IntroductionofSixSigma

IntroductionofSixSigmaBeltonGroupRexWongBeltonConfidential:Fortrainingonly2ScopeofModuleWhatisSixSigmaWhytheneedforSixSigmaHowtoapplySixSigmaBeltonConfidential:Fortrainingonly3WhatisSixSigma?SixSigmaisacomprehensiveandflexiblesystemforachieving,sustainingandmaximizingbusinesssuccess.Itisuniquelydrivenbycloseunderstandingofcustomerneeds,disciplineduseoffacts,dataandstatisticalanalysis,withdiligentattentiontomanaging,improvingandreinventingbusinessprocesses.PeterSPande,RobertPNeuman,RolandRCavanaghTheSixSigmaWay(McGrawHill,©2000)BeltonConfidential:Fortrainingonly4SixSigmaIsThreeThingsAstatisticalmeasurementAbusinessstrategyAphilosophyBeltonConfidential:Fortrainingonly51)SixSigma—AStatisticalMeasurementItprovidesaquantitativeperformanceassessmentofourproducts,servicesandprocesses.Itallowsforcomparisonsagainstothersimilarordissimilarproducts,servicesandprocesses.Itprovidesfeedbackonhowfaraheadorbehindweare.SixSigmahelpstoestablishourcourseandtogaugeourpaceintheracefortotalcustomersatisfaction.BeltonConfidential:Fortrainingonly6SixSigma–AbusinessstrategyImprovedSigma-RatingofProcessImprovedProductorProcessQualityReducedCostofOperationsGreaterCustomerSatisfactionBeltonConfidential:Fortrainingonly7CostOfPoorQuality(COPQ)TraditionalQualityCosts(tangible)LostOpportunityHiddenFactoryAdditionalCostsofPoorQuality(intangible)(Difficultorimpossibletomeasure)COPQisafunctionofSigmaCapabilityInspectionWarrantyScrapReworkRejectsMoreSetupsExpeditingCostsLostsalesLateDeliveryLostCustomerLoyaltyExcessInventoryLongCycle-TimesEngineeringChangeOrdersBeltonConfidential:Fortrainingonly8CostOfPoorQuality(COPQ)ProfitTotalCosttoManufactureandDeliverProductsProfitTheoreticalCostsCostofPoorQualityCOPQPriceErosionTheoreticalCostsCostofPoorQualityCOPQProfitTheoreticalCostsCOPQBeltonConfidential:Fortrainingonly93)SixSigma–AphilosophySixSigmaisaboutworkingsmarter,notharder.DiscoverandneutralizeharmfulsourcesofvariationMistakesarereduced(oreliminated)ImprovedprocesscapabilitySigmaratinggoesupBeltonConfidential:Fortrainingonly10QualityBreakthroughTimeRejectRateHistoricalLevel(0)NaturalVariationunder0(±30)SpecialVariationOptimumLevel(1)NaturalVariationunder1(±31)BeltonConfidential:Fortrainingonly11WhyneedsofSixSigma?ThegoalofSixSigmaisnottoachievesixsigmalevelsofquality(i.e.3.4dpmo).SixSigmaisaboutimprovingprofitability;improvedqualityandefficiencyareimmediateby-products.BeltonConfidential:Fortrainingonly12SixSigma–aggressivegoalSigmaisastatisticalunitofmeasurethatreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,parts-permilliondefective,andtheprobabilityofafailure/error.2308,537366,80746,210523363.4PPMProcessCapabilityDefectsperMillionOpp.BeltonConfidential:Fortrainingonly13SixSigmaProcessPointofInflection1TUSLp(d)1234563Thisisa6SigmaProcessBeltonConfidential:Fortrainingonly14BenefitofSixSigmaCostreductionProductivityimprovementMarket-sharegrowthCustomerretentionCycle-timereductionDefectreductionCulturechangeProduct/servicedevelopmentBeltonConfidential:Fortrainingonly15Customers’NeedsInternalMetricsDeliveryPriceQualityCustomerSupplierNeedCycleTimeCostDefectsDoBeltonConfidential:Fortrainingonly16HowtoapplySixSigma?Unlikeconventionalimprovementprogramswhichfocusesonimprovingthedefectsonthe“output”,SixSigmafocusesonthe“process”thatcreatesoreliminatesthedefects.SixSigmaseekstoreducevariabilityinaprocessbymeansofasystematicapproachcalledtheBreakthroughStrategy.ProcessInputOutputBeltonConfidential:Fortrainingonly17SixSigmaapproach•IdentifytheCustomer’sNeed•CenteraroundtheTarget•ReduceVariation•ReduceDefectsBeltonConfidential:Fortrainingonly18FocusofSixSigma?ProcessInputOutputTheoutput(Y)isperceivedasafunctionoftheinput(X).InputtoProcessOutputofProcessX1,,XkYCausesEffectTobeControlledTobeMonitoredKeyProcessInputVariablesKeyProcessOutputVariable(KPIVs)(KPOV)BeltonConfidential:Fortrainingonly19BreakthroughStrategyBeltonConfidential:Fortrainingonly20DefineTheDefinephasesetsthestageforasuccessfulSixSigmaprojectbyaddressingthefollowingquestions:•Whatistheproblemofourfocus?•What’sourgoal?Andbywhen?•Who’sthecustomerimpacted?•WhataretheCTX’sin-concern?•What’stheprocessunderinvestigation?BeltonConfidential:Fortrainingonly21ProjectDefinitionImprovetimetomarketforallproductsLeadtheindustryinkeytechnologiesCreateworld-classmanufacturingprocessesDevelopstrategicsupplierrelationshipsProvidebest-in-classproductandprocessqualityDevelopstrategicrelationshipswithkeycustomersBecomeanemployerofchoiceBeltonConfidential:Fortrainingonly22BaselineMetricDataBaselineTheaveragelong-termdefectlevelofaprocesswhenallinputvariablesintheprocessarerunninginanunconstrainedfashion.EntitlementThebest-caseshort-termdefectlevelofaprocesswhenallinputvariablesintheprocessarecenteredandin-control.BenchmarkThedefectleveloftheprocessdeemedbycomparisontobethebestprocesspossible.BeltonConfidential:Fortrainingonly23BreakthroughImprovementTimeRejectRateBaseline~NID(0,0²)Nat