DP-001 BASICS of SIX SIGMA.pptx

CERTIFIED LEAN SIX SIGMA DEFINE PHASE  INTRODUCTION This course has been designed to build your knowledge and capability to improve the performance of processes and subsequently the performance of the business of which you are a part. The focus of the course is process centric. Your role in pro...

CERTIFIED LEAN SIX SIGMA DEFINE PHASE  INTRODUCTION This course has been designed to build your knowledge and capability to improve the performance of processes and subsequently the performance of the business of which you are a part. The focus of the course is process centric. Your role in process performance improvement is to be through the use of the methodologies of Six Sigma, Lean and Process Management. By taking this course you will have a well rounded and firm grasp of many of the tools of these methodologies. We firmly believe this is one of the most effective classes you will ever take and it is our commitment to assure that this is the case. ​ DEFINE PHASE BASICS of SIX SIGMA WHAT IS SIX SIGMA Understanding Six Sigma Definitions Definitions History History Strategy Strategy Problem Problem Solving Solving Roles Roles & & Responsibilities Responsibilities Six Sigma Fundamentals Selecting Projects Elements of Waste  WHAT IS SIX SIGMA…AS A SYMBOL? σ sigma is a letter of the Greek alphabet. Mathematicians use this symbol to signify Standard Deviation, an important measure of variation. Variation designates the distribution or spread about the average of any process. Narrow Narrow Wide Wide Variation Variation Variation Variation The variation in a process refers to how tightly all the various outcomes are clustered around the average. No process will produce the EXACT same output each time.  WHAT IS SIX SIGMA…AS A VALUE? Sigma is a measure of deviation. The mathematical calculation for the Standard Deviation of a population is: By definition, the Standard Deviation is the distance between the Mean and the point of inflection on the normal curve. ­ Sigma can be used interchangeably with the statistical term Standard Deviation. ­ Standard Deviation is the average distance of data points away from the Mean in a distribution. Point of Inflection  WHAT IS SIX SIGMA…AS A MEASURE? The probability of creating a defect can be estimated and translated into a “Sigma” level. *LSL – Lower Spec Limit *USL – Upper Spec Limit -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 The higher the sigma level, the better the performance. Six Sigma refers to a process having 6 Standard Deviations between the average of the process center and the closest specification limit or service level.  WHAT IS SIX SIGMA…AS A MEASURE? “Sigma Level” is: A statistic used to describe the performance of a process relative to the specification limits The number of Standard Deviations from the Mean to the closest specification limit of the process USL 6 Sigma 5 Sigma 4 Sigma 3 Sigma 2 Sigma 1 Sigma The likelihood of failure decreases as the number of Standard Deviations that can be fit between the Mean and the nearest spec limit increases.  WHAT IS SIX SIGMA…AS A METRIC? Each of these metrics serves a different purpose and may be used at different levels in the organization to express the performance of a process in meeting the organization’s (or customer’s) requirements. We will discuss each in detail as we go through the course. Defects 20 Defects per unit (DPU) 18 Parts per million (PPM) 16 14 Defects per million opportunities (DPMO) 12 Rolled Throughput yield (RTY) 10 First Time Yield (FTY) 8 0 20 40 60 80 100 Sigma (s) These are certain metrics that we use in Six Sigma. You will learn more about these through the course of your study.  WHAT IS SIX SIGMA…AS A BENCHMARK? Yield PPMO COPQ Sigma 99.9997% 3.4 40% 1 Source: Journal for Quality and Participation, Strategy and Planning Analysis What does 20 - 40% of Sales represent to your Organization?  WHAT IS SIX SIGMA…AS A METHOD? DMAIC provides the method for applying the Six Sigma philosophy in order to improve processes.  Define - the business opportunity  Measure - the process current state  Analyze - determine root cause or Y= f (x)  Improve - eliminate waste and variation  Control - evidence of sustained results  WHAT IS SIX SIGMA…AS A TOOL? Six Sigma contains a broad set of tools, interwoven in a business problem-solving methodology. Six Sigma tools are used to scope and choose projects, design new products and processes improve current processes, decrease downtime and improve customer response time.  Six Sigma has not created new tools, it has simply organized a variety of existing tools to create flow. Customer Value Responsiveness, = Management , Product , Process , Process , System , Functional Cost, Quality, (Enabler) Design Yield Speed Uptime Support Delivery WHAT IS SIX SIGMA…AS A GOAL? Sweet Fruit 5+ Sigma Design for Six Sigma Bulk of Fruit Process Characterization 3 - 5 Sigma and Optimization Low Hanging Fruit 3 Sigma Basic Tools of Problem Solving Ground Fruit 1-2 Simplify and Standardize Sigma HISTORY OF SIX SIGMA TIMELINE OF SIGNIFICANT EVENTS 15  HISTORY OF SIX SIGMA Six Sigma created a realistic and quantifiable goal in terms of its target of 3.4 defects per million operations. It was also accompanied by a methodology to attain that goal. That methodology was a problem-solving strategy made up of four steps: measure, analyze, improve and control. When GE launched Six Sigma, they improved the methodology to include the Define Phase. Control Improv Analyz Measur Define e e e MOTOROLA GENERAL ELECTRIC  DMAIC PHASES ROADMAP Champion/ Process Owner Identify Problem Area Determine Appropriate Project Focus Define Estimate COPQ Charter Project Measure Assess Stability, Capability, and Measurement Systems Identify and Prioritize All X’s Analyze Prove/Disprove Impact X’s Have On Problem Improve Identify, Prioritize, Select Solutions Control or Eliminate X’s Causing Problems Implement Solutions to Control or Eliminate X’s Causing Problems Control Implement Control Plan to Ensure Problem Does Not Return Verify Financial Impact DEFINE PHASE DEPLOYMENT Business Case Selected Notify Belts and Stakeholders Create High-Level Process Map Determine Appropriate Project Focus (Pareto, Project Desirability) Define & Charter Project (Problem Statement, Objective, Primary Metric, Secondary Metric) N Estimate COPQ Approved Project Recommend Project Focus Focus Y Create Team Charter Team Ready for Measure  DEFINE PHASE DELIVERABLES Listed below are the type of Define Phase deliverables that will be reviewed by this course. By the end of this course, you should understand what would be necessary to provide these deliverables in a presentation. Charter Benefits Analysis Team Members (Team Meeting Attendance) Process Map – high level Primary Metric Secondary Metric(s) Lean Opportunities Stakeholder Analysis Project Plan Issues and Barriers  SIX SIGMA STRATEGY Six Sigma places the emphasis on the Process Using a structured, data driven approach centered on the customer Six Sigma can resolve business problems where they are rooted, for example: Month end reports Capital expenditure approval New hire recruiting Six Sigma is a Breakthrough Strategy Widened the scope of the definition of quality includes the value and the utility of the product/service to both the company and the customer. Success of Six Sigma depends on the extent of transformation achieved in each of these levels.  CONVENTIONAL STRATEGY Conventional definitions of quality focused on conformance to standards. Requirement Requirement or or LSL Target USL Bad Good Bad Conventional Strategy was to create a product or service that met certain specifications. Assumed that if products and services were of good quality, then their performance standards were correct. Rework was required to ensure final quality. Efforts were overlooked and unquantified (time, money, equipment usage, etc).  PROBLEM SOLVING STRATEGY The Problem-Solving Methodology focuses on: Understanding the relationship between independent variables and the dependent variable. Identifying the vital few independent variables that effect the dependent variable. Optimizing the independent variables so as to control our dependent variable(s). Monitoring the optimized independent variable(s). There are many examples to describe dependent and independent relationships. We describe this concept in terms of the equation: Y=f (Xi) This equation is also commonly referred to as a transfer function This simply states that Y is a function of the X’s. In other words, Y is dictated by the X’s.  EXAMPLE Y=f (Xi) Which process variables (causes) have critical impact on the output (effect)? Crusher Yield =f( , , , , Material Tool Feed Speed Type Wear Lubricant ) = f (Balance,Accounts,Accounts,Memos,Mistakes,X ) Time to Close Trial Correct Sub Credit Entry n Applied If we are so good at the X’s why are we constantly testing and inspecting the Y?  SIX SIGMA STRATEGY (X1) We use a variety of Six Sigma tools to help (X10) (X4) separate the “Vital Few” variables effecting our Y from the “trivial many.” (X8) (X7) Some processes contain many, many variables. However, our Y is not affected equally by all of them. (X3) (X5) By focusing on the vital few we instantly gain leverage. (X9) (X6) (X2) Archimedes Archimedes said: said: “ “ Give Give me me a a lever lever big big enough enough and and fulcrum fulcrum on on which which to to place place it, it, and and II shall shall move move the the world.” world.” LEAN SIX SIGMA FILTERING EFFECT  BREAKTHROUGH STRATEGY By utilizing the DMAIC problem solving methodology to identify and optimize the vital few variables we will realize sustainable breakthrough performance as opposed to incremental improvements or, even worse, temporary and non-sustainable improvement. Bad 6-Sigma 6-Sigma Breakthrough Breakthrough UCL UCL Old Standard Performance LCL LCL UCL UCL New Standard LCL LCL Good Time Juran’s Quality Handbook by Joseph Juran  VOC, VOB, VOE The foundation of Six Sigma requires Focus on the voices of the Customer, the Business and the Employee which provides: VOC is Customer Driven VOB is Profit Driven VOE is Process Driven Awareness of the needs that are critical to the quality (CTQ) of our products and services Identification of the gaps between “what is” and “what should be” Identification of the process defects that contribute to the “gap” Knowledge of which processes are “most broken” Enlightenment as to the unacceptable costs of poor quality (COPQ)  SIX SIGMA ROLES AND RESPONSIBILITIES There are many roles and responsibilities for successful implementation of Six Sigma. Executive Leadership Champion/Process Owner Eventually there should be a big base of support internal to the organization.  EXECUTIVE LEADERSHIP Not all Six Sigma deployments are driven from the top by Executive Leadership. The data is clear, however, that those deployments that are driven by executive management are much more successful than those that aren’t. Makes decision to implement the Six Sigma initiative and develop accountability method Sets meaningful goals and objectives for the corporation Sets performance expectations for the corporation Ensures continuous improvement in the process Eliminates barriers  CHAMPION/PROCESS OWNER Champions identify and select the most meaningful projects to work on, they provide guidance to the Six Sigma belt and open the doors for the belts to apply the process improvement technologies. Own project selection, execution control, implementation and realization of gains Own Project selection Obtain needed project resources and eliminates roadblocks Participate in all project reviews Ask good questions… One to three hours per week commitment  MASTER BLACK BELT MBB should be well versed with all aspects of Six Sigma, from technical applications to Project Management. MBBs need to have the ability to influence change and motivate others. Provide advice and counsel to Executive Staff Provide training and support o In class training o On site mentoring Develop sustainability for the business Facilitate cultural change  BLACK BELT Black Belts are application experts and work projects within the business. They should be well versed with The Six Sigma Technologies and have the ability to drive results. Project team leader Facilitates DMAIC teams in applying Six Sigma methods to solve problems Works cross-functionally Contributes to the accomplishment of organizational goals Provides technical support to improvement efforts  GREEN BELT Green Belts are practitioners of Six Sigma Methodology and typically work within their functional areas or support larger Black Belt Projects. Well versed in the definition & measurement of critical processes o Creating Process Control Systems Typically works project in existing functional area Involved in identifying improvement opportunities Involved in continuous improvement efforts o Applying basic tools and PDCA Team members on DMAIC teams o Supporting projects with process knowledge & data collection  THE LIFE OF A SIX SIGMA BELT Training as a Six Sigma Belt can be one of the most rewarding undertakings of your career and one of the most difficult. You can expect to experience: o Hard work (becoming a Six Sigma Belt is not easy) o Long hours of training o Be a change agent for your organization o Work effectively as a team leader o Prepare and present reports on progress o Receive mentoring from your Master Black Belt o Perform mentoring for your team members o ACHIEVE RESULTS!  ORGANIZATIONAL BEHAVIORS All players in the Six Sigma process must be willing to step up and act according to the Six Sigma set of behaviors. Leadership by example: “walk the talk” Encourage and reward individual initiative Align incentive systems to support desired behaviors Eliminate functional barriers Embrace “systems” thinking Balance standardization with flexibility  36 THANK FOR YOUR ATTENTION!!! YOU