Six sigma awareness by makemewise

SIX SIGMA GREEN BELT Certification

Module 1: SIX SIGMA AWARENESS No part of this document may be reproduced in any form without the written permission of MakeMeWise Education Services Pvt Ltd. Permission can be requested at support@makemewise.org

Contents 1. SIX SIGMA OVERVIEW 2. SIX SIGMA FUNDAMENTALS 3. KNOW YOUR CUSTOMER

4. OVERVIEW OF DMAIC

5. OVERVIEW OF DMADV

1. SIX SIGMA OVERVIEW

Six Sigma Quotes Mikel J. Harry President & CEO Six Sigma Academy, Inc. • If we can’t express what we know in the form of numbers, we really don’t know much about it • If we don’t know much about it, we can’t control it • If we can’t control it, we are at the mercy of chance John F. Welch, Jr. 1995 GE Annual Report • “...will bring GE to a whole new level of quality in a fraction of the time it would have taken to climb the learning curve on our own”

Six Sigma Themes Genuine Focus on the Customer. Data- and Fact-Driven Management.

Simply understand your customer. Improvements are measured by customer satisfaction and value. Define key metrics to gauge business performance. With Data, problems can be effectively defined, analyzed and resolved, permanently.

on the process rather than the end result. Focus on Problems rather than Processes Are Where the Focus Symptoms. (eg: Symptom: Employee Dissatisfaction, Problem: Poor Management) Action Is. Instead of reacting to change, shift to being proactive. Prevent Problems rather than Proactive Management. Correcting it later.

A term coined by GEâ&#x20AC;&#x2122;s CEO Jack Welch. All parts of the organization including vendors and partners need to keep their focus on the customer in mind. If everyone works towards the same goal, the boundaries will disappear. Manage Risk. Nothing new ever comes without risk. Learn from mistakes and evolve continuously. Tolerate failure by learning from those mistakes and continue your goal towards perfection ÂŠ2015 MakeMeWise. All Rights Reserved. Visit our website: www.makemewise.org

Multiple Facets of Six Sigma Metric



Sigma is a letter in the Greek Alphabet

Benchmark

Tool

`Commitment

• A metric that demonstrates quality levels at 99.99967% performance for products and processes

• A benchmark for product and process capability on a quality basis

• A practical application of statistical “tools” to help measure, analyze, improve, and control the processes

• A commitment to customers to offer the highest quality, lowest cost products

Multiple meanings of Six Sigma

6 = Management philosophy

 = Process capability

 = Standard Deviation

• View processes / measures completely from a customer point of view • Continual improvement • Integration of quality and daily work • Completely satisfying customer needs profitably

• A statistical measure of a process’ ability to meet customer requirements (CTQs) • Process Sigma Zst = 6; equates to 3.4 Defects Per Million Opportunities

• The Greek symbol ‘sigma’ which means standard deviation. It is a measure of variation

Benefits of Six Sigma

End customer

• Improved products and services • Greater synergy with Service provider • Cost benefit

• Process Improvement in every sphere • Hard data for every business decision • Alignment with customer methodology Organization • Sharper customer focus

Employee

• A quality driven work environment • The satisfaction of meeting client needs • A structured thought process • Self Improvement in the way of working

Remember, Six Sigma is NOT… × × × × × × × × × ×

A new Quality initiative Going to change WHAT we do A completely new way of doing things A departure from existing quality processes A practice that generates increased paperwork A Quality Control process An end in itself A replacement for engineering, scientific or process knowledge Applicable to every problem in its entirety A set of tools only

2. SIX SIGMA FUNDAMENTALS

The Normal Curve

Infinity • Curve theoretically does not reach zero Symmetry

Definition:

The normal curve is a probability distribution that forms the basis for many decisions we will make about our processes. The curve is noted by its “bell-shaped” nature, where most of the values fall in the middle and fewer values fall in either direction. The curve has several important characteristics as seen on right side.

• Curve can be divided in half with equal pieces falling either side of the most frequently occurring value Centering

• The peak of the curve represents the center of the process Process Totality • The area under the curve represents virtually 100% of the product the process is capable of producing

Normal curve â&#x20AC;&#x201C; specific characteristics

34.13%

13.60%

2.14%

0.13%

0.13% -3s

-2s

-1s

+1s

+2s

+3s

68.26%

95.46% 99.73%

Sigma Level 6 5 4 3 2 1

Percent 99.9999998 99.999943 99.9937 99.73 95.46 68.26

Defects per Million Opportunities .002 .57 63 2700 45,500 317,300

68.26% of data fall Within +\- 1 Standard Deviation 95.46% of data fall Within +\- 2 Standard Deviation 99.73% of data fall Within +\- 3 Standard Deviation

Normal curve with customer specifications • • •

• •

Let’s assume you own a Lunchtime Pizza Delivery Shop. You have a lunch time special where you will deliver the Pizza between 11:45am and 12:15pm, guaranteed. If you don’t meet that window (earlier or later where the customers do not need the Pizza), you deliver the Pizza for free to the customer order. Anything outside this 30-minute window we will consider a “defect” because it doesn’t meet our delivery guarantee. In the normal curve below, we have included all the deliveries for the past month and marked off our goal time period. The curve shows us how many deliveries are within that goal and how many fell outside the goal time.

Normal curve with customer specifications • • •

•

• •

•

We have seen that 68% of the data falls within the area of -1 Sigma and +1 Sigma on either side of the mean. The area between the red lines in figure 2 indicates +/- 1 Sigma, or 68% of the data. So if you deliver your Pizza on time 68% of the time, you could call yourself a 1 Sigma Pizza Delivery shop.

If you deliver your Pizza on time 95% of the time you are at a 2 sigma level where you would still have approximately 45,500 defects! Imagine a credit card company sending one million bills each month and 45,500 were late each month! This is the impact that Six Sigma Quality can have on the bottom line of a company! How about on-time deliveries of 99.73%? That’s only operating at a 3 sigma level. Don’t think you can get much better? In order to be at a six sigma level you would have to deliver on time 99.9997% of the time. So that means for every million deliveries made, you would only be late 2 or 3 times. What an operation! ©2015 MakeMeWise. All Rights Reserved. Visit our website: www.makemewise.org

Six Sigma process capability 98.930%Good (3.8 Sigma)

99.99966% Good(6 Sigma)

20,000 lost articles of mail per hour

Seven articles lost per hour

Unsafe drinking water for almost 15 minutes each day

One unsafe minute every seven months

5,000 incorrect surgical operations per week

1.7 incorrect operations per week

Two short or long landings at most major airports each day

One short or long landing every five years

200,000 wrong drug prescriptions each year

68 wrong prescriptions per year

No electricity for almost seven hours each month

3. KNOW YOUR CUSTOMERS

Know your customer What does my customer need from our process?

How would my customer like for our process to perform?

How is our process performance from the customer perspective?

What can we do better?

How does my customer measure my process?

Outside-in Perspective The Eye Of The Beholder

•

Customer View Of Service Provider’s Contribution

We must understand the customer’s perspective and expectations regardless of how much of it we currently own or control.

Process •

•

Regardless of whether we can control or impact portions of the customer’s process today, we are often judged based on the performance of the customer’s process. We may perfect our process so that we perform consistently and without defects. But the customer may see us as part of a broader process that does not perform to their expectations.

Process

Service Provider’s Traditional View Of Its Contribution

Understanding key terms Unit

Defect

Defect Opportunity

Defective

Critical to Quality (CTQ)

• The item produced or processed

• Any event that does not meet the specifications of a CTQ • Any event which can be measured that provides a chance of not meeting a customer requirement

• A unit with one or more defects

Application

Critical Field with missing Info.

# Critical Fields on the Application

1 Defective Unit with 3 Defects out of 7 Defect opportunities

• Customer performance requirements of a product or service

VoC to CTQ Consumer Cue

Technical requirements

• Renovated Code must reach at specified time • Call-takers must be available to answer calls

• 99% of times the schedules should be adhered to. • A call-taker must answer 95% of all incoming calls (Telephone promptness)

CTQ or System of CTQs

• Schedule Adherence • Answer rate (% of incoming calls answered)

Before a Six Sigma Project can begin, the “Voice of the Customer” must be translated into the Technical Requirement - CTQ.

CTQ Flowdown Bigger Ys

Voice Of The Employee

• Deliver Services and Quality meeting GE needs • e-GDC

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

Process Ys

• First Time Right • Link • Time To Resolution • Delivery Variance • Security audit score • Transition promises kept • Job monitoring # of resources meeting the skills/Total # of people # of hardware software resources meeting reqt/total # of reqt of hardware software # of projects with documentation/Total # of maintenance & production project # of accepted CVs/Total # of CVs

Voice Of The Shareholder

Voice Of The Customer

Y Y Y Y

Key output metrics that summarize process performance

Project Y

Key project metric defined from the customer perspective

Arriving at process sigma Identify the CTQs Define defect opportunities

Look for defects in products or services Arrive at DPMO

Convert DPMO to Sigma

Sigma Level

Defects per Million of Opportunity

ď ł

PPM

2 3 4 5 6

308,537 66,807 6,210 233 3.4

Methodologies to achieve Six Sigma

Design •DMADV – Design for Six Sigma

Improvement

Management

•DMAIC – Improve to Six Sigma

•Ongoing Process Management

DMAIC or DMADV?

• • •

Customer need Business process pain Productivity loss

Do you know solution?

Yes

`Consider alternate solutions

No Baseline process exists?

Do DMADV

Yes

Are incremental benefits sufficient to meet objective?

Are you sure it’s best solution?

Yes

Yes Just do it ! Not a Six Sigma project

4. OVERVIEW OF DMAIC

What is DMAIC Define

Measure

Analyze

Improve

Control

•A Five-step approach to process improvement •Can be used for both incremental and exponential improvement projects

Define in DMAIC Define

Team Chartering • Project charter • Project scope • Milestones • Roles

Measure

Customer focus • Translate VOC to requirements • Translate requirements • CTQs

Analyze

Improve

Control

Process mapping • SIPOC

Measure in DMAIC Define

Measures • Input measures • Process measures • Output measures

Measure

Data collections • 4 step data collection process

Analyze

Variation • Graphical display of data

Improve

Control

6Sigma and process capability • Calculate process capability

Analyze in DMAIC Define

Measure

Identify possible causes

Narrow to root causes

• Data stratification • Process map analysis • Cause and effect diagrams

• Hypothesis testing • Regression analysis

Analyze

Improve

Control

Quantify the opportunity • Determine the financial benefits

Improve in DMAIC Define

Identify and test solutions • Generate ideas • Synthesize solutions • Screen solutions

Measure

Refine solutions • Potential problem analysis • Error proofing • Robust design • FMEA

Analyze

Pilot solutions • Pilot planning Verification of results

Improve

Control

Justify solution • Cost benefit analysis • Sr. management approval

Control in DMAIC Define

Control plan • Process documentation • Monitoring plan • Response plan

Measure

Analyze

Implementation plan • Implementation plan • Implement solution • Monitor the process • Control charts and new process baselines

Improve

Control

Close project • Transition to the process owner • Translate learnings • Project closure

5. OVERVIEW OF DFSS AND DMADV

What is DMADV or DFSS Define

Measure

Analyze

Design

Verify

•Design for Six Sigma (DFSS) is a systematic methodology which includes tools, training, and measurements which enables us to design products and processes that meet customer expectations and can be produced at a 6 Sigma level. •DMADV is the methodology used to implement Design For Six Sigma (DFSS) process. This is Mapped to the SDLC Phases

Define in DMADV Define

Business Objective • Project Charter • New product / service concept • Business case

Measure

Project scope • Multi Generation Project Plan • Project Budget

Analyze

Design

Verify

Project Management • Project Plan • Design package • Change Acceleration Process Plan • Communication plan

Measure in DMADV Define

Determine customer needs • Voice of the customer • Customer Research plan • Interviews, Focus Groups, surveys Observations

Measure

Prioritize and specify CTQs • Quality Function Deployment • Performance Benchmarking

Analyze

Design

Verify

Customer / Internal Risk • Failure Mode & Effects Analysis

Analyze in DMADV Define

Measure

Develop product / Service • Functional Analysis • Benchmarking • Brainstorming

Prioritize and specify CTQs

• Process maps • Information System design • Human system design • Parameter & Tolerance Design

Analyze

Design

Verify

Customer / Internal risk • Alternative Selection • Cost/ Benefit analysis • Failure mode & effects analysis • Simulation • Design Review • Product / Service Risk assessment

Design in DMADV Define

Measure

Detailed process design • Functional Analysis • Structure trees • Benchmarking • Process maps • Layout diagrams • Information system design • Human system design • Parameter & Tolerance Design

Analyze

Simulation and Reviews • Alternative selection • Cost/ Benefit analysis • Failure mode & effects analysis (FMEA) • Simulation • Design Review • Product/ Service Risk assessment

Design

Verify

Control and verification planning • Pilot Test Plan • Control Plan • Process Management Chart • Risk assessment

Verify in DMADV Define

Measure

Analyze

Design

Verify

Pilot Test and

Production process

Transition to

Analysis

Implementation

Process Owners

• Pilot Testing and Evaluation • Implementation planning • Transition plan

• Communication plan • Stability and capability evaluations • Defect, DPMO*, DPU*, opportunity • Yield

• Control Plans • Process Management Charts • Standards and Procedures • Run/ Control Charts • MGPP

DMAIC vs DMADV DMAIC

DMADV

• Define - Determine Project Objectives, Scope, Resources, Constraints, collect VOC, AS-IS process map

• Define - Determine Project Objectives, Scope, Resources, Constraints

• Measure - Determine CTQ’s, Gage R&R, Obtain Data To Quantify Process Performance • Analyze - Analyze Data To Identify Root Causes Of Defects • Improve - Intervene In The Process To Improve Performance • Control - Implement A Control System To Maintain Performance Over Time

• Measure - Determine CTQ’s, Gage R&R • Analyze - Develop Design Concepts, And High-Level Design • Design - Develop Detailed Design, Implementation and Integration • Verify - Check Completed Design, Transition to Customer

6. DRIVING CHANGE AND MAKING IT LAST - CAP

Change Acceleration Process â&#x20AC;&#x201C; The Need

Q*A=E

* Quality of Six Sigma solution times its Acceptance = Effectiveness

Technical Change

Business Results

CAP Complements Technical Strategy With Cultural Tools To Achieve The Change Initiative Organization or Cultural change

7. INTRODUCTION TO LEAN

What is lean? Accelerates the velocity of a process bringing out faster results

Reduces the cost of any process (service or manufacturing) by removing waste

Contains a well-defined set of tools to • Control the activities / steps / flows in a process • Reduce the number of activities / steps / flows • Reduce the quantity of activities / steps / flows in a process • Eliminate NVA cost driven by those activities / steps / flows

Lean principles Value

Value Stream

• Value is defined by the customer and expressed in terms of a specific product, which meets the customer's needs at a specific price at a specific time. • The value stream is the set of all the specific actions required to bring a specific product from input to output

Flow

• Make the value creating steps move continuously. Perform Work Balancing, Leveling and Standardization.

Pull

• Let the customer pull the product as needed. Opposite to the Push method which would result in more Inventory

Perfection

7 Wastes defined in lean 1. Transport • Unnecessary movements of goods/product due to poor layout etc. 2. Inventory • Finished and/or unfinished goods that are not having value added to them. 3. Motion • Unnecessary movement of people/machines when working in a process. 4. Waiting • Unnecessary waiting of people, machines or goods in a process. 5. Over processing • Processing to a standard that exceeds the requirement of the customer. 6. Overproduction (leads to all the other Wastes!) • To produce at a faster rate than the customer actually requires.

Six Sigma Vs Lean Six Sigma

• Six sigma attacks problems with a range of statistically based, problem solving tools. Six sigma has no inherent pull-versus-push philosophy or inventory reduction foundation built into it. • Six Sigma is focused on reducing variation and achieving uniform process results, which leads to less waste, less throughput time and less inventory • Six Sigma = Reduced process variation • Understand customer requirements • Focus on critical to quality variables

Lean

• Lean installs a philosophy and practice of waste reduction that attacks all of the wastes with the intent to create a self-regulating, pull system that has minimal inventory. • Lean is primarily concerned with eliminating waste, shortening lead time and improving flow, which leads to less variation, uniform output and less inventory • Lean = Improved process flow and reduce waste • Understand what customer sees as “value” • Eliminate everything that does not add value

Six Sigma Vs Lean Six Sigma • Six Sigma is most closely associated with defects and quality • Six Sigma does not contain any tools to control lead time (e.g., Pull systems), or tools specific to the reduction of lead time (e.g., setup reduction). • Six Sigma reduces variation of value added (Accuracy)

Lean • Lean is linked to speed, efficiency, and waste. • Lean provides tools to reduce lead-time of any process and eliminate non-value add cost.

• Lean exposes NVA/VA and makes value added flow (Speed). • Lean does not have an expert model.

• Six Sigma has an expert model- Yellow belt, Green Belt, Black belt, Master Black belt

Need for Lean Six Sigma The combination of Six Sigma and Lean can fulfil all three goals

The processes of all companies and organizations must: • Become faster and more responsive to customers. • Achieve Six Sigma capability . • Operate at world class cost

Speed

Performance

Lean exposes NVA/VA and makes value added flow (Speed). Six Sigma reduces variation of value added (Accuracy). Thus, the combination of Six Sigma and Lean can fulfill all three goals.

Accuracy

Need for Lean Six Sigma Most companies using both methodologies began by applying basic lean-manufacturing techniques -- the 5Ss, standardized work and the elimination of waste. As the organizations reduced waste and cycle time , they discovered the need for even more advanced methods of uncovering the root cause of abnormalities. Once lean techniques eliminate much of the noise from a process, Six Sigma offers a sequential problem-solving procedure using statistical tools so that potential causes are not overlooked, and viable solutions to chronic problems can be discovered.

"If you do just Six Sigma, you're not going to maximize the potential of your organization. You have to do both," --- Mike Carnell, President of Six Sigma Applications.

End of Module 1: SIX SIGMA AWARENESS No part of this document may be reproduced in any form without the written permission of MakeMeWise Education Services Pvt Ltd.

Permission can be requested at support@makemewise.org