6s

Why is Six sigma important

to us?
Why Change?

Six sigma development programme - YB

Do you remember these Companies?

FRANCIS BARNET JAMES LANCHESTER RILEY

DOT SUNBEAM COVENTRY EAGLE GREEVES
O.K. SUPREME COTTON STANDARD JOWETT
SINGER ALLARD VELLOCETTE DOUGLAS
AC NORTON SCOTT B.S.A.
HILLMAN ARMSTRONG SIDDLEY MATCHLESS A.J.S.
BERKLEY ARIEL A.B.C. RELIANT
VINCENT BROUGH TALBOT VILLIERS
EXCELSIOR WOLSELEY ROYAL ENFIELD
Why Change – reason 1

 Your washing machine breaks down and you go to your local

electrical store to purchase a new one. You examine the
products on offer and find the following:
 Product 1: Machine looks great but on closer examination
you find that the door, seal and hinges are flimsy

 Product 2: Machine looks good and comes in a choice of

colours. Door, seal and hinges are reasonable but drum grinds when
rotated. Hoses are of poor quality and small hairline cracks can be seen

 Product 3: Machine is average in looks and is only offered

in two colours. Machine is robust and door, seal, hinges and pipe-work are
of good quality
 Which product would you buy?
Quality is one of the three main purchasing criteria
used by us all when buying appliances.
Why Change – reason 2

 Your washing machine breaks down and you go to your local

electrical store to purchase a new one. You examine the
products on offer and find the following:
 Product 1: Machine looks great but on closer examination
you find that the door, seal and hinges are flimsy Product costs £350

 Product 2: Machine looks good and comes in a choice of

colours. Door, seal and hinges are reasonable but drum grinds when
rotated. Hoses are of poor quality and small hairline cracks can be seen
Product costs £300

 Product 3: Machine is average in looks and is only offered

in two colours. Machine is robust and door, seal, hinges and pipe-work are
of good quality Product costs £450.
 Which product would you buy?
Cost is one of the three main purchasing criteria
used by us all when buying appliances.
Why Change – reason 3

 Your washing machine breaks down and you go to your local

electrical store to purchase a new one. You examine the
products on offer and find the following:
 Product 1: Machine looks great but on closer examination
you find that the door, seal and hinges are flimsy. Product costs £350 You
will have to wait 3 weeks for delivery
 Product 2: Machine looks good and comes in a choice of
colours. Door, seal and hinges are reasonable but drum grinds when
rotated. Hoses are of poor quality and small hairline cracks can be seen.
Product costs £300 You will have to wait 1 week for delivery
 Product 3: Machine is average in looks and is only offered
in two colours. Machine is robust and door, seal, hinges and pipe-work are
of good quality. Product costs £450 You can take product with you
 Which product would you buy?

Delivery is one of the three main purchasing criteria

used by us all when buying appliances.
Why Change – Survival

 Our Customers operate to the same rules as you do

 The Quality, Cost and Delivery of our products will be compared to those
of our competitors and then a decision will be made on what to purchase

 We can no longer rely on the loyalty of our customers

 To keep market share we offer incentives which reduces our profitability

 If we don’t change we may eventually be added to the list of failed

companies

 More and more of our Competitors are using Six sigma to improve

 More and more of our Customers are expecting Six sigma discipline
Securing our Future

Every morning In Africa, a gazelle wakes up;

It knows it must run faster than the fastest lion or it will be killed

Every morning In Africa, a lion wakes up;

It knows it must outrun the slowest gazelle or It will starve to death

It doesn’t matter whether you are a lion or a gazelle: when the sun comes
up, you have to be running
Why do we want Six sigma quality levels?

We’ll discuss what 6 Sigma quality actually means soon

At the moment all we need to know is it’s a measure of

VERY SMALL defect rates (Much smaller than what you
are familiar with)
Why do we want Six sigma quality levels?

 You work 8 hours per shift on a selective soldering process which takes 10
seconds/part
 On a perfect day 2700 parts could be made. Customers need 2500/shift
 Due to soldering problems, half of what you make has to be re-processed
adding another 10 seconds processing time to these parts
 Re-processing time takes 2.5 hours a shift. A loss of 900 parts a shift
 Some of the parts processed have damaged components from previous
operations, some other parts soldered have insufficient joints but these are not
found until final test when the part cost has increased from £2 to £2.50
 Extra processing increases the risk of parts failing early in use due to excess
flux contamination
 Shortages in processing means additional and sometimes late deliveries to
customer happen resulting in customer complaints, and extra shipping costs

Using the Quality, Cost and Delivery headings discuss how

correction of this problem would benefit the company?
Why do we want Six sigma quality levels?
You work 8 hours per shift on a selective
soldering process which takes 10 seconds/part 
On a perfect day 2700 parts could be made.
Customers need 2500/shift
Due to soldering problems, half of what you make 
has to be re-processed adding another 10
seconds processing time to these parts
Re-processing time takes 2.5 hours a shift. A loss 
of 900 parts a shift
Some of the parts processed have damaged
components from previous operations, some
other parts soldered have insufficient joints
but these are not found until final test when
the part cost has increased from £2 to £2.50
Extra processing increases the risk of parts
failing early in use due to excess flux
contamination
Shortages in processing means additional and
sometimes late deliveries to customer happen 
resulting in customer complaints, and extra
shipping costs
 Quality
Good soldering every time
 No damaged or scrapped units
 No risk of early failure in use
Delighted Customers
Cost
 Improved output with less effort required
 Reduction in product cost as assembly
time and wasted materials is less
 Improved margins
 Makes us more competitive
 Reduction in extra delivery costs
 Delighted Customers
 Delivery
No late deliveries
 No short shipped deliveries
 Delighted Customers
How poor quality costs build up

Process inefficiencies
Waste

Scrap and
rework Prevention

Inspection
and test Inspection
and test Scrap and
Prevention rework
Waste

Traditional business costs Six Sigma business costs

Team Working

 Some problems are not easy to fix quickly, many can be

 All problems MUST be fixed
 All problems benefit from YOU being involved in the solution
 You benefit from being part of the solution in job security, being able
to feel proud of your work, feeling part of a successful team, etc.
 Working as a team is key to success
 Communicating as a team is key to success
 Understanding your products is essential
 If each of us working as a team can supply our customers with good
parts the Quality, Cost and Delivery of our products and services will
improve