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Click to edit Master text styles,Second level,Third level,Click to edit Master title style,*,Six Sigma,By Daniel Wu,Ford Lio Ho Motor Company,1,Outline,Quality level,What is Six sigma?,Why we need Six sigma?,Development and Deployment strategy,How Six sigma merges into our daily business?,2,Overview-Four Quality Gurus,Historically companies have focused on quality issues for customer satisfaction,Prior to six sigma there were four key quality gurus that most companies quality programs followed,Deming,Juran,Crosby,Taguchi,3,Deming,Deming taught:,Importance of understanding variation in work processes,Role of management in leading for quality,Application of statistics,Plan-Do-Check-Act,4,Demings Contribution to Profitability,EXTERNAL,INTERNAL,CUSTOMER,SATISFACTION,MARKET,SHARE,PROFIT,PRODUCTIVITY,QUALITY,-,Better products & services,-Improved processes,-,Compete with value,PRICE,-,Compete with Price,-,Decreased cycle time,-Eliminate set-up times,COST,-,Opportunity for profit,PRODUCT QUALITY,PROCESS QUALITY,-,Reduce rework,-Eliminate in-process inspection,-,Reduce scrap,-Increase product life,-Eliminate incoming testing,Plan,Do,Check,Act,5,Juran,Juran taught:,Breakthrough performance,Pareto effect,Importance of management principles,Quality by design and planning,6,Jurans Contribution,Planning,Cost of Poor Quality,(Percent of operating costs),Production Begins,Original zone of process control,New zone of process control,0,20,40,0,Control,Time,Improvement,Lessons Learned,Sporadic,spike from,observed,problem,Chronic Waste,(an opportunity,for improvement),Control,Special cause variation,Common cause variation,7,Crosby,Crosby taught:,Customer requirement is performance standard,Quality maturity is a journey,Preventive action as basic approach,8,Taguchi,Taguchi taught:,Cost of poor quality is loss to society as a whole,Robust quality is designed for consistent production,Design control is more important than production control,9,Taguchis Contribution,Lower Specification Limit,Upper Specification Limit,Nominal Value,Region of,Customer,Complaints,Region of,Customer,Complaints,Region,of,Questionable,Performance,Region,of,Questionable,Performance,Region of,Specified,Performance,Mean,Lower,Control,Limit,Upper,Control,Limit,Region of,Desired,Performance,Cost,10,What Are the Limits to Improvement?,2,Sigma,3,Sigma,4,Sigma,5,Sigma,6,Sigma,Basic Quality Tools,Statistical Tools,Design for Six Sigma (DFSS),Basic Tools Wall,Design Wall,Clean Sheet,11,Challenge in the millennium,Question confronting business leaders and managers:,It is not: “How do we succeed?”,Its: “How do we stay successfully?”,12,Change,“,It is,not,the strongest that survive, nor the fittest,but those,most able to,adapt to change,.”,Charles Darwin,The Origin of Species,“,People do not resist change, people resist being changed.”,Beckhard,13,Challenge,Resistance-the universal reaction to change.,Technical resistance,Political resistance,Organizational resistance,Individual resistance,14,Six Sigma?,Six Sigma is not a business fad tied to a single method or strategy, but rather a flexible system for improved business leadership and performance.,It is not about theory, its about action.,15,Passion + Execution = Fast and Lasting Results,Six Sigma Focus,Delighting the customer through flawless execution,Rapid breakthrough improvement,Advanced breakthrough tools that work,Positive and deep culture change,Real financial results that impact the bottom line,16,Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error,(,Distribution Shifted 1.5,s,),2,308,537,3,66,807,4,6,210,5,233,6,3.4,s,PPM,Process,Capability,Defects per,Million Opp.,Six Sigma corresponds to parts per billion if process is centered,Six Sigma - Goal,17,3,Sigma,6,Sigma,5,Sigma,4,Sigma,93.32 %,99.379 %,99.9767 %,99.99966 %,Historical,Current,Intermediate,Long-term,Sigma,Long-Term Yield,Standard,Six Sigma - Performance Target,18,.,To Produce,Improved Rolled Throughput Yield, Defects Per Unit, & Defects Per Million Opportunity,Reduced Cost of Poor Quality (COPQ),Improved Capacity and Productivity,Reduced Variation In Our Processes / Products,$,s,A Problem Solving Methodology,19,Characterize,Optimize,Breakthrough,USL,T,LSL,USL,T,LSL,T,USL,LSL,USL,LSL,The Strategy,Customer Focused - Both Internally & Externally,20,Which Business Function Needs It?,As long as there is a process that produces an output whether it is,a manufactured product, data, an invoice, etc. we can apply the Six Sigma Breakthrough Strategy. For these processes to perform to a customer standard they require correct inputs!,6,Sigma,Methods,MFG.,DESIGN,SERVICE,ENG,MAINT.,ADMIN.,QA,PURCH.,21,Data is derived from objects, situations, or phenomenon in the form of measurements. Data is used to classify, describe, improve, or control objects, situations, or phenomenon.,1.,We only use experience, not data.,2.,We collect data, but just look at the numbers.,3.,We group the data so as to form charts and graphs.,4.,We use census data with descriptive statistics.,5.,We use sample data with descriptive statistics.,6.,We use sample data with inferential statistics.,Levels of Analysis:,What level are we?,The Foundation of the Six Sigma Tools,22,The Role of Six Sigma,Six sigma is the best means to realize the philosophy, values, and goals associated with your business initiatives.,Region,BA,6,Linking,Pins,Business Area Initiatives,It unifies the initiatives and provides a common language which all people can understand and speak.,23,How Do We Improve Capability,Our Outputs (Ys) are determined by our Inputs (Xs). If we know enough about our Xs we can accurately predict Y without having to measure it.,If we dont know much about our Xs, then we have to resort to inspection and test (non value added operations).,By knowing and controlling the Xs, we reduce the variability in Y, which decrease the number of defects, improves RTY, cycle time, etc. We can also eliminate or reduce inspection, test, and rework.,24,The Sources of Six Sigma Quality,by controlling.,by designing.,Continuously,Reduce,Process,Variability,Tighter Upper,& Lower Limits,Target values,Lower Limits,1.,Design best target for performance,2.,Design system values to reduce variability of performance, -, -, -,Attractive,Implicit,Waste,Expressed,Q1. If provided would you be.,.,indifferent?,.,happy?,Q2. If not provided.,.,indifferent?,.,unhappy?,Q3. If not provided.,.,indifferent?,.,unhappy?, -, -, -, -, -, -, -, -, -,by listening.,.,to what the customer says he/ she wants,.,performance tolerant to real world,.,process variability, not by inspection of defective output,25,Developing and Reinforcing Values,Cycle of,Refinement,VALUES,BEHAVIOR,ATTITUDES,CULTURE,26,The Role of Leadership,New,Questions,New,Values,New,Measures,Leadership,(,Humility/Listening),New,Behaviors,27,Leadership plays the role,Values are a function of behaviors,Measuring the right things is key,Change must be supported and driven from the top,Will is a key element for a successful deployment,28,Why are we here?,“,There is a recognition that leadership needs to be a key component of Consumer Driven 6-Sigma within any organization trying to undertake 6-Sigma deployment.”,Mikel Harry / Richard Schroeder,29,Whats In It For Me?,“,the best statistical analysis in the world is useless if those handling the information are paralyzed by corporate fear. When data suggests one direction but corporate culture or convention dictates another, fear can rule and the potential for change is lost. Only strong leadership can eradicate the fear factor and allow an organization to realize its potential. Statistics alone cannot achieve breakthrough.”,Mikel Harry / Richard Schroeder,30,Define Future State,Leadership in Six Sigma,Orientation,Present State,Future,State,PTS,Leadership Skills,Business,Basics,Project Management,Personal,Development,PTS,PTS,PTS,PTS,DEFINE,MEASURE,ANALYZE,IMPROVE,CONTROL,Define,Plan,Manage,Close,Team Management,Team Development,Meeting Facilitation,Team Management,Develop Transition Plan,Change Management,Analyze Present State,31,Six sigma structure,Strategy Consumer-driven, focus on product, process, and service.,OrganizationAll-function involvement and Personal Development.,PolicyCompany-wide engagement, HR,IT,and Finance support.,ManagementProject, Team, and Change Management.,32,Deployment Structure,Master Black Belts,(Full-Time),Project Champions,(Part-Time),Black Belts,(Full-Time),Green Belts,(Part-Time),Executive Leadership,(Part-Time),Deployment Directors,(Full/Part-Time),33,6,s,Project,Champions,6,s,Deployment,Champion(s),SM,Business Unit Leader,CEO,Corporate 6,s,Senior Champion,SM,HR,Deployment,Champion,SM,IT,Deployment,Champion,SM,Finance,Deployment,Champion,SM,PR,Deployment,Champion,SM,Business,Operations,Leaders,6,s,HR Manager,6,s,Financial Manager,Green Belts,SM,6,s,IT,Manager,Training,Deployment,Champion,SM,6,s,Master,Black Belts,SM,6,s,Comm. Manager,6,s,Training Manager,6,s,Project,Champions,SM,6,s,Black Belts,SM,6,s,Deployment Infrastructure,6,s,Executive Council,Six Sigma Deployment Roles,34,Phase ICascading,Establish deployment structure,Executive, top management, champion awareness training,Black Belt training,Tools implementation training,Leadership training,35,Phase IIAccelerate development,Deployment structure implementation and disposition in each function.,Every salary is GB.,Begin to implant into current quality system.,ISO14000 and QS9000 integration.,36,Phase IIIIntegration,Implant six sigma methodology in other quality tools,Partnership with other quality system.,Six sigma training to supplier and franchise.,Six sigma in daily business.,DFSS(Design for Six Sigma).,BB/MBB in leadership position.,37,It is All about Value,The Customer Value Proposition,Defines,Business Strategy,Customers choose to buy from us because.,Investors entrust their money to us because.,Employees choose to work for us because.,38,Three Customer Value Proposition Strategies,Product differentiation,Operational excellence,Customer partnerships,Competitive advantage!,39,Consumer v.s. Producer,Customers higher expectation,Defect-free quality,Product,Service,Producer -planning for changes to meet customer requirements.,Strategic: changing the way every level of a business is managed on a daily basis.,Tactical: six sigma methodology and cross-functional.,Cultural: out of box thinking, everyone involved and common language is data.,Customers want to purchase high quality products and services at the lowest cost, just as companies want to produce high quality goods and services at the lowest possible cost.,40,Maximizing Customer Value,Deriving value from the Need - Do,Interaction Model,Need,Do,Customers and suppliers exchange value,through the Need-Do interaction.,Customer,Supplier,Interaction,41,Value-Capturing the voice of Customers,Partial Kano Analysis,Degree of Achievement,Customer Satisfaction,Surprise:,“Ergonomically Delighting”,Desire: “Operate Quietly”,Necessities:,“Doesnt Fail Mechanically”,“Doesnt Fail Electrically”,“Is Durable”,Basic,Quality,Performance,Quality,Excitement,Quality,42,Business initiatives,Delivery,Cost,Customer requirements,Quality,When we say something is a CTQ, can we describe it from,Customers perspective?,Our perspective?,Can we demonstrate the relationship?,PRODUCT,QUALITY,SHIPMENT,ACCURACY,CONDITION,FILL RATE/,ON-TIME DELIVERY,ORDER SERVICE/,INFORMATION,PROFITABLE,CUSTOMER,GROWTH,Customer Satisfaction,43,Building the relationship,Internal,Others,External,Segment,Databases from VOC,Data extraction & transformation,Departmental data mart,Intelligence reports for projects,Correlation,analysis,44,Data transformation,What should we do to make it easily accessible as information to managers and subordinates?,What sort of analysis can we conduct?,How does that analysis add value?,How can we further extend the value of our data analysis?,45,Opportunity and alternative,Focus on the best opportunities,Stratify to define target arenas,Define real options,Build a portfolio of opportunities to pursue,Meet customer requirements by running the business as we do?,Or need to change to get prodigious improvement? Six sigma?,46,Consumer-driven six sigma,Requires consumer strategy, product strategy, and infrastructure strategy and link them inextricably together.,Conducts business through the consumers eyes and shares unfiltered insight within the enterprise.,Creates a compelling consumer experience and innovates services as well as products.,Adds value in the eyes of the consumer.,Integrates the product and information.,47,Transforming Customer Feedback Into SAQ and then Six sigma Projects,Single Agenda for Quality and Customer Satisfaction,Top 25 issues,Develop,Actionable Projects,Identify Generic,Critical Xs,High,Mileage,DFSS,New,Product Content,Measure and Monitor Critical Xs,Identify Critical Xs Out of Specification,Develop Action to Restore Critical Xs,MBB,Action,VRT,(Process owner),Black Belt,Project Leader,FPS & Plant Operations,QOS,DMAIC,Green Belt Projects,48,Consumer Driven 6-Sigma,offers a structured problem solving methodology to achieve break-through improvements by systematically identifying root causes and eliminating them using an integrated set of statistical tools, problem solving techniques, data, and disciplines.,Six Sigma in process improvement,Improve,Control,Define,Measure,Analyze,Modify,Design?,No,Yes,Redesign,49,Six Sigma Mindset,D,efine,M,easure,A,nalyze,I,mprove,C,ontrol,What does the customer want?,What is the defect we want to reduce?,Are we sure we can trust the data?,What does the data tell us?,What are the main influencing factors?,Does the data confirm this?,What are we going to change?,Is improvement tangible and optimal?,How are we going to maintain the improvement forever?,How to cascade feedback to system?,Jonathan Holbrook,6 Sigma Deployment,50,DEFINE PROBLEM / ISSUE,Strategy,Prevent defect(s),Eliminate defect(s),CHARACTERIZE,DEFINE,OPTIMIZE,VERIFY,MEASURE,ANALYZE,IMPROVE,CONTROL,Black belt project to,improve mfg. capability,Mfg. process cannot,provide sufficient improvement. Need reduced product sensitivity to mfg. noise.,The Overall Perspective: DMAIC and DCOV,51,Breakthrough Improvement,5,S workplace,Visual Factory,Standardized Work,DMAIC,Quality Tools,Six Sigma Methodology,Phase,World class quality,We cant sustain a visual factory without 5S,We cant sustain standardized work without visual factory,We cant sustain six sigma without standardized work,Quality tool is the engine, Six sigma is Turbo-charge,DFSS,We cant meet six sigma without six sigma discipline,52,Is 6-Sigma a strategic process for your business or is it just one of several?,Is 6-Sigma a means to transforming our culture or just tool?,Do we want to use 6-Sigma in the same disciplined manner as we use our financial operating system?,Do we want to take steps to drive 6-Sigma accountability deep into the organization through 6-Sigma target setting and incentives for superior performance?,Does the data driven step-by-step process show up in the way we address most issues and discussions?,Required Mgt. Confirmation,6-,Sigma viewed as a strategic initiative, driving major cultural changes,Consistent view across management,Accountability for results is enforced by breaking down 6-Sigma targets for each line organization,Rewards and incentives are tied directly to 6-Sigma bottom line results,Adopted by all organizations and functions as the “way we do business” and consistently applied not an option,Standard problem solving approaches and fact/data driven business decisions like a disciplined financial operating system,Best Practice,While leadership articulates 6-Sigma as a strategic initiative, does it show a mixed approach to strategic intent, wide variability,Adoption based on interest of individual line managers implies there is a choice to do it or not,Accountability for 6-Sigma results is not forced either through breaking down to specific targets for line organizations or through incentives for superior 6-Sigma performance,6-Sigma seen as primarily as a tool and not yet as a “way of doing business,”,Observed Practice,Top leadership needs clearly and openly confirm its strategic intent,53,Ending.,Q&A,54,
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