Six Sigma

Outline

What is Six Sigma?

Phases of Six Sigma

  • Define
  • Measure
  • Evaluate / Analyze
  • Improve
  • Control

Design for Six Sigma

Green Belts & Black Belts

What is Six Sigma?

  • Reduces dependency on “Tribal Knowledge” – Decisions based on facts and data rather than opinion
  • Attacks the high-hanging fruit (the hard stuff) – Eliminates chronic problems (common cause variation) & Improves customer satisfaction
  • Provides a disciplined approach to problem solving – Changes the company culture
  • Creates a competitive advantage (or disadvantage)
  • Improves profits!

What Sigma is Not

  • Just about statistics
  • A quality program
  • Only for technical people
  • Used when the solution is known
  • Used for “firefighting”

How good is good enough?

How can we get these results?

13 wrong drug prescriptions per year

  • 10 newborn babies dropped by doctors/nurses per year
  • Two shorts or long landings per year in all the airports in the U.S.
  • One lost article of mail per hour

Six Sigma as a Metric

Effect of 1.5 Sigma Process Shift

3 Sigma Vs. 6 Sigma

Sigma and PPM

Six Sigma as a Philosophy

The fact is, there is more reality with this [Six Sigma] than anything that has come down in a long time in business. The more you get involved with it, the more you’re convinced.

Larry Bossidy CEO, Honeywell

Six Sigma Tools

Six Sigma Principles

  • Customer Focus
  • Leadership
  • Innovative and Proactive
  • Boundary-less
  • World Class Quality
  • Fact Driven
  • Process Management

Problem Solving Methodology

Project Charter

  • Business Case
  • Problem Statement
  • Goal Statement
  • Team Members
  • Team Role & Responsibility
  • Action plan VS. budget

Define Phase

  • Define Process
  • Define Customer requirement
  • Prioritize Customer requirement
  • SIPOC Model
  • Customer Survey
  • Customer Requirement Analysis
  • QFD
  • Standard / Regulation Review
  • Kano Analysis
  • CTQ Diagram
  • Literature Review
  • Project Review
  • Project Charter
  • Problem Statement
  • Goal Statement
  • Scope of process
  • Prioritized customer requirement

Measure Phase

  • Identify measurement and variation
  • Determine data type
  • Perform measurement system analysis
  • Perform data collection
  • Perform capability analysis
  • Effectiveness of existing process
  • Efficiency of existing process
  • Calculate Sigma Level
  • Calculate Cost of poor quality
  • SIPOC-RM
  • CTQ-R
  • Check Sheet
  • MSA
  • Basic Statistics
  • Project Review
  • Customer satisfaction
  • Effectiveness of process
  • Efficiency of process
  • Base line sigma (Yield, DPMO, CPk)
  • Cost of poor quality

Assignable Cause

  • Outside influences
  • Black noise
  • Potentially controllable
  • How the process is actually performing over time

Common Cause Variation

  • Variation present in every process
  • Not controllable
  • The best the process can be within the present technology

Evaluate / Analysis Phase

  • Data Analysis
  • Process Analysis
  • Formulate Hypothesis
  • Test Hypothesis
  • Run chart
  • Pareto chart
  • Relation Diagram
  • Process Analysis
  • Hypothesis Testing
  • Chi-square
  • Project Review
  • Validated root cause statement
  • Histogram
  • CE Diagram
  • T-Test
  • ANOVA Correlation Regression

Improvement Phase

  • Generate Improvement alternatives
  • Validate Improvement
  • Update FMEA
  • Perform Cost/Benefit analysis
  • Brain Storming
  • Creativity
  • Criteria Weighting
  • Change Management tools
  • DOE
  • Cost/Benefit Analysis
  • Project Review
  • Validated pilot study
  • Result of cost benefit analysis
  • Plan of control phase

Design of Experiments (DOE)

  • To estimate the effects of independent Variables on Responses.
  • Terminology – Factor – An independent variable, Level – A value for the factor., Response – Outcome

Why use DOE ?

  • Shift the average of a process.
  • Reduce the variation.
  • Shift average and reduce variation

DOE Techniques

  • Full Factorial
  • 24 = 16 trials
  • 2 is number of levels
  • 4 is number of factors
  • All combinations are tested
  • Fractional factorial can reduce number of trials from 16 to 8 – Fractional Factorial, Taguchi techniques, Response Surface Methodologies, Half fraction

Control Phase

  • Develop control strategy
  • Develop control plan
  • Update procedure and training plan
  • Monitor result
  • Correct action as needed
  • Project Review
  • Procedure
  • Work instruction
  • Full implementation
  • Control chart of result

Project Closure

What is Design for Six Sigma (DFSS)?

DFSS Methodology & Tools

Design for Six Sigma

  • Pre-DEFINE Phase
  • Introduction to Six Sigma
  • DFSS / New Product Introduction (NPI) Process – Strategic vision, Logical chain of product concepts, Product evolution road map, DEFINE Phase
  • Establish Design Project
  • Financial Analysis
  • Project Management and Risk Assessment

MEASURE Phase

  • Establish CTQ’s and CTI’s
  • Design problem documentation
  • Design expectations
  • Probability, Statistics, and Prediction
  • MSA (Variables, Attribute and Data quality)
  • Process Capability (Variables and Attribute)
  • Risk Assessment
  • Failure prediction
  • Design Scorecard

ANALYZE/HIGH-LEVEL DESIGN Phase

  • Develop Design Alternatives
  • Description of design options (alternatives)
  • Analysis of design alternatives for technological barriers and contradictions
  • Develop High Level Design (VA/VE)
  • Multi-Variable Analysis
  • Confidence Intervals & Sampling
  • Hypothesis Testing
  • Evaluate High Level Design
  • Failure analysis and prediction

DETAIL DESIGN Phase

  • Risk Assessment Failure analysis
  • Taguchi Methods
  • Tolerance
  • DOE with RSM
  • DETAIL DESIGN Phase (cont’d)
  • Reliability and Availability
  • Non-Parametric Statistics
  • Simulation with Monte Carlo Methods
  • Design for Manufacturability/Assembly
  • DVT/Testability
  • Design Scorecard
  • Concurrent Engineering
  • Software Engineering Tools (CMM, CASE)

VERIFY Phase

  • Design for Control
  • Design for Mistake Proofing
  • Statistical Process Control (SPC)
  • MVT
  • Transition to Process Owners
  • Logical sequence of new scenarios
  • Strategic knowledge base and patent portfolio
  • Targeted competitive intelligence
  • New product evolutionary stages
  • Project Closure
  • Pilot Testing
  • Full-Size Scale Up and Commercialization
  • Design Information and Data Management
  • Lean Manufacturing

Green Belts & Black Belts

GE has very successfully instituted this program

  • 4,000 trained Black Belts by YE 1997
  • 10,000 trained Black Belts by YE 2000

You haven’t much future at GE unless they are selected to become Black Belts

Jack Welch Ex-CEO, GE

Kodak has instituted this program

  • CEO and COO driven process
  • Training includes both written and oral exams
  • Minimum requirements: a college education, basic statistics, presentation skills, computer skills

Other companies include:

  • Allied Signal
  • IBM
  • Navistar
  • Texas Instruments
  • ABB
  • Citibank

It is reasonable to guess that the next CEO of this company, decades down the road, is probably a Six Sigma BB or MBB somewhere in GE right now…

Jack Welch Ex-CEO, GE

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