Professional Documents
Culture Documents
Six Sigma Awareness Training
Six Sigma Awareness Training
Course Objectives
The objectives of this workshop are:
To explain the purpose of Six Sigma
and the Six Sigma approach.
To discuss Six Sigma implementation.
To discuss the process for setting up
projects and deploying project teams.
Course Contents
1. Six Sigma Overviews
2. The DMAIC Process Steps and Tools
3. Six Sigma Implementation
4. Collective Decision Making
5. Define: Set Up Projects and Deploy Teams
Section 1
Six Sigma Overview
Six Sigma: What & Why
RESULTS
Six Sigma Approach Key Components
B
Role & Responsibility:
Executive Team Champion
Black Belts
Green Belts
Example : CTQ Tree Sales Orders Sales Lead Time
On Time Delivery
Order Fulfillment
Customer Complaints
Increase Sales Production Output Process Yield
Down Time
Process Efficiency
New Products Time to Market
Market Success Rate
Design Changes
Henry Ford
Six Sigma Benefits
GE Capitals railcar-leasing business achieved 62% reduction in
turnaround time at its repair shops.
Green Belt
Black Belt
Brainstorm Possible Causes
ANALYZE Verify Root Causes
Identify Improvement Solutions
IMPROVE Validate Effectiveness
Establish Control System
CONTROL Share Lessons Learned
The DMAIC Toolkit
Define Measure Analyze Improve Control
Process Map Data Collection Pareto diagram Creativity Control plan
Brainstorming plan Brainstorming Techniques Documentation
Dashboard Histogram Nominal group Selection matrix system
CTQ Drill Distribution technique Design Of Control charts
Down Measurement Scatter plot Experiments On the job
Cause & Effect System Box plot Force field training
Stratification analysis Story board
analysis Analysis
FMEA Potential risks
Pareto diagram Descriptive assessments
Selection Matrix Statistics Process C&E
Stakeholder
Project Charter Run charts matrix analysis
Control Charts Interval Estimate Process
Process Hypothesis Test Capability
Capability Process mapping
and analysis
A] Soft Tools (Team Problem Solving)
Brainstorming
Affinity Diagram
Nominal Group Technique
Decision Matrix
Effectiveness / Practicality Matrix
Quality Function Deployment
Failure Mode and Effect Analysis
Force Field Analysis
B] Hard Tools (Quantitative Data Analysis)
Graphical Tools
Process Capability Study
Measurement System Analysis
Hypothesis Testing
Design Of Experiments
Control Charts
C] Work Process Redesign
Process Mapping
Non-value Add Analysis
7 Principles of Process Redesign
Technology Enabler
Process Streamlining
Should Be Process Map
Input Process Output
D] LEAN
Value Stream Mapping
Seven Major Wastes
Flow-based Processing
Kan ban System
Set-up Reduction
Mistake Proofing
Visual Management
Take Time
Total Productive Maintenance
Six Sigma Key Features
The higher the sigma level, the less likely a process will produce
defects. As sigma increases, costs go down, cycle time goes down,
and customer satisfaction goes up.
Process Variation
Input Process Output
0 10 20 30 40 50 60 (minutes)
Process Variability &Process Capability
Process Output Customer Customer
Variability Requirements Requirements
Defects
Indirect Loss
20 25% Expediting Costs
Ad-hoc meetings
Of Sales
Service Recovery
Corrective Actions
Opportunity For Increasing
Lost Customer Goodwill
Profit Margin
Longer Cycle Time
Process Variability and COPQ
Correlation between an organizations COPQ and variability
of its key processes
COPQ (% of Sales)
40
30
20
10
2 3 4 5 6 Sigma Level
(308538dpmo) (66807dpmo) (6210dpmo) (233dpmo) (3.4dpmo)
Why Six Sigma?
Q: Is the goal of Six Sigma to achieve six sigma level of
quality?
SIPOC Diagram
[ Supplier Inputs Process Outputs Customers ]
Suppliers Customers
Step 2: Set Up Project and Deploy Team
Purpose: To clarify the issue faced within the focus area and deploy
suitable team to tackle the issue.
Here, the champion (usually with the help of his / her people) defines
the problem statement, decide the improvement goal, and select the
project team members.
This helps to make sure that due thoughts are given to make sure
that the project is a valid one.
Project
Project Ideas Sources Charters
Project Charter
Project charter is a document created at the outset of a project
to assign the project to the team.
It is an important tool for building committed project team.
A Team Charter should specify the followings:
- Project title.
- The process involved.
- The business case and problem statement.
- The goal statement.
- Estimated financial benefits.
- Name of Champion.
- Team leader and members.
- Project time line.
The 4 Rights of Successful Project
Right project
Right team composition
Right team process
Right Result
Notes on forming a team :
Team members are to be selected based on the problem statement and the
process to be improved.
Problem Statement :
About 30% of payments are received later than 60 days after
invoices were issued.
Goal Statement :
To reduce the percentage of late payments to less than 5%.
Financial Benefit :
Successful completion of this project will result in an estimated
financial benefit of US$50,000.
Data Collection Plan
Critical To Quality: Payment received on time
Measure: Cycle time from date of invoice issued to date of
payment received (days)
Specification: Not more than 60 days
Process output unit: An invoice
Data source: Account department
Data collection method: Pre-exist data
Sample frame: Three months period from January to March
Sampling method: Random sampling
Number of samples: 60
And Then
Minitab
A powerful data-analyzing software
which can help us have a good
knowledge of current performance
Step 6: Brainstorm All Possible Causes
Purpose: List all possible factors causing the process
performance gap.
Effectiveness
G C
F D
A
Practicality
B
E
Using Force Field Analysis to evaluate in detail the idea of
giving rebate if customers pay on time for those invoices with
high dollar values.
Goal Statement :
To reduce the turn-around-time time to 1 day.
The process :
Orders fulfillment process
Measure
Map Current Process
A] Reduce waiting
- Laboratory tests and visual inspections to be performed
concurrently.
- Store supervisor prints test certificates from computerized
workflow system.
A home appliance company was facing a high number of no-fault found problem.
This occurs when a repair technician is send to look into a fault reported by a customer
and found out that it is not a real fault.After collecting the data to understand the
problem, an effective solution was found. The solution is to get the receptionists to filter
out the non-fault problems. Thos involves training the receptionists to clarify the type
of faults reported by the customers and be able to explain to customers on how to
operate the appliance correctly over the phone.
Banking and Finance
Source : baldrigeplus.com
Finance, Purchasing and Logistics
A hospital form a team to improve the patients discharge process. Many patients
called back the hospital to clarify information on medication, follow-up appointment,
etc. Each time a patient called,the nurses need to spent a substantial amount of time to
retrieve the file, review the files and answer the enquiries. If the patient discharge
process is done right the first time,the patients should not need to call back. Using Six
Sigma methodology, the team reduced the number of call backs.
Section 3
Six Sigma Implementation
The Six Sigma Leap
2 3 4 5 6
Sigma Sigma Sigma Sigma Sigma
Six Sigma Implementation Stages
Executive Briefing & Initial Assessment
Alignment
Follow up on:
- results
- effectiveness of the approach
- extent of deployment
AlliedSignal
Our Vision
We will be one of the worlds premier companies,
distinctive and successful in everything we do.
Our Commitment
We will become a Total Quality Company by
continuously improving all our work processes
to satisfy our internal and external customers.
Iomega
How did we decide on Six Sigma?
We recognize the need for a change in the way we pursue operational
excellence.
VISION
PASSION
ACTION
Guiding Principle for New Work Habit
Want To Do.
- appreciate the purpose
- understand what is in it for me
What To Do.
- approach framework / model
- role and responsibility
How To Do.
- process
- tools
Six Sigma Deployment Committee
Tasked by Senior Executives to implement
Six Sigma in the organization.
Responsibilities:
- promoting - monitoring
- planning - evaluating
- coordinating - reporting
- controlling - recommending
Master Black Belts
Role
Lead Six Sigma implementation committee.
Adviser to senior executives team and champions.
Instructor of Six Sigma training courses.
Coach for Black Belts and Green Belts.
Profile
Business / technical degree, management experience.
Respected member of management.
Master of Six Sigma principles and practices.
Champions Role
Lead the implementation of Six Sigma in their areas.
~95%
( Cumulative )
~75%
Black Belt
~50%
Green Belt
Yellow Belt
Personnel Selection.
Project Selection.
Financial Benefits Calculation.
Project Tracking System.
Black Belt Certification.
Incentive Scheme.
Projects Tracking System
Information to be tracked:
Total number of projects.
The numbers of completed projects and
on-going projects.
The status of each on-going project.
Targeted financial benefits and actual
financial benefits to date.
Projects Review
Objectives:
1. Ensure projects proceed as plan.
2. Present the findings of each phase.
3. Make sure the vigor of Six Sigma
approach is maintained.
4. Discuss the barriers faced.
5. Check correct applications of tools.
Six Sigma Critical Success Factors
The link of Six Sigma to business strategy is clear.
Recognize and manage Six Sigma as a change
initiative.
Understand that Six Sigma is a management
approach, not just a problem solving tool.
Identifying the right focus areas for Improvement.
Selection of key personnel.
Diligent and disciplined use methodology, fact and
data.
Section 4
Collective Decision Making
Why Make Decision Collectively?
A good decision has two basic components: quality and
commitment.
A quality decision takes into account all of the facts and
viewpoints, and makes good use of that information.
When decision is made4 on a collective basis, it pulls
together the skills, knowledge, experience, and opinions
of several people. This produces a decision that is usually
better than the decisions made by individuals.
Knowing how to make collective decision effectively is an
important skill to an organization.
Benefits of Collective Decision Making
B. Round-Robin
- Everyone takes a turn offering an idea.
- Anyone can pass on any turn.
- Continue until there are no more ideas.
- All ideas listed as they are offered.
Multi-voting
A tool for short listing key ideas.
To reduce a long list of items to a manageable
number of items.
Identifying the most popular or highest priority
items to a group a people.
Hardware Environment
Section 5
Define: Set Up Projects
and Deploy Teams
Project Selection Process-Overview
Project Ideas Sources Performance Voice of Cost Reduction
Gap Customer Initiative
Competitive Issues of
Pressure Concern
Project Ideas Sources
Project
Project Ideas Sources Charters
CTQ Drill Down A General Framework
1. Clarify Business Goals and identify key performance
drivers that impact the business goal.
1. Capacity Utilization
2. Inventory Turns
3. Cost of Poor Quality
Example : CTQ Tree Sales Orders Sales Lead Time
On Time Delivery
Order Fulfillment
Customer Complaints
Increase Sales Production Output Process Yield
Down Time
Process Efficiency
New Products Time to Market
Market Success Rate
Design Changes
Fulfillment Rate:
Order Fulfillment Number of ordered items delivered on time
over total number of ordered items ( % ).
Cycle Time:
Lead Time Time interval from order received to
product / service delivery (days).
Criteria of Good Measures
Direct
Relate directly to the characteristic being assessed.
Exact
Can be observed or measured.
00 01 02 J F M A M J J
Characteristics of a Good Feedback System:
2003 Goal
J F M A M J J A S O N D
Step 5: Brainstorm the Causes that Drive the Measures.
Fill the Cause and Effect Diagram with data ( if available ).
Purchasing Others
System Supplies
Step 6: Discuss the relationship between the causes (Xs) and the effect (Y)
to identify vital few factors that drive the measures. For the vital
few causes. identify project ideas that will move the effect (Y) to
the desired level.
Purchasing Others
System Supplies
Step 7: Apply Project Assessment Matrix to the Prioritize
Project Ideas.
Right project
Right team composition
Right team process
Right Result
Right Project
Well selected
- Address important business issue.
Well scoped
- Focus on specific problem or process.
Well defined
- Comprehensive and clear instruction, not a vague idea.
Project Charter
Project Charter is a document created at the outset of a project
to formally assign the project to the team.
It is an important tool for giving clear instruction and getting
commitment from the project team.
A Project Charter provides the following information:
- Project title.
- The process to be improved.
- The business case.
- The problem statement and goal statement.
- Estimated financial benefits.
- Name of Champion, team leader and members.
- Project time line.
Project Title
A brief description of the project.
An idea on what the project is about
Examples:
Examples:
Examples:
Examples:
Analyze
Improve
-------------------------------------------------------------
Control C] Project Closure: Confirm estimated figure
based on actual improvement achieved.
Saving Items - Examples
Cost Reduction - Direct Savings Cost Avoidance
- Material saving - Investment avoidance as a result
- Reduced concession / warranty of increased productivity / capacity
- Expense avoidance as a result of
- Direct labor savings preventative measures
- Reduced scraps and reworks
- Expedited freight cost reduction Incremental Revenue
- Increased sales volumes
Cost Reduction - Indirect Savings - Contribution margin enhancement
- Time savings for indirect Working Capital Reduction
employees - Inventory reduction
- Reduced administrative effort - Receivables reduction
Financial Benefit Guidelines
Guidelines are necessary for: