is good enough?

99.9% is already VERY GOOD
But what could happen at a quality level of 99.9% , in our everyday lives (about 4.6)?
4000 wrong medical prescriptions each year More than 3000 newborns accidentally falling from the hands of nurses or doctors each year

Two long or short landings at American airports each day 400 letters per hour which never arrive at their destination

How can we get these results ?

13 wrong drug prescriptions per year 10 newborn babies dropped by doctors/nurses per year

Two short or long landings per year in all the airports in the U.S.

The Solution is
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Cost Of Quality At Various Sigma Levels

Sigma
DPMO
(Defects Per Million Opportunities)

Cost Of Quality

Competitive Level

6 5 4 3 2 1

3.4 233 6210 66807 308537 690000

<10%
World Class

10-15% 15-20%
Industry Average

20-30% 30-40% >40%

Non-Competitive

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The Process Sigma Scale

Process Sigma (Z ST)* Defects per Million Opportunities (DPMO)

6
5 4 3 2 Process Capability

3.4
230 6,210 66,800 308,000 Process defects with respect to performance standards

(*Values include +/- 1.5 shift)

Increases In Sigma Require Exponential Defect Reduction

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What is Six Sigma ?

Sigma Performance Levels - One To Six Sigma

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What is Six Sigma ?

Philosophy A philosophy of working smarter so that we make fewer mistakes and eventually no mistakes at all !!

Customer Centricity
Metric

A metric that demonstrates quality levels at 99.99967% performance for products and processes A practical application of statistical tools to help measure, analyze, improve, and control processes

Process Capability
Tool

Variation
Rigor

A rigor to define/improve processes that incorporate customer feedback and to ensure processes meet customer needs

Data Driven

Optimize Process Performance ; Align with Customer Needs

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What does Six Sigma Do?

Helps Arrive At Business Solution in a SMART Way
Business Problem

Business Solution

Continuous Improvement

Statistical Problem

Statistical Solution

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Six Sigma Methodologies

DMAIC
DMAIC (Define, Measure, Analyze, Improve and Control) Improvements are made to the existing process

DMADV
DMADV (Define, Measure, Analyze, Design, Verify).

Is used to develop new processes/products/services to meet customer requirements

Involves a paradigm shift

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Six Sigma Overview: DMAIC Approach

An Iterative Process For Making Improvement
What are customer expectations of the process? How can we make the process stay fixed? What is my current capability?

How can we fix the process? Why, when and where do defects occur?

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Six Sigma Methodologies

DMAIC - DMADV Relationship and transition points
Define Measure Analyze Improve Control

Y
Is Incremental improvement enough?

N
Is the improvement a new or redesigned product/ service?

Does a process exist?

Define

Measure Analyze

Design

Verify

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Lean Basic Principle

Improve Services, Processes, Capability, Performance

Reference : Institute for Healthcare Improvement(IHI) www.ihi.org

Waste Delay

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Roles and Responsibilities

Who are the key players in Six Sigma team?
Champion - Organizes and leads the initiation, deployment, and applies the Six Sigma across the organization. Master Black Belt (MBB) - Experts for disseminating the Six Sigma Methodology throughout the organization and facilitating sharing of best practices. Black Belt (BB) - Applies the Six Sigma Methodology, Tools, and Knowledge to Six Sigma Projects.

Green Belt (GB) -Executes Six Sigma projects besides his regular activities.
Team Member GB Aspirant Six Sigma aware

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Six Sigma My Roadmap ?

Onward Journey Become Process Experts (Black Belt role) Lead / Drive improvement initiatives Mentor other GB projects Coach GBs in project execution Nurture Continuous improvements Process Champion (GB) Certification Assess capabilities Get certified as Process Champion (GB) Execute and Complete Projects On job application of learning Achieve improvement goals Process Champion (Green Belt) Training Fully trained in the methodology, tools and techniques Equipped to lead a process improvement project Aware Understand the Tenets of Mi ProFIT Get an overview of the methodology

Steps to Business Benefits

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Road Map To Customer Impact

Bigger Ys
Voice Of The Employee Voice Of The Customer

CTQ Flowdown
Voice Of The Shareholder

Key output metrics that are aligned with the strategic goals/objectives of the business. Big Ys provide a direct measure of business performance

Business Big Ys

Revenue growth / Cost Reduction

Key output metrics that summarize process performance

Process Ys

Cost Budget Quality Delivery

Key project metric defined from the customer perspective

Project Y

Any parameters that influence the Y

Xs
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Productivity Scrap reduction Inventory cost On time delivery Customer complaints Cycle time

Step 0 - Discover
Understand the Pain
Who is feeling the pain? How does it hurt? How does it impact the strategic objectives? (Big Ys / Little Ys)

Validate the Pain

Can it be measured? Is the data available? Reliable?

Scope Problem Statement

Walk the process High level VSM Write the problem statement

Complete the Initial Charter

Who are the stakeholders? What are the goal statements? What is and is not in the scope? What is the ROI? Is there a financial impact? Customer? Operational? Resource?

Present for Approval

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Project Charter
Problem Statements
Context: What is the process that is at issue? (process scope) Current Performance: Of the data we have collected, even at a high-level, what is the current state process performance? Pain: Why is the current performance a problem and to whom?

Y Goal Statement
The goal statement should be specific and include: What is to be improved? What is the measure of improvement? What is the timeline that the improvement will occur or be realized?

Project Scope
What elements/processes/activities are in scope for improvement? What elements/processes/activities are not in scope (important enough to call out)? Who will be impacted by the project (high-level stakeholder identification)?

Business Case / Financial Impact

Assuming all projects have some value, why should any effort be made to improve this process?
Financial ROI Customer Satisfaction

Operational Effectiveness
Staff/resource Development

Green = ready to prioritize; Yellow = some Discovery left to do; Red = Not a potential BPI project
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Tools, Artifacts, and Deliverables

0. Discover 1. Define 2. Measure 3. Analyze 4. Improve 5. Control

Problem Statement High-level VSM Champion / Process Owner Big Y Impact (Quantifiable) Goal Statements Project Priority Approved Project Charter

Stakeholder / Heat map VoC / VoB Affinity Diagram Kano Model CTQ Tree Roadmap Revised Project Charter Draft Project Citation

Detailed Process Maps Data Collection Plan MSA Run Charts Pareto Histogram Revised VSM (Cycle time) Revised Charter

Root Causes (Ishikawa) Wastes 5 Whys/ 10Qs Scatter Plots FMEA Hypothesis Tests Brainstorming (Deep Dive) Solutions (QFD) Proof of Concept Future State Process Maps

Improvement Plan

Project Plan
Change Plan Control Plan Revised FMEA Control Charts SOPs Revised Project Citation

Process Management Plan Dashboards Scorecards Control Charts VoC/VoB Improvement Audit Final Project Citation

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Thank You !!!

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Appendix

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Six Sigma Methodologies

DMAIC

Define

Measure

DMAIC

Analyze

Improve
Control

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Six Sigma Methodologies

DMAIC - Define

Define Measure Analyze Improve Control

A. Identify Project CTQs B. Develop Team Charter C. Define Process Map

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Six Sigma Methodologies

DMAIC - Measure

Define Measure Analyze Improve Control

1. Select CTQ Characteristics 2. Define Performance Standards

3. Measurement System Analysis

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Six Sigma Methodologies

DMAIC - Analyze

Define Measure Analyze Improve Control

4. Establish Process Capability 5. Define Performance Objectives 6. Identify Variation Sources

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Six Sigma Methodologies

DMAIC - Improve

Define
7. Screen Potential Causes

Measure Analyze Improve Control

8. Discover Variable Relationships
9. Establish Operating Tolerances

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Six Sigma Methodologies

DMAIC - Control

Define Measure Analyze

12. Implement Process Control 10. Define and Validate Measurement System Xs 11. Determine Process Capability

Improve Control

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Six Sigma Methodologies

DMADV

Define

Measure

DMADV

Analyze

Design
Verify

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Six Sigma Methodologies

DMADV - Define

Define
Business Objective

Measure
Project Scope

Analyze
Project Plan

Design Verify

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Six Sigma Methodologies

DMADV - Measure

Define
Determine Customer Needs

Measure
Prioritize and specify CTQs

Analyze
Risk Assessment

Design Verify

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Six Sigma Methodologies

DMADV - Analyze

Define
Design Options

Measure
Concept Evaluation

Analyze
Assess Design Capability

Design Verify

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Six Sigma Methodologies

DMADV - Design

Define
Detailed Process Design

Measure
Simulation & Design Reviews

Analyze
Control/Verification Plantings

Design Verify

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Six Sigma Methodologies

DMADV - Verify

Define
Pilot Test & Analysis

Measure Analyze Design Verify

Production Process Implementation
Transition to Process Owner

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