6SigmaManagement

6SigmaManagementRunyourbusinesswith‘SixSigma’Ratherthan‘SixSense’.Tobe‘BusinessExcellence’Ratherthan‘Businessasusual’SixSigmaEnigmaWhySixSigma?1.Standardcontrolledprocesseshaveathreesigmavariation(standarddeviation)knownasthenaturalprocesslimit.3sigmaproduce66807defects/million.(93.32%.)Controllingprocessesinthelongertermasthattheyremainontargetcanprovedifficultinmanypracticalsituation.2.Thisapproachfocusesonhelpingorganizationproduceproductsandservicesbetter,fasterandcheaperbyimprovingthecapabilityofprocessestomeetcustomerrequirements.3.Canidentifiesandeliminatescosts,sixsigmacandeliverscostcutswhilstretainingorimprovingvaluetothecustomer.4.G.Ehasestimatedbenefitsof8.5billionpoundsduringthefirstfiveyearsofimplementation.Sixwhat?•Sixsigmaisadata-drivenmethodologythatstriveforperfectionintheentireorganization.•Itexaminesvariationandrootcausesofcurrentperformance,withafocusnotonlyontheproductionfloorbutonallkeyprocesses.(Aprocesscontrolledtosixsigmavariationwillproducejust3.4defectspermillion)•Sixsigmaisbasedonastatisticalrationale.•Sixsigmaperformanceisthegoalandequatesto3.4defectspermillionprocess,productorserviceopportunities.•Focusonreducingvariabilitytoachievethegoal.SixSigmaPerformanceDesigntoleranceLSLUSL+3σ-3σProcessshift1.5σ-7.5σ+4.5σ0ppm3.4ppmShorttermprocess‘width’.TheexcellenceimplementationmodelStrategicgoalsMissionCriticalsuccessfactorsKeyprocessSelfassessmenttotheexcellencemodelStrategicproductassessmentDefinestrategicopportunitiesforimprovementBenchmarking(processcapability)ProcessanalysisPeopledevelopmentEducation,training&developmentContinuousimprovementBusinessprocessRe-engineeringContinuousimprovementDecideProcessprioritySixSigmaimplementationThesixsigmabreakthroughstrategyinvolvesa‘define-measure-analyze-improve-control’(DMAIC)-Demingcycle.Fivephases:Phase1:define-involvesdefiningthescopeandgoalsoftheimprovementprojectintermsofcustomerrequirementsandtheprocessthatdeliverstheserequirements.Phase2:measure-involvesmeasuringthecurrentprocessperformance–input,outputandprocess-andcalculatingthesigmacapabilityforshortandlong–termprocesscapability.Phase3:analyze-involvesidentifyingthegapbetweenthecurrentanddesiredperformance,prioritizingproblemsandidentifyingrootcausesofproblems.Benchmarkingtheprocessoutputs,productsorservicesagainstrecognizedbenchmarkstandardsofperformancemayalsobecarriedout.Implementationcont.Phase4:improve-involvesgeneratingtheimprovementsolutionsandfixingproblemstopreventfromreoccurringsothattherequiredfinancialandotherperformancegoalsaremet.Phase5:control-involvesimplementingtheimprovedprocessinawaythat‘holdthegains’.StandardsofoperationwillbedocumentedinsystemssuchasISO9000andstandardsofperformancewillbeestablishedusingtechniqueslikeSPC.Aftera‘running–in’period,theprocesscapabilityiscalculatedagaintoestablishwhethertheperformancegainsarebeingsustained.Thecycleisrepeated,iffurtherperformanceshortfallsareidentified.Comparisonofsix-sigmaVstraditionalproblemsolvingtechniques.Workmanship&processProductFocusonData&informationExperienceAnalysisBaseonsystemBaseonexpertsProblemsolvingSPCchartsByexperienceProcessadjustmentExperimentaldesignDOESinglefactoreachtimeVariantanalysisANOVARootMeanSquareMaximumtoleranceTolerancesHolisticdesignExperimental&toleranceProductioncapabilityQualityandtimeCostsandtimeManagementfocusonTurningpointAssumptionAnalyticalmethod6SigmafocuspointTraditionalfocuspointProblemCompulsoryCostlyTrainingInsearchAuthorizationOrganizationCustomerCompanyTargetManufacturabilityFunctionalDesignProblemPhenomenonHandlingProbabilityIntuition/impressionDecisionmakingLongtermShorttermThoughtBystatisticByexperienceReasoningRelevantcapabilitiesCostsSupplierAgileResponseAction6-SigmaQualityPlanningRelationshipof6sigmawithcustomersatisfaction1.Customersurvey2.On-timedelivery3.Cycletime4.Producible1.Qualitycosts2.Objectives3.SQC/SPC/DOE4.StandardsContinuousimprovementCustomerservicecenter6-SIGMA1.Teamwork2.Empowerment3.Training4.StructurePeopleCustomerfocus•Customeris‘KING’.èTosatisfycustomerbyperiodicallyconductcustomersurvey/On-timedelivery/Reducecycletime/Strengthenproductresearch&development/eliminatenon-valueaddedactivitiesorprocesses/minimizeWIP/increaseefficiencyèinordertomeetorexceedcustomerexpectations.HumanResourceManagementTosuccessfulimplement6–sigma,humanresourceisoneofthecriticalfactors.Itisutmostimportanttoworkoutacomprehensivetrainingprogrambefore-hand.6-SigmaTrainingprogram1)Companystrategyandsixsigmaprojects.2)Toolboxtoreducevariation.3)ToolsandmethodologyindesignforsixsigmaIII1)Superiorproductperformance2)Greatercustomersatisfaction.3)Reducecostsofdesignandtestiterations.4)Eliminatingthecostofre-engineerproductsandprocesses.II1)UnderstandinginSixSigma.2)Sixsigmaimprovementmodel:DMAIC3)BuildingsixsigmaorganizationandcultureIContentsPhaseTheexcellenceimplementationmodelexplainCriticalsuccessfactorAkeyfeatureofsuccessfulsixsigmacultureisthecreationofaninfrastructurethatsupportsandinvestsinperformanceimprovement.Successfulsixsigmaprogrammesrequireacombinationofthe